BaNCS Migration
Transition Approach
1
Ø Migration date:
14-15 September 2013
Introduction
ABN AMRO Clearing Bank N.V. (AACB) has a clear focus on delivering quality products and
services related to securities and derivatives processing. To realise our strategic objectives and
to safeguard our clients’ interests, we have invested in a new central asset servicing platform,
named BaNCS.
The implementation of this new operational platform for clearing, securities safekeeping and
banking services, will allow us to enhance our service offering towards our clients and at the
same time significantly reduce the processing time within our operational units.
BaNCS will have advantages for all AACB clients: substantial service improvement on corporate
actions processing, cash management services, instruction transmission and processing. In
addition to a full suite of SWIFT message types, we will offer account reporting via GRIPChannels, our new electronic reporting and instruction tool.
Please be advised that our top priority is with our clients and as such we have made every effort
to ensure that the migration to BaNCS will run smoothly and with a limited impact on your dayto-day operations.
This document provides you an insight in the anticipated timing, changes and impact related to
the implementation of BaNCS. We kindly invite you to read the document and please feel free to
share the information provided with the appropriate individuals within your organisation, if so
required.
In case you require any further information, please do not hesitate to contact your Relationship
Manager.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 1
2
Table of Content
1.
Introduction ………………………………………………………………………………
1
2.
Table of Content ………………………………………………………………………
2
3.
Transition Timeline Highlights …………………………………………………
3
3.1 Pre Migration Aspects ………………………………………………………………
3
3.2 Migration Weekend
5
…………………………………………………………………
3.3 Post Migration Aspects
……………………………………………………………
7
4.
Checklist ……………………………………………………………………………………
9
5.
Enclosures …………………………………………………………………………………
9
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 2
3
Transition Timeline Highlights
In this section we detail the various important aspects that may affect you before, during and after our system
migration. We summarise what agreements must be in place before the actual migration date, aspects on BIC changes,
when and how we will provide news on the migration process and when we will release specific reporting. We will also
explain how we deal with your pending instructions.
3.1
Pre Migration Aspects
from now - until end of day 13 September 2013
p1 of 2: Pre Migration Aspects - from now - until end of day 13 September 2013
AGREEMENTS
O
O
O
O
O
Signing Contract Transfer Agreement.
Signing Masters Services Agreement and/or Master Clearing Agreement.
Renewal of Power of Attorneys.
Renewal of Side Letters to existing agreements.
Signing GRIP-Channels Agreement (successor of i-Custody Line).
BIC CHANGE
O
RMA exchange.
O
Change of BIC before the migration date from FTSBNL2R to ABNCNL2A.
COMMUNICATION
O Street side switch from BIC FTSBNL2R to ABNCNL2A à already completed beginning of March 2013.
CORPORATE ACTIONS
O Not applicable.
PAYMENTS/CASH/INTEREST
O
O
Optional changes in IBAN format until end of day 15 September 2013.
Optional new cash SSIs (non-EUR and non-third party!)
REFERENTIAL DATA
O
Freeze period à new accounts will not be opened until the actual completion of the migration to BaNCS.
O
Set-up to enable BaNCS reporting via e-mail (corporate actions , interest statement and invoicing).
REPORTING
O
Hard copy output à will be supported until the migration (14 September 2013).
WEB INTERFACE
O
Distribution of GRIP-Channels smart card(s) and card reader(s) .
O
Installation of security certificates, smartcard software and connection to GRIP-Channels (if applicable) .
O
Clients will have the possibility to perform a production connectivity test with GRIP Channels.
O
Authorisation profile set-up in GRIP-Channels will be based upon the current set-up in i-Custody Reporting
and i-Custody Instructing, unless otherwise agreed upon.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 3
Friday 13 September 2013 end of day
AGREEMENTS
O
Not applicable.
BIC CHANGE
O
Not applicable.
p2 of 2: Pre Migration Aspects - Friday 13 September 2013 end of day
COMMUNICATION
O
Not applicable.
CORPORATE ACTIONS
O
MT567 Cancellation message will be issued for corporate events that will be processed on the new
operational platform BaNCS. On Monday 16 September 2013 new MT567 will be issued under a new
corporate event ID.
FEE BILLING
O
O
Settlement fees will be calculated, reported in the 1st week of October and booked on or around 23 October
2013.
Safekeeping fees will be (exceptionally) calculated based on the value of assets under custody as per close
of business Friday 13 September and subsequently booked on or around 23 October 2013.
