Business Guide GPP Clearing Processing

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Global PAYplus Version 4.6.6
Clearing Processing
Business Guide
Copyright
© 2009-2017 D+H Global Transaction Banking Solutions. All rights reserved. D+H is a trademark of D+H Limited
Partnership.
PROPRIETARY AND CONFIDENTIAL - This document contains information, which contains Confidential and
Know How property of D+H. Disclosure to or use by persons who are not expressly authorized in writing by D+H
is strictly prohibited.
D+H reserves the right to alter the specifications and descriptions in this publication without prior notice. No part
of this publication shall be deemed to be part of any contract or warranty unless specifically incorporated by
reference into such contract or warranty.
All brand or product names are the trademarks or registered trademarks of their respective holders.
The information contained herein is merely descriptive in nature, and does not constitute a binding offer for the
license of the product described herein.
Catalog ID: GPP4.6-00-B31-07-201706
Clearing Processing Version Control
Global PAYplus Business Guide Page 3
Version Control
Version Date Summary of Changes
1.0 Document created with MEPS, Target2, Euro1 and UK CHAPS
2.0 Oct 2015 Added Multi Office setup, Australia RITS PDS, Hong Kong CHATS,
removed Statement Messages section under MEPS
3.0 Dec 2015 Added Australia - RITS PDS, New Zealand - HVCS, Malaysia -
RENTAS and Ripple
4.0 Mar 2015 Added Immediate Payments - NPP and Mass Payments - AC
5.0 Jun 2016 Updated Malaysia - RENTAS
6.0 Dec 2016 Update Australia - NPP, added Mass Payments, Austria - CS.A
7.0 April 2017 Added Australia - Austraclear to Single Payment APAC Clearing;
updated Australia - RITS
Clearing Processing Table of Contents
Global PAYplus Business Guide Page 4
Table of Contents
1 INTRODUCTION ................................................................................................................ 5
1.1 Target Audience........................................................................................................... 5
2 GENERIC CLEARING PROCESSING ................................................................................. 6
2.1 SWIFT Based Message Types and Processing .............................................................. 6
2.1.1 SWIFT Message Types ............................................................................................. 6
2.1.2 FINCopy .................................................................................................................. 7
3 SINGLE PAYMENT CLEARINGS ....................................................................................... 7
3.1 Generic Processing ...................................................................................................... 7
3.1.1 Y-Copy RTGS Flow Processes .................................................................................. 8
3.1.2 Message Types ........................................................................................................ 9
3.2 Single Payment EU Clearing ....................................................................................... 10
3.2.1 TARGET2 .............................................................................................................. 10
3.2.2 EURO1 .................................................................................................................. 16
3.2.3 UK CHAPS............................................................................................................. 21
3.3 Single Payment APAC Clearing .................................................................................. 29
3.3.1 Australia - RITS PDS .............................................................................................. 29
3.3.2 Australia - RITS Austraclear .................................................................................... 38
3.3.3 New Zealand - HVCS .............................................................................................. 51
3.3.4 Hong Kong - CHATS............................................................................................... 58
3.3.5 Singapore - MEPS .................................................................................................. 67
3.3.6 Malaysia - RENTAS ................................................................................................ 71
4 MASS PAYMENT CLEARINGS ........................................................................................ 77
4.1 Mass Payment EU Clearing ........................................................................................ 77
4.1.1 Austria - CS.A ........................................................................................................ 77
4.2 Mass Payment Africa Clearing .................................................................................... 86
4.2.1 South Africa - AC .................................................................................................... 86
4.3 Mass Payment APAC Clearing...................................................................................110
4.3.1 Malaysia - IBG .......................................................................................................110
5 DISTRIBUTED LEDGER PAYMENT PROCESSING .........................................................144
5.1 Clearing Processing on Distributed Payment Environment ...........................................144
5.1.1 Ripple ...................................................................................................................144
APPENDIX A: GLOSSARY .......................................................................................................152
Clearing Processing Introduction
Global PAYplus Business Guide Page 5
1 Introduction
Note: This guide has not yet been certified for GPP V4.6; therefore, there may be inaccuracies in this
document that may require amendments in the future. For more information, please contact your D+H
Project Manager.
This business guide describes the processing of clearing houses (local or regional) and SWIFT certified
by Global PAYplus (GPP). The details provided is additional information specific for the clearings, on top
of the offering, for example, Single Payment, Mass Payment, Immediate Payment.
1.1 Target Audience
This business guide is designed for business analysts and system administrators who need understand
the clearings supported by GPP. It is also of value to anyone who wants to know more about how this
feature is implemented. A basic understanding of GPP functionality is assumed.
For a list of terms and their definitions used in this document, see Appendix A: Glossary.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 6
2 Generic Clearing Processing
2.1 SWIFT Based Message Types and Processing
GPP processes and handles SWIFT payments as described in this section and supports FINcopy and
cross-border SWIFT payments.
2.1.1 SWIFT Message Types
This table lists the SWIFT Message Types supported in GPP.
Note: For format and rules, refer to the SWIFT Book, Category 1 to 9.
Message
Type Sub
Type Description
103 Single customer credit transfer. It may only be used for clean payment
instructions. It conveys a funds transfer instruction in which the ordering
customer and/or the beneficiary customer are non-financial institutions from the
perspective of the Sender.
103 PLS Single customer credit transfer. The PLS refers to payment STP, which allows
the exchange of single customer credit transfers using a restricted set of fields
and format options of the core MT103.
190 Advice of Charges, Interest and Other Adjustments.
191 Request for payment of charges, interest and other expenses.
192
Request for cancellation.
195 Queries.
196 Answers.
198 Inward direct debit and inward credit transfer for HV (high value) payments
199 Free format message - message used by Financial Institution to send or receive
Information.
202 General Financial Institution transfer. It is used to order the movement of funds
to the beneficiary institution.
This message may also be sent to a financial institution servicing multiple
accounts for the Sender to transfer funds between these accounts. In addition, it
can be sent to a financial institution to debit an account of the Sender serviced
by the Receiver and to credit an account, owned by the Sender at an institution
specified in field 57a.
202 COV General Financial Institution transfer.
205 Financial institution transfer execution. It is used to further transmit a funds
transfer instruction domestically.
210 Notice to receive. A notice in advance for the account servicing institution that it
receives funds to be credited to the Sender's account.
290 Advice of charges, interest and other adjustments.
291 Request for payment of charges, interest and other expenses.
292 Request for payment cancellation.
295 Queries.
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Global PAYplus Business Guide Page 7
Message
Type Sub
Type Description
296 Answers.
299 Free Format Message - message used by Financial Institution to send or receive
Information.
900 Confirmation of Debit. Advises an account owner of a debit to its account.
910 Confirmation of Credit. Advises an account owner of a credit to its account.
2.1.2 FINCopy
SWIFTNet is a secure, dedicated, global communication network that supports a range of financial
messaging services, which includes the FIN store-and-forward message-processing service.
FIN provides users with a wide range of message types for transaction and information processing and
settlement. FIN messages consist of structured headers, text, and trailers, and conform to internationally
accepted standards. SWIFT protects the confidentiality, integrity, and authenticity of FIN messages.
FINCopy is a message duplication service. SWIFT developed FINCopy to assist financial communities in
implementing centralized systems, for example, Real-Time Gross Settlement (RTGS) or netting systems.
2.1.2.1 FINCopy Service Modes
The FINCopy service can operate in the following modes:
In Y-Copy mode, FINCopy copies messages to the service administrator, and stores these messages
until it receives authorization or refusal from the service administrator.
In T-Copy mode, FINCopy copies messages to the service administrator and immediately forwards
the messages for delivery to the receiver.
In Bypass mode, FINCopy does not copy the messages to the service administrator
In normal operations, FINCopy operates in either Y-Copy or T-Copy mode. SWIFT reserves Bypass
mode for specific, abnormal situations.
2.1.2.2 FINCopy Service Code
The FINCopy service code parameter is a unique Identifier which the user that participates in a FINCopy
closed user group inserts into field 103 of the user header, to identify a message for FINCopy.
FIN also uses this parameter in undelivered message reports, for the same purpose. Single Payment
Clearings
For a detailed description of the Single Payment flows, use cases and processes, see GPP Business
Guide Single Payment.
