Safe Financials - Home of the CREST Simulator

Is the Settlement Netting functionality now available in the Crest Simulator?

Yes; As with all CREST enhancements, we made it available ahead of CREST's trialling date. This gave you more flexibility and allowed you to save valuable trialling days with Crest.

I don't do CCP trades, will I be affected?

It depends; The main areas of DEX 10 are Settlement Netting & Direct Input, which are only performed on CCP trades, so if you do not conduct any CCP trades these will not affect you. However, DEX 10 also includes template changes that may need testing. For example there are new versions of GPAP, FSFP, KCAP, QFCQ & ATXP. In addition old versions of FSFQ, QFCQ and ATXQs have been removed, meaning that previously optional versions of these message are now compulsory.

Does my participant have to be setup to use Settlement Netting or Direct Input?

Settlement Netting and Direct input are only applicable on CCP trades, which in turn can only be done once your participant has been added to the CCP/Participant cross reference. If this has not yet been done for your party, then please email us, with the following details:

• Participant ID
• Settlement Firm ID
• TSO Participant ID
• TSO Dealing Capacity
• House/Client Indicator
• Clearing Member ID

If your participant is already setup for CCP testing, then before it can be used for Settlement Netting/Direct Input, a conversion to the DEX 10 database needs to be done. This is required because in DEX 10, CREST have changed the way a member is identified through the SETS feed. In DEX 9.0 this was done using a 'Dealing Firm ID', in DEX 10 it is now held using two fields - 'Settlement Firm ID' and 'TSO Participant ID'.

Will my trades alleged against LCH01 auto-match like trades against SFL?

No; Unfortunately trades alleged against LCH01 are not auto-matched by the simulator. This is to allow greater flexibility in the testing, instead simply email when you would like your CCP trades matched.

How can I set up additional Member Accounts to use in testing?

Either by sending an IMAN message or by emailing us.

Can I set up more than one Member Account?

Yes; We understand that our clients will want to conduct thorough and exhaustive tests and as a result might need to elect several different combinations of options. Again, simply email the Support Desk for help and advice on doing this.

How do I set the 'Allow Settlement Netting' flag and 'Direct Input Indicator' for my member accounts?

As with CREST, it is not possible for you to setup these on your member accounts. Email the Support help-desk for these to be created.

Once I've set up my options, will I be able to change them?

Yes; They can be changed by an IDIA ["Direct Input Indicator"] or an INOA ["Allow Settlement Netting"]. However, as in CREST, any changes made by an INOA will not become active until sanctioned. Please email the Support help-desk when you want this to be performed.

Will the Simulator run the new netting timetable events?

The simulator as a general rule does not follow a CREST timetable, as this would make it's use counterproductive. For example, if we disabled input or stopped settlement during the day, this would interfere with clients testing.

It will be possible to input trades which are applicable for netting throughout the entire day [5:30am to 8:30pm], with these getting added to a rolling net trade when they match. These rolling net transactions can then be created as actual transactions manually or left to be created automatically overnight. To have them created manually, simply email the Support Desk [ /01283 495215] quoting the Net transaction ID or your Participant ID. We will then create the actual net trade or all net trades which are still "rolling" for your party.

At the end of the day [after the simulator closes] all "rolling" net trades for all participants will then be created as actual trades.

How do I test Direct Input? In "the real world" my input would be done via SETS

To be able to get your gross trades entered and then auto matched so they go on to netting [if allowed], we have an internal system by which we can simulate the SETS trade feed. Unfortunately this is not available via the web or other remote means, instead it is operated by the Support staff. To assist the input of these trades though, a pro forma is available from the Support help-desk or from the downloads page of the web site.

My trades are not netting, why is this?

There are a number of different reasons for this:

• The trade is not a DEL
• The member account used is not set up to 'Allow Settlement Netting'.
• The trade is not a CCP trade
• The CCP setup for the Participant has not been converted to DEX 10 .
• The trade has not matched [note: CCP trades do not auto match]
• The trade matched on or after ISD [if trade date was the same as ISD then this will always be true]

How will Settlement Netting affect Corporate Events?

Most corporate event processing will remain the same but the Settlement Netting will impact on how participants process optional and voluntary events. Here is a list of some changes you might want to pay attention to:

• Claims will be raised on matched gross settlement transactions and matched net transactions. Claims will also be raised on unmatched transactions input by [or on behalf] of the CCP.

• With settlement Netting, you will be able to split all claims. This will be possible for ALL Claim transactions and not just for CCP transactions.

• CCP claims will be created with priority of 50 as opposed to non-CCP claims which are created at 0

• With CCP trades, a deletion can only be done by both parties.

• Claims themselves will not be accessed for Settlement Netting.

If a corporate action has options, will I be able to elect different options on different parts of my Net Settlement?

Yes; You will need to input your instructions through ACON messages and may need to split your net settlement into appropriate shapes to allow this.

Will I be able to raise intra-day claims with settlement Netting?

Yes; This process largely remains the same and we can run any Corporate Action type [Claims or Transformations] intraday - Just drop us an email or call.


