ESES DSD SBI tcm90-182718

Detailed Service Description
26 May 2009
SBI trade confirmation platform
ESES Euroclear Settlement of Euronext-zone Securities
Disclaimer
This ESES Detailed Service Description reflects the information available to Euroclear at the time of publication and does not give rise to any representation or warranty with respect to future services. The Euroclear group of companies reserves the right to modify, amend or supplement the information contained herein. Clients will be duly advised of any material changes to these proposed services through applicable Euroclear documentation.
Contents
1
1.1 1.2 1.3
Introduction....................................................................................................................5
Aim ...................................................................................................................................................... 5 Target audience..................................................................................................................................... 5 Glossary of terms .................................................................................................................................. 5
2
2.1 2.2
General overview............................................................................................................6
Functions .............................................................................................................................................. 6 Operational overview ............................................................................................................................ 6
General principles ..........................................................................................................8

Parties................................................................................................................................................... 8 Broker .............................................................................................................................................. 8 Intermediary ..................................................................................................................................... 9 Account Operator ............................................................................................................................. 9 Intermediary broker .......................................................................................................................... 9 Securities ............................................................................................................................................ 10 Eligible securities on the ESES platform ......................................................................................... 10 Specific process for unit securities................................................................................................... 10 Currencies........................................................................................................................................... 10
3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.3
4 5
Transaction nature.......................................................................................................11 Transaction types .........................................................................................................12

Cash market trades.............................................................................................................................. 12 Deferred settlement service trades ....................................................................................................... 12 Standard transactions (oprations fermes) ..................................................................................... 13 Postponement transactions (oprations de report).......................................................................... 13 SRD transactions resulting from an exercise or an expiry of stock options........................................ 13 Cash loan and security loan transactions.......................................................................................... 14 Pre-accepted transaction notices .......................................................................................................... 14
5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.3
SBI timetable ................................................................................................................15

Cash market trades with settlement...................................................................................................... 15 SRD trades (with settlement)............................................................................................................... 16 Standard transactions and next month settlement (report l bas) transactions............................... 16 Pending settlement (report ici) transactions ....................................................................................... 17 Non-standard timetable (cash market and SRD transactions with settlement)........................................ 17 Transactions without settlement........................................................................................................... 18 Recycling of confirmation and refusal of transactions .......................................................................... 18
6.1 6.2 6.2.1 6.3 6.4 6.5 6.6
7
7.1 7.2
Corporate actions .........................................................................................................19

Cash market trades.............................................................................................................................. 19 SRD trades.......................................................................................................................................... 19
8 9
Settlement of transaction notices.................................................................................20 Account structure.........................................................................................................21
10 Use of SBI transaction notices as electronic VAT invoices.........................................22

10.1 Detailed conditions for using SBI transaction notices as VAT invoices ................................................ 22 10.1.1 Uniqueness of the invoice giving right to VAT deduction ................................................................ 22 10.1.2 Mandatory information ................................................................................................................... 22 10.1.2.1 Name and address of Parties ....................................................................................................... 22 10.1.2.2 Invoice number........................................................................................................................... 23 10.2 Management of the reversal invoices and transparent mandates............................................................ 23
SBI trade confirmation platform 3
10.3 10.4 10.5
Declaration of use of this mechanism................................................................................................... 23 Cancellation of use of this mechanism ................................................................................................. 24 Role of the CSDs ................................................................................................................................ 24
11 Communication ............................................................................................................25
11.1 Computer-to-computer access ............................................................................................................. 25 11.1.1 E2A (Euroclear Access Application) ............................................................................................... 25 11.2 Screen-based access ............................................................................................................................ 25 11.2.1 eRGV ............................................................................................................................................. 25 11.2.2 eSBI workstation ............................................................................................................................ 25 11.3 Summary of means of communication available for SBI ...................................................................... 26
Annexe 1 Annexe 2 Annexe 3 Annexe 4