2.2 Generic Processing
The selection of a clearing for an outward payment is performed in the MOP selection process.
The identification of the clearing for an inward payment is performed in the debit side processing.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 8
2.2.1 Y-Copy RTGS Flow Processes
This is the flow processes for Y-Copy RTGS. It is the same flow for all Y-Copy RTGS service types (for
example, Target2, EURO1) and supported by GPP.
MT Outward/
Inward Processing
Flow Clearing
Response GPP Queue Comments
103, 103+,
202,
202COV
Outward
to clearing Outward to
clearing before
cut-off time
No response
from clearing Wait
confirmation The queue is
configurable
Outward
to clearing Outward to
clearing before
cut-off time
MT012
(sender
notification)
from clearing
Complete
Outward
to clearing Outward to
clearing before
cut-off time
MT019
(abort
Notification)
from clearing
Reject MT019 is received
when:
SWIFT cannot
deliver the message
to the clearing
The clearing refuses
to settle the
transaction
Clearing accepted
the message but
cannot deliver it to
the receiver
The queue is
configurable
Outward
to clearing Outward to
clearing after
cut-off time
(warehouse in
GPP)
N/A Scheduled
Outward
to clearing Outward to
clearing after
cut-off time (no
warehouse in
GPP)
MT012
(sender
notification)
from clearing
Complete As clearing accepts
future payments up
to 14 business days
in advance
Outward
to clearing Outward to
clearing invalid
format
SWIFT NAK Repair The queue is
configurable
Outward
to clearing Outward to
clearing
duplicate
MT019
(abort
Notification)
from clearing
Reject The queue is
configurable
Outward
to clearing Outward to
clearing but
insufficient
funds
MT019
(abort
Notification)
from clearing
Repair The queue is
configurable
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 9
MT Outward/
Inward Processing
Flow Clearing
Response GPP Queue Comments
103, 103+,
202,
202COV
Inward
from
clearing
Inward STP
payment from
clearing
N/A Complete
Inward
from
clearing
Inward Non-
STP payment
from clearing
N/A Repair GPP send the
payment to manual
intervention queue.
The user can correct
the payment or send
Return/Reject to
clearing
MT012
Inward
from
clearing
Inward MT012 N/A Complete The payment is
matched and added
to original payment.
MT019
Inward
from
clearing
Inward MT019 N/A Reject Payment is matched
and added to original
payment. Original
payment is routed to
Rejected queue.
The queue is
configurable
MT900 Inward
from
clearing
Inward debit
notification N/A Complete The payment is
matched and added
to original payment
MT910
Inward
from
clearing
Inward credit
notification N/A Complete The payment is
matched and added
to original payment
MT940/950 Inward
from
clearing
Inward
statement N/A Complete Update the closing
and available
balance
2.2.2 Message Types
Message types supported for High Value Y copy (SWIFT based Fin messages) clearing are:
MT103
MT103+
MT202
MT202COV
MT012
MT019
MT900
MT910
MT940/950
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 10
2.3 Single Payment EU Clearing
2.3.1 TARGET2
2.3.1.1 Overview
TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System) is the
real-time gross settlement (RTGS) system owned and operated by the Eurosystem. This interbank
payment system is used for the real-time processing of cross-border transfers throughout the European
Union.
TARGET2 is operated on a single technical platform. The business relationships are established between
the TARGET2 users and their National Central Bank. In terms of the value processed, TARGET2 is one
of the largest payment systems in the world.
The TARGET2 directory lists the institutions that can be addressed in TARGET2. It contains Direct and
Indirect participants’ BIC addresses. The Directory provides the routing information for TARGET2
payments and is organized alphabetically by institution.
Additional Information related to TARGET2:
Information Value
FIN Copy service identifier code TGT
Service Type Y-Copy
Currency code EUR
Operating hours of TARGET2 Start of the business day (06:45 19:00)
Night-time settlement (NTS) procedures (19:30 07:00)
Business window (06:45 07:00)
Day trade phase (07:00 18:00)
Cut-off time 17:00: customer payments cut-off time
18:00: interbank payments cut-off time
Special Processing Tag {113:4!x} banking priority
Character 1:
H = highly urgent payment
U = urgent payment
N = normal payment
Character 2:
Y = MT012 requested
N = MT012 not requested
Character 3 + 4: Not used and not checked
In TARGET2, the default value for field 113 is NYNN (normal
payment, MT012 requested)
2.3.1.2 Inward/Outward Processing
2.3.1.2.1 Inward Processing from TARGET2
1. A payment received from TARGET2 has these values:
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 11
o Sender = TARGET2 member BIC
o Fin copy service in field 103 block 3 = TGT
2. When GPP identifies the values in step 1, the Debit MOP is set to TARGET2.
3. Debit MOP validation is performed as per MOP attributes.
4. Debit account is set to TARGET2 settlement account.
2.3.1.2.2 Outward Processing to TARGET2
1. When Target2 is selected as the credit MOP, GPP performs MOP validation.
For example:
o Settlement currency (SWIFT tag 32A) is EUR
o Settlement date (SWIFT tag 32A) is within the range available for TARGET2
o As membership validation is required for TARGET2 (setup in the MOP profile), GPP checks that
the first in credit chain is a member or associate member of TARGET2
2. If validation is successful and MOP TARGET2 is selected by the rule, then GPP sends the payment
with the following enrichments:
o Field 103 in block 3 (Fin copy) is be set to TGT
o Local office BIC (defined as the MOP identifier) is written as the sender in block 1
o Field 113 with a default value of NYNN unless setup differently
SWIFT standard validations are applied on outgoing payments to TARGET2.
Outgoing payments that missed TARGET2 cut-off time and no other relevant MOPs are available are
stored in the Scheduled queue and processed on the next business day.
2.3.1.3 Flow Processes with TARGET2
The flow process for all Y-Copy RTGS is the same and supported by GPP. As TARGET2 is a Y-Copy
service type, see Y-Copy RTGS Flow Processes for a description of the process.
2.3.1.4 Business Setup
Setup Additional Information
System Parameters N/A
Profiles MOP, Cut Off Times, Membership, Identifiers. Profiles
Rules MOP selection, Clearing Cut-off Rules
Permissions N/A
Tasks N/A
Queues N/A
2.3.1.5 Profiles
These are the details of the required setup in GPP profiles for the Clearing Certification.
Note: For a detailed description of all the fields in the profiles, see GPP Online Help.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 12
2.3.1.5.1 Method of Payment Profile - Single Office Setup
To successfully identify the local office and the debit MOP, when an incoming message is received from
TARGET2, the local office’s BIC (provided in Block 1 of the incoming payment) needs to be set as a valid
identifier for this MOP in the MOP profile.
TARGET2 can be setup in GPP as a EUR Method of Payment. A respective MOP selection rule needs to
be created to define the scenarios in which TARGET2 is selected.
These are the specific attributes that need to be defined in the Method of Payment profile for TARGET2
Clearing.
Field Value for TARGET2 Comment
Name TARGET2
Calendar Relevant calendar or no value
MOP Business Date Current business day for the
MOP The business date can be changed
manually or by an end-of-day task
that advances the MOP business
date to the next valid business date
for the MOP.
Currency EUR
Settlement accounting TARGET2 settlement account
Membership Required Must be selected
Membership type MOP
Send outgoing message Must be selected
Settlement account exists Must be selected
Processing Tab
FIN copy service TGT
Communication preferences Wait for confirmation
2.3.1.5.2 Method of Payment Profile - Multi Office Setup
For multi office setup, the list of MOPs in the MOP selection of the indirect Office includes MOP EURO1
as the Multi Office MOP. When this MOP is selected, a payment is sent to EURO1 where the Sender is
the direct participant.
Field Value for Direct Participant Office
Name TARGET2
Calendar Relevant calendar or no value
MOP Business Date Current business day for the MOP
Currency EUR
Settlement accounting TARGET2 settlement account in office Y
Membership Required Must be selected
Membership type MOP
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 13
Field Value for Direct Participant Office
Send outgoing message Must be selected
Settlement account exists Must be selected
Cross Office Must be selected
Processing Tab
FIN copy service TGT
Communication preferences Wait for confirmation
2.3.1.5.3 Cut-off Times Profile
The Cut-off Times profile defines the latest time for transactions to be processed for TARGET2 MOP.
