Notification to Transfer Agents and Registrars in relation to CSDR requirements
Clearstream Banking hereby informs and notifies Transfer Agents and Registrars with which Clearstream Banking has engaged in registration of customer positions, of the following regulatory requirements as set out in the Regulation EU 909/2014 on improving securities settlement in the EU and on central securities depositories (CSDR) and the delegated EU regulation 2017/392 (ESMA RTS):
CSDR Art 37.2 states:
“Where appropriate and if other entities are involved in the reconciliation process for a certain securities issue, such as the issuer, registrars, issuance agents, transfer agents, common depositories, other CSDs or other entities, the CSD and any such entities shall organise adequate cooperation and information exchange measures with each other so that the integrity of the issue is maintained.”
In this respect, Clearstream Banking is required to reconcile the overall holding of a particular fund it maintains for its customers with the holding position as confirmed by the Transfer Agent or Registrar appointed by the fund in question.
To this end Clearstream Banking must carry out such reconciliation processes with Transfer Agents or Registrars at the same frequency as that of the NAV calculation frequency of the fund in question.
Following discussions with its supervisory authority on this topic, Clearstream Banking’s understanding is that Transfer Agents or Registrars are required to cooperate with Clearstream Banking in a way that allows it to comply with art 37.2 of CSDR:
- The Transfer Agent or Registrar shall provide Clearstream Banking with a statement of all holdings on the Position Account of Clearstream Banking as at the close of a Business Day.
- The Transfer Agent or Registrar shall provide Clearstream Banking with a statement of all new transactions that have affected the Position Account of Clearstream Banking since the previous statement of transactions (if any), and as at the close of a Business Day.
The statements shall be sent to Clearstream Banking by the Transfer Agent or the Registrar before the end of the day immediately following each statement date. The Transfer Agent or Registrar shall prepare the relevant statements for every date that is a dealing date, also known as trade date, for one or more of the Fund Shares in question.
When there are no new transactions to report, a statement of holdings shall anyway be sent by the Transfer Agent or the Registrar to Clearstream Banking. It is recommended that Transfer Agents or Registrars provide comprehensive statements for all Fund Shares with a daily dealing or trading frequency.
The statements shall be in a format as per the specifications attached as an annex to this document.
Clearstream Banking shall use the statements to reconcile holdings and transactions of Fund Shares with the records in its own books. Clearstream Banking shall inform the Transfer Agent or Registrar of any discrepancy it discovers without undue delay. The Transfer Agent or Registrar shall react promptly to this information with a view to resolving any such discrepancy.