NEW CUSTOMER WELCOME KIT

Transcription

1 NEW CUSTOMER WELCOME KIT. Monte Titoli Client Services Release 1.0_31/03/2016 1

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3 Contents 1.0 DOCUMENT MANAGEMENT Document History Reference documents PURPOSE OF THE DOCUMENT LINK TO ACCESS MT-X PLATFORM GENERAL INFORMATION DOCUMENTATION REQUIRED FOR PARTICIPATION IN MONTE TITOLI SERVICES 10 NEW MONTE TITOLI CLIENTS OTHER THAN SERVICE PROVIDERS 5.1 Request for Service Form Annexes to the Request for Services Form Specimen signature of the Contract Representative and of any subject authorized to sign instructions MT-X user/certificates request form Traceability of financial flows Copy of the Bank of Italy document issuing the ABI code Confirmation of the BIC code assigned by SWIFT and validity date Invoice Bank Acceptance 15 NEW SERVICE PROVIDERS 5.3 Request for Services from Service Providers Specimen signature MT-X users/certificates request from Service Providers Invoice Bank Acceptance SET-UP OF MT-X FUNCTIONS/ACCESS MANAGEMENTS 19 NEW MONTE TITOLI CLIENTS OTHER THAN SERVICE PROVIDERS 19 NEW SERVICE PROVIDERS SYSTEM INITIALISATION 26

4 8.0 GENERAL PARTICIPANT DETAILS Contact persons and addresses ABI code, CED code, BIC SWIFT code 27 Selection of Pricing Line 28 Invoicing 28 Operational manadate to third party 28 Appointment of securites settlement agent 28 Cash settlement SERVICES CONFIGURATION Centralised Administration Service Bank details of Paying Agents for Intermediary beneficiary Bank details of Paying Agents on behalf of an Issuer Settlement service Cross-Border Settlement Service X-TRM Service FIS/CPA Service RCC Service X-COM Service Fiscal Service CONNECTIONS, MESSAGES AND REPORTS Connectivity MT-X MT-A2A SWIFT Annex A: OPERATIONG GUIDE FOR THE CONFIGURATION OF NEW ISSUER/INTERMEDIARY CLIENT Annex B: SOFTWARE SUPPORTED Annex C: MONTE TITOLI CONTACTS 51 Release 1.0_31/03/2016 4

5 The aim of this document is to provide all information necessary to become a Client of Monte Titoli. Release 1.0_31/03/2016 5

6 1.0 DOCUMENT MANAGEMENT 1.1 Document History Date Version Description 31/03/ First publication 1.2 Reference documents Document Link Regulations and instructions for the centralised administration service Regulations and instructions for the settlement service Regulations and instructions for the collateral management service Contracts and forms Fees MT-X, CLIMP, X-TRM On-Line User Manuals CSD Rules Settlement Services Collateral Management X-COM Contracts and Forms Fees MT-X document area Release 1.0_31/03/2016 6

7 2.0 PURPOSE OF THE DOCUMENT The aim of this document is to describe the sequence of the activities, contractual documents to be signed and obligations required to finalise the participation process in case of Clients that interact with Monte Titoli for the first time. In particular, the scope of this document is to provide an overview of: Documentation required for participation in Monti Titoli services: the set of contracts to be signed instructions on the process to be followed to fill in the documentation, indicating the offices to contact to provide support, duly divided into the relevant department areas methods by which the contractual and operating documentation may be forwarded to Monte Titoli First access to the Monte Titoli legacy systems: description of the procedure for enabling functions during first access to the MT-X platform First activities to finalize in CLIMP indication of the Client s general information set of services to subscribe selection of communication channels, messages and reports through which send and receive information flows to and from Monte Titoli Therefore, a description of the business as usual activities related to MT-X legacy system, including X-TRM On Line, CLIMP and X-COM are out of scope of this document. These information are available in the dedicated section of MT-X platform. Release 1.0_31/03/2016 7

8 3.0 LINK TO ACCESS MT-X PLATFORM The Monte Titoli legacy systems can be accessed through the following URLs: official Monte Titoli production environment: official Monte Titoli test environment: Release 1.0_31/03/2016 8

9 4.0 GENERAL INFORMATION The categories of entities admitted to Monte Titoli are listed in the Rules, which set out the rules for the centralised administration and settlement services, the guarantee systems and the relevant management companies (Article 12 of the Bank of Italy/Consob Regulations of February ) 1 and in the Rules for the X-COM Service. There are no eligibility requirements other than the requirements for participation in the services themselves, as specified in the Service Rules and the relevant Instructions. Participation in the services offered by Monte Titoli is subject to the signing of the applicable pro-tempore contracts. The formulation of such contracts is standard and therefore no exceptions or revisions of the test are admitted. The official and binding version of the contractual documentation is the Italian language version. The structure of the contract includes, inter alia, the General Conditions - Part I, which set out the general rules that apply to all services, and the General Conditions - Part II, which consist of various sections, each containing the rules applicable to individual services. All the documentation mentioned in this document is available in the dedicated section of Monte Titoli website, available at the following link: Rules & Regulation a) 1 Italian and EU and non-eu banks indicated at Article 1, paragraph 2, of the of the Consolidated Law on Banking. b) Investment firms indicated at Article 1, paragraph 1, letter h) of the Consolidated Law on Finance. c) Asset management companies indicated at Article 1, letter o), of the Consolidated Law on Finance, except as provided at Article 36, paragraph 2, of the Consolidated Law on Finance. d) Brokers listed in the single national register provided by Article 201 of the Consolidated Law on Finance. e) Issuer companies or entities not included in the previous letters, which are restricted to self-issued financial instruments and financial instruments issued by companies controlled by equity holdings. f) Central banks. g) Foreign entities that provide services that are analogous to the centralised administration and settlement services and that manage systems analogous to the financial instrument guarantee systems, provided that they are subject to supervision measures equivalent to those of the Italian legal system. h) Centralised management companies, fund management companies guaranteeing settlement and central counterparties within the limits of the activities indicated in Articles 69, paragraph 2 and 70 of the Consolidated Law on Finance. i) The financial Intermediaries included on the list indicated at Article 107 of the Consolidated Law on Banking, limited to the activities indicated at Article 1, paragraph 5, letters c) and c) bis, of the Consolidated Law on Finance. j) Poste Italiane S.p.A. k) Cassa Depositi e Prestiti S.p.A. l) The Ministry of Economy and Finance. m) In the capacity of Issuer, entities that issue financial instruments indicated in Article 14 of the Bank of Italy/Consob Joint Regulation of 22 February Release 1.0_31/03/2016 9