The TARGET2 calendar is required for the TARGET2 Clearing. The calendar sets the holidays and
weekends which are non-working days in Singapore.
The TARGET2 Calendar profile for the office is defined under System Setup > Geographic Settings >
Calendars.
This is the suggested setup with specific attributes that need to be defined in the Cut-off profile for
TARGET2 Clearing.
Field TARGET2 for
Customer Payments TARGET2 for Bank to
Bank Payments Comment
Cut-off name TARGET2_cust TARGET2_B2B
Cut-off type Clearing Clearing
Time zone GMT GMT Time zone for aligning cut-off
times
Description TARGET2 Clearing
Cut-off for customer
payments
TARGET2 Clearing
Cut-off for bank to
bank payments
Cut-off time 17:00 18:00
2.3.1.5.4 Membership Profile
The TARGET2 Membership profile defines whether the payment receiver and sender parties are
members of the clearing house.
These are the specific attributes that need to be defined in the Membership profile for TARGET2 Clearing
for the Singapore office.
Field Value for TARGET2 Comment
MOP TARGET2
Type of
Membership Full member for TARGET2
participants (or associates) This membership record needs to be setup
only for the direct participant
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 14
2.3.1.5.5 Identifiers Profile
The TARGET2 Identifiers profile is used to set up and view the party identifiers and settlement account
information for the MOP.
These are the specific attributes that need to be defined in the Identifiers profile for TARGET2 Clearing.
Field Value for TARGET2 Comment
MOP TARGET2
Identifier Bank BIC
Settlement
account Office, Account number, Currency In a multi office setup the identifier is setup
only for the direct participant office
2.3.1.5.6 User Codes
User codes for liquidity priority codes should be defined for T2 payments tag 113 (for example, BI, NN,
UP).
Field Value for TARGET2 Comment
Type LIQ_PRTY A retrofit is required for versions that do not
have this type, in order to setup field 113 for
T2
Code Example: UP, NN
Description Example: Target2 Banking
priority urgent
2.3.1.6 Rules
These are examples of user-defined rules.
2.3.1.6.1 MOP Selection
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
TARG
ET21 N/A TARGET2
MOP
selection rule
Local
office [Sttl
m
Ccy]
= EUR SET
MOP
Profile
TARGET
2
AND [Msg
tp] IN SWIFT_1
03,
SWIFT_2
02
AND [Cdtr
Agt
ctry]
= DE, FR,
IT, ….
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 15
2.3.1.6.2 Clearing Cut Off
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
TARG
ET2_
Cust
N/A TARGET2
cut off
selection rule
for MT103
Local
office [Cdt
MOP
]
= TARGET2 SET
TARGET
2_cust
cut off
(17:00)
AND [Msg
tp] = SWIFT_1
03
TARG
ET2_
B2B
N/A TARGET2
cut off
selection rule
for MT202
Local
office [Cdt
MOP
]
= TARGET2 SET
TARGET
2_B2B
cut off
(18:00)
AND [Msg
tp] = SWIFT_2
02
2.3.1.6.3 Liquidity Priority Selection Rules
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
TGT_
PRIO
RITY_
1
N/A Set NYNN
priority for all
TGT
payments
Local
office [Cdt
MOP
]
= TARGET2 NN
2.3.1.7 Target2 Directory Upload
The upload task can be executed from the GPP user interface using the option TARGET2 Upload. It uses
the system parameter T2DIRFPATH to locate the TARGET2 Directory file on the server.
The user has two modes of directory upload; Partial and Full. The user can browse for a required
TARGET2 file and click Execute to load it in the system. Based on file naming convention, different files
are shown to the user for different upload types (Full or Partial).
2.3.1.7.1 Target2 Directory Processing
The following validations are performed on an individual record in the file before updating the data in the
Membership table.
Record is skipped if any of its mandatory field is blank.
Record is skipped if the field format does not have a value specified in format standards (for example,
Modification Flag is not A, M, U or D).
Record is skipped if any of the field’s length is more than specified in the format.
Record is skipped if its Valid from Date is greater than Valid to Date.
Record is skipped if Valid from Date of new record is earlier than the Valid from Date of existing
record and the date ranges of these two records overlaps.
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Global PAYplus Business Guide Page 16
2.3.2 EURO1
2.3.2.1 Overview
EURO1 is the only private sector large-value payment system for single same-day euro transactions at a
Pan-European level. The EURO1 system processes transactions of high priority and urgency, and
primarily of large amount, both at a domestic and at a cross-border level.
The service provides a unique RTGS-equivalent multilateral net settlement arrangement, duly approved
by the European Central Bank (ECB).
Additional Information related to EURO1:
Value
FIN Copy service identifier code The User Header, Block 3, of payment messages to be
processed by EURO1, must contain Field 103 set to EBA to
denote processing for processing through the EURO1 Clearing
System.
Service Type Y-Copy
Currency code EUR
Operating hours of EURO1 Settlement Days (also known as Clearing Days) are normally
Monday to Friday each week. The service is processed euro
payments on all days when the TARGET2 system is open to
settle euro payments.
The maximum forward Settlement Day is set to 5 future
Settlement Days (not including the current Settlement Day)
within a maximum of 14 calendar days. Payments sent ahead of
Value Date are validated and stored for future processing.
Cut-off time 16:00
Special Processing This field can be used to identify a prioritized payment. In this
field, four characters are available. If the first character is H or
U, or if the third and fourth characters are UP then this payment
is identified as a prioritized payment.
There is no distinction between the payments marked with H or
U or UP.
In addition, a bank may request that an MT012 Sender
Notification is sent back to them on an individual payment basis.
To receive this, the character 2 of field 113 in the user header in
the sent payment message must be set to Y (any other identifier
is ignored by the central server).
2.3.2.2 Inward/Outward Processing
EURO1 can be setup in GPP as a EUR Method of Payment. A respective MOP selection rule needs to be
created to define the scenarios in which EURO1 is selected.
SWIFT standard validations are applied on outgoing payments to EURO1.
Outgoing payments that missed EURO1 cut-off time and no other relevant MOPs are available, are
stored in the Scheduled queue and processed on the next business day.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 17
2.3.2.2.1 Inward Payments from EURO1
1. A payment received from EURO1 has these values:
a. Sender = EURO1 member BIC
b. Fin copy service in field 103 block 3 = EBA
2. When GPP identifies the values in step 1 the Debit MOP is set to EURO1.
3. Debit MOP validation is performed as per MOP attributes.
4. Debit account is set to EURO1 settlement account.
2.3.2.2.2 Outward Payments to EURO1
To select EURO1 as the credit MOP, GPP performs MOP validation. For example:
Settlement currency (SWIFT tag 32A) is EUR
Settlement date (SWIFT tag 32A) is within the range available for EURO1
As membership validation is required for EURO1 (setup in the MOP profile), GPP checks that the first
in credit chain is a member or associate member of EURO1
o If validation is successful and MOP EURO1 is selected by the rule, then GPP sends the payment
with the following enrichments:
Field 103 in block 3 is set to EBA
Local office BIC (defined as the MOP identifier) is defined as the sender in block 1
2.3.2.3 Flow Processes with EURO1
The flow process for all Y-Copy RTGS is the same and supported by GPP. As Target2 is a Y-Copy
service type, see Y-Copy RTGS Flow Processes for a description of the process.
2.3.2.4 Business Setup
Setup Additional Information
System Parameters N/A
Profiles MOP, Cut Off Times, Membership, Identifiers. Profiles
Rules
MOP selection, Clearing Cut-off
Rules
Permissions N/A
Tasks N/A
Queues N/A
2.3.2.4.1 Profiles
These are the details of the required setup in GPP profiles for the Clearing Certification.
Note: For a detailed description of all the fields in the profiles, see GPP Online Help.
2.3.2.4.1.1 Method of Payment Profile - Single Office Setup
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 18
To successfully identify the local office and the debit MOP, when an incoming message is received from
EURO1, the local office’s BIC (provided in Block 1 of the incoming payment) needs to be set as a valid
identifier for this MOP in the MOP profile.
These are the specific attributes that need to be defined in the Method of Payment profile for EURO1
Clearing.
Field Value for EURO1 Comment
Name EURO1
Calendar Relevant calendar or no
value
MOP Business
Date Current business day for
the MOP The business date can be changed manually or by
an end-of-day task that advances the MOP business
date to the next valid business date for the MOP.
