Delivery of new GEOS version 7.1
Release 7.1 offers professional T2S features for settlement (e.g. allegement management and transaction linking) for GEOS securities processing service providers. Thus, SDS further increases the compatibility with the pan-European settlement platform TARGET2-Securities (T2S).
Optimised processes in the field of corporate actions provide manifold options to increase efficiency in the back office through improved communication between the market partners.
The efficient processing of exceptional situations is vital for a highly STP-oriented settlement system such as GEOS. Therefore, SDS particularly focuses on GEOS Exception Handling. A wide range of innovations will simplify and speed up recognition and resolution of exceptions and thus shorten STP interruptions.
Securities processing in the euro area is currently characterised by the migration of CSDs to the pan-European settlement platform TARGET2-Securities (T2S).
In release 7.0, T2S-compatible settlement processes were introduced to GEOS. These processes enable GEOS securities firms to carry out core settlement as ICP participants to the usual extent after migration of their CSDs to the pan-European settlement platform TARGET2-Securities.
The current spring release GEOS 7.1 entails T2S extensions based on the latest technological standard. Process optimisations in the supporting settlement area (e.g. allegement, partial settlement and transaction linking) allow for a maximum number of transactions to be settled with minimum risk. Further supporting settlement processes (hold/release, auto-collateralisation) are scheduled for rel. 7.2.
Due to the clearing obligation for derivative transactions according to the European Market Infrastructure Regulation EMIR, the interface for the output of reports to a trade repository was extended by the LEI of the clearing house and the position UTI on the market and customer side. The customer side position UTI can be generated automatically using a new module.
Processing of securities-related events is largely automated in GEOS. Particularly the improved communication between market participants provides approaches for process optimisation:
- Flexible representation of a multitude of market standards for the interpretation of corporate actions notifications
- Precise reconciliation of incoming notifications with provider data
- Override of record date on custodian level
- Import of nil payments
- Separate processing of cash and stock dividends upon subsequent entry of subscription ratio
- Comprehensive and early customer information by incorporating provisional accounting calculation and posting blocks into the pre-advice
- Compact representation of potential entitlement quantities from pending transactions on all notifications of the advice chain (live advice, lifecycle advice, reminder)
The new release includes the option to reserve exceptions, the electronic information exchange between the involved fields of activity for an exception, the automatic transfer to a different field of activity in case of delay and colour coding to distinguish e.g. the cause, originator, status, trade type, equivalent value or the field of activity of an exception.
Nostro offers parallel accounting according to IFRS (International Financial Reporting Standards). As of January 2018, the currently valid IAS39 standard will be replaced by IFRS 9. The most important requirements for the new parallel accounting have already been implemented in release 7.1.