10 5.0 DOCUMENTATION REQUIRED FOR PARTICIPATION IN MONTE TITOLI SERVICES The participation request for services is made through CLIMP, the web tool through which Monte Titoli manages daily configurations data, allowing Clients to manage the relevant static data information. CLIMP is a web-based tool developed for communication and management of the services membership profile as well as the the range of services used. While operability is totally managed by web interface in interactive mode, in case of initial request for services, a paper copy of the contractual documents described below must be sent to Monte Titoli. A paper copy is also required in the case of subscription of X-COM service. NEW MONTE TITOLI CLIENTS OTHER THAN SERVICE PROVIDERS The following section describes the documentation that must be duly filled in and signed by new Clients (other than Service Provides) joining and subscribing to Monte Titoli services, i.e. the Request for Services form accompanied by a series of annexes: 5.1 Request for Services Form The Request for Services form includes a list of available services that can be subscribed by Client 2. Registrations of new Clients, together with each subsequent application for new services, are sent to Monte Titoli after that Client has filled in related sections in CLIMP platform. 2 Services are selected by ticking the box corresponding to each service. Release 1.0_31/03/

11 Services requested to Monte Titoli after the initial membership application form will be part of the Client s portfolio services. For more information about this, see Chapter 9. The Request for Services form entails the Client's acceptance of the contractual rules governing the services. The request for centralized administration service has legal effect after that Monte Titoli issues its acceptance in a letter addressed to the Contractual Representative indicated in the Request for Services form. For all other services requested, it is not expected a letter of acceptance but the date of effectiveness is visible in CLIMP. Services are normally enabled within five working days of receipt of the request in CLIMP, except the complete reception of all preliminary information for activation of the service has been received (such as, for example, the codes, the accessory documents, all the necessary sections of CLIMP entirely filled out, etc.). The interrelationship between the different services should be taken into account when filling in the Request for Services form. The so-called 'related activities' to the centralised administration service as well as the settlement services, can be subscribed only on condition that participation in the service, to which the related activities refer have been finalised (for additional information, please see Chapter 9). The Request for Services form, available at the following link Request for Services, must be filled in and signed by the legal representative and the original paper form has to be sent to the following address: Monte Titoli S.p.A., Master Data Management Office, Piazza degli Affari, Milan. Request for services Team Telephone Master Data Management mdm@lseg.com Annexes to the Request for Services form The Request for Services Form must be accompanied by the following documentation: Specimen signature of the Contract Representative and of any subject authorized to sign instructions The current contractual framework requires the appointment of the Contractual Representative who is appointed to receive any contract issued from Monte Titoli. In particular, the Contractual Representative is appointed directly by Client in order to exercise all the legal powers, both active and passive, including the power of withdrawal related to the Release 1.0_31/03/

12 establishment and management of the contractual relationship concerning the supply of the Service requested. Note that in the case of Service Providers, it is also necessary to specify the delegating Issuer or Intermediary for which the signatures are valid. If the Legal Representative and the Contractual Representative are the same, it is not necessary to sign and send the specimen. Clients are also requested to register authorized signatures of any person deputed to send instructions in paper form to Monte Titoli. Paper based instructions will be accepted on condition they bear a valid registered signature.. In the event of a change in the people appointed as a contractual representative, it is the responsibility of the Client to forward the updated documentation to Monte Titoli through the transmission of the new form with the new signatures, and to indicate the cancellation of the previous one. Please remember that paper instructions are accepted only in event of contingency, when Clients are temporarily unable to send STP instructions to Monte Titoli. The specimen signature form, available at the following link Specimen signature must be filled in and signed by the legal representative. The original paper form has to be sent to the following address: Monte Titoli S.p.A., Master Data Management Office, Piazza degli Affari, Milan. Specimen signature Team Telephone Master Data Management mdm@lseg.com MT-X user/certificates request form The Client must have certificates for the use of the MT-X platform (including CLIMP X-TRM On- Line and X-COM). The MT-X platform allows different levels of access and operability in relation to the role of the Client, the method by which it has chosen to operate and interact with Monte Titoli and the activities that its users are authorised to perform. MT-X can be used by the following categories: Issuers Intermediaries Service Providers Release 1.0_31/03/