Currency EUR
Settlement
accounting EURO1 settlement
account
Membership
Required Must be selected
Membership type MOP
Send outgoing
message Must be selected
Settlement
account exists Must be selected
Processing Tab
FIN copy service EBA
Communication
preferences Wait for confirmation
2.3.2.4.1.2 Method of Payment Profile - Multi Office Setup
For multi office setup, the list of MOPs in the MOP selection of the indirect Office includes MOP EURO1
as the Multi Office MOP. When this MOP is selected, a payment is sent to EURO1 where the Sender is
the direct participant.
Field Value for Direct Participant Office
Name EURO1
Calendar Relevant calendar or no value
MOP Business Date Current business day for the MOP
Currency
EUR
Settlement accounting EURO1 settlement account in office Y
Membership Required Must be selected
Membership type MOP
Send outgoing message Must be selected
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 19
Field Value for Direct Participant Office
Settlement account exists Must be selected
Cross Office Must be selected
Processing Tab
FIN copy service EBA
Communication preferences Wait for confirmation
2.3.2.4.1.3 Cut-off Times Profile
The Cut-off Times profile defines the latest time for transactions to be processed for EURO1 MOP.
The EURO1 calendar is required for the EURO1 Clearing. The calendar sets the holidays and weekends
which are non-working days.
The EURO1 Calendar profile for the office is defined under System Setup > Geographic Settings >
Calendars.
This is the suggested setup with specific attributes that need to be defined in the Cut-off profile for
EURO1 Clearing.
Field EURO1 for
Customer Payments EURO1 for Bank to
Bank Payments Comment
Cut-off name EURO1_cust EURO1_B2B
Cut-off type Clearing Clearing
Time zone GMT GMT Time zone for aligning cut-off
times
Description EURO1 Clearing Cut-
off for customer
payments
EURO1 Clearing
Cut-off for bank to
bank payments
Cut-off time 16:00 16:00
2.3.2.4.1.4 Membership Profile
The EURO1 Membership profile defines whether the payment receiver and sender parties are members
of the clearing house.
These are the specific attributes that need to be defined in the Membership profile for EURO1 Clearing.
Field Value for EURO1 Comment
MOP EURO1
Type of
Membership Full member for EURO1
participants (or associates)
2.3.2.4.1.5 Identifiers Profile
The EURO1 Identifiers profile is used to set up and view the party identifiers and settlement account
information for the MOP.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 20
These are the specific attributes that need to be defined in the Identifiers profile for EURO1 Clearing.
Field Value for EURO1 Comment
MOP EURO1
Identifier Bank BIC
Settlement
account Office, Account number,
Currency In a multi-office setup, the identifier is defined only
for the direct participant office
2.3.2.4.1.6 User Codes
User codes for liquidity priority codes should be defined for EURO1 payments tag 113 (for example, 25,
40, 42, 45).
Field Value for EURO1 Comment
Type LIQ_PRTY A retrofit is required for versions that do not have this type,
in order to setup field 113 for EURO1.
Code Example: UP
Description Example: EURO1
Banking priority
urgent
2.3.2.4.2 Rules
These are examples of user defined rules.
2.3.2.4.2.1 MOP Selection
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
EURO
1_1 N/A EURO1 MOP
selection rule Local
office [Sttl
m
Ccy]
= EUR SET
MOP
Profile
EURO1
AND [Msg
tp] IN SWIFT_1
03,
SWIFT_2
02
AND [Cdtr
Agt
ctry]
= DE, FR,
IT, ….
2.3.2.4.2.2 Clearing Cut Off
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 21
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
EURO
1 N/A EURO1 cut
off selection
rule
Local
office [Cdt
MOP
]
= EURO1 SET
EURO1
cut off
(16:00)
2.3.2.4.2.3 Liquidity Priority Selection Rules
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
TGT_
PRIO
RITY_
1
N/A Set NYNN
priority for all
TGT
payments
Local
office [Cdt
MOP
]
= EURO1 NN
2.3.3 UK CHAPS
2.3.3.1 Overview
The Clearing House Automated Payment System (CHAPS) is a UK payments scheme which processes
the same day sterling fund transfers. CHAPS is recognized by HM Treasury as an inter-bank payment
system and is overseen by the Bank of England. Settlement of payments, within the CHAPS system, is
final and irrevocable, and is catered for in their Rules which all participants of CHAPS must adhere to.
In December 2005 the Bank of England decided that it was not viable for the UK to join TARGET2. As a
result of this decision CHAPS Euro was decommissioned in May 2008.
CHAPS provides a payment system between its Members, settling in real time across settlement
accounts at the Bank of England. The key components of the system are:
A payment messaging network (SWIFT FIN Copy) connecting the Members of the system.
SWIFT interfaces, known as CBTs (Computer Based Terminals), located within Members’ systems to
connect to the network and process messages to and from Member payment systems. The RTGS
system also has a CBT, known as the CHAPS Central Bank Interface, to connect to the network to
enable settlement to occur.
Settlement accounts are denominated in all supported currencies held within the Bank of England’s
RTGS Processor and the supporting collateral arrangements.
An Enquiry Link facility provided by the Bank of England.
CHAPS Payments exchanged over the SWIFT network are sometimes referred to as clean
payments, so as to distinguish them from payments related to securities settlement (DVP).
In the RTGS Processor the payment settlement account is the prime account in the Minimum Balance
Group (MBG) across which CHAPS and non-CHAPS payments (such as BACS and Cheque and
Credit clearings, note transactions) are applied.
Additional information related to CHAPS.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 22
Value
FIN Copy service identifier code STG
Service Type Y-Copy
Currency code GBP
Operating hours of CHAPS MT103: 06:00 - 16:05
MT202: 06:00 - 16:20
Cut-off time MT103: 16:00
MT202: 16:20
2.3.3.1.1 CHAPS Sterling Payments
CHAPS Clearing House operates for payments as follows:
1. Payments are sent from one Member to another.
2. The payments are stored within FIN Copy pending settlement confirmation by the Bank of England.
3. The full payment is sent to the Bank of England for settlement.
4. Once the payment is settled at the Bank of England, a confirmation is returned and the payment is
forwarded to the receiving Member. Finality is achieved when the payment is settled.
5. The receiving Member processes the payment as required.
The FIN Copy service provides the transport network for the system and the message handling
functionality required to convey settlement requests to (and receive settlement confirmations from) the
Bank of England (RTGS).
2.3.3.1.2 Business Day Processing Cycle
The business day follows the following processing cycle:
1. RTGS opens for business
2. Intra-day repurchase transactions and any other pre-business day transactions are initiated between
the Bank of England and CHAPS Members. These provide liquidity for the sterling service for those
CHAPS Members with sterling settlement accounts. Automated transfers are also made from the
settlement accounts used for payments to settlement accounts used for DVP.
3. CHAPS opens for business.
4. Intra-day payments are made.
5. CHAPS closes for normal payments.
6. Balancing payments are made between Members.
7. CHAPS closes for business.
8. Intra-day repurchase transactions are terminated.
9. Close of Day.
Key times in Chaps:
Start of Business: CHAPS opens for payments at 06:00 on each CHAPS Business Day. Participants
must be open by 08:00 and must be sending by 10:00.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 23
Close of Business:
o The latest time a customer MT103 payment should enter the SWIFT Network is 16:00. This allows
for a five-minute period to meet the SWIFT Service Level processing time. The last time for receipt
by the real-time gross settlement (RTGS) system of inward MT103 payments for same day value
is 16:05. Participants must, at 16:05, cancel any customer payments for which settlement
requests are on the funds queue.
o MT202 payments, which may be made between 16:00 and 16:20, are Settlement Period
Payments, unless bi-laterally agreed. In addition, a Participant can send a total of 9 payments, up
to a value of £1million each, to other Participants. The last time for receipt by the RTGS system of
inward MT202 payments for same day value is 16:20.
2.3.3.1.3 Bank Identifier Codes (BICs)
The preferred branch identification method used in CHAPS for payments is BICs, and this is the only
option available for payments sent to RT. UK Sort Codes are supported in most payment message
formats if no BIC is available.