Annexe 4.1 Annexe 4.2 Annexe 4.3
Messages sent by a Party to SBI.....................................................................27 Messages sent by SBI to a Party.....................................................................28 Types of Party in SBI .....................................................................................29 Process flow charts .........................................................................................30
Broker and intermediary do not use an Account Operator......................................................... 30 Intermediary only uses an Account Operator............................................................................ 31 Broker and intermediary both use an Account Operator............................................................ 32
Annexe 5
Conditions set by the DLF for using SBI transaction notices as invoices.....33
Annexe 6 Transaction notices used as invoices SBI market system upgrade (broker to custodian trade affirmation system)........................................................................35
1 Introduction
1.1 Aim
This chapter is part of the global documentation offering for Central Securities Depository (CSD) services on the Euroclear Settlement of Euronext-zone Securities (ESES) platform. It gives a complete business overview of the functions related to the optional Socits de Bourses Intermdiaires (SBI) pre-settlement trade confirmation platform since the enhancements that have been made available to ESES users in May 2009. It is at the level of detail required by clients to start implementing their back office changes. The implementation of the MIF directive, the ESES launch, the growing internationalisation of markets and the evolution of user needs require Euroclear France to upgrade the SBI service. It follows on from various consultation and update papers, including: the conclusions of a dedicated market working group and an SBI contact group; and the SBI upgrade project specifications V2.2 dated 5 March 2009.
Note: the timings of the SBI processes are not covered in this chapter. For these timings, refer to the Operational day management chapter of the ESES Detailed Service Description.
1.2
Target audience
This chapter is targeted at ESES Parties of Euroclear Belgium, Euroclear France and Euroclear Nederland in particular, to brokers and intermediaries using proprietary messages that use, or wish to use, the SBI trade confirmation platform.
1.3
Glossary of terms
For a full list of the terms and definitions used within this chapter, refer to the Single Platform glossary on www.euroclear.com.
2 General overview
SBI is a trade confirmation platform used between brokers and their clients (intermediaries).
2.1
Functions
SBI fulfils two main functions: Trade confirmation. After a transaction has been executed, SBI allows the broker to confirm the details of the transaction to the intermediary that sent the order by issuing a transaction notice. This can be a provisional transactional notice or a definitive transaction notice and in the latter case with or without request of settlement generation. The intermediary then either registers its approval using a positive confirmation of the transaction notice, or its refusal using a refusal of the transaction notice; and Generation of settlement transactions for transaction notices with settlement. If the transaction notice with settlement is approved, SBI automatically generates the Delivery Versus Payment (DVP) transaction between the broker account (or its Account Operator that settles SBI transactions on its behalf1) and the intermediary (or its Account Operator that settles SBI transactions on its behalf). For cash market trades, SBI generates gross transactions on the same day evening in the settlement subsystem. For deferred settlement service (Service de Rglement Diffr (SRD)) market trades, SBI generates netted transactions on the evening before the last business day of the month for trades that settle on the last business day of the month.
2.2
Operational overview
Order
Pre Trade
Post Trade
Market Member
(Executing party)
(1)
Execution Notice ( block, simple) Agreement/Refusal) (2)
(3)
Transaction notice
SBI
(6)
Allocations
Intermediary
(order giver)
Agreement/Refusal (4)
Pre Settlement
(5)
(5) Alignment notice
Settlement
Account operator
Settlement System
External Settlement (for example, non-eligible securities)
Account operator
Figure 1.
SBI operational process flow
See section 3.1 Parties on page 8 for a definition of Party types in SBI.
Having executed a trading order (1) on the regulated market, a Multilateral Trading Facility (MTF) or Over-TheCounter (OTC), the broker sends a transaction notice (2) via SBI to inform the principal intermediary of the detailed conditions for the execution (price, time, amount, commissions, taxes, etc.). The intermediary: receives the transaction notices in real time; checks that the information received is consistent with the initial order; and sends back a confirmation or a refusal message (3) via SBI in compliance with the SBI timetable described in section 6 SBI timetable on page 15.
The confirmation of a transaction notice sent in SBI is the formal recognition of the contractual agreement between the two Parties. If the transaction nature allows the settlement, it leads to the automatic transmission of the transaction to the settlement sub-system (5): on the same day, for cash market trades; and on the evening preceding the last business day of the month, for deferred settlement service (SRD) trades.
In the case of a refusal, the transaction notice is cancelled. Where applicable, the broker sends a new transaction notice. Should the intermediary fail to respond by the evening on S-1, SBI sends a forced positive confirmation, except for transaction notices without settlement or transaction notices that do not comply with the standard timetable. For further details of the timetable, refer to section 6 SBI timetable on page 15. An intermediary waiting for a transaction notice may claim it from a broker by sending a transaction notice claim to the broker. This message shows the data of the initial order. Each message sent (transaction notice, confirmation or refusal) is sent simultaneously, directly to the counterparty and to SBI. If the broker is an Indirect Party of ESES and uses another Account Operator to settle SBI transactions on its behalf, SBI sends an immediate notification as soon as a transaction notice has been accepted, to allow the Account Operator to prepare for settlement. Note: for transaction notices with settlement, matching leads to the generation of movements in the settlement sub-system, except in the case of securities listed on NYSE Euronext but not eligible for settlement on the ESES platform. In the latter case, settlement instructions generated by SBI are rejected when entering the settlement sub-system.
3 General principles
3.1 Parties
Access to SBI is available for: investment services providers described in section 3.1.1 Broker on page 15; intermediary Direct Account Holders of ESES (financial intermediaries); indirect Parties of ESES, managing their order books, that requested to subscribe to SBI; and intermediary brokers: these are both brokers and financial intermediaries.
Parties in SBI can request the status of either: broker, in which case they are allowed to send transaction notices only; or intermediary, in which case they are allowed to receive transaction notices only.
In terms of activity type codes: the broker can be a Direct Broker (type 01), an Indirect Broker (type 09) or an Intermediary Broker (type 14); and the intermediary can be a Financial intermediary (type 00), an Intermediary Broker (type 14) or an Indirect Party (type 04).
For more information on activity type codes, refer to section 2.2 of the Reference data chapter of the ESES Detailed Service Description. The same Party code cannot be used for both the sender and the receiver of transaction notices in SBI. However, exceptionally, an Intermediary Broker has the status of both broker and financial intermediary and is allowed to send and receive transaction notices on separate transactions. This type of activity is open only to Direct Parties. Parties are identified in SBI by their Party code (which can be the same code used for other platforms). For further information about any of the Party types, refer to the Reference data chapter of the ESES Detailed Service Description. Also refer to Annex 3, which provides an overview of the Party types in SBI. Membership to SBI is made on a CSD-per-CSD basis. To process transaction notices with settlement, a Party must become an SBI member in Euroclear Belgium, Euroclear France and/or Euroclear Nederland, depending on the securities it wants to trade. To process transaction notices without settlement, a Party must become an SBI member in Euroclear France. 3.1.1 Broker
A broker is an investment service provider and is not necessarily a member of a clearing house. A broker can be an SBI Party if it benefits from one of the following authorisations, as defined by the MiFID Directive:
8
Execution of orders on behalf of clients Dealing on own account Reception and transmission of orders in relation to one or more financial instruments
In particular, a broker that is a member of a Euronext market (Amsterdam, Brussels and/or Paris), or of any MiFID eligible trading venue, can subscribe to SBI provided that it benefits from one of the above authorisations. In SBI, the broker either uses its Euronext member code or a specific code allocated by Euroclear. The broker may subscribe to SBI as either a Direct Party or an Indirect Party. Therefore, the options for participation in SBI are: Direct Party: a broker that settles its SBI transactions on its own account in Euroclear Belgium, Euroclear France, or Euroclear Nederland; or Indirect Party: a broker that settles its SBI transactions on the Euroclear Belgium, Euroclear France or Euroclear Nederland account of the Party that acts on its behalf (an Account Operator). Intermediary
3.1.2
An intermediary is a member institution of Euroclear Belgium, Euroclear France or Euroclear Nederland and manager of its own order book. The intermediary is a Party in SBI. It must be a member of SBI in Euroclear France if it manages transaction notices without settlement. It may, or may not, use the settlement sub-system, and may, or may not, have a securities account in the CSD. The intermediary participates in SBI on the following basis: Direct Party: an intermediary that settles its SBI transactions on its own account in Euroclear Belgium, Euroclear France or Euroclear Nederland Indirect Party: an intermediary that settles its SBI transactions on the Euroclear Belgium, Euroclear France or Euroclear Nederland account of the Direct Party that acts on its behalf (Account Operator). Additionally, several Indirect Party codes can be opened by the same intermediary to be allocated to specific clients or activities Account Operator
3.1.3
An Account Operator is an ESES Party that settles SBI transactions on behalf of brokers or intermediaries (Indirect Parties). The Account Operator: is a Party in the settlement sub-system and uses its status on behalf of Indirect Parties, via a power of attorney; and has a securities account in the CSD where positions of the Indirect Parties are held.
An Account Operator can also act on its own account. In this case, it is referred to as a Direct Party and is able to use SBI for its own transactions and the settlement sub-system for its own securities account. 3.1.4 Intermediary broker
These Parties are both brokers and intermediaries, and are able to send and receive transaction notices. They are necessarily direct Parties in SBI and settle their transactions on their own securities accounts in the CSD.
3.2
3.2.1
Securities
Eligible securities on the ESES platform
Only securities admitted for trading on Euronext Amsterdam, Euronext Brussels and Euronext Paris are eligible for classical transactions with settlement. Securities admitted for trading on NYSE Euronext that are not admitted for settlement on the ESES platform (e.g. some securities listed on the March Libre) are included. For these securities, SBI only allows the confirmation of trades; the related movements are rejected by the settlement sub-system. For transaction notices without settlement, all ISINs can be used, whether or not they are admitted for trading on NYSE Euronext, or for settlement on the ESES platform. If the ISIN is not admitted in the SBI securities database, nor for settlement on the ESES platform, it is routed by the system. In this case, no validity controls are performed by the SBI system. 3.2.2 Specific process for unit securities
All share amounts in ESES/RGV must be whole numbers. In order to handle UCITS accepting share amounts with decimals, a work-around called 'decimalisation' is used. This consists of processing share amounts in units, with one unit being the smallest quantity of a fund share that can be processed. The smallest quantity is set at the level of each individual fund, and is included in the name of the security. For example, one unit of a fund that accepts up to two decimals would represent 0.01 shares. A quantity of 1250 units for such a fund would represent 12.5 shares. This applies to all Parties using the RGV messaging systems (e.g. E2A) and RGV communication tools (e.g. eRGV browser).
3.3
Currencies
For classical transactions with settlement, the only currency admitted in SBI is EUR. Any classical transaction notices that are sent with a currency code other than EUR are rejected. For transactions without settlement, all payment currencies of the ISO 4217 standard are allowed.
10
4 Transaction nature
Transaction notices can have five different natures depending on the value of the field Transaction nature: C = classical (ordinary) transaction notice: confirms in a detailed and definitive way the modalities of execution of a trade. It automatically generates the settlement instructions, and if sent or received by an Indirect Party, generates the alignment notice to the Account Operator. X = single execution notice: its main objective is to give the intermediary that sent the order, the confirmation of modalities of trade execution. It does not generate settlement instructions, and if sent or received by an Indirect Party, does not generate the notification (alignment notice) to the Account Operator. The issue of a notice of simple execution is normally followed by the sending of a definitive transaction notice (C or S), or of separate instructions of settlement. It may, or may not, concern the securities eligible on the ESES platform. Y = block execution notice: its main objective is to give the intermediary that sent the order, the confirmation of modalities of an order of block execution. It does not generate settlement instructions, and if sent or received by an Indirect Party, does not generate the notification (alignment notice) to the Account Operator. The issue of a notice of block execution is normally followed by the sending of messages of allocations by the intermediary, then by transaction notices (C or S) by the broker. It may, or may not, concern the securities eligible on the ESES platform. S = transaction notice without settlement: it confirms in a detailed and definitive way the modalities of execution of a trade. It does not generate settlement instructions either because the security is not eligible for settlement, or by choice of the parties. If sent or received by an Indirect Party, and if the latter specified an Account Operator in its message (transaction notice S, or confirmation of a transaction notice S), it generates the notification (alignment notice) sent to the Account Operator so that the latter can prepare settlement. F = transaction notice exclusively serving as an invoice: its exclusive objective is to establish electronic VAT invoice from the broker towards the intermediary for brokerage fees purposes. It does not generate the settlement instructions, and if sent or received by an Indirect Party, does not generate the notification (alignment notice) to the Account Operator. Considered as automatically confirmed, it does not require counterparty agreement. Note: other transaction natures can also be used as VAT invoice, in addition to their main function (by using the VAT invoice indicator). Transaction notices without settlement (nature of transaction = X, Y, S or F) can only be of cash market type (except SRD).
11
5 Transaction types
5.1 Cash market trades
Trades for which cash settlement is required must be settled no later than three business days after the trade date. These transactions are identified through the following transaction types: AC security buy to be settled at trade date + 3 VC security sell to be settled at trade date + 3
For more information on these transaction types, refer to the Transaction type field section in the ESES RGV Data Dictionary SBI.
5.2
Deferred settlement service trades
Deferred settlement service (SRD) trades allow investors, under certain conditions, to buy and sell the same security several times during a trading month, while settling only the net balance (liquidation period balance) at the end of the period. These transactions are only possible on a limited number of securities that have Euronext Paris as a market of reference. An SRD transaction is traded during the trading month, and is settled on the last business day of the calendar month (L+4). Note: the last business day of a trading month is L (liquidation day); the trading month begins three business days before the last day of the calendar month (L+1), and ends on the fourth business day before the last day of the next calendar month; and the first business day of a trading month is L+1 (postponement day).
Figure 2.
Trading month
12
5.2.1
Standard transactions (oprations fermes)
Standard transactions are traded until L. They are received throughout the trading month and are settled on the last business day of the month (L+4) regardless of the settlement date noted in the transaction notice. Any trade beginning from L+1 corresponds to the new trading month and is settled the month after. Standard transactions are identified as follows: 5.2.2 ARM SRD buy VRM SRD sell Postponement transactions (oprations de report)
Postponement is a mechanism that allows the principal (the Party initiating the trade) to postpone the settlement to the next liquidation period. It entails two distinct transactions (and, therefore, the sending of two transaction notices): pending settlement (report ici): this transaction closes the liquidation period balance for the month (opposite direction transaction). It has a trade date equal to L+1 and is settled on L+4; and next month settlement (report l-bas): this transaction postpones the liquidation period balance to the following month. It is settled on the last day of the following month.
Postponement transactions are identified as follows: 5.2.3 RPA closure of previous SRD buy position before the rollover of a position RPV closure of previous SRD sell position before the rollover of a position ARP opening of new SRD buy position on the next month following the rollover of a position VRP opening of new SRD sell position on the next month following the rollover of a position SRD transactions resulting from an exercise or an expiry of stock options
An option is a contract that gives the right (but not the obligation) to buy or sell a specific amount of a given security during a specified period of time and at a specified price (known as exercise price). These transactions are identified as follows: ARMA SRD buy to be settled at the end of month following the exercise of a call option ARMV SRD buy to be settled at the end of month following the expiry of a put option VRMA SRD sell to be settled at the end of month following the expiry of a call option VRMV SRD sell to be settled at the end of month following the exercise of a put option
To enable the settlement of this type of transaction on L+4, the trade date must be no later than L-2. Any transaction with a date equal to L-1 is considered a next month transaction and the settlement is postponed accordingly to the next liquidation period.
13
5.2.4
Cash loan and security loan transactions
These transactions are identified as follows: AEMPT security loan buy from portfolio on security rollover positions (SRD) VEMPT security loan sell from portfolio on security rollover positions (SRD) AEMPT security loan buy from portfolio for liquidity on security rollover positions (SRD) VEMPT security loan sell from portfolio for liquidity on security rollover positions (SRD)
5.3
Pre-accepted transaction notices
A broker and an intermediary may, by common agreement, decide to exchange pre-accepted transaction notices. These are considered as automatically agreed so they do not require a reply from the intermediary and are immediately sent to the settlement sub-system. The two counterparties that want to use this mechanism must each submit a request in advance to Euroclear Belgium, Euroclear France or Euroclear Nederland. The request must specify the Party that will send the transaction notices (the broker alone, the intermediary alone, or the two Parties together).
14
6 SBI timetable
The matching process in SBI involves: a broker sending a transaction notice; and an intermediary responding by accepting or refusing the transaction notices it receives.
The transaction notice must be sent no later than 30 business days after the trade date (T) and must be answered by the intermediary according to a defined timetable. SBI only processes transaction notices where the date of sending is equal to the date of the processing day. However, transaction notices with a sending date of X that are sent on X + 1 before 12:00 are considered by SBI as having been sent on X. Should the intermediary fail to respond by the evening preceding the settlement date, forced processing applies and SBI sends, depending on the case, a forced positive confirmation or refusal. Transaction notices in SBI are processed in batches (sessions). Currently there are 20 sessions a day between 08:00 and 20:15. For full details of the ESES operational timetable, refer to the Operational day management chapter of the ESES Detailed Service Description.
6.1
Cash market trades with settlement
For transactions on securities requiring a cash settlement, settlement occurs: three days after the trade date if the transaction notice is sent on the trade date or the next day; and the second day after the sending date for transaction notices showing a send date later than T+1.
In all circumstances, the matching (confirmation or refusal by the intermediary) must take place no later than the evening preceding the settlement date, otherwise a forced positive confirmation is obtained. Note: it is possible to input a transaction notice on any day up to T+30.
T
E E=T (1) E
T+1
T+2
C C C E=T+1 (1) C E
T+3
IS S IS S IS S IS S C E=T+2(1) C
T+4
IS S IS S
Table 1. Key
SBI timetable for cash transactions
(1) The transaction notice must be received by SBI before 12:00, otherwise it is rejected T Trade date E Transaction notice send date S Intended settlement date
15
IS Settlement date input in the transaction notice C Forced positive confirmation, if the intermediary does not respond
6.2
SRD trades (with settlement)
As described in section 5.2 Deferred settlement service trades on page 12, settlement of SRD transactions occurs on the last business day of the calendar month (L+4). Note: SRD transactions can only be processed via classic transaction notices. 6.2.1 Standard transactions and next month settlement (report l bas) transactions
Transaction notices relating to these transactions may be sent to SBI throughout the trading month and beyond (within the limit of 30 business days after the trade). Although in theory these transactions should be settled on the last day of the month, the transaction notices must show an input settlement date the same as for an equivalent cash transaction (i.e. T+3 or E+2. For further details, refer to section 6.1 Cash market trades with settlement on page 15). As with cash transactions, a forced positive confirmation is generated on the evening preceding the input settlement date on the transaction notice if the intermediary does not respond, except for non-answered transaction notices sent at L+3, which are automatically rejected.
L
T=L E E=L(1) E
L+1
L+2
C C C E=L+1 (1) E C
L+3
IS IS IS IS C E=L+2 (1) E X C
L+4
S S S S IS S IS S
L+5
L+6
IS E=L+3 (1)(2) C E (2) IS S C IS S
Table 2. Key
SBI timetable for SRD transactions (standard or next month settlement)
(1) The transaction notice must be received by SBI before 12:00, otherwise it is rejected (2) Although the transaction notice is stipulated SRD it is settled in cash L Last day of the liquidation period L+1 First business day of the liquidation period, postponement day L+4 Last business day of the calendar month, settlement of the liquidation period E Transaction notice send date C Forced positive confirmation, if the intermediary does not answer X Forced refusal, if the intermediary does not answer IS Settlement date input in the transaction notice S Intended settlement date
16
6.3
Pending settlement (report ici) transactions
For pending settlement transactions: the trade date must be equal to L+1; any pending settlement transaction notice sent on L+1 or L+2 must be answered before the last SBI session of L+3, otherwise it receives forced positive confirmation on L+3 in the evening; and any transaction notice sent on L+3 must be answered before the last session of L+3, otherwise it receives a forced refusal on L+3 in the evening.
L+1
E
L+2
L+3
C
L+4
IS S IS S IS S C IS S
L+5
L+6
E=L+1(1) E
C C E=L+2 (1) E X
IS E=L+3 (1)(2) E (2) C IS S C IS S
Table 3. Key
SBI timetable for pending settlement transactions
(1) The transaction notice must be received by SBI before 12:00, otherwise it is rejected (2) Although the transaction notice is stipulated SRD, it is settled cash L Last day of the ongoing liquidation period L+1 First business day of the liquidation period, postponement day L+4 Last business day of the calendar month, settlement of the liquidation period E Transaction notice send date C Forced positive confirmation if no answer from intermediary X Forced refusal, if no answer from intermediary IS Settlement date input in the transaction notice S Intended settlement date
6.4
Non-standard timetable (cash market and SRD transactions with settlement)
SBI may receive transaction notices where there are less than three business days between the trade date and the intended settlement date (i.e. where the Parties do not want to use the standard T+3 settlement cycle). In this case, if the transaction notice remains unanswered by the intermediary by the evening preceding the settlement date at the latest, it is automatically rejected by the forced refusal process. Another case exists that could be considered by SBI as a non-standard timetable. This is the case where the transaction notice is sent on the business day before the intended settlement date keyed into the transaction notice (e.g. transaction notice sent in afternoon of T+2 , with a sending date of T+2, and an intended settlement date = T+3). In this case also, if the transaction notice remains unanswered by the intermediary on T+2 evening, it is automatically rejected by the forced refusal process.
SBI trade confirmation platform 17
6.5 Transactions without settlement