13 The connection to the MT-X platform requires the prior download of a digital certificate (HTTPS) on each Client PC that access the system. Each certificate is issued in the name of a physical person and it is associated to a User-ID. Each department (which is identified with the Client's ABI (Italian Banking Association) code) is assigned to an user administrator which is the first user able to operate (for example identified as: ABImtx01). Additional users are then assigned when the form is first filled in or subsequently when an application is sent to the Client Services office. With the MT-X platform, Client is fully responsible for user management through a "user administrator (also known as administrator ) who defines the functions to be assigned to the administrator itself and to any operating users that may be activated. In particular, the following users are associated with each department: User administrator (or administrator), which is mandatory and acts as the Client's system administrator. There is one single user administrator per department. This is the first user requested by that department/client. One or more operating users, who can be requested either at the initial application or at a later time and who are enabled to manage all the functions that the administrator is authorised to perform. After formal request for the creation of new users, to be sent jointly by mail to Client Services and Master Data Management offices, the user itself will receive an containing the form and detailed instructions for its compilation. Note that in all cases a copy of an identity document (identity card or passport) is required, together with the tax code of the persons in whose name the certificates will be issued. Non-residents are only required to provide a copy of their identity document. Once the form has been sent, Monte Titoli will send the recipient indicated by the Client the access credentials (username and password) and an with the link to download the certificate. Following two processes are to be considered separately: 1. Sending of credentials: the Security office sends the access credentials by . The Client is required to confirm receipt by replying to the Security office. Note that if confirmation is not received, the users will not be activated. 2. Sending of the link for downloading of the certificate: Nis-Service office sends an to the certificate holder (which may be different from the address of the person who receives the with the credentials). The Client has to contact Nis-Service Release 1.0_31/03/

14 office by phone to support and assistance with the downloading and installation of the certificate. The digital certificate is valid for one year and must be renewed 3 on expiry by following the instructions sent by the Security Applications office to the certificate holder one month prior to the expiry of the certificate. Certificates may be added or revoked at any time on specific request to be sent to the Client Services Office. Finally, note that the cost of the first user is invoiced at the time of the activation and an annual advance fee is charged subsequently. Keep in mind that at the time of installation Clients are requested to make a backup of the installation to use in case of necessary. Without this copy, a new certificate will be subject to an additional charge. For further information, see the fees document in the relevant document section of our website, which can be accessed through the following link: Fees The details of the offices responsible for finalising the user application/mt-x certification process are the following one: MT-X users certificates request form Team Telephone Client Services pt.client@lseg.com Security Applications sicurezza@lseg.com Nis-Service nis-service@borsaitaliana.it / Master Data Management mdm@lseg.com Note also that the user-mt-x certification application form is available at the following link: MT-X users certificates request Traceability of financial flows In order to comply with the obligations established in the Extraordinary Plan to Combat Mafias, the legal representative is required to take responsibility for all declarations and affirmations given. 3 In order to renew the certificate, simply follow the instructions provided in the link sent by from the Security Applications office to the person in whose name the certificate is issued. Release 1.0_31/03/

15 The form certifying the traceability of financial flows, available at the following link: Traceability of financial flows, must be filled in and signed by the legal representative and the original sent in paper form to the following address: Monte Titoli S.p.A., Master Data Management Office, Piazza degli Affari, Milan. Declaration form of traceability Team Telephone Master Data Management mdm@lseg.com Copy of the Bank of Italy document issuing the ABI code 4 The ABI code is a composed of five digits numeric code that identify Monte Titoli Clients. This is the code associated to the Client securities account for the centralized administration service. The code is issued by the Bank of Italy and is indicated on all communications to and from Monte Titoli. New Monte Titoli Clients are therefore required to apply to the Bank of Italy for an ABI code in advance and in accordance with the configuration timescales required by Monte Titoli to process their membership application Confirmation of the BIC code assigned by SWIFT and the validity date Each new Client in the Monte Titoli services must have a BIC code in order to configure on the T2S platform. The SWIFT BIC code, issued by the Society for Worldwide Interbank Financial Telecommunication, is composed of eleven alphanumeric characters issued according to the companies registration rules. Note that without a SWIFT BIC code, or if the code has a future validity date, Monte Titoli can not process activation requests. For this reason, we remind that Monte Titoli must be informed of any urgencies in order to proceed with an extraordinary request for advance publication of the BIC in T2S. For the purposes of complete information, the two separate procedure for requesting a BIC code are described below; the first in case the request is made directly by the entity interested, and the second in case a request is made by a third party. BIC code request by the entity concerned: fill in Register a new organisation form. Two contact people belonging to the entity concerned must be provided. 4 Valid only for clients who are subject to the ABI code, i.e. all new clients other than Account Operators, with the exception of pure issuers. Release 1.0_31/03/

16 confirm validation of the entity and creation of protected access profiles 24 hours after submission of the form indicated in the previous point. definition of the password (by clicking on forgot your password) and filling in the Register a non-connected BIC form BIC communications by 24 hours after submission of the form indicated in the preceding point. Request for a BIC code by a third party: fill in Register an organisation for a third party form. Note that the third party must be an entity registered with/related to SWIFT. SWIFT doesn t accept for policy matters applications from unknown entities. Moreover, the applicant user must have a profile linked to the respective BIC. Two contact people belonging to the entity concerned must be entered. confirm validation of the entity and creation of protected access profiles 24 hours after submission of the form indicated in the preceding point. Confirmation is sent either to the third party applicant or to the two contact persons. definition of the password (by clicking on forgot your password) and filling in the form entitled: Register a non-connected BIC BIC communications by 24 hours after submission of the form indicated in the preceding point Invoice Bank acceptance In order to allow the Bank in charge of the invoices payment (so called Invoices Payment Bank) to accept the debit of the invoices issued by Monte Titoli S.p.A. related to the services offered to its Clients, please be informed that the following document has been foreseen accordingly Acceptance of the Bank in charge of invoices payment. The form will be mandatory and remains unchanged with payment by SETIF charge to allow the appointed Bank to expressly accept the received in charge and to have the exact situation of its Client. The form, available at the following link: Invoice Bank Acceptance, must be sent in original and hard copy on letterhead of the Bank and subscribed by authorized person, to the following address: Monte Titoli S.p.A., Master Data Management Office, Piazza degli Affari, Milan. Release 1.0_31/03/