2.3.3.2 Inward/Outward Processing
2.3.3.2.1 Inward Payments from CHAPS
GPP processes incoming MT103 and MT202 payments from CHAPS as follows:
1. A payment received from CHAPS has these values:
o Sender = CHAPS member BIC
o Fin copy service in field 103 block 3 = STG
2. When GPP identifies the values in step 1 the Debit MOP is set to CHAPS.
3. Debit MOP validation is performed as per MOP attributes.
4. Debit account is set to CHAPS settlement account.
2.3.3.2.2 Outward Payments to CHAPS
In order for GPP to process the outgoing payments according to CHAPS requirements, the credit Method
of Payment (MOP) is set as CHAPS.
When CHAPS is selected as the credit MOP, GPP performs MOP validation. For example:
o Settlement currency (SWIFT tag 32A) is GBP
o Settlement date (SWIFT tag 32A) is within the range available for CHAPS. If the payment includes
a future value date, GPP warehouses the payment until the value date. On the value date, the
payment is processed and released to CHAPS. For more information, see GPP Business Guide
Value Date and Cut-off Time.
o As membership validation is required for CHAPS (setup in the MOP profile), GPP checks that the
first in credit chain is a member or associate member of CHAPS
Receipt of payment confirmation: A bank can define whether to complete the payment processing
before confirmation is received from CHAPS. When confirmation from CHAPS is required, the bank
must also define that confirmation from SWIFT is required.
o If validation is successful and MOP CHAPS is selected by the rule, GPP sends the payment with
the following enrichments:
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 24
Field 103 in block 3 is set to STG
Local office BIC is defined as the sender in block 1
2.3.3.3 Flow Processes with CHAPS
The flow process for all Y-Copy RTGS is the same and supported by GPP. As CHAPS is a Y-Copy
service type, see Y-Copy RTGS Flow Processes for a description of the process.
2.3.3.4 Business Setup
Setup Additional Information
System Parameters N/A
Profiles MOP, Cut Off Times, Membership, Identifiers,
User Codes
Profiles
Rules MOP selection, Clearing Cut-off, Liquidity
Priority Selection Rules Rules
Permissions
N/A
Tasks N/A
Queues N/A
2.3.3.4.1 Profiles
These are the details of the required setup in GPP profiles for the Clearing Certification.
Note: For a detailed description of all the fields in the profiles, see GPP Online Help.
2.3.3.4.1.1 Method of Payment Profile - Single Office Setup
To successfully identify the local office and the debit MOP, when an incoming message is received from
CHAPS, local office’s BIC (provided in Block 1 of the incoming payment) needs to be set as a valid
identifier for this MOP In the MOP profile.
These are the specific attributes that need to be defined in the Method of Payment profile for CHAPS.
Field Value for CHAPS Comment
Name CHAPS
Calendar Relevant calendar or
no value
MOP Business Date Current business day
for the MOP The business date can be changed manually or by
an end-of-day task that advances the MOP business
date to the next valid business date for the MOP.
Currency GBP
Settlement
accounting CHAPS settlement
account
Membership
Required Must be selected
Membership type MOP
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 25
Field Value for CHAPS Comment
Send outgoing
message Must be selected
Settlement account
exists Must be selected
Processing Tab
FIN copy service
STG
Communication
preferences Wait for confirmation
2.3.3.4.1.2 Method of Payment Profile - Multi Office Setup
For multi office setup the list of MOPs in the MOP selection of the indirect Office is included MOP EURO1
as the Multi Office MOP. When this MOP is selected, a payment is sent to EURO1 where the Sender is
the direct participant.
Field Value for office Y (direct participant)
Name CHAPS
Calendar Relevant calendar or no value
MOP Business Date Current business day for the MOP
Currency GBP
Settlement accounting CHAPS settlement account in office Y
Membership Required Must be selected
Membership type MOP
Send outgoing message
Must be selected
Settlement account exists Must be selected
Cross Office Must be selected
Processing Tab
FIN copy service STG
Communication preferences Wait for confirmation
2.3.3.4.1.3 Cut-off Times Profile
The Cut-off Times profile defines the latest time for transactions to be processed for CHAPS MOP.
The CHAPS calendar is required for the CHAPS Clearing. The calendar sets the holidays and weekends
which are non-working days.
The CHAPS Calendar profile for the office is defined under System Setup > Geographic Settings >
Calendars.
This is the suggested setup with specific attributes that need to be defined in the Cut-off profile for
CHAPS.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 26
Field CHAPS for Customer
Payment CHAPS for Bank to
Bank Payments Comment
Cut-off name CHAPS_cust CHAPS_B2B
Cut-off type
Clearing
Clearing
Time zone GMT GMT Time zone for aligning cut-off
times
Description CHAPS Clearing Cut-
off for customer
payments
CHAPS Clearing Cut-
off for bank to bank
payments
Cut-off time 16:00 16:20
2.3.3.4.1.4 Membership Profile
The CHAPS Membership profile defines whether the payment receiver and sender parties are members
of the clearing house.
These are the specific attributes that need to be defined in the Membership profile for CHAPS.
Field Value for CHAPS Comment
MOP CHAPS
Type of
Membership Full member for CHAPS participants (or
associates)
2.3.3.4.1.5 Identifiers Profile
The CHAPS Identifiers profile is used to set up and view the party identifiers and settlement account
information for the MOP.
These are the specific attributes that need to be defined in the Identifiers profile for CHAPS.
Field Value for CHAPS Comment
MOP CHAPS
Identifier Bank BIC
Settlement
account Office, Account number, Currency In a multi office setup the identifier is
defined only for the direct participant
office
2.3.3.4.1.6 User Codes
User codes for liquidity priority codes should be defined for CHAPS payments tag 113 (for example, 50,
35).
Field Value for CHAPS Comment
Type LIQ_PRTY
Code Example: UP
Description Example: CHAPS Banking priority
urgent
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 27
2.3.3.4.2 Rules
These are examples of user defined rules.
2.3.3.4.2.1 MOP Selection
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Operator Value/
Field/
Function
Action
CHAP
S _1 N/A CHAPS MOP
selection rule Local
office [Sttl
m
Ccy]
= GBP SET MOP
Profile
CHAPS
AND [Msg
tp] IN SWIFT_1
03,
'SWIFT_2
02'
AND [Cdtr
Agt
ctry]
= GB
Clearing Cut Off
Rule
Name Rule
Sub
Type
Description Attache
d to AN
D/O
R
Field Operator Value/
Field/
Function
Action
CHAP
S_Cu
st
N/A CHAPS cut
off selection
rule for
MT103
Local
office [Cdt
MOP] = CHAPS SET
CHAP
S cut
off
(16:00)
AN
D [Msg tp] = SWIFT_103
CHAP
S_B2
B
N/A CHAPS cut
off selection
rule for
MT202
Local
office [Cdt
MOP] = CHAPS SET
CHAP
S cut
off
B2B
cut off
(16:20)
AN
D [Msg tp] = SWIFT_202
2.3.3.4.2.2 Liquidity Priority Selection Rules
Rule
Name Rule
Sub
Type
Description Attache
d to AN
D/O
R
Field Operator Value/
Field/
Function
Action
CHAP
S_PRI
ORIT
Y_35
N/A Set RR35
priority for all
CHAPS
payments
above 10M
Local
office [Cdt
MOP] = CHAPS RR35
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 28
Rule
Name Rule
Sub
Type
Description Attache
d to AN
D/O
R
Field Operator Value/
Field/
Function
Action
AN
D [Orgnl
sttlm
amt]
>= 10,000,000
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 29
2.4 Single Payment APAC Clearing
2.4.1 Australia - RITS PDS
2.4.1.1 Overview
Reserve Bank Information and Transfer System (RITS) is Australia’s interbank settlement system.
Settlement takes place across RITS on a real-time gross settlement (RTGS) and batch basis.
The Australian dollar leg of foreign exchange transactions, either AUD flows arising from CLS or
correspondent bank settlements and other large-value SWIFT transactions. These are made through the
HVCS (High Value Clearing System). The HVCS is also termed the SWIFT Payment Delivery System
(PDS).
Additional information related to RITS.
Value
FINCopy service identifier code
PDS
Service Type Y-Copy
Currency code AUD (Australian dollars)
Operating hours 09:15 until 17:15 Monday to Friday
Cut-off time SWIFT payments are cut-off 25 minutes prior to the end of the
Evening Settlement Session
2.4.1.1.1 RITS Business Hours
RITS is available to Members for settlement across Exchange Settlement Accounts on days when banks
generally are open for business in Sydney or Melbourne. RITS is closed on weekends and public
holidays.
