Introduction of a system solution to avoid penalty payments from CSDR regulation
Introduction of a system solution to avoid or administrate penalty payments resulting from CSDR regulation for a major Austrian bank.
BE STF AT has made the following contributions to implement the penalty regime in GEOS:
- Analysis of CSDR requirements and creating a solution concept for GEOS and all surrounding systems
- Definition of the required message flow based on SWIFT
- Requirement specification for the vendor and monitoring of the development and implementation
- Adaptation and parameterization of GEOS and the surrounding systems to achieve STP processing of the penalty regime
- Comprehensive test support for all required test phases
The solution and key benefits
Penalty payments are incurred if the bank cannot fulfil its securities settlements in the market on time. These penalties should be avoided. However, if they do occur, they must be managed and allocated to the originators.
Without implementation of this project, the bank would not have been CSDR compliant. There would have been no process in place to avoid or settle these payments, which would have resulted in higher costs in securities settlement.
BE STF AT provided project support during conception, implementation, test and go-live. CSDR regulation was implemented efficiently and additional costs in securities processing were avoided.