17 NEW SERVICE PROVIDERS In the case of new Service Providers, the following set of contracts must be filled in: 5.3 Request for Services form for Service Providers The Request for Services form for Service Providers, available at the following link Request for Services for Service Provides, must be filled in and signed by the legal representative and the original sent in paper form to the following address: Monte Titoli S.p.A., Master Data Management Office, Piazza degli Affari, Milan. In the case of new Service Providers, the ABI code is assigned by Monte Titoli. Request for Services for Service Provider Team Telephone Master Data Management mdm@lseg.com The Request for Services form must be accompanied by the following annexes: specimen signature (chapter 5.3.1) MT-X users/certificates request form for Service Provider (chapter 5.3.2) invoice Bank Acceptance (chapter 5.3.3) Specimen signature Please referrers to chapter MT-X Users/certificates request form for Service Providers The MT-X Users/certificates request form for Service Providers form is available at the following link: MT-X Users and certificates request form. Release 1.0_31/03/

18 The activities required to access MT-X platform in charge of Service Providers acting on behalf of different subjects are described in chapter MT-X-Users/certificates request form. Please note that in case of Service Providers, it is required to specify also the issuer or the intermediaries authorized Invoice Bank Acceptance Please referrers to chapter Release 1.0_31/03/

19 6.0 SET-UP OF MT-X FUNCTIONS/ACCESS MANAGEMENT Digital certificates must be obtained in order to access the system. The certificates are nominal (one user for each individual certificate) and are valid for one year (on expiry they must be renewed by following the instructions that will be sent by ). MT-X access is defined using profiles (username and password). With the MT-X platform, the Client (intermediary/issuer or service providers) is fully responsible for user management through an "administration" (also known as a user administrator ) who determines the functions to be entrusted to the secure user and to any operating users that may be activated. Each Client can be assigned the following profiles: 1. An obligatory administrator, acting as the system administrator for the Client and who can be enabled for all provided operational functions. 2. One or more operating users, who can be requested either at the initial application phase or subsequently, who are enabled to manage all the functions that the administrator is authorised to perform. The steps to follow in order to finalise the function enabling process during first access to the MT-X platform are described below for: new Clients (Intermediaries/Issuers) different from service providers new service providers NEW MONTE TITOLI CLIENTS OTHER THAN SERVICE PROVIDERS Below the activities to be carried out by a new Client different from a Service Providers. 1. Login to the MT-X Platform When accessing the MT-X platform, the login credentials provided by Monte Titoli must be entered (for more details see Chapter 5.2.3). Release 1.0_31/03/

20 2. Select the Administration option directly from the toolbar at the bottom of the page, as indicated below: Profile management and the assignation of functions and privileges are the exclusive prerogatives of the user administrator. The user administrator is initially required to enable himself for the functions that intends to perform, and then enable the operating users. The sequential order of these steps must be respected, because the administrator can guarantee only the functions and privileges that were previously assigned to the administrator himself. From this menu it is possible to manage privileges and functions concerning: X-COM (if the Client has subscribed X-COM service) MT-X CLIMP X-TRM On-Line (if the Client has subscribed X-TRM service) 3. Select only the following tabs SECURE USERS: AUTHORISED XCOM WEB USERS for X-COM CLIENT SECURE USER: AUTHORISED USERS for MT-X CLIENT SECURE USERS: CLIMP AUTHORISED USERS for CLIMP X-TRM ONLINE USERS: ROLES AND FUNCTIONS for X-TRM On Line After selecting the label of interest, the enabling process the functions, described in the following points, is the same for all. 4. Press the +Add record button on the top right: 5. Select the user of the subject to whom the functions and role the institute are to be attributed from the drop-down menu Release 1.0_31/03/

21 6. Place a flag inside the permission box for the functions to be attributed to the user bearing in mind that there are four modes for each function: W write R read D delete A authorisation 7. Press the Save button to save the configurations In this way the process related to the assignment of the MT-X functions to the user is completed. The mentioned user has to replicate the same process to assign the CLIMP, X-TRM On-Line and X-COM functions to the user. Release 1.0_31/03/

22 CLIMP SET-UP: X-TRM ON-LINE SET-UP: X-COM SET-UP: Once enabled for the different functions, the user can view the item in the menu bar, CLIMP or X-TRM On Line according to the Monte Titoli service to be used. Release 1.0_31/03/

23 NEW SERVICE PROVIDERS Below the activities to be carried out by a new Client with the role of Service Providers. 1. Login to the MT-X Platform When accessing the MT-X platform, the login credentials provided by Monte Titoli must be entered (for more details see Chapter 5.2.3). The Service Provider has to access with its own credentials. 2. Select the Administration option directly from the toolbar at the bottom of the page, as indicated below: Profile management and the assignation of functions and privileges are the exclusive prerogatives of the user administrator. The user administrator is initially required to enable himself for the functions that intends to perform, and then enable the operating users. The sequential order of these steps must be respected, because the administrator can guarantee only the functions and privileges that were previously assigned to the administrator himself. From this menu it is possible to manage privileges and functions concerning: MT-X CLIMP 3. Select only the following tabs: ADMINISTRATOR: ACCOUNT OPERATORS FOR MT-X for MT-X Release 1.0_31/03/

24 CLIENT SECURE USERS: CLIMP AUTHORISED USERS for CLIMP 4. Press the +Add record button on the top right 5. Select the user of the subject to whom the functions and role the institute are to be attributed from the drop-down menu The Service Provider, once it has received POA from the Client (issuer/intermediary) through CLIMP, needs to: select its Client user from the drop down list ( user ) select the role Service Provider 6. Place a flag inside the permission box for the functions to be attributed to the user bearing in mind that there are four modes for each function: W write R read D delete A authorisation 7. Press the Save button to save the configurations Release 1.0_31/03/