Core Business Hours are 9:15 to 17:15, Monday to Friday for those Participating Members that are not
participating in the Evening Settlement Session, and 9:15 to 17:20/18:30/20:30 for those Participating
Members that are participating in the Evening Settlement Session.
2.4.1.1.2 Supported Message Types
GPP supports the following SWIFT message types for RITS PDS:
MT103
MT103+
MT202
MT202COV
MT012
MT019
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 30
2.4.1.2 Inward/Outward Processing
Incoming RITS payments are received from RBA and processed in GPP.
Outgoing payments are received in GPP from Teller and Internet Banking interfaces, processed and
sent to RBA. Outgoing payments that missed RITS cut-off time are moved to the Wait Release queue
and processed on the next business day.
2.4.1.2.1 Confirmation/Rejection Messages
Confirmation/rejection messages (MT012/MT019) are expected to be received for outgoing messages.
The payment waits for the message before proceeding to completion.
2.4.1.2.2 Reject/Return Messages
For an incoming payment which falls into one of the manual queues, GPP allows a user to select to
reject/return the payment. GPP automatically generates an outward R-message linked to the original
payment, and performs the following actions:
Replace sender and receiver in block 1 and block 2
Field 21 is mapped from field 20 of the original message
Fields 50, 52, 53, 54, 56, 57, 59 and 70 remains the same as those of the original message
Field 72 is indicated as /REJT or /RETN
The original message is sent to the Rejected or Returned queue.
2.4.1.2.3 Cancellation Messages
Cancellation messages (n92, n96) for PDS RTGS payments are sent via SWIFT MOP and follow the
standard Cancellation Flow.
2.4.1.2.4 Incoming Payments
Each Payment Delivery System (PDS) member has an RTGS BIC (PDS BIC). The PDS BIC is the Bank
published BIC, where the eighth letter is replaced with R.
For incoming payments where the sender is a RITS member with a PDS BIC:
1. GPP identifies the original MOP as RITS, based on FIN copy service.
2. GPP looks for the senders party. GPP tries to find a party where the BIC equals the sender BIC (as
PDS BICs are set as separate entities in the Parties profile, the search should be successful).
3. If field 52 is empty, the sender party BIC (if published), or name and address (if the BIC is not
published) is added to field 52 to identify the sender in onwards messages, based on the first party
profile found. This is achieved using Mapping out selection and mapping out rules.
2.4.1.2.5 Outgoing Payments
If MOP is PDS, the PDS BIC (set in the Membership profile) of the first in credit chain is mapped to
the message head of an outward payment message as message receiving bank.
The published BIC and corresponding BSB (Bank State Branch) remains in the outward message as
first in chain.
PDS BIC is not used in block 4 of the payment message.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 31
When an incoming payment from PDS, has RTGS BIC as original sender and requires generation of
an outgoing transaction (for example, request for charges) to be sent to SWIFT, the outgoing
transaction is sent to the SWIFT BIC and not the RTGS BIC.
SWIFT Payments (MT103 and MT202) sent by banks, with any combination of alphanumeric
characters, provided to SWIFT standards field 20, should be unique for the bank within a 14 day
period; and should not start with RITS, AXCS or ACLR.
2.4.1.2.6 BSB Processing
BSB (Bank State Branch) codes are defined in the NCC (National Clearing Codes) profile. The BSB
number is a six digit numerical code used to identify an individual branch of a financial institution in
Australia. It consists of three parts in the format of XXY-ZZZ:
o The First two digits (XX) specify the parent financial institution
o Third digit (Y) specifies the state where the branch is located
o Fourth, fifth and sixth digits (ZZZ) specify the branch location
In order to increase STP and ensure that every Australian RTGS payment is sent with a valid BSB, the
following process is applied to incoming and outgoing messages.
GPP searches for a BSB within the payment message.
o If the BSB is found, GPP validates the BSB. When a valid BSB is found GPP enriches the
message with the BSB from less structured formats (for example, F72) to first in Credit chain and
then continues to process the payment.
o If the BSB is not found or it is invalid, GPP sends the payment to Manual Repair.
When repairing a BSB, for Australian RTGS payments a valid BSB code needs to be inserted in the
Party Identifier field of the first in credit chain proceeded by AU (AUNNNNNN). This is to allow the
receiving bank to identify the branch where the customers account is conducted.
For MT202 messages:
When a valid BSB code, cannot be identified on a PDS MT202 message the bank can send the
payment to the receiving bank’s default BSB.
If the payment is identified as a Treasury payment and there is a second default BSB for MT202
transactions, the Treasury BSB must be used.
For more information on NCC validations, see GPP Business Guide Parties Identification.
2.4.1.2.7 Membership Validation Using Metro/Country BIC level
PDS members are members at Bic-6 level. Therefore, the membership check can be defined either on
Metro (BIC-8) or country (BIC-6) level.
On the MOP profile when Check Main BIC in Membership is selected, the Membership check level is
available, with the default set to Metro. The user can change it to country, allowing the membership check
to be based on first 6 characters of the BIC.
The membership check is then performed using 8 or 6 characters of the BIC provided in the first in credit
chain based on the set up in the MOP profile.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 32
2.4.1.3 Flow
The flow process for all Y-Copy RTGS is the same and supported by GPP. As RITS is a Y-Copy service
type, see Y-Copy RTGS Flow Processes for a description of the process.
2.4.1.4 Business Setup
Setup Additional Information
System Parameters N/A
Profiles MOP, Cut Off Times, Membership, Identifiers,
National Clearing Codes, Parties Profiles
Rules MOP selection, Clearing Cut-off, Missed
Clearing Cut-off, Party Details Enrichment Rules
Permissions As per customers requirement
Tasks N/A
Queues N/A
2.4.1.4.1 Profiles
These are the details of the required setup in GPP profiles for the Clearing Certification.
Note: For a detailed description of all the fields in the profiles, see GPP Online Help.
2.4.1.4.1.1 Method of Payment Profile
In order to successfully identify the local office and the debit MOP, when received an incoming payment
from PDS, local office PDS BIC (provided in block 1 of the incoming payment) should be set as a valid
identifier for this MOP.
These are the specific attributes that need to be defined in the Method of Payment profile for RITS
Clearing.
Field Value for AU RITS Comment
Name PDS
Description AU PDS Clearing MOP
(RITS)
Calendar PDS_AU If no calendar is assigned, the default calendar for
the office is used.
MOP Business Date Current business day
for the MOP
Value date extension 7 Payments with value dates between the latest
value date and the value date extension is
validated for the particular MOP and then sent to
the Schedule queue.
Currency AUD
Settlement accounting PDS settlement
account
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 33
Field Value for AU RITS Comment
Membership Required Must be selected
Membership type MOP
Send outgoing
message Must be selected
Settlement account
exists
Must be selected
Processing Tab
FIN copy service PDS
Communication
preferences Wait for confirmation
2.4.1.4.1.2 Cut-off Times Profile
The Cut-off Times profile defines the latest time for transactions to be processed for PDS MOP.
If cut-off dates are subject to change each year, there are two additional options to implement the
different cut-off times:
Define one cut-off profile and change manually the final cut-off in the profile based on the RBA
notification.
For a single cut-off profile, define each year a cut-off exception for the period of the summer/winter
cut-off schedule.
The following settings is defined for the PDS Cut-off Times Profiles.
2.4.1.4.1.3 PDS Winter Cut-off
Field Value for AU RITS Comment
Department TBD
Office AU1
Cut-off name PDS_WINT
Cut-off type Clearing
Time zone AEST Australia Eastern Standard Time (GMT+10)
Description PDS AU Winter
Clearing Cut-off
Interim cut-off time 16:30 From this time until the final cut-off, only MT202 is
accepted
Final cut-off time 18:05
2.4.1.4.1.3.1 PDS Summer Cut-off
Label in Profile Value for AU RITS Comment
Department TBD
Office
AU1
Cut-off name PDS_SUMM
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 34
Label in Profile Value for AU RITS Comment
Cut-off type Clearing
Time zone AEST Australia Eastern Standard Time (GMT+10)
Description PDS AU Summer
Clearing Cut-off
Interim cut-off time 16:30 From this time until the final cut-off, only MT202 is
accepted
Final cut-off time 20:05
2.4.1.4.1.4 Memberships
The PDS Membership profile defines whether the payment receiver and sender parties are members of
the clearing house.