PAYMENTS/CASH/INTEREST
O
Cash payment instructions with a future value date will be cancelled. Any cash payment instructions
received as from 17h00 CET will be rejected.
REFERENTIAL DATA
O
Not applicable.
REPORTING
O
Close of business output (MT535, MT536, MT537, MT940 and/or MT950) will be sent by the legacy system
from BIC ABNCNL2A.
SETTLEMENTS
O
As of 22h00 CET no new settlement instructions will be processed by the legacy systems. New settlement
instructions will be queued on the new operational platform.
WEB INTERFACE
O
O
i-Custody Reporting will not be accessible as of 20h00 until start of business 16 September 2013.
Instruction functions in i-Custody Instructing are going to be deactivated as of 18h00 CET. Movements
processed in the legacy systems will be updated in i-Custody Reporting.
Instruction and reporting functions in Money Manager for Windows are going to be deactivated.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 4
3.2
Migration Weekend
Saturday 14 September 2013
AGREEMENTS
O
Not applicable.
BIC CHANGE
O
Your cash account numbers are going to be converted from BIC FTSBNL2R to ABNCNL2A. IBAN account
template will be converted from BIC FTSBNL2R – NLxxFTSB0123456789 to BIC ABNCNL2A NLyyABNC0123456789.
COMMUNICATION
O
During the migration weekend communication regarding the status and migration progress will be released
via e-mail. AACB staff will be available via telephone and/or e-mail.
p1 of 2: Migration Weekend - Saturday 14 September 2013
CORPORATE ACTIONS
O
Events with an entitlement date before the migration date but with a pay date after migration date will be
processed in the legacy system and the proceeds will be swept to the client’s account in the new
operational platform.
O
Events with an entitlement date after the migration date will be processed in the new operational platform.
A MT564 will be generated as from Monday 16 September 2013. In case a MT564 was already generated
before the migration date, the new MT564 will have a new event ID in BaNCS.
O
Rights (with ISIN code) will be migrated similar to normal shares. The related corporate event will be
processed on the new operational platform.
MIGRATION OF CLIENT ASSETS
O
Client assets will be transferred from the legacy system onto the new processing platform. No action is
required from the client.
PAYMENTS/CASH/INTEREST
O
Call and time deposits will be terminated in the legacy system and reopened simultaneously in the new
operational system for the remaining period.
O
Accrued interest on will be booked in the legacy system and swept to the new operational platform.
REFERENTIAL DATA
O
Not applicable.
REPORTING
O
There will be no (SWIFT) reporting during the migration weekend.
SETTLEMENTS
O
Close of business any failing and/or pending instructions/transactions are going to be deactivated in the
legacy system and uploaded onto the new processing platform. This process will not impact the street side.
Existing trade references will be retained and reported to the client via the usual swift message types.
O
Existing trade references will be retained and reported to the client via the usual swift message types and
GRIP-Channels, as from Monday 16 September 2013. Instructions that have been pending for 5 business
days (or longer) are going to be cancelled and will not be migrated to the new operational platform.
WEB INTERFACE
O
Reporting functions in i-Custody Reporting and GRIP-Channels are not available.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 5
Sunday 15 September 2013
AGREEMENTS
p2 of 2: Migration Weekend - Sunday 15 September 2013
O
Not applicable.
BIC CHANGE
O
Not applicable.
COMMUNICATION
O
Point of no return reached at 13h00 CET.
CORPORATE ACTIONS
O
Not applicable.
PAYMENTS/CASH/INTEREST
O
IBAN code can be consulted via http://www.ibancalculator.com/ or http://creativeeyes.at/tools/iban.php
REFERENTIAL DATA
O
Not applicable.
REPORTING
O
Not applicable.
SETTLEMENTS
O
Not applicable.
WEB INTERFACE
O
Reporting functions in GRIP-Channels are not yet available.
i-Custody Reporting is available.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 6
3.3
Post Migration Aspects
Monday 16 September 2013
AGREEMENTS
O
Not applicable.
COMMUNICATION
O
Information regarding the final status of the migration will be provided via email.
CORPORATE ACTIONS
O
MT564 and MT567 will be (re)generated from the new operational platform under a new corp. event ID.
FEE BILLING
O
Settlement charges will be booked on a daily basis on the related cash account, unless other arrangements
have been put in place.