Transaction notices without settlement (nature of transaction = X, Y, S, or F) are the object of widened and simplified calendar rules; they can: contain a date of theoretical settlement up to J+35 (J = date of trade); and be issued with same day value (theoretical settlement date = date of trade or theoretical settlement date = send date and date of trade previous to send date).
The following modalities of alignment are applicable to transaction notices without settlement (with the exception of the nature F transaction which is not subject to alignment): Transaction notices without settlement issued before a date of theoretical settlement (D) and not confirmed by D-1 in the evening are subject to a forced refusal on D-1 in the evening. Transaction notices without settlement issued in on day of theoretical settlement, and not confirmed during the day, are recycled until D+2 in the evening, after which, they are subject to a forced refusal.
6.6
Recycling of confirmation and refusal of transactions
In the event of a confirmation being processed by SBI before the corresponding transaction notice is processed, the confirmation is recycled for a maximum of 40 sessions (i.e. approximately two business days). In the event of a refusal being processed by SBI before the transaction notice is processed, the refusal is recycled for a maximum of 40 sessions (i.e. approximately two business days).
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7 Corporate actions
Classical transactions confirmed in SBI are automatically processed for market claims and transformations. There are no market claims and transformations processing for transactions without settlement.
7.1
Cash market trades
Confirmed cash market trades are sent for settlement on the day that they are matched. Market claims and transformations processing then apply to these transactions in the settlement sub-system.
7.2
SRD trades
SBI calls on the market claims and transformations module to adjust accepted SRD trades pending settlement (aligned transaction notice). No market claims are applied, however, when the corporate action is in a currency other than EUR. If the nature of the applied market claim modifies the balance of the liquidation account, the generated DVP modifies the balance of the liquidation account corresponding to the sub-account/collateral indicator used in the SRD movement of origin. For further information, refer to the Market claims and transformations chapter of the ESES Detailed Service Description.
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8 Settlement of transaction notices