Each PDS member has a RTGS BIC (PDS BIC). The PDS BIC is the Bank published BIC, where the
eighth letter is replaced with R.
These are the specific attributes that need to be defined in the Membership profile for AU RITS Clearing.
Field Value for AU RITS Comment
MOP PDS
Type of Membership Full member for AU
RITS participants
(or associates)
PDS BICs are set as full members of RITS.
2.4.1.4.1.5 Identifiers
PDS Identifier is used to set up and view the party identifiers and settlement account information for the
MOP.
These are the specific attributes that need to be defined in the Identifiers profile for AU RITS Clearing.
Label in Profile Value for AU RITS Comment
MOP PDS
Identifier <PDS BIC>
Settlement Account:
Office AU1
2.4.1.4.1.6 National Clearing Codes (NCC)
The National Clearing Codes (NCC) profile is used to manage the list of BSB Codes used by banks in
AU. The NCC profile supports two indicators for the BSB:
Default NCC
Treasury NCC
These are the specific attributes that need to be defined in the NCC profile for AU RITS Clearing.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 35
Label in Profile Value for AU RITS Comment
Clearing system ID AUBSB Australia AUBSB
Member ID BSB Code
2.4.1.4.1.7 Parties Profile
The Parties profile maintains customer data.
For AU RITS Clearing, a new party needs to be defined with the PDS BIC.
Label in Profile Value for AU RITS Comment
Unpublished BIC Checkbox Selected For PDS BICs that are separate entities
2.4.1.4.2 Rules
2.4.1.4.2.1 MOP Selection
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/
Field/
Function
Action
PDS_
MOP N/A PDS MOP
Selection
Rule
AU1 [Sttlm
Ccy] = AUD SET
MOP
Profile
AU1^P
DS
AND [Msg
tp] IN SWIFT_1
03,
'SWIFT_2
02'
AND [Cdtr
ctry] = AU
2.4.1.4.2.2 Clearing Cut-off
In the following example, winter time is set to 5.10.2014-4.4.2015, any create date in this period returns
TRUE.
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/
Field/
Function
WINT
ER_S
CHED
N/A Base
condition for
winter cut-off
period
AU1 ( DATE_EXTRAC
T(YEAR,[P_CRE
ATE_DT])
= 2014
and (
( DATE_EXTRAC
T(DAY,[P_CREA
TE_DT]
>= 5 )
and DATE_EXTRAC
T(MONTH,[P_C
REATE_DT])
= 10 )
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 36
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/
Field/
Function
or ( DATE_EXTRAC
T(MONTH,[P_C
REATE_DT])
> 10 )
)
or DATE_EXTRAC
T(YEAR,[P_CRE
ATE_DT]
= 2015
and ( DATE_EXTRAC
T(DAY,[P_CREA
TE_DT]
<= 4
and DATE_EXTRAC
T(MONTH,[P_C
REATE_DT]
= 4
or DATE_EXTRAC
T(MONTH,[P_C
REATE_DT
< 4 )
)
WINT
_CUT
OFF
N/A PDS
Clearing cut-
off - winter
AU1 [Cdt MOP] = PDS
AND BASE_CONDITI
ON(WINTER_SC
HED)
= TRUE
SUM
M_CU
TOFF
N/A PDS
Clearing cut-
off - summer
AU1 [Cdt MOP] = PDS
AND BASE_CONDITI
ON(WINTER_SC
HED)
= FALSE
2.4.1.4.2.3 Missed Clearing Cut-off
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/Fiel
d/Functio
n
Action
PDS_
202_C
UTOF
F
Allow
treasury
payments
during
interim cut-
off
AU1 [Cdt
MOP] = PDS
AND [Msg
tp] = SW IFT_2
02
2.4.1.4.2.4 Party Details Enrichment
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/Fiel
d/Functio
n
Action
ENRI
CHDE
FAUL
TNCC
Party
detail
s
enric
Enrich
default NCC
if BIC exist
AU1, AU2 [Msg
tp] in SW IFT_1
03,
SWIFT_2
02
SET
party
type
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 37
Rule
Name Rule
Sub
Type
Description Attached
to AND/
OR Field Oper
ator Value/Fiel
d/Functio
n
Action
hme
nt
and NCC
doesn't exist AND [First
in cdt
chain
BIC]
Is not Empty
FIRSTI
NCR
...
usage
DEFA
ULT_N
CC
AND [First
in cdt
chain
NCC]
is Empty
AND [Cdt
MOP] = PDS
ENRI
CHTR
EASU
RYNC
C
Party
detail
s
enric
hme
nt
Enrich
Treasury
NCC if BIC
exist and
NCC doesn't
exist and
BIC6 of
F57&F58 or
F56&F58 are
equal
AU1, AU2 [Msg
tp] = SWIFT_2
02 SET
party
type
FIRSTI
NCR
...
usage
TREAS
URY_
NCC
AND [First
in cdt
chain
BIC]
Is not Empty
AND [First
in cdt
chain
NCC]
Is Empty
AND ( SUBS
TRIN
G([Cd
tr
BIC],0
,6)
= SUBSTRI
NG([Cdtr
agt
BIC],0,6)
OR SUBS
TRIN
G([Cd
tr
BIC],0
,6)
= SUBSTRI
NG([Intrm
y agt
BIC],0,6)
)
AND [Cdt
MOP] = PDS
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 38
2.4.2 Australia - RITS Austraclear
2.4.2.1 Overview
Austraclear is an electronic depository and settlement system for transferring ownership of financial
securities (such as commonwealth government and semi-government securities, and private sector
securities) between banks and financial institutions.
Austraclear Reserve Bank Information and Transfer (RITS) is Australia's high-value payments system,
which is used to settle payment obligations on a real-time gross settlement (RTGS) basis.
Exchange Settlement Accounts (ESA) are accounts held with Australia’s central bank, the RBA (Reserve
Bank of Australia), for the settlement of payment obligations to each other.
After GPP matches a transaction, an interbank settlement request is sent to RITS for settlement. Once
the payment is settled across ESAs, RITS notifies Austraclear, which then settles the transaction.
Additional information related to RITS:
Value
FINCopy service identifier code SWIFT FIN Copy service
Service Type Y-Copy
Currency code AUD (Australian dollars)
Operating hours 09:15 until 17:15 Monday to Friday
2.4.2.1.1 RITS Business Hours
Hours Description
07:30-08:45 Morning Settlement Session
08:45 to 9:15 Morning Processing
09:15 to 16:30 Daily Settlement Session
16:30 to 17:15 Settlement Close Session
17:15 to 17:20
Interim Session
17:20 to 22:00 Evening Settlement Session
22:00 to 22:30 Reports Session
22:30 to 07:30 Overnight Enquiry Session (the following RITS business day)
2.4.2.1.2 Supported Message Types
GPP supports SWIFT message type Proprietary Message (MT198) for Austraclear RITS, with the following
message sub types:
SMT027 Inward direct debit single payment
SMT028 Inward direct debit single payment
SMT036 Inward direct debit single payment
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 39
SMT037 Inward credit transfer single payment
SMT038 Inward direct debit single payment
2.4.2.1.3 RITS Payment Flow
1. Two Austraclear registered corporates do money
market deal WPAC corporate buys securities, therefore
pays
2. Deal approved by both parties
3. Details sent to
RI TS to arra nge
payment
4. Pre Settlement Advice: RITS sends MT198 -027/028
to debit bank for approval. RITS holds payment with
Cr edit st atus Deferred (‘D ) until approved (‘A).
6. Change ESA and/or credit status request: When
approved, bank sends MT198-007/031 to RBA to
change status from ‘D’ to ‘A’ and make payment.
