on 22-06-2018 03:23 PM
As a Lender, our linked workspaces are for lodgement, not for funds.
Does that alter the PEXA behaviour for linked workspaces at all?
The basis of my concern is this:
Assume we have two workspaces with linked lodgement, both in Ready status at settlement time.
These workspaces are linked lodgement workspaces, not linked finance workspaces.
If settlement for workspace A fails, for finance reasons, how will workspace B respond?
Here is my thinking:
So Workspace A settles independently of Workspace B which then fails for financial reasons.
Is my thinking correct?
If so, I can't see the point in linking them for lodgement purposes.
on 22-06-2018 07:44 PM
If I could just point out the good old Service Charter is a treasure trove of information... it describes how the system behaves.
So the section on Linked Simultaneous Settlements says:
i) If Financial Settlement is stopped in any of the Electronic Workspaces Linked for Simultaneous Settlement, all of the Linked Electronic Workspaces will be stopped.
ii) If any Financial Settlement is unable to complete for any reason, none of the Financial Settlements will proceed; and
iii) PEXA will continue to attempt to settle all of the transactions until the Rebooking Cut Off Time.
Once all Electronic Workspaces Linked for Simultaneous Settlement have successfully completed Financial Settlement, if any Duty Verification (in Victoria only) or Lodgement is unable to complete for any reason, none of the other Electronic Workspaces will be affected.
And the section on Linked Simultaneous Lodgements:
After Locking the Electronic Workspaces simultaneously, PEXA will Lodge and settle the Electronic Workspaces independently.
So in the simultaneous settlements the financial settlements can't occur one without the other. But in simultaneous lodgements, it is the locking and initiation that occur at the same time, but the settlements can then proceed independently of each other.
on 22-06-2018 07:49 PM
On the question of lodgement completion before disbursement completion:
"Settled" status means funds exchange at the RBA has been successful (this is the definition of settlement under the contract of sale) and the financial institutions who will be disbursing funds have received them.
Disbursing requires a payment instruction file to be sent to the financial institutions holding funds and a response file to be returned to PEXA. This can take some time,
In a simultaneous settlement workspace, you can see:
- source funds moved
- funds reserved at RBA
- funds settled at RBA (defined point of settlement. Up until this point, the reservation and settlement are kept simultaneous and cannot occur independently of each other)
- payment files sent to initiate disbursement
- (in Victoria, duty assessment)
- Lodgement case submitted to Land Registry
and at some point (though responses could come in either order):
- disbursement confirmed
- lodgement confirmed
on 25-06-2018 09:16 AM
There is something I am not getting here.
I am not understanding what is actually meant by "it is the locking and initiation that occur at the same time, but the settlements can then proceed independently of each other".
My initial question, I thought, was a very simple one.
"Are there any circumstances where linked simultaneous settlements may not settle together, after all being in a Ready/Ready status?"
I should have clarified that I mean linked lodgement workspaces, not linked financial settlements.
I still don't have an answer.
I have been referred to the Charter, I have had standard PEXA clauses quoted, I have not had a direct answer to the question.
I have already read all the information I can find, to answer the question for myself, and I cannot answer it definitely.
On the issue of lodgement completion prior to disbursement completion.
As we move to integration with PEXA, any workspace which has lodgement completion prior to disbursement completion, will result in a failure of some of our automated functionality.
We know that it happens rarely, we are told that it is more common with linked workspaces.
We are just looking to have a better understanding of when it happens so we can be better prepared for the integration failures.
on 25-06-2018 09:21 AMSolution
Linked simultaneous settlements - no circumstances. It is not possible.
Linked simultaneous lodgement - it is possible one could settle and one not. I’m not sure what the scenario would be, but it is possible.
Hope that’s clearer.
on 25-06-2018 09:34 AM
Thanks @Ames, much clearer.
Couldn't be clearer actually.