The NZCSD Flyer

No 92 - July 2003

Introduction

The NZCSD Flyer provides our customers with a series of brief notes about current matters of interest to both Registry customers and Austraclear Members.

Each item usually includes a reference to the person or section to whom further enquiries should be directed. However, please also feel free to contact Peter Katz (00 644) 471 3711, email katzp@rbnz.govt.nz, on any Austraclear issue or Barry Norton (00 644) 471 3682, email nortonb@rbnz.govt.nz on Registry business.

Software Developments

Code Pruning
We engaged Datacom to remove easily identified redundant code from the system that was not utilised. This has simplified the system support. Key areas of code removed were:

- Host to Host Legacy
- Discount securities processing (physical securities)
- Forward rate delivery module
- Interim end of day processing

Technology Refresh Project Update.

The Bank has embarked on a major `Technology Refresh' project under which the system operating software (Oracle forms and Oracle database), will be migrated to newer releases that ensures that the operating systems will be supported to at least late 2006 and will provide a sound platform for future development if need be.
Datacom have completed to our satisfaction a prototyping exercise that establishes and proves the viability of the approach to be adopted. This project is due for completion by April 2004. We plan to begin our system wide testing in January 2004 and members will be invited to participate.

Austraclear Hours of Operation
Effective 12 May new software was introduced that removed the interim end of day processing at 7.00pm and reopen the system for the overnight session processing shortly thereafter for ESAS banks. Pursuant to the feedback from members and the need to develop a flexible approach to accommodating CLS settlement by late 2004, we have engaged Datacom to make the necessary software changes to the Austraclear system hours of operation.

Copies of minutes and other correspondence relating to the hours of operation are available on our website,
http://www.rbnz.govt.nz/payment/austraclear/0128130.html

Austraclear/ESAS System Availability

We have introduced a new regular figure that shows the Austraclear/ESAS System outages over the last twelve months. We shall provide a brief description of the outages since the previous flyer.

The May outage that delayed start of day for 20 minutes on 19 May 2003 was the result of a technical message problem in the SWIFT/ESAS interface.

BCP Site Test

We conducted a full days processing from our Logical Network Limited's (Logical) premises in Willis Street on 28 May 2003. Again the test proved that we could re-establish ourselves within two hours and conduct the normal Austraclear business operations in a local disaster scenario with minimal disruption. Minor improvements to process were identified to be incorporated in our BCP plan. Our system back-up site for computer systems for both Austraclear and ESAS remains in Auckland. Our next test will coincide with the RTGS industry test 22 August 2003. For your information we have attached an updated Quick Reference Guide on what members should do in the event of a DR scenario.

If you have any queries, please contact Peter Katz on 04 471 3711, katzp@rbnz.govt.nz or Adrienne Barlow on 04 471 3629, barlowa@rbnz.govt.nz.

DR Readiness - can we help?

Can you answer yes to all these questions:

Can you manage your DR arrangements without requiring the Austraclear Help Desk inputting trades on your behalf?

· Do you have a geographically removed alternative site from which you can manage your settlement commitments. Alternatively do you have arrangements for a geographically removed third party to operate on your behalf?
· Do your staff know what is expected of them in both a local and regional disaster scenario?
· Have you tested your BCP plans?

We do not monitor members' BCP arrangements. However, it is good practice and is expected of each member that they are able to meet their payment and settlement commitments through Austraclear within a reasonable time frame if unexpectedly confronted with a disabling event such as a building outage or a regional disaster such as an earthquake.

Can we help?

We are willing to discuss BCP options for your company to consider when connecting to Austraclear/ESAS. One option is a Dial up DR facility.

Please call Peter Katz (04) 471 3711 or email katzp@rbnz.govt.nz or Adrienne Barlow (04) 471 3629 or email barlowa@rbnz.govt.nz .

Acceptable Securities in Austraclear

Members can identify those issuers that have been accepted into the depository by looking up NOTESQ chapter 14 for fixed interest securities and chapter 15 for equities. Series accepted into the system can be checked through FISERIEQ and EQUITYQ.