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	Settlement Netting - Frequently asked questions • Is the Settlement Netting functionality available in the CREST Simulator? • I don't do CCP trades, will I be affected? • Does my participant have to be setup to use Settlement Netting or Direct Input? • Will my trades alleged against LCH01 auto-match like trades against SFL? • How can I set up additional Member Accounts to use in testing? • Can I set up more than one Member Account? • How do I set the 'Allow Settlement Netting' flag and "Direct Input Indicator" for my member accounts? • Once I've set up my options, will I be able to change them? • Will the Simulator run the new netting timetable events? • How do I test Direct Input? In "the real world" my input would be done via SETS • My trades are not netting, why is this? • How will Settlement Netting affect Corporate Events? • If a corporate action has options, will I be able to elect different options on different parts of my Net Settlement? • Will I be able to raise intra-day claims with settlement Netting? Is the Settlement Netting functionality now available in the Crest Simulator? Yes; As with all CREST enhancements, we made it available ahead of CREST's trialling date. This gave you more flexibility and allowed you to save valuable trialling days with Crest. I don't do CCP trades, will I be affected? It depends; The main areas of DEX 10 are Settlement Netting & Direct Input, which are only performed on CCP trades, so if you do not conduct any CCP trades these will not affect you. However, DEX 10 also includes template changes that may need testing. For example there are new versions of GPAP, FSFP, KCAP, QFCQ & ATXP. In addition old versions of FSFQ, QFCQ and ATXQs have been removed, meaning that previously optional versions of these message are now compulsory. Does my participant have to be setup to use Settlement Netting or Direct Input? Settlement Netting and Direct input are only applicable on CCP trades, which in turn can only be done once your participant has been added to the CCP/Participant cross reference. If this has not yet been done for your party, then please email us, with the following details: • Participant ID • Settlement Firm ID • TSO Participant ID • TSO Dealing Capacity • House/Client Indicator • Clearing Member ID If your participant is already setup for CCP testing, then before it can be used for Settlement Netting/Direct Input, a conversion to the DEX 10 database needs to be done. This is required because in DEX 10, CREST have changed the way a member is identified through the SETS feed. In DEX 9.0 this was done using a 'Dealing Firm ID', in DEX 10 it is now held using two fields - 'Settlement Firm ID' and 'TSO Participant ID'. Will my trades alleged against LCH01 auto-match like trades against SFL? No; Unfortunately trades alleged against LCH01 are not auto-matched by the simulator. This is to allow greater flexibility in the testing, instead simply email when you would like your CCP trades matched. How can I set up additional Member Accounts to use in testing? Either by sending an IMAN message or by emailing us. Can I set up more than one Member Account? Yes; We understand that our clients will want to conduct thorough and exhaustive tests and as a result might need to elect several different combinations of options. Again, simply email the Support Desk for help and advice on doing this. How do I set the 'Allow Settlement Netting' flag and 'Direct Input Indicator' for my member accounts? As with CREST, it is not possible for you to setup these on your member accounts. Email the Support help-desk for these to be created. Once I've set up my options, will I be able to change them? Yes; They can be changed by an IDIA ["Direct Input Indicator"] or an INOA ["Allow Settlement Netting"]. However, as in CREST, any changes made by an INOA will not become active until sanctioned. Please email the Support help-desk when you want this to be performed. Will the Simulator run the new netting timetable events? The simulator as a general rule does not follow a CREST timetable, as this would make it's use counterproductive. For example, if we disabled input or stopped settlement during the day, this would interfere with clients testing. It will be possible to input trades which are applicable for netting throughout the entire day [5:30am to 8:30pm], with these getting added to a rolling net trade when they match. These rolling net transactions can then be created as actual transactions manually or left to be created automatically overnight. To have them created manually, simply email the Support Desk [ /01283 495215] quoting the Net transaction ID or your Participant ID. We will then create the actual net trade or all net trades which are still "rolling" for your party. At the end of the day [after the simulator closes] all "rolling" net trades for all participants will then be created as actual trades. How do I test Direct Input? In "the real world" my input would be done via SETS To be able to get your gross trades entered and then auto matched so they go on to netting [if allowed], we have an internal system by which we can simulate the SETS trade feed. Unfortunately this is not available via the web or other remote means, instead it is operated by the Support staff. To assist the input of these trades though, a pro forma is available from the Support help-desk or from the downloads page of the web site. My trades are not netting, why is this? There are a number of different reasons for this: • The trade is not a DEL • The member account used is not set up to 'Allow Settlement Netting'. • The trade is not a CCP trade • The CCP setup for the Participant has not been converted to DEX 10 . • The trade has not matched [note: CCP trades do not auto match] • The trade matched on or after ISD [if trade date was the same as ISD then this will always be true] How will Settlement Netting affect Corporate Events? Most corporate event processing will remain the same but the Settlement Netting will impact on how participants process optional and voluntary events. Here is a list of some changes you might want to pay attention to: • Claims will be raised on matched gross settlement transactions and matched net transactions. Claims will also be raised on unmatched transactions input by [or on behalf] of the CCP. • With settlement Netting, you will be able to split all claims. This will be possible for ALL Claim transactions and not just for CCP transactions. • CCP claims will be created with priority of 50 as opposed to non-CCP claims which are created at 0 • With CCP trades, a deletion can only be done by both parties. • Claims themselves will not be accessed for Settlement Netting. If a corporate action has options, will I be able to elect different options on different parts of my Net Settlement? Yes; You will need to input your instructions through ACON messages and may need to split your net settlement into appropriate shapes to allow this. Will I be able to raise intra-day claims with settlement Netting? Yes; This process largely remains the same and we can run any Corporate Action type [Claims or Transformations] intraday - Just drop us an email or call. Back to Top

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