OneClearstream activation for ESES markets and LuxCSD issued securities - Asset services market specifics

23.02.2018

Effective

9 April 2018

with the activation of OneClearstream services for ESES markets (Belgium, France and the Netherlands) and LuxCSD issued securities and in addition to the previous communications via Release Notes and Announcements (see links below), asset servicing will be subject to the following market specific changes.

Corporate actions on stock (based on settled positions)

For Clearstream Banking AG1 customers, using the OneClearstream service, corporate actions on stock will be subject to the OneClearstream service level as described in the OneClearstream Functional Specifications (for example payment of all corporate action proceeds in T2S, TEFRA D procedure handling via corporate action flows, asset servicing instructions and reporting in OneClearstream standards and at sub-account level, the use of blocking sub-account 851).  

There is no change of service level for Clearstream Banking S.A.2 customers3 except for the processing and reporting of the choice dividend (DVOP) corporate actions for French securities as described below:

  • The MT564 Corporate Action Notification will include additional tax options for the reinvestment options: 30% (default tax rate), 15%, 10% and 0%.
    The MT564 Corporate Action Notification will include following options:

Option

Additional information per option

001 CASH

 

002 SECU GRSS Round Up

 

:22F::DISF//RDUP
:90B::PRPP//ACTU/”reinvestment price”
:92D::NEWO//"gross"/"reinvestment price"
:70E::INCO//reinvest of the dividend (100%), rounding resulting shares up

003 SECU NETT Round Up at 70% (30% tax rate, (default rate))

 

:22F::DISF//RDUP
:90B::PRPP//ACTU/"reinvestment price"
:92D::NEWO//"gross * 0.70"/"reinvestment price"
:70E::INCO//reinvest of the dividend (70%), rounding resulting shares up

004 SECU NETT Round Up at 90% (10% tax rate)

 

:22F::DISF//RDUP
:90B::PRPP//ACTU/"reinvestment price"
:92D::NEWO//"gross * 0.90"/"reinvestment price"
:70E::INCO//reinvest of the dividend (90%), rounding resulting shares up

005 SECU NETT Round Up at 85% (15% tax rate)

:22F::DISF//RDUP
:90B::PRPP//ACTU/’reinvestment price’
:92D::NEWO//"gross * 0.85"/"reinvestment price"
:70E::INCO//reinvest of the dividend (85%), rounding resulting shares up

006 SECU GRSS Round Down

 

007 SECU NETT Round Down at 70% (30% tax rate, default rate)

 

008 SECU NETT Round Down at 90% (10% tax rate)

 

009 SECU NETT Round Down at 85% (15% tax rate)

 

  • The MT565 Corporate Action Instruction will be subject to new validation rules. Therefore, customers should instruct using the new options above.
    The use of :92A::TAXB is only recommended together with the CASH option.
  • If customers specify in their MT565 instructions messages (:92A::TAXB field) a different Tax Rate for the option :22F::CAOP//SECU than advised in the related MT564 for the same option, the instruction will be rejected and reported via MT567 Corporate Actions Status and Processing Advice with the following narrative:
    :24B::REJT//NARR and
    ?:70D::REAS//CONFLICTING TAXB

Corporate actions on flows (market claims, transformations and buyer protection)

For CBF customers, using the OneClearstream service, corporate actions on flows will be subject to OneClearstream service level as described in the OneClearstream Functional Specifications (for example payment of all market claims proceeds in T2S, asset servicing reporting in OneClearstream standards). 

There is no change of service level for CBL customers except the below:

Market claims and reverse market claims

Market claims and reverse market claims (and tax adjustment, if relevant) applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.

The detection and compensation rules for market claims and reverse market claims on domestic trades will be further aligned with the Issuer-CSD rules.

Please refer to the Market Link Guides for further information.

Transformations

Re-instructions due to transformations applied to domestic trades with OneClearstream market counterparties  will be generated as matching settlement instructions.

The detection, cancellation and re-instruction rules for transformations on domestic trades will be further aligned with the Issuer-CSD rules.

Please refer to the Market Link Guides for further information.

Buyer protection

Clearstream Banking will adhere to the buyer protection standards by applying the manual buyer protection mechanism.

The manual buyer protection mechanism is a bilateral agreement between the trading parties by means of a manual process (no intervention from the market infrastructure regarding the exchange of buyer protection instructions).

Clearstream Banking will report the following key buyer protection dates in the MT564/568 Corporate Action Notification, if applicable, for the relevant events.

  • :98a: Guaranteed participation date :98A::GUPA
  • :98a: Election to counterparty deadline :98C::ECPD

Customers must use the CASG compliant template, attached below, for buyer protection invocation (BPI) if the requested corporate action option is not the default option. The template must be completed by buyer with the relevant information (for example corporate reference, option(s), the quantity of securities and the underlying transaction) and communicated directly to the seller. 

Further information

Additional information about the OneClearstream services activation and migration can be found on the Clearstream website under Product and Services, OneClearstream.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.


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1. Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.

2. Clearstream Banking S.A. (CBL), registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.

3. Including Clearstream Banking AG customers with Clearstream Banking S.A. 6-series accounts.