The settlement of SBI transactions occurs through the settlement sub-system. Confirmed transaction notices with settlement relating to cash market trades are sent to the settlement sub-system the same evening. They are presented for gross settlement on the settlement date. Confirmed transaction notices relating to SRD trades are sent to the settlement sub-system on the evening preceding the settlement date of the liquidation period (the last business day of the month). Prior to the settlement date and in order to reduce the number of transactions for settlement, SBI operates bilateral netting of transactions for each security and between all counterparty pairs. The netted transactions are then made available to the settlement sub-system. To optimise settlement, SBI transactions are automatically split within the settlement sub-system. For further information on this process, refer to the Settlement sub-system chapter of the ESES Detailed Service Description. Transaction notices without settlement are not passed to the settlement system, which means that, parallel to, or further to their transmission, the counterparts (or their Account Operators) must instruct the corresponding operations of settlement, either on the ESES platform, or in another system.
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9 Account structure
The SBI system manages the complete account structure on the ESES platform (sub-account type, sub-account number, collateral indicator, account nature). The sub-account type, sub-account number, collateral indicator and account nature data are optional. If they are not filled in, default data is used. In the case of a forced agreement or a pre-accepted transaction notice, the brokers data systematically takes default values. The sub-account type, sub-account number, collateral indicator and account nature data are completed by the broker and the intermediary but, as this is confidential data, they are masked in the messages sent to the counterpart. Management of the account structure in SBI has the following consequences for the differed settlement service transactions: Several liquidation accounts (and liquidation account statements) can be produced for the same value, with the same counterpart. For a Party, the number of liquidation accounts (and the number of settlement instructions) depends not only on criteria that are appropriate for it (e.g. number of sub-accounts), but also criteria and choices of its counterparts.
21
10 Use of SBI transaction notices as electronic VAT invoices