Members should be aware that not all securities will be accepted into the Austraclear system. For a new issuer to be created in the system at least 24 hours notice is required for this approval procedure to be completed. Each issuer and security has to fulfil certain criteria before approval is given for the series to be created in the Austraclear system. Even if we already have the issuer created in the system, some security types may not be suitable for holding in Austraclear.

Some of the criteria we consider are:

- Registry arrangements
- Paying agent arrangements
- Can the characteristics of the security be accommodated in Austraclear

KEAterm Licences

Currently all Operating systems except windows XP support Net launch . When a new utility is developed for Windows XP the RBNZ will evaluate the product and if it is suitable for dial up we will notify the users of XP.
The table below shows what version of KEA is supported and if your operating system will support the dial up utility net launch.

Operating system	Kea v5.0	Kea v5.1	Netlaunch
Win 95/98	Yes		Yes
Win NT	Yes		Yes
Win2000	Yes		Yes
WinXP		Yes	No

In regards to Keaterm please note that for every PC that KEAterm is installed on you need a Kea License which costs $400 . If you plan on upgrading to WINXP an upgrade to version 5.1 costs $180.00

If you have any queries about the above table please contact Aaron Mishkin on (04)4713-709 or email: mishkina@rbnz.govt.nz

Austraclear User Group Meeting - 16 May 2003

I would like to thank all those members who were able to attend the Austraclear Usergroup meeting. Feedback on the day which was combined with the FMOA conference was very positive. I have attached a summary of the main points and issues raised at the Austraclear 16 May 2003 Usergroup meeting. If there are any particular issues you would like to discuss further please contact Peter Katz on (04) 471 3711.

Austraclear Fee Review

Effective 1 July 2003 the maximum fee charged for both fixed interest and equity transactions will be reduced from $15.50 to $14.50 (plus gst) per side. No other fee changes have been made.

Austraclear New Zealand Member List

The list of `Austraclear System Members and Mnemonics' has been updated and posted on our website
http://www.rbnz.govt.nz/payment/austraclear/0107384.html. If you are unable to access our website please fax Jo Woodman-Smith (04-471 3834) with a request to have a hard copy mailed to you quarterly.

Changes in Membership

New members/Members branches

No new Austraclear members were added to the system over the last three months.

Index of Austraclear and NZCSD Information and Documents available on the Internet

Listed below are the Austraclear and NZCSD documents which are available for download from our internet page http://www.rbnz.govt.nz/payment/Austraclear/index.html

Overview of Austraclear (also available in PDF 120KB)
Austraclear New Zealand members
Independent auditor's report to the System Operator of Austraclear New Zealand for quarter ending 31 March 2003 29 April 2003 (PDF 104KB)
Financial Services Group Customer Service Contacts 25 February 2003
New support provider for Austraclear/ESAS 8 May 2002
Austraclear Customer Survey March 2002
Austraclear : Host-To-Host Lite (HTH*Lite) guide and application pack February 2002 (PDF 271KB)
Austraclear New Zealand Operating Guidelines 4 September 2001 (PDF 402KB)
Proposed revisions to Austraclear New Zealand Operating Guidelines (with edits showing) 12 May 2003 (PDF 198KB)
Proposed revisions to Austraclear New Zealand Operating Guidelines 12 May 2003 (PDF 160KB)
Austraclear New Zealand system rules 9 October 2000 (PDF 115KB)
Austraclear New Zealand system membership application pack (PDF 242KB)
Austraclear functions: quick reference guide - Screen Refresh and Toggle
Austraclear New Zealand charges Effective from 1 July 2003
News release : New Zealand's inter-bank settlement system to remain in New Zealand for the time being 18 April 2001
Austraclear system: Hours of availability post CLS 6 December 2002
Austraclear Usergroup Hours of Operation 7 February 2003
Minutes of the Austraclear User Group Hours of Operation Sub-Committee 23 January 2003

Association of Global Custodians Questionnaire (2002) (PDF 203KB)

The NZCSD Flyer provides our customers with a series of brief notes about current matters of interest to both Registry customers and Austraclear members.

Austraclear User Group Meeting
Austraclear User Group Meeting presentation 16 May 2003 (PDF)
Summary of points and issues raised at User Group Meeting 16 May 2003

If you have any suggestions for additional information we could add to this site please email katzp@rbnz.govt.nz.