7. RITS responds with MT198-008/032 confirm
payment status change accepted
8. Post Settlement Advice: RITS sends M T198-036 to
say payment made
Note, could get SMT036 without SMT027/028. Would
then process accounting off SMT036
10. RITS advises
Austraclear that
payment done so
securities can be
moved
GPP
(Buyer Bank)SWIFT RBA RITS
RTGS
Austraclear
Party 1 -
Buyer (Debit)
Party 2 -
Seller (Credit )
8
6
4
7
8
6
4
7
13
3
5
1 2
SWIFT GPP
(Seller Bank)
8 8
12. Bank
credits the
seller
12
8. Post Settlement Advice: RITS sends M T198-037 to
confirm payment made
DD HV flow
10 10
9 9
Termination
flow
11
Cancellation
flow CT HV flow
10. Unsettled Tx EOD Advice: RITS sends MT198-038 to
notify the paying bank that there are tra nsactions
which remain unsettled at the end of the Settlement
session.
5. Bank performs Credit Check and posting for debit
customer
9. In case of M T198-036 tha t w as ma tched to SMT027/
028, SMT036 will perform termination flow and
process to complete.
In cas e of M T198-036 that was unmatched to SMT027/
028, the payment will perform DD HV flow (Credit
check and debit customer.
11. An unsettled Tx EOD advice was received therefor
cancellation flow should be perform on the original
MT198-027/028
2.4.2.2 Inward Processing
2.4.2.2.1 Purchase of Securities (Buyer Bank)
2.4.2.2.1.1 Pre-Settlement Debit (MT198-027/028)
When a bank customer (or a bank) buys a security in Austraclear, the paying bank’s ESA account is
debited to settle the Austraclear transaction.
A bank’s ESA can be debited directly by the Reserve Bank, or, the Reserve Bank can request the bank to
update the credit status and thereby authorize the Reserve bank to debit the bank’s ESA.
The Reserve Bank requires bank’s approval to debit their ESA; this approval is agreed upon in advance
and is usually pre-determined. Immediately debiting the ESA involves a credit risk on behalf of the bank,
therefore if the underlying Austraclear transaction was initiated by a bank’s customer (instead of the bank
itself), then bank approval is required prior to debiting the ESA.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 40
Purchase of Securities (Buyer Bank) - Pre Settlement MT198-027/028
Reserve Bank GPP Back Office Systems
Phase
Change Status Response
MT198 008/032
Austraclear Paym ent
Initiation
Destinatio
n Sid e
Processing
Dr/Cr
MOP
Selection
Paymen t
Execu tio n
(Fees, FX,
S top Fl ag s)
Bal ance Check
Wa it BI
Complet
e
(MT198-
027/028)
Austraclear
CDB
Core Banking
Core Banking
Pre settlement ad vice
MT198 027/028
Acco unt Vali dation
BI R equest
Acco unti ng
Wait
Post ing
BI R esponse
Post ing/Adv ice R equest
Post ing Response
Post Settlemen t advice Debi t
MT198 - 036
Post Settlemen t
adv ice MT198-
036 flo w
No
Yes
M at ched to an
exi sting SM T036?
Yes
Generate
transaction
Wait
Pos t avd
Change Status Request
MT198 007/031
Liq uid ity
Up da te
Interbank
I ntr ab an k
No
Interbank or
I ntr ab an k?
M at c he d?
Post Settlemen t
adv ice MT198-
036 flo w
Yes
Matched with an
exi sting
MT210RVR?
Yes
MT210RV
R in
Complete
SMT027
in
Complete
Source
Side
processing
Acco unt Vali dation
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 41
Details of the flow:
When the bank receives a Pre-Settlement Advice MT198-027 or MT198-028, GPP invokes the single
payment processing flow to perform funds availability for the debit customer.
1. Payment Initiation:
o GPP parses the message (MT198-027/028) and attempts to match the message to a previously
received MT198-036.
2. Duplicate Message: GPP checks for duplicated Pre-Settlement Advice MT198-027 or MT198-028
messages. These are messages with the same message type and values displayed in Field 20 and
Field 21.
o If a duplicate message is found:
And a matching (to MT198-036) message is found, the MT198-027/028 routes to Rejected
queue.
And a matching (to MT198-036) is not found, the original MT MT198-027/028 routes to
DUPEX.
3. Party Processing: The customers account to be debited is in Field 25 of the MT198-027/028. GPP
performs debit account derivation and Account Lookup validation based on the account sent in Field
25 of the received message.
Note: If an account is not found in the GPP repository, GPP interacts with other bank systems via the
Account Lookup interface, which provides the relevant credit customer details.
o If an account exists in GPP, GPP loads and validates the account.
o If an account does not exist in GPP, GPP tries Account Lookup.
If an account is found, GPP continues to process the message.
If an account is not found, the message routes to Repair queue.
4. Balance Check: GPP performs Balance Inquiry on the customers account derived from Field 25 of
the received message.
5. Accounting (First Leg): GPP initiates an account posting request for the customers account derived
from Field 25 of the received message, and routes the message to MP Wait queue, while it waits for a
posting response. The Second Leg (MT198-036) uses the Post Settlement Accounting flow.
6. After receiving a positive accounting Response, the message waits for the Post Settlement Advice in
the Wait Post Settlement Advice queue.
7. Post Settlement Advice (Debit) Completion:
o When a Post Settlement is received, and matched to the original Pre-Settlement Advice (MT198-
027/028), the original message routes to Complete status.
o When the Pre-Advice is parked in a Wait queue and post-advice is received and matched before
the pre-advice reaches final status (MT198-036 is received before the MT198-027/028, which
may already be in a (non-Wait Post advice) Wait queue):
If the pre-advice completes successfully (on completion of pre-advice), it routes automatically
to Complete status. GPP checks whether the pre-advice is matched to a post-advice:
- If it is matched successfully, GPP routes the pre-advice to Complete status.
- If it is not matched, GPP routes the pre-advice to Wait Confirmation status.
If the pre-advice fails processing, its status indicates a failure regardless of whether the pre-
advice is matched or not to a post-settlement advice. The user can either repair the failure
and re-submit the pre-advice, or fix it outside of GPP.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 42
2.4.2.2.1.2 Post Settlement Debit (MT198-036)
If the Paying Bank has chosen to be notified upon settlement for debit transactions, a Post-Settlement
Advice message is forwarded to the Paying Bank’s PPS (Proprietary Payments System).
The message also contains the Paying Client bank account number details that were passed in the
Settlement Request from Austraclear.
This advice is sent to the Paying Bank to advise the settlement of the debit transaction.
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 43
Purchase of Securities (Buyer Bank) – Post Settlement MT198-036
Reserve Bank GPP Back Office Systems
Phase
Austraclear
Party
Processing
Dr/Cr
MOP
Selection
Payment
Execution
(Fees, FX,
Stop Flags)
Balance Check
Wait BI
Complet
e
(MT198-
036)
CDB
Core Banking
Core Banking
Post settlement advice
MT198 – 036
Account Validation
BI Request
Accounting (One
step accounting)
Wait
Posting
BI Response
Posting Request
Posting Response?
Matched to an
existing SMT027/
028?
Accounting (2
nd
leg accounting)
Liquidity
Update
Interbank
Intrabank
Interbank or
Intrabank?
MT198 -
036 in
Complet
e
Yes No
Liquidity
Update
Interbank
Intrabank
Interbank or
Intrabank?
Payment
Initiation
Party
Processing
Dr/Cr
MOP
Selection
Account Validation
Posting Response
Posting Request
Core Banking
Wait
Posting
Clearing Processing Generic Clearing Processing
Global PAYplus Business Guide Page 44
Details of the flow:
When the bank’s ESA is debited, the Reserve Bank sends MT198-036 to confirm that the debit has been
posted to the account, for cases when the Post-Settlement Advice SMT036 received prior to the pre-
settlement advice.
1. Payment Initiation:
o GPP parses the message (MT198-036).
2. Duplicate Message: GPP checks for duplicated Post-Settlement Advice MT198-036 messages.
These are messages with the same message type and values displayed in Field 20 or Field 21.
o If a duplicate message is found:
And a matching (to MT198-027/028) message is found, the MT198-036 routes to Rejected
queue.
And a matching (to MT198-027/028) is not found, the original MT198-036 routes to DUPEX.
3. Party Processing: The customers account to be debited is in Field 25 of the MT198-036. GPP
performs debit account derivation and Account Lookup validation based on the account sent in Field
25 of the received message.
Note: If an account is not found in the GPP repository, GPP interacts with other bank systems via the
Account Lookup interface, which provides the relevant credit customer details.
o If an account is found in GPP, GPP loads and validates the account.
o If an ac