The Direction de la Lgislation Fiscale (DLF) (French Tax Policy Directorate) has accepted the use of SBI transaction notices as invoices between the Parties under certain conditions (see Annex 5). The solution put in place in January 2007 for the use of the SBI transaction notices as electronic VAT invoices has been completed and widened in May 2009, when the SBI upgrades were implemented. The conditions set by the DLF are described in the letter of 14 November 2006: Adaptation des rgles de facturation au regard de la TVA concernant les sevices dinvestissement, and in the DLF information sheet of 1 April 2008: Avis d'opr admis comme facture; Evolution du systme de Place SBI (refer to Annex 6). In accordance with the conditions set by the DLF, this section describes how this mechanism is implemented, and defines Euroclear Belgiums, Euroclear Frances and Euroclear Nederlands roles and responsibilities. This chapter of the ESES Detailed Service Description applies to every transaction that is subject to French VAT irrespective of whether the Party to the transaction is a Party of Euroclear Belgium, Euroclear France or Euroclear Nederland.
10.1 Detailed conditions for using SBI transaction notices as VAT invoices
All transaction notices of any type (with or without settlement), may be used as VAT invoices. To identify the transaction notice as a VAT invoice, the SBI system performs a number of checks. In particular, it ensures that the transaction notice contains: an indication clearly identifying it as an invoice; the codes of both counterparties (broker and counterparty electronic invoicing identifier code) have subscribed to the service; and a number of mandatory data (broker intra-EU VAT number, counterparty identifier code, etc.).
10.1.1 Uniqueness of the invoice giving right to VAT deduction To be used as an invoice, the transaction notice must explicitly mention that it is used as such using the VAT invoice indicator. The ESES RGV Data Dictionary SBI describes how to do so. Transaction notices that are not explicitly identified as invoices cannot be used to justify the deduction of VAT linked to the transaction. In this case, only an invoice made according to common law practices can justify the deduction. 10.1.2 Mandatory information For financial transactions deemed to be executed in France, pursuant to article 259B of the Code Gnral des Impts (CGI), the general tax code, transaction notices must include all mandatory information specified by the regulation (see Article 242 nonies A of appendix 2 of the CGI), however subject to the following adaptations. 10.1.2.1 Name and address of Parties The name and address of the broker, and of its client, are replaced by two separate codes allowing their unique identification in the transaction notice. The code taken into account for the broker issuing the invoice corresponds to its SBI party code. The code taken into account for the invoiced client is the electronic invoicing identifier code. It corresponds to the usual client intermediary code if the client has subscribed to SBI. Otherwise, it is a specific code allocated by Euroclear.
22
This data is included and updated in the ESES party database. Euroclear does not verify the veracity, accuracy, completeness or appropriateness of the information communicated by the client. Euroclear shall not be liable if this information proves to be incomplete or inaccurate. The broker is solely liable for the transaction notices it issues as VAT invoices to its clients, tax authorities and any third party. As an exception to the these rules, the broker has the option of indicating its clients name and complete address in the transaction notice if the invoice beneficiary has not submitted a code request to Euroclear. This data is under the brokers responsibility and are not verified or stored by Euroclear. 10.1.2.2 Invoice number A transaction notice used as an invoice is not numbered on a chronological and continuous basis. Its number is determined by the transaction notice reference (field n8, which is a single reference per paired counterparties) and the timestamp recorded by the market system upon receipt of the transaction notice. As operators of the SBI system, CSDs can access all transaction notices issued by the system during the archiving period.
10.2 Management of the reversal invoices and transparent mandates

