Update on unmatched instructions after DKK joining T2S / VP Securities
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Update on unmatched instructions after DKK joining T2S

09.11.2018

DKK joined T2S Monday 29 October 2018 and the market as a whole is still experiencing an unusual large backlog of unmatched instructions which primarily originates from the first days after the migration. To find root causes for these unmatched instructions, a taskforce with members from VP, Danske Bank, Nordea and SEB has been set up. This is an update on the work in the taskforce. 

In general, we see a need for SSI’s to be in place. A great number of unmatched instructions relates to the SSI’s not having been amended correctly prior to the migration. Market participants experiencing instructions not matching should be in direct contact with their counterpart. 
 
In order to have a common understanding on how to instruct in the Danish market, the document “How to instruct” describes the various setups market participants may have and as a result, how to instruct in the different situations.
 
For now, the taskforce has identified three general situations resulting in instructions not matching which we would like to share with the market.  

Use BIC for identification of SEB’s sub custody clients

As all sub custody clients of SEB (05295/ESSEDKKKXXX) should have BICs, instructions against clients of SEB should not be populated with securities account number references.
 
The document “How to instruct” describes the different ways to instruct towards a non-professional. 

For questions on account set-up or SSIs, please contact SEB Sub Custody Denmark, email subcustody.dk@seb.dk. For questions on specific instructions, please contact SEB Sub Custody Settlement Denmark, email settlement.denmark@seb.se.

NDEAFIHH030 instead of NDEADKKKXXX

Instructions against Nordea’s clients who are non-clearing participants should be instructed against using NDEAFIHH030 as Party 1 BIC.
 
If you have any questions to your instructions against Nordea or how to amend your SSIs, please contact Nordea, email custody.cr.dk@nordea.com

Market practice for 3rd party trades agreed in Finance Denmark

Finance Denmark has agreed on a market practice for 3rd party trades in order to cater for settlement in T2S when the underlying client has a VP account.
 
Nordea and VP have identified a number of instructions not matching against Nordea in the current setup. To solve this issue, Nordea has decided to change their securities account setup for a number of client instructions. The change will take effect from 9 November 2018 and you may experience that you need to re-instruct your side of the trade.
 
The document “How to instruct” describes the different ways to instruct depending on whether the underlying client of Nordea (or others) is managed through a professional T2S account (fondshandlerdepot) or a private T2S account (privatdepot).
 
If you have any questions to your instructions against Nordea or how to amend your SSIs, please contact Nordea, email custody.cr.dk@nordea.com.

Finally, please note that Finance Denmark has asked us to inform you that they will revise the market practice at a later stage.
 
 
On behalf of Danske Bank, Nordea, SEB and VP Securities

 

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