SQL0199N error when trying to connect HammerDB to Db2 for z/OS

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I'm trying to generate some data for DB2 11.1 z/OS using HammerDB v3.1 which is running on a Windows remote host. There is no ability to run HammerDB on the same host with DB2. According to the HammerDB documentation I need to set up IBM Data Server Driver for ODBC and CLI.

What I did:

  1. Downloaded and set up the driver for 11.1 on HammerDB host - v11.1.4fp4_ntx64_odbc_cli.zip as described here

  2. Configure db2dsdriver.cfg file

<configuration>
   <dsncollection>
      <dsn alias="TPCC" name="<my database name>" host="<my host name>" port="50000"/>
      <!-- Long aliases are supported -->
      <dsn alias="longaliasname2" name="name2" host="server2.net1.com" port="55551">
         <parameter name="Authentication" value="SERVER_ENCRYPT"/>
      </dsn>
   </dsncollection>
   <databases>
      <database name="<my database name>" host="<my host name>" port="50000">
         <parameter name="CurrentSchema" value="OWNER1"/>
         .......
  1. Add environment variable DB2DSDRIVER_CFG_PATH

set DB2DSDRIVER_CFG_PATH=C:\ProgramData\IBM\DB2\C_IBMDB2_CLIDRIVER_clidriver\cfg

  1. Run HammerDB GUI, try to build a schema and receive
Error in Virtual User 1: [IBM][CLI Driver][DB2] SQL0199N  The use of the reserved word "INDEX" following "" is not valid.  Expected tokens may include:  "ORGANIZE APPEND VOLATILE AUDIT VALIDPROC EDITPROC OBID IN DATA".  SQLSTATE=42601```



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Probably the easiest way to understand the root cause of the problem is to trace the CLI driver.
Tracing the CLI driver by using the db2trc on -cli command
Something like this on the DB2 Data Server Client side:

db2trc on -cli -f trc.dmp
steps to reproduce the problem
db2trc off
db2trc fmt -cli trc.dmp trc.dmp.txt

The trc.dmp.txt file will have exact statements the client tried to run.