25 MT-X SET-UP CLIMP SET-UP: Once enabled for the different functions, the user can view the item in the menu bar, CLIMP or X-TRM On Line according to the Monte Titoli service to be used. Release 1.0_31/03/

26 7.0 SYSTEM INITIALISATION After the execution of the activities described in the previous chapters, the user can view the selected functions in the menu bar, including CLIMP. When this tab is selected, the user is directed to the CLIMP homepage, where the Client is required to fill in the necessary configuration data to initialise the system and for subsequent ordinary activities, through the CLIMP platform. Note that Annex A describes the main operational guidelines that a new Client is required to follow for the configuration of data through CLIMP. These include the following information, which is dealt with in detail in the following chapters: The participant's general details, i.e. information such as addresses, contact persons, information on pricing lines and invoicing details, codes associated with the Client and operational mandates to third parties; Services configuration, i.e. subscriptions to Monte Titoli services and their configuration (parties, accounts, etc...); Connections, messages and reports, where the configuration of messages received by the Client from Monte Titoli can be managed. Please note that if static data changes occur, these have to be communicated to Monte Titoli through CLIMP in order to keep Client data aligned and to avoid potential critical operational situations. Release 1.0_31/03/

27 8.0 GENERAL PARTICIPANT DETAILS 8.1 Contact persons and addresses In order to guarantee a proper and efficient relationship between Monte Titoli and its Clients, it is essential that the list of contacts is kept constantly up to date by the persons or by the department that the Client appoints to perform this task. In case of participation through an operating mandate to Service Provider, the Client must indicate at least one direct contact so that it may be reached in the event that the mandate is revoked. The availability of the up-to-date contacts list is a guarantee for the Client that all communications issued by the company are received correctly and promptly and that in the event the mandate is revoked, Monte Titoli can contact with the Client. With respect to addresses, it is preferable that messages forwarded by Monte Titoli are received at the only mailbox of the office delegated to receive such information. A single address, accessible by various people, ensures that the message will be delivered. 8.2 ABI Code, CED Code, BIC SWIFT Code In the case of a new participation to Monte Titoli services, the Client is assigned a CED code, i.e. the Client identifier code, in the context of trading and post-trading services. This code is therefore used for participation in X-TRM, settlement and ancillary and X-COM service. Clients must request the code in advance by to mdm@lseg.com specifying at least the following details: company name legal address contact person address Client operability, including the activities to be executed into the guarantee and OTC markets. If no specific request is made, Monte Titoli will assign the CED code when the participation application is received. Note that, as described in paragraphs and 5.2.7, Clients have to request an ABI code and a BIC code respectively to the Bank of Italy and SWIFT in advance and in time to process the request. Without these codes, Monte Titoli cannot finalise the application and activate the services requested by the Client. Release 1.0_31/03/

28 8.3 Selection of Pricing Line The fees applied by Monte Titoli are complied with the principle of unbundling and separate accounting. In order to facilitate understanding of the invoicing process, a document setting out the specific details of the individual services provided is available on the Monte Titoli website. Invoicing is on a monthly basis, except where indicated otherwise. For Service Providers, with respect to fees consisting of monthly charges varying according to a range of volumes (X-TRM On-Line and MT-A2A connections), Clients may select the most appropriate pricing line through the relevant section of CLIIMP. For the FIS/CPA service, the Client can choose between two different methods of application of fees to configure in CLIMP: to pay according to service consumed or within average balance. Clients can change the pre-selected range by send a request through CLIMP before 15 December of each year, or if this is a bank holiday, the immediately subsequent working day. The change will become effective as of January of the following year. Changes in the range brackets during the year are not permitted. 8.4 Invoicing Monte Titoli will debit Client s fees automatically on the appointed Paying Agent specified by Participants in the relevant section of CLIMP. Only one bank account may be specified, regardless of the different services in use. In the same way, in case Client plays both the roles of Intermediary and issuing company at Monte Titoli, the validity of the bank account entered for the own property securities account will be automatically extended to the Issuer account. The appointed Paying Agent may be the same bank appointed to pay corporate actions proceeds. 8.5 Operational mandate to third party Client may appoint a third party (agent) to deal with operational transactions with Monte Titoli on their behalf. Such mandate may cover all transactions or only some of them. If they do not already have one, agents must obtain a certified user access for the MT-X platform. 8.6 Appointment of securities settlement agent Clients may appoint to a third party to act as settlement agent on its behalf.third parties are designated through the CLIMP platform. Release 1.0_31/03/

29 8.7 Cash settlement Clients may use accounts opened in their own name in the payment systems linked to the Monte Titoli procedures or, alternatively, appoint a third party to settle cash on their behalf through the third party's accounts. Release 1.0_31/03/

30 Custody FIS/CPA RCC X-TRM Cross Border X-COM Collateral Fiscal services e Settlement Easy access 9.0 SERVICES CONFIGURATION The following tables show the matrix of services and any interdependencies between them which can be subscribed in the case of new intermediary or issuer Clients,. The details of each service is described in the following chapters: INTER MEDIARIES Custody X FIS/CPA X X RCC X X X-TRM X Cross Border Sett X X X-COM Collateral management Fiscal Service X 5 X X X Settlement X X X Easy access X X X X ISSUERS 6 Custody RCC Custody X RCC X X 5 If a participantof the X-COM Service intends to settle transactions directly, it must also be a member of the centralised administration service. on the other hand, if it uses the services of a securities settlement agent (an indirect method of settlement) membership of the centralised administration service is not mandatory. 6 NB: issuers can also access the settlement services and X-TRM, provided that they have an intermediary account open. Release 1.0_31/03/

31 9.1 Centralised Administration Service The centralised administration service is dedicated to both Intermediaries and issuing companies. One or more securities accounts may be opened in the name of an Intermediary but only one as Issuer. As per the segregation of assets rules in force, Intermediaries are requested to separate their assets from the assets kept on behalf of their Clients; as a consequence the own property securities account is used to book holding positions of the Participant s own property assets; the third parties securities account will be used to hold assets belonging to the Participant s underlying Clients. Participants also have the chance to open additional third parties securities accounts (called segregated accounts or settlement accounts ), to segregate the activity of some of their underlying Clients. It is also possible to request 'giver' (or giver collateral ) accounts in the X- COM Service Bank details of Paying Agents for intermediary beneficiary Proceeds originating from central depository service are settled by the following methods: the proceeds came from the execution of corporate actions on financial instruments admitted as Issuer CSDs (cash distributions and reorganisations), also in case of the Issuer uses a non-resident Paying Agents, and the proceeds came from the execution of corporate actions on financial instruments admitted as Investor CSD, held in Monte Titoli through links with the international central depositories (denominated in Euro) and proceeds from financial instruments denominated in currencies other than the Euro but settled Euro in Target2 or Target2Securities systems, with which the intermediary must have a direct account or use an account opened by another entity; government bonds payments are settled in Target2Securities into the cash account (DCA - dedicated cash account) of the Client or into DCA held by an Agent Bank. Each intermediary must provide these instructions for each securities account opened through CLIMP. RCC payments are settled in T2 into the securities account of Client or into the securities account of the Agent Bank. Payments with currency different of Euro related to the corporate action are settled into the Foreign Bank in which Clients have a direct account or through an Agent Bank. Release 1.0_31/03/

32 As anticipated at the end of chapter 7.0, in case of withdrawal, exclusion or suspension from Target2 and/or T2S, direct Clients as well as the Clients that operate through an Agent Bank for the cash settlement, have to communicate the changes to Monte Titoli Bank details of Paying Agent on behalf of an Issuer In case an intermediary is appointed as paying agent by an issuer, in order to settle so-called cash distributions (dividends, proceeds from funds, interest and/or capital refund), it must inform Monte Titoli of the Target2 and/or Target2Securities details to which the said transactions are to be settled. The coordinates must be communicated by entering the details in the relevant section of CLIMP. In order to facilitate the correct charge of RCC fees, each issuer should appoint the paying agent to which it intends to grant a mandate and provide the relevant Target2 details by entering the details in the relevant section of CLIMP. 9.2 Settlement Service It is possible to participate in the Settlement services on one's own behalf or in one's own name and on behalf of third parties, as provided in the Operating Rules. In order to finalise the participation process, subjects must possess a securities account with Monte Titoli and T2S accounts for cash settlement (DCA), or use the services of an agent bank. Participants that use an Agent Bank for cash settlement must, in case of withdrawal, exclusion or suspension from Target2, proceed promptly to replace the bank and immediately notify it to Monte Titoli. Subjects that participate in the service also on behalf of third parties can use one or more dedicated securities accounts opened in the centralised administration service and may request that Monte Titoli to configure their Clients as indirect participants while providing Monte Titoli with their identification details and any subsequent changes. Participants must also use the X-TRM service or other systems for direct connection to the T2S platform in order to forward settlement instructions. In order participate in the Service, it is necessary to fill in the relevant sections of CLIMP. 9.3 Cross-border Settlement Service The Cross Border Settlement service allows to settle transaction where the counterparty is a Participant in a settlement system other than Monte Titoli and by means of Monte Titoli which plays the role of settlement agent within this system. Settlement instructions are entered through the X-TRM service. Release 1.0_31/03/

33 Applications for subscription to the service are made through CLIMP. 9.4 X-TRM Service Participants may choose to be direct or indirect, by appointing a third party to operate on their behalf. In such cases, the Client grants a operational mandate to the third party. The subscription of the Service must be made through CLIMP. The MT-X platform also guarantees access to pre-settlement and settlement services (X-TRM) through the tool named X-TRM On-Line, which offers multiple functionalities. In order to access X-TRM On-Line, Client must already be a member of MT-X or have to request the digital certificates in advance (see Chapters and 6.0). X-TRM On-line provides a further functionality, enabling the massive entry of instructions (the so-called massive upload function). The functionalities request and the selection of the pricing choices are made in the relevant section of CLIMP. 9.5 FIS/CPA Service The service allows the Intermediary to send shareholders details to the Issuers by means of the following options: send a separate flow for each account opened in name of Intermediary (with two separate agendas, the first one related to the notifications about the property account and the second one related to the third account). send one information flow including the reporting related to all the accounts (with one agenda valid to the specific account indicated). In the event that reports are made on behalf of other Intermediaries, (so-called 'subdepositories'), it is necessary to provide the configuration data for such Intermediaries. Finally, an address (it is suggested to indicate a mailbox shared by all users that operate on this process) to which are sent requests for the sending of flows on upcoming company events and for which it is necessary to send FIS flows is required. Clients of the services must enter the details in the section dedicated to the service in CLIMP. 9.6 RCC Service The RCC Service provides the following functionalities either in interactive and non interactive mode: Calculation of fees Release 1.0_31/03/

34 Daily calculation of amounts due by Issuers to Intermediaries on the basis of the flow of information already sent by Intermediaries or the book entries in case no shareholders notification is applicable.the calculation of amounts is done automatically for those corporate actions that do not require shareholders disclosure of data. Settlement of cash Automatic payment instructions are sent in order to be settled in Target2 system. Payment, pre-advice and advice messages are sent to the Paying Agent appointed by the Issuer and to the elected Participants. A separate message is sent for each corporate action, each ISIN, each account the interactive mode of access to the RCC Service, which takes place through the MT-X platform, the following additional modules are available: Online inquiry Daily production of reports of fees accruing on the basis of reports obtained by Intermediaries and fees calculated automatically for corporate transactions that do not provide for the reporting of shareholders' names. The reports are available separately for each operation and for each securities account of the RCC member involved in the operation. Invoicing tool Online support functionality for the issue of the invoice following recognition of taxable fees (fees for shareholders' meetings). Note also that debts of Issuer companies are settled in favour of Intermediaries in Target2, through the paying agent mandated by the issuers. 9.7 X-COM Service The X-COM service enables management of financial guarantee operations through selection and transfer of financial instruments from the giver of the securities to the financier and the utilisation of the guarantees. The service enables Participants to access one or more operating sections: 1. Section relating to the transactions concluded with the Bank of Italy 2. Section relating to the Transactions secured by the Central Counterparty (MTS and E- MID markets) 3. Section relating to the transactions concluded OTC Operations on section sub 1 is free of payment (FOP) and it implies only financial instruments exchange; on section sub 2 it is only delivery versus payment (DVP classic repo) and it implies transfer of guarantees against cash; finally, on section sub 3 there could be both cases. Release 1.0_31/03/

35 Participants, in order to play Giver Collateral role towards Bank of Italy, have to have a giver account (ordinary account or GCA account Giver Collateral Account dedicated to X-COM) by the centralised administration system. On the other side, if participants want to play receiver collateral role, they have to have an RCA account Receiver Collateral Account dedicated to X- COM service. If requested, it is possible to have more than one receiver collateral accounts in order to segregate collateral coming from different givers. Participants of DVP section have to have a cash account in T2S. Participants can also select settlement agents for cash/securities in order to transfer both cash and securities in case the participants do not take part in centralised administration system and/or do not have Target2Sesurities accounts. In such cases the participant and its Settlement Agent must sign the relevant agreement (Agreement Form between Member and Settlement Agent), available in the website at the following link: Agreement Form between Member and Settlement Agent. Participants may transfer their operations to a third party that can also operate as an Account Operator, i.e. a user of electronic connections authorised by an appropriate operating mandate. Each member must be authorised to receive information destined/generated for/by the Service, availing themselves of the relevant messaging (SWIFT, MT-X, RNI). Use of MT-X platform is mandatory in order to carry out configuration activity. Subscription to the service are made through the relevant section of CLIMP, but the information necessary for the configuration of the participant must be indicated in the specific supporting documents (Operating Data Sheet) that will be available at the following link X-COM Contractual Documentation. 9.8 Fiscal Service Monte Titoli s Global Tax service provides a variety of solutions that address the tax needs of Italian and international Clients on both domestic and foreign securities. In particular: non-resident Clients can require fiscal representation service for Italian securities, which is regulated by specific bilateral agreement, and fiscal assistance service for foreign securities; resident Clients can require only fiscal assistance service for foreign securities. The service incudes: Providing the completed official tax reclaim form to the local tax authority Maintaining and supporting the document files Speeding up the process Relief at Source, Quick Refund and Standard Refund options (if reported in the specific guide) Release 1.0_31/03/

36 Monte Titoli supports a full tax reclamation service by providing the completed official tax reclaim form to the local tax authority, notifying the date of filing with the local tax authorities and providing monthly reclaim reports. In order to use the fiscal service it is required to have centralized administration service and the deposit in Monte Titoli of the financial instruments in scope of the service provided by Monte Titoli, as well as the subscription of the service in CLIMP (if required). Release 1.0_31/03/

37 10.0 CONNECTIONS, MESSAGES AND REPORTS 10.1 Connectivity Monte Titoli's services are made accessible to its Clients through multiple communication channels: MT-X MT-A2A SWIFT The Client must indicate the connection channel(s) corresponding to the services selected in the Request for Services. However, recourse to a connection channel does not exclude the possibility of simultaneously using other channels, where provided. This function, the so-called 'multichannel' transmission method, involves the selection of various of the mentioned channels for the same service MT-X For each service accessible through MT-X platform, it is necessary to indicate the accounts (whether they be Intermediary and/or Issuer) for which a connection is required. The Service Provider has to sign the connectivity contract using the Request for Services for Service Providers, selecting the MT-X option, and enter the relevant information into the MT-X users/certificates request form MT-A2A MT-A2A is a connectivity channel for the X-TRM service developed by maintaining the structure of old LU6.2 messages in order to minimise the technological impact on Clients at the time of its introduction. It offers two different participation profiles: direct or through the Service Provider. In both cases the Client or the Service Provider must choose whether to activate a public 7 (so-called LAN to LAN) or dedicated (Network Service Provider) line for which there are two possible solutions (BITNET or SIANET). Clients that wish to use this connection must give instructions through CLIMP whether they intend to use the direct connection or entrust it to an Service Providers. The Service Provider, for its part, must sign the connectivity contract using the Request for Services form for Service Providers, selecting MT-A2A and attaching a list of entities on behalf of which it operates as an Service Provider. This document must be updated in the event of any 7 The LAN to LAN standard configuration provides for the activation of a 128kbps line but additional lines or an upgrade to 256kbps may be requested, according to the client's/account Operator's requirements (e.g. it may be necessary to have separate lines for the reception and sending of flows). Release 1.0_31/03/

38 changes by sending a new complete list which cancels and replaces the previous list, (remember to highlight any changes from the previous version). The Service Provider must also fill in the MT-X users-certificates request form to indicate what type of line it intends to activate and to indicate its choices with respect to pricing. The activation of MT-A2A is subject to a conformance text SWIFT The activation instructions for a connection through the SWIFT network are set out in the document entitled Getting Started published jointly by Monte Titoli and SWIFT. This document is available on request from the Master Data Management office. Release 1.0_31/03/

39 11.0 ANNEX A: OPERATING GUIDE FOR THE CONFIGURATION OF NEW ISSUER/INTERMEDIARY CLIENT The purpose of this annex is to describe the principle operating guidelines that the issuer (or whoever is responsible for the configuration data on its behalf) or intermediary must follow to proceed with the configuration of the necessary data through CLIMP. Access to CLIMP and the possession of a BIC code for the issuer/intermediary are essential requirements to proceed with the subscription of the service and the configuration of the account PARTICIPANT GENERAL DATA Access the Participant General Data menu and enter the mandatory general data in accordance with the following menus: CONTACTS Click the New Contact button on the top right: Enter the following references: Entering of Contractual Representative Entering of Legal Representative Contact person for Sending Penalties Contact person for invoice (if you intend to receive them by ) Note that it is possible to associate more than one type of contact person with the same person. Release 1.0_31/03/

40 BUSINESS CODES 8 From the Participant General Data/Business Codes section: Select the New Code button on the top right: Select the type of BIC code from the drop-down menu and enter the code Attention: the BIC code must be 11 characters (enter XXX as the last three digits). The entered data requires the approval of Monte Titoli (the tab will indicate Request pending until the request is approved). However this does not prevent the execution of the next activities. 8 Some codes may already be present because they were entered by Monte Titoli. Release 1.0_31/03/

41 ADDRESSES Enter the obligatory addresses (the same address can be entered as the registered office and as the administrative headquarters). The entered data requires the approval of Monte Titoli (the tab will indicate pending request until the request is approved). However this does not prevent the execution of the next activities. INVOICES PAYMENT BANK From the General Details of the Participant menu bar Select the Add Invoice button on the top right: Enter the details of the method for receiving invoices. The receipt by method is available only if at least one contact person has been indicated for invoicing. If more than one invoicing contact person has been entered, it is possible to specify which of them must receive the invoice by checking the box on the bottom left corresponding to the contact person. Release 1.0_31/03/

42 If the receipt of a paper invoice option is selected, the previously indicated registered office can be associated with the option, or a new address entered. Specify the method of payment by selecting the Change Method of Payment button on the top right. Enter the required details: Also in this case, the entered data requires the approval of Monte Titoli (the tab will indicate Request pending until the request is approved). It is not currently possible to select the SEPA method because it has not yet been processed and the form to be uploaded is not available SUBSCRIPTION TO ISSUER/ 9 INTERMEDIARY SERVICE Select the My Services tab and click the New Service button on the top right. 9 In order to request subscription to the service, the requests indicated at Chapter 11.1 must have been approved by Monte Titoli. Release 1.0_31/03/

43 Select CENTRALISED ADMINISTRATION SERVICE - INTERMEDIARY from the drop-down menu to proceed with subscription to that service: Select CENTRALISED ADMINISTRATION SERVICE - ISSUER from the drop-down menu to proceed with subscription to that service: The approval of Monte Titoli is required. The Client's tab will indicate Request pending until the request is approved PARTIES AND ACCOUNTS To continue with the steps indicated below it is necessary for subscription to the centralised administration service to have been approved by Monte Titoli. Release 1.0_31/03/

44 PARTY From the Parties & Account / T2S Party&Account section, select the New Party button on the top right and enter the required data: Party BIC: enter the BIC of the entity Modifiable description: empty field, we suggest entering an abbreviated company name Party technical addresses: select the only item available from the drop-down menu Also in this case, the approval of Monte Titoli is necessary. The request will remain among the pending requests until approved by Monte Titoli. ACCOUNT Release 1.0_31/03/

45 To continue with the steps indicated below it is necessary for the request for the creation of a new party to have been approved by Monte Titoli. Click the New Monte Titoli Accounts button on the top right. Enter the request for the opening of an account using the New Monte Titoli Account button and entering the required data: Party BIC: select the Party previously opened from the drop-down menu Description of operability: select the ISSUER option from the drop-down menu (if it is an issuer) or DEPOSITARY (if it is an intermediary) Monte Titoli Account Identifier: indicate the ABI code of the account issued by the Bank of Italy (if the ABI code is provided by Monte Titoli leave the field empty) H/R Securities Account Default Value: select the option RELEASE from the drop-down menu Contact person for Sending Penalties: select the contact person from the drop-down menu All fields not previously filled in must be left empty or agreed in advance with Monte Titoli. Release 1.0_31/03/

46 Also in this case, it is necessary to wait for the approval of Monte Titoli. Until approval, Request Pending will be visible in the tab OPERATIONAL MANDATES To continue with the steps indicated below it is necessary for the request for the opening of a new account to have been approved by Monte Titoli. To enter an operating mandate, follow the instructions below: Click on the Operational Mandate button Select the Assigned operational mandates tab and click the Add new button on the top right Enter the required details: Release 1.0_31/03/

47 1. Service: select the ISSUER CENTRALISED MANAGEMENT option from the dropdown menu (if it is an issuer) or INTERMEDIARY CENTRALISED MANAGEMENT (if it is an intermediary) 2. Agent: select the person who is to receive the operational mandate and mandate to operate on behalf of the issuer / intermediary 3. Account: select the issuer/intermediary account Once the request has been sent it must be approved by the agent, who must access CLIMP with his own credentials CONNECTIONS, MESSAGES AND REPORTS To configure the connection, messages and reports channels, proceed as follows: Select the Change button on the top right Select the messages to receive and the securities account corresponding to each selected message. Release 1.0_31/03/

48 The messages must be configured separately for RNI10 and/or MT-X. In order to be effective, the said configurations must be approved by Monte Titoli. 10 RNI=Rete Nazionale Interbancaria Release 1.0_31/03/