Second Level Check

Settlement Parties validations for the ‘Sold’ side of the deal

During the check, the system will verify the following:

The Delivery Agent (Field 53) is the BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
If the participant type of the counterparty is ‘Third Party’ or if the party is a CLS Participant but not maintained in the ‘CLS Directory’, then the Intermediary (Field 56) is the BIC of the CLS Bank as maintained in the CLS Directory (for CLS Participant Type ‘CLS Bank’).
If the counterparty is a Settlement Member, then the Receiving Agent (Field 57) is the BIC of the CLS bank as maintained in the ‘CLS Directory’ (for CLS Participant Type ‘CLS Bank’).
If the counterparty is a ‘Third Party’ participant, then the Receiving Agent is the BIC of the Settlement Member for the ‘Third Party’ as maintained in the ‘CLS Directory’. The Intermediary will be the BIC of the CLS Bank.
If the counterparty is a ‘CLS Participant’ but not maintained in the ‘CLS Directory’, then the Receiving Agent/Account with Institution is maintained in the ‘CLS Directory’. The Intermediary is the BIC of the CLS Bank.

Settlement Parties validations for the Bought side of the deal

The following verifications will be done by the system:

The Delivery Agent (Field 53) is same as Field 57 of the ‘Sold’ side.
The Intermediary (Field 56) is the BIC of the CLS Bank as maintained in the ‘CLS Directory’ (for CLS Participant Type CLS Bank).
The Receiving Agent (Field 57) is the BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.

If the second level check fails, the system will display the over-ride message as “‘This will not be saved as a CLS Deal. OK to proceed?”\

If you choose ‘OK’, the system will proceed with the deal with module as FX. There will be no settlement re-pickup in this case.
If you ‘CANCEL’ the over-ride, you have the option to make the required corrections so as to satisfy the second level check.

On successful completion of the second level check, the deal will be marked as ‘CLS Eligible’.

The following tables list the settlement fields, for deals between the Third Party (Oracle Banking Treasury Management Branch) and different counterparty types:

Table 6-9 Deal between the Third Party and Counterparty type 'Settlement Member'

Settlement Field	Field Value
Sender	Ourselves (Third Party)
Receiver	Counter Party (Settlement Member)
Bought Side	The following entries are of the Bought Side.
53 (Delivery Agent)	CLSBUS33 (obtained from the CLS Directory for CLS Participant Type CLS Bank.
56 (Intermediary)	CLSBUS33
57 (Receiving Agent)	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
Sold Side	The following entries are of the Sold Side.
53	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
57	CLSBUS33

Table 6-10 Deal between the Third Party and Counterparty type Third Party

Settlement Field	Field Value
Sender	Ourselves (Third Party)
Receiver	Counter Party (Settlement Member)
Brought Side	The following entries are of the Brought Side.
53	BIC of their Settlement Member.
56	CLSBUS33
57	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
Sold Side	The following entries are of the Sold Side.
53	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
56	CLSBUS33
57	BIC of their Settlement Member

Table 6-11 Deal between the Third Party and Counterparty type CLS Participant where the counterparty neither a Settlement Member or a Third Party

Settlement Field	Field Value
Sender	Ourselves (Third Party)
Receiver	Counter Party (Settlement Member)
Brought Side	The following entries are of the Brought Side.
53	BIC of their Settlement Member.
56	CLSBUS33
57	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
Sold Side	The following entries are of the Sold Side.
53	BIC of the Settlement Member as maintained in the ‘FX Branch Parameters – CLS Preferences’ screen.
56	CLSBUS33
57	BIC of their Settlement Member /Third Party BIC.