Central Bank of Sri Lanka Circular RTGS/13/2010: Amendment to LankaSettle System Rules

# CENTRAL BANK OF SRI LANKA

Janadhipathi Mawatha,  
P.O. Box 590,  
Colombo 1, Sri Lanka.  
Telegrams: 'CENTRABANK'

September 16, 2010

## Circular No.: RTGS/13/2010

### To: All participants of LankaSettle System

### Amendment to LankaSettle System Rules Version 2.0 – August, 2009  
### Daily Operating Schedule of the LankaSettle System

The new SLIPS application of LankaClear (Pvt) Ltd. is planned to go-live from 20<sup>th</sup> September 2010. The enhanced functionality of this application will be implemented in two phases as follows:

- Phase 1 comprising a single clearing cycle (Session 1) commences on 20<sup>th</sup> September 2010, with the RTGS settlement at 8:30 a.m., as per the current operations.
- Phase 2 comprising two clearing cycles i.e. Session 1 and Session 2, commences on 27<sup>th</sup> September 2010, with the RTGS settlements at 8:30 a.m. and 3:00 p.m., respectively. Phase 2 will include the facility for T+0 settlement (excluding salary payments) during clearing cycle of Session 2, in addition to T+1 to T+14 settlements accommodated during Session 1.

The participants should also note that the maximum value per SLIPS transaction is set at Rs.1(one) million and T+0 credit transactions could only be sent to LankaClear (Pvt.) Ltd. after the implementation of Phase 2 on 27<sup>th</sup> September, 2010.

The operational guidelines on the above mentioned new SLIPS application could be obtained from LankaClear (Pvt.) Ltd.

2. Accordingly, you are hereby informed that the table in the Clause 1.2 of Volume 4 of LankaSettle System Rules Version 2 – August 2009 on Daily Operating Schedule will be amended to read as follows with effect from September 27, 2010.

| TIME          | EVENT                              | ACTIVITIES/TRANSACTIONS                                      |
|---------------|------------------------------------|-------------------------------------------------------------|
| 6.30 a.m.     | System start-up                    | Start-up of RTGS/SSS applications.                          |
| 7.30 a.m. to 8.00 a.m. | Start of day processing         | Update official prices of securities, earmarking securities for ILF. |
| 8.00 a.m.     | LankaSettle System opens for business | System opens for effecting transactions.                    |
| 8.00 a.m.     | ILF/auto reversal of Repos         | Grant ILF and settle second leg of Repos of OMO.            |
| 8.15 a.m.     | Maturities/interest payments, start of the day (SOD) file | Settlement of maturity proceeds/coupon payments of securities, effecting LankaSettle charges/penalties. |
| 8.30 a.m.     | Multilateral Net Settlement Batch from LankaClear | SLIPS (Session 1)/Main Clearing.                            |
| 8.30 a.m.     | Outright sales/purchases           | Settle OMO outright sales and purchases.                    |

*Contd.*

| TIME          | EVENT                              | ACTIVITIES/TRANSACTIONS                                      |
|---------------|------------------------------------|-------------------------------------------------------------|
| 11.00 a.m.    | Reversal of Reverse Repos          | Settlement of second leg of Reverse Repos under OMO.        |
| 11.45 a.m.    | Reverse Repos (Auction)            | Settlement of first leg of Reverse Repos under OMO.         |
| 12.45 p.m.    | Repos (Auction)                    | Settlement of first leg of Repos under OMO.                 |
| 1.00 p.m.     | Closure of Primary Auction settlement | Settlement of securities under Primary Auction.             |
| 2.15 p.m.     | Multilateral Net Settlement Batch from LankaClear | Rupee Draft Clearing.                                     |
| 2.45 p.m.     | Multilateral Net Settlement Batch from LankaClear | Settlement Clearing and Adjustment Clearing.              |
| 3.00 p.m.     | Primary cut-off time for third party transactions | Close for new transactions (for T + 0) in favour of third parties, except for bank-to-bank (MT2XX series). |
| 3.00 p.m.     | Multilateral Net Settlement Batch from LankaClear | SLIPS (Session 2)                                         |
| 4.00 p.m.     | Repos (standing)                   | Settlement of first leg of Repos under OMO                  |
| 4.15 p.m.     | Reverse Repos (Standing)           | Settlement of first leg of Reverse Repos under OMO          |
| 4.15 p.m.     | ILF Repayment                      | Repayment of ILF.                                           |
| 4.30 p.m.     | Final cut-off time Close for business | No further inputs are accepted. With the closure of system for business, queue/settlement processing will cease and any transactions still in queues will be rejected. |
| 4.30 p.m. to 5.00 p.m. | EOD processing             | End-of-day (EOD) processes, e.g. generate reports/GL export (EOD) file, database maintenance for billing/statement printing purposes. |
| 5.00 p.m.     | System shut down                   | Commence shutting down of RTGS/SSSS application software, obtain off line backups. |

3. Participants are advised to monitor their settlement accounts through browser work stations and assure to keep sufficient funds in their settlement accounts at the times of settlement of Multilateral Net Settlement (MLNS) batches in the RTGS system.

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**I.H.M.S. Herath**  
Actg. Superintendent of Public Dept

**R.B. Weerasinghe**  
Actg. Director/Payments and Settlements