Income processing ICSD

Clearstream covers the complete income lifecycle, handling every stage of the process with great care and ensuring the highest consistency.

Our continuous investment upstream of the notification process has produced solid gains at the execution and control level of the chain. By delivering reliable and consistent reference data, we have reinforced the quality and control of the entire process; and in particular the notification service and event execution. Automated data gathering and the implementation of our cleansing and scrubbing tool enable us to transform comprehensive, high-quality securities reference data into an enriched, reliable 'golden copy' for our clients’ use.

To ensure superior standardisation and automation, and to reduce operational risk, our income services adhere fully to the SWIFT ISO 15022 standards, and use the full lifecycle of income processing message types (MT56x). Event types are dedicated, avoiding the use of the general event message type, and allowing systematic and accurate application of available SWIFT fields.

Complete, high-quality securities reference data is generated during income preparation, which ensures timely release of information. By using the market terms and conditions query, customers can obtain the prospectus and legal documents of the securities.
Notifications for floating rate settings, dividend payments, early and partial redemptions are sent by Xact Web Portal, CreationOnline or SWIFT MT564 messages. The Income Pre-Advice Report provides a five-day forecast on future income proceeds and capital repayments for all securities held. Income notification is available even when customers do not hold the underlying securities.

Income and redemption payments are paid in the original payment currency and credited at the start of the payment date. Customers can take advantage of services, such as our Automatic foreign exchange service that allows payments to be credited in the eligible currency of choice, or the automatic compensation services for coupon payments for pending debt and equity transactions between two Clearstream customers.

Issuers below investment grade (credit rating of BBB or lower) may have expected payments flagged as payable Upon Receipt of Funds (URF). For these payments, customers receive three categories of URF information based on the payment history.
Payment reversals are reduced due to rigorous data management and data comparison with sub-custodians. Whenever possible, our comprehensive tax services can help you obtain relief at source and timely tax refunds.

Customers can expect leading client support around the clock from our offices worldwide, including guidance and assistance in optimising connectivity profiles and performance management tools to help achieve income efficiency. Clearstream also offers an income processing service from multiple offices throughout the globe to ensure events are processed according to their timezone.