Transaction Management and Entitlement Compensation Rules - Greece - BOGS

22.06.2015

Transaction management in T2S

In line with the Corporate Actions Joint Working Group (CAJWG), the Corporate Actions Subgroup (CASG) International Standards and the best market practices, market claims and transformations (together referred to Transaction Management) should be dealt automatically by the issuer CSDs in T2S, and will require no input from the customer.

Market Claims

As a result, market claims (for both cash and securities where applicable) for instructions in T2S should be detected and processed by the issuer CSDs and subsequently by the agent and/or the depository and Clearstream Banking. Once detected, by the issuer CSDs after the close of business on record date and during 20 T2S business days, Clearstream Banking will report them to customers in the Market Claim Report with the relevant status of the market claim. In addition to the existing statuses, a new status “Partially compensated” will be available. Compensation credits/debits will be reported to customers via MT566 with indicator :22F::ADDB//CLAI.

The issuer CSDs apply trade date accounting for securities that in units and settlement date accounting for securities that are in nominal.

Market claims in T2S will have their own lifecycle once matched (via Already Matched instructions) by the issuer CSD and will settle independently from the underlying settlement instruction. Although no action is required from you, in case you and your counterparty bilaterally cancel the underlying settlement instruction, you will need to agree directly with your counterparty about the reversal or the cancellation of the market claim.

Transformations

Similarly to the market claims process, transformation should also be introduced and processed by the issuer CSDs automatically in T2S after the close of business on record date and for the next 20 T2S business days. Transformations are detected for matched and partially settled instructions only.
Transformations in T2S are processed in two technical steps (via Already Matched instructions): first, the cancellation of the underlying settlement instruction followed by the replacement by one or several new transformed settlement instructions.

Clearstream Banking will cancel and replace your pending settlement instructions based on feedback received from the market. Outturn in cash and securities will be posted to your account and reported in the MT950, MT9xx, MT54x and MT536 reports.

Cum/Ex Indicator and Opt Out Indicator

In line with the new T2S functionalities, unless otherwise specified, you are able to use the Opt Out Indicator on the original settlement instructions as follows (for example, if