P1 of 2: Post Migration Aspects - Monday 16 September 2013
PAYMENTS/CASH/INTEREST
O
As from migration date, clients’ cash account(s) with various currencies or several cash accounts with the
same currencies will benefit from our (new) interest compensation service. Interest will be calculated and
book on a monthly basis. Quarterly and/or yearly calculations and bookings will no longer be available.
O
O
The IBAN account template is BIC ABNCNL2A - NLyyABNC0123456789.
Cash payment instructions must as from today be issued in accordance with the new cash SSIs.
O
Incorrectly formatted cash payment instructions will be rerouted. Rerouted payment instructions could result
in a delay in processing and valuation date. You will be informed of occurrence of incorrectly formatted cash
payment instructions by your account management team.
REFERENTIAL DATA
O
Interest and fees will be booked in the same cash account as currently applicable, unless otherwise agreed
between parties.
REPORTING
O
O
Monthly interest statements will be provided by e-mail. The distribution will be activated upon request.
Hard copy output and fax output will no longer be supported.
The opening cash balance (MT940, MT950 and GRIP-Channels) reflects (if applicable) the combined cash
balances of both custody and clearing accounts as per close of business 13 September 2013.
SETTLEMENTS
O
Clients are expected to submit instructions in accordance with the communicated SWIFT instruction
templates.
O
Existing 10-digit security account numbers remain in place.
WEB INTERFACE
O
O
O
GRIP-Channels is available for reporting and instructing (also for payment instructions) as of 02h00 CET.
Pending corporate events are available in GRIP-Channels as far as the corporate actions have been
migrated. Non-migrated corporate events are available via i-Custody Instructing and Reporting.
The user manual and a flash demo presentation for GRIP-Channels is available via:
http://www.abnamroclearing.com/en/about-us/news-and-views/projects/bancs.html
Clients can continue to use the application Access Online for reporting and to submit payment instructions
using the new IBAN.
O
i-Custody Instructing and Reporting remain accessible for reporting purposes for 1 year. All unsettled
settlement instructions have the status cancelled.
O
Cash related data in i-Custody Reporting will be updated whenever an event has been processed in the
legacy system.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 7
Tuesday 17 September 2013
COMMUNICATION
p2 of 2: Post Migration Aspects –
Tuesday 17 September 2013
O Business as usual.
CORPORATE ACTIONS
O Business as usual.
PAYMENTS/CASH/INTEREST
O Business as usual.
REPORTING
O Business as usual.
SETTLEMENTS
O Business as usual.
WEB INTERFACE
O Business as usual.
O Corporate events processed in the legacy system will be updated in i-Custody Reporting
Tuesday 1 October 2013
p2 of 2: Post Migration Aspects Tuesday 1 October 2013
FEE BILLING
O
Safekeeping fees are from now on based on average positions per instrument over the month instead of
month-end positions.
The valuation of these average positions is based upon:
- The nominal value for fixed income instruments.
O
- The market value of the assets under custody is determined on the 5th business day before the monthend.
If none of the previously mentioned prices are available, the calculation will be based on either the last
O market price or the nominal value (non-listed securities), or the issuing price (warrants).
Floor tariffs, if any, as applied in specific markets/CSDs will be applied.
O
Fee statements for the period of 16 September 2013 until 1 October 2013 are going to be sent in the first
week of October 2013.
REPORTING
O Monthly Interest and invoice reports can be distributed via e-mail.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 8
4. Checklist
This checklist is designed to assist you to be fully prepared for the upcoming migration to the new
operational platform BaNCS.
Is your organisation ready for the impact of the various changes. e.g. change of SWIFT BIC, change of swift
templates and change of web interface?
o
Are your internal systems and processes updated to accommodate the new SWIFT inbound and outbound
message fields which are going to effective as from migration date?
o
GRIP-Channels Agreement have been signed and returned?
o
GRIP-Channels card readers and smart cards have been received and activated?
o
GRIP-Channels software has been installed and you are able to logon?
o
Reporting e-mail addresses have been provided? (corporate action messages, interest statements and
invoicing).
o
Please check all trades in repair status and items which have been referred to you by AACB on the last
business day prior to migration date.
o
Please submit all trade instructions in accordance to the applicable instruction deadline(s) on the last business
day prior to migration date.
o
Please upload periodical and scheduled payments in Access Online for ABNC IBAN (if applicable).
o
5. Enclosures
AACB Cash SSIs & Cash Payment Cut-off Times.
Swift Templates.
ABN AMRO Clearing – Institutional Investor Services
BaNCS Migration Transition Approach – September, 2013 9