When a charged operation is cancelled, it gives place normally to the issue of the reversal invoice of sense opposite to the operation of origin. The management of the reversal invoices in the SBI system is possible using the value C (for reversal) for the field Transaction notice type. Reversal transaction notices may be managed via an indicator described in the ESES-SBI Data Dictionary. If this transaction notice is indicated as being a VAT invoice: fees and taxes mentioned in the transaction notice must be considered as being for the debit of the broker and for the credit of the intermediary; the broker must mention the original transaction notice reference; and the reversal transaction notice has the same sense (purchase, sale) as the original transaction notice.
Moreover, when a broker sends a transaction notice, used as an invoice, to a client that acts within a transparent mandate, the broker must clearly indicate the name and address of the constituent or the electronic invoicing identification code.
10.3 Declaration of use of this mechanism

A Party that is already connected to SBI (broker or intermediary) and wants to benefit from this service must first send the relevant form to Euroclear Belgium, Euroclear France or Euroclear Nederland, depending on which entity for which it is a member. Based on this information, Euroclear France keeps a list of all entities that have declared that they will use SBI transaction notices as VAT invoices. This list includes the entities VAT identification numbers. This information may be communicated to the tax authorities in the context of the implementation of invoicing adaptations related to transaction notices used as invoices. For clients that are not SBI members, but are identified on the invoice, intermediaries must complete and send back the related form for their own account. All SBI Parties using this mechanism must inform Euroclear Belgium, Euroclear France or Euroclear Nederland of any changes to the form at least five business days prior to the effective date. Both Parties to the invoice must agree beforehand on the use of SBI transaction notices as invoices to use this mechanism. In accordance with the conditions set by the DLF (see Annex 5), the form of agreement can be freely chosen by the Parties. This bilateral agreement does not need to be communicated to CSDs.
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10.4 Cancellation of use of this mechanism

An SBI Party that wishes to stop using the mechanism must inform Euroclear Belgium, Euroclear France or Euroclear Nederland at least five business days before the effective date.
10.5 Role of the CSDs

With respect to this mechanism, the role of Euroclear Belgiums, Euroclear Frances or Euroclear Nederlands role is limited to the following: Routing of messages between Parties. Note: the ESES Platform does not perform exhaustive checks on message fields related to invoicing data. Therefore, Euroclear Belgium, Euroclear France and Euroclear Nederland cannot be held liable in the event of error or omission in the data input in these fields, and notably in the event of a dispute between two SBI Parties or between tax authorities and an SBI Party that chose to benefit from adaptations related to transaction notices used as invoices; and Archiving transaction notices. Euroclear Belgium, Euroclear France and Euroclear Nederland archive transaction notices according to the SBI system rules. Under no circumstances may this activity substitute the safekeeping and legal archiving requirements applicable to Parties with regard to electronic invoicing.
Additionally, Euroclear France maintains the list of entities that have declared that they are using the mechanism, based on: the usual information transmitted by Parties; and the subscription form to the electronic invoicing service.
Moreover, by declaring that they are using this facility, Parties of Euroclear Belgium and Euroclear Nederland authorise their CSDs to disclose to Euroclear France any information relating to their profile, or their activity as needed by Euroclear France, to fulfil its obligations towards the French Tax Authorities.
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11 Communication
Several solutions are offered by Euroclear for the transmission of both SBI transaction notices messages and information messages relating to their settlement. For details of messages sent to and from SBI, refer to Annexes 1 and 2. For full details of SBI messaging, refer to the ESES RGV Data Dictionary SBI.
11.1 Computer-to-computer access

11.1.1 E2A (Euroclear Access Application) E2A is tailored to large volumes and is available on the SWIFTNet, Radianz and BT Infonet IP (Internet Protocol) networks. It covers the entire range of messages related to SBI transactions and their settlement. It is available in file transfer or message transfer mode.
11.2 Screen-based access

These solutions are tailored to small volumes. 11.2.1 eRGV eRGV covers settlement and fail messages relating to transaction notices only. 11.2.2 eSBI workstation eSBI allows brokers to input transaction notices, and intermediaries to input confirmations or refusals. It also allows the status of messages sent in SBI to be monitored.
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11.3 Summary of means of communication available for SBI

Sender Receiver Message Computer-to-computer access E2A Screen-based access
eSBI
eRGV
Broker
Intermediary
Transaction notice Pre-accepted transaction notice
X X
X X
Intermediary
Broker
Pre-accepted transaction notice Confirmation Refusal Transaction notice claim
X X X X
X X
SBI
Broker and intermediary
Forced positive confirmation Forced refusal Daily report Error
X X X X
Account Operator of the broker Account Operator of the intermediary
Alignment notice to the Account Operator of a broker Alignment notice to the Account Operator of a intermediary Liquidation account statement
Settlement sub-system
Broker and intermediary (or their Account Operator )
Failed SBI transactions Settled SBI transactions
X X
X X
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Annexe 1 Messages sent by a Party to SBI
Message MT 510
Message name Transaction notice
Description Details of a stock exchange transaction addressed by a broker to an intermediary SBI confirmation of a transaction notice transmitted by an intermediary to a broker. SBI confirmations are not required for pre-accepted transaction notices
MT 502
Confirmation
MT 503
Refusal
Refusal of a transaction notice issued by an intermediary to a broker. Refusals are not required for pre-accepted transaction notices
MT 504
Transaction notice claim
Message sent by an intermediary to a broker to claim an expected transaction notice. This message shows all the information related to the executed order
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Annexe 2 Messages sent by SBI to a Party
Message MT 541
Message name Alignment notice to the Account Operator of a broker/Indirect Party Forced positive confirmation
Description Informs the broker Indirect Partys Account Operator of the confirmation, explicit or forced, of a transaction notice sent by the broker/Indirect Party for which it ensures settlement Transmitted by SBI to each Party (broker and intermediary) in the event of processing transaction notices that were not answered (forced procedure), and that do follow the standard calendar Transmitted by SBI to each Party (broker and intermediary) in the event of processing transaction notices that were not answered (forced procedure), and that do not follow the standard calendar Informs an Account Operator that one of its intermediary (Indirect Parties) has confirmed a transaction, and that the corresponding movement is presented to the settlement sub-system for booking on its securities and cash accounts This statement provides a daily net securities and cash balance for SRD trades as from the first day of liquidation. This net balance is calculated by: security; pair of Parties; pair of sub-accounts; pair of collateral indicators; pair of account natures; currency; quantity unit; and theoretical settlement date.
MT 550
MT 551
Forced refusal
MT 552
Alignment notice to the Account Operator of an intermediary/Indirect Party
MT 553
Liquidation account statement
It takes into account corporate actions (market claims and transformations) The liquidation account statement is sent to the two parties concerned (broker and intermediary) after each business day MT 584 SBI daily report A daily report of the transactions carried out by a Party during the day. This message is transmitted by SBI to each Party even if this Party did not exchange any information in the course of the day This message informs the Party that its message previously sent (transaction notice, confirmation, refusal) was not recognised as valid by the platform
MT 595
Error message
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Annexe 3 Types of Party in SBI
Direct Party Member (Affili) (Affili )

Acting on own account Acting on his own account
DeputizedOperator Account participant

( Mandataire ) Mandataire) Acting on behalf of the Acting Party Indirect on behalf of the affili sous mandat
Deputizing member Indirect Party

(Affili sous mandat ) Affili mandat)
Euroclear services Services

Party in SBI SBI SBI Is a participant in the SBI system Does not use SBI on behalf of Indirect Parties* Party in SBI Is a participant in the SBI system
Settlement SETTLEMENT
Party in the settlement sub-system Is participant in the settlement system
Party in the Is participant in the settlement sub-system settlement system and and uses it on behalf of uses it on behalf Indirect Parties of the deputizing members
Does not use the settlement sub-system
Custody CUSTODY
Has a securities account in the CSD Has a securities
Has Has a securities a securities account in the CSD in the CSD account where positions of the Indirect where positions of the Party are heldmember deputizing
Does not have a securities account in the CSD
* If an authorised agent uses SBI for its own account, it is also a Direct Party (affili)
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Annexe 4 Process flow charts

Annexe 4.1 Broker and intermediary do not use an Account Operator
In this case, the broker and the intermediary are Parties in both SBI and the settlement sub-system, and they have their own securities accounts. They do not use an Account Operator.
30
Annexe 4.2 Intermediary only uses an Account Operator

In this case, the broker is a Party in both SBI and the settlement sub-system, and has its own securities account. The intermediary uses an Account Operator.
31
Annexe 4.3 Broker and intermediary both use an Account Operator
32
Annexe 5 Conditions set by the DLF for using SBI transaction notices as invoices
Extract from the DLF paper Adaptation of invoicing rules with regard to VAT concerning investment services (Non-official translation): Directive n 2001/115/CE of 20 December 2001 modified invoicing rules related to value-added tax applicable to transactions executed within the European Community. The provisions of this directive were transposed to internal law by article 17 of amending finance law for 2002 which notably modifies articles 289 and 289 bis of the CGI as of 1 July 2003. Decrees no 2003-632 and 2003-659 of 7 and 18 July 2003 and instruction of 7 August 2003, published in a special issue official tax bulletin, complete the new procedure applicable to invoicing, notably with regard to mandatory information and electronic invoicing conditions. Within the transposition of this directive, it was noted that specificities and practices of the financial industry required the adaptation of certain invoicing requirements. This document lists the different adaptation measures taken in favour of investment service providers on 14 September 2006. Consequently, invoices issued by companies from this industry credit institutions and investment firms are delivered under the following conditions. () II. Adaptation measures specific to broker-dealer services: SBI system transaction notices used as invoices Euroclear Frances SBI system is used by brokers-members to confirm of Euronext Paris to intermediaries the execution of their orders or of their clients orders and generate securities settlement against cash of these orders between brokers and intermediaries accounts. Electronic messages (transaction notices) are sent within this system. In practice, they are also used as a tool to invoice fees owed to brokers by intermediaries. 2.1. Transaction notices can constitute electronic invoices To invoice fees claimed by brokers, operators using the SBI system may use ordinary law paper invoicing or transaction notices generated by this system. In the latter case, transaction notices are recognised as invoices within applicable VAT regulation if the SBI system and operators respect the following conditions: Once transaction notices are sent and received via an electronic system, although they do not constitute invoices secured via an electronic signature or invoices covered by article 289 bis of the CGI, as specified by the AFEI, they do constitute electronic invoices within corresponding provisions of the special issue official tax bulletin of 7 August 2003. Transaction notices are notably covered by rules specified by this instruction as applying to invoices secured via an electronic signature and to invoices complying with the EDI 1 standard2. Consequently: o both at issuer and recipient levels, the SBI system must guarantee authenticity of origin of transaction notices as well as the integrity and durability of their content from the moment they are sent until the expiry of the legal storage period; the recipient must have agreed that the transaction notices it receives constitute electronic invoices; the form of prior agreement is freely chosen by the parties (contract, rider, letter, etc.). However, it
See said official tax bulletin, 267 and 268, 277 to 283, 324 and 325, 332 to 341, 344 to 351.
33
must clearly indicate the recipients intention, as operators may upon their choice, use either transaction notices or ordinary law paper invoices for invoicing (see above); o the message containing the transaction notice, sent and received, must be identical and kept by the sender and the recipient in its original format within the deadlines and under the conditions foreseen by Article L.102 B of the book of tax procedures; and requirements related to the return of the content of electronic invoices and to storage (location and access) covered by said provisions of instruction of 7 August 2003 also apply to messages containing transaction notices.
2.2. Mandatory information For banking and financial transactions deemed to be executed in France pursuant to Article 259 B of the CGI3, transaction notices must include all mandatory information foreseen by the regulation (see Article 242 nonies A of appendix 2 of the general tax code) subject to the following adaptations: To distinguish transaction notices, which operators have decided constitute invoices from others, they are explicitly indicated as such. Of course, transaction notices without this explicit indication cannot be used by the client to justify the deduction of VAT linked to the transaction; in this case, only an invoice made according to ordinary law provisions can justify the deduction. The complete name and address of the broker and its client can be replaced by codes allowing to uniquely identify them; a mapping table, or any other document, allowing to easily compare the complete contact details of the broker and its clients and the code designating them, must be created and continuously updated with changes in the parties identification. Changes made each year to this table or this document must be recorded. The brokers VAT identification number under which services were provided may not appear in the transaction notice if this number is provided in said table or document to the brokers identification data mentioned in the above paragraph. Note: to correctly apply territoriality rules related to concerned services, attention is drawn to the fact that unique codes must be allotted and used to reflect the true conditions of execution of services, notably the identification of the broker that effectively provided the service and of its direct client as well as the location of business or, if applicable, of the stable institution(s) of these two parties (see said DB 3 L 52). Transaction notices used as invoices may not include a unique number based on a chronological and continuous sequence provided that the transaction notice reference including a timestamp guarantees the uniqueness of each transaction notice sent (used as invoice or not) and that the SBI system operator can access, throughout all the legal storage period, all transaction notices sent by this system. The applicable VAT rate must be indicated as appropriately as possible in the electronic transaction notice.
For more information, see appended letter sent on 1 August 2005 to the French banking federation and the administrative documentation (DB) 3 L 52, 7 and following.
34 SBI trade confirmation platform
Annexe 6 Transaction notices used as invoices SBI market system upgrade (broker to custodian trade affirmation system)
Extract from the DLF sheet under reference SEC-D1/08003700D/D1-A dated 1 April 2008 In response to market demand, in 2006 using SBI transaction notices in certain circumstances to invoice brokerage fees from brokers to intermediaries was accepted. Taking into account the growing internationalisation of markets and the evolution of user needs, an upgrade of the SBI system is foreseen (). These foreseen upgrades triggered the following comments, considering that the 2006 conditions for the use of SBI transaction notices as invoices still apply (see DLF letter of 14 September 2006 containing the adaptation of the invoicing rules regarding VAT for investment services under reference SEC-D1/06014728E/D1-A) () I. SBI system scope extension The SBI system is the most commonly used by the Marketplace to confirm and settle market orders. The SBI system is currently limited to the confirmation and settlement of trades on securities listed on the Euronext Paris regulated market. Therefore, these transactions do not cover all the intermediation activity of the Euroclear members. Moreover, the creation of new transaction notices without settlement is envisaged, in order to enable the use of SBI as electronic confirmation system for ESES or non-ESES transactions. This upgrade will enable to extend the use of SBI transaction notices as invoices to a larger part of counterparties, securities and transactions than is currently the case. These new transaction notices without settlement can be considered as invoices according to the applicable VAT invoicing rules provided that they do not differ from the standard SBI transaction notices at the level of the indications they contain. II. Third party invoicing The current mechanism foresees that the institution actually invoiced by the broker is often a different entity than the intermediary receiving the transaction notice. In order to enable the use of the SBI system as invoicing system for indirect parties to the system, these should be mentioned in the transaction notice in a standardised manner. A new SBI message format will allow the broker to inscribe the beneficiary of the invoice in a standardised manner; (). It is stated that a code (identifying electronic invoicing) will be allocated by Euroclear to identify the counterparty invoiced or its account operator. It can either be the usual code of a Euroclear party (member or sub-member), or a code specifically allocated by Euroclear to an institution exclusively for its electronic invoicing service subscription. Transaction notices exclusively used as invoices can be considered as invoices in accordance with fiscal regulations, subject to the following conditions: The code attributed by Euroclear to an institution exclusively for its electronic invoicing service subscription must be unique. A correspondence table, or any other document, allowing the easy comparison of all contact details of the invoiced institutions (full name and address) and the code that designates them must be created and regularly updated to reflect changes to the identification of these institutions; The final beneficiary of the invoice must have accepted that the transaction notices it receives constitute electronic invoices under the conditions set out in the letter of 14 November 2006;
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If the invoiced institution is not subscribed to the invoicing system or in case of a transparent mandate, the "final beneficiary" field must contain the full name, address (and the VAT number)4 of the final beneficiary.
III. Reversal transaction notice The current system does not allow for the management of corrective invoices or credit notes. For the management of credit invoices in SBI, a new transaction notice is created mentioning Reversal and indicating the reference of the original transaction notice. According to the rules for issuing corrective invoices and credit notes, it is foreseen that these documents explicitly refer to the original invoice (invoice number and date). In this case, it is accepted for practical reasons that the "Reversal" transaction notices only refer to the original transaction notice. ()
This requirement was suppressed by the DLF (Letter of 4 June 2008 addressed to Euroclear) : "In accordance with the stipulations of article 242 nonies A of annex II of the general tax code (CGI) mentioning the VAT number of the beneficiary is not mandatory in case of services mentioned in article 259 B of the CGI. However, attention is drawn to the fact that the elements on the transaction notices used as invoices must allow for correct application of the territoriality rules related to VAT applicable to these services.
36

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Detailed Service Description

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

General principles ..........................................................................................................8

3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.3

Transaction nature.......................................................................................................11 Transaction types .........................................................................................................12

5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.3

SBI timetable ................................................................................................................15

6.1 6.2 6.2.1 6.3 6.4 6.5 6.6

Corporate actions .........................................................................................................19

Settlement of transaction notices.................................................................................20 Account structure.........................................................................................................21

10 Use of SBI transaction notices as electronic VAT invoices.........................................22

ESES Euroclear Settlement of Euronext-zone Securities

10.3 10.4 10.5

Annexe 1 Annexe 2 Annexe 3 Annexe 4

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Execution Notice ( block, simple) Agreement/Refusal) (2)

(5) Alignment notice

SBI operational process flow

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Deferred settlement service trades

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Standard transactions (oprations fermes)

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Cash loan and security loan transactions

Pre-accepted transaction notices

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Cash market trades with settlement

SBI timetable for cash transactions

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

SRD trades (with settlement)

IS E=L+3 (1)(2) C E (2) IS S C IS S

SBI timetable for SRD transactions (standard or next month settlement)

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities

Pending settlement (report ici) transactions

IS E=L+3 (1)(2) E (2) C IS S C IS S

SBI timetable for pending settlement transactions

Non-standard timetable (cash market and SRD transactions with settlement)

ESES Euroclear Settlement of Euronext-zone Securities

6.5 Transactions without settlement

Recycling of confirmation and refusal of transactions

SBI trade confirmation platform

ESES Euroclear Settlement of Euronext-zone Securities