MEGARA Newsletter Issue 5 | Q1 | 2021
Welcome to the new 2021 MEGARA Newsletter. With our rich functional roadmap, VERMEG confirms its commitment to enhance MEGARA to meet industry changes and to bring new services to the financial community. Along with functional coverage, MEGARA’s technology and design fully support VERMEG’s strategies in the areas of digital transformation and SaaS solutions.
CSDR : Partial release function
To complete the functionality necessary for CSDR and the new settlement discipline regime, partial release functionality is now implemented in MEGARA.
This service will allow the settlement agent to significantly reduce failure penalties thanks to the following features:
- STP processing of hold/release using MT530/sese.030 in accordance with T2S practices.
- Partial release standing instruction to automatically release available holdings.
Support of cash messages in MX format
MEGARA now supports all payment messages in MX format as well as the MT standard.
MX payment messages (pacs, pain and camt) were implemented according to standard practices and in accordance with T2/T2S usage guidelines.
This means that MEGARA is ready for the Eurosystem T2/T2S consolidation project that will go live at the end of 2022, leaving MX as the sole connectivity channel for ECB participants.
Support of ISO20022 new versions
MEGARA currently supports messages required for custody activities in both ISO15022 and ISO20022 standards and VERMEG continues to update the solution to ensure availability of new versions required by the industry.
For example, settlement messages (sese and semt message class) are updated to the amended versions that will be required by T2S next November. Additionally, corporate actions messages will be upgraded to the latest standards after the relevant SWIFT release is validated.
The previous versions of the ISO20022 messages will still, of course, be available and can still be used to communicate with a particular CSD or custodian where applicable.
In several countries, mainly in Asia, custodians face a real challenge in dealing with last minute holidays and how these impact ongoing transaction and corporate action events. Typhoon, king death, and moon cycle-based holidays being examples of such events.
MEGARA now offers comprehensive functionality to deal with these exceptional holidays with the following key features:
- Identification of all transactions impacted
- Four eyes approval
- Full audit trail
VERMEG is happy to announce the launch of MEGARA Sandbox deployed on a SaaS basis early in Q2. More information will be available in the next Newsletter.Download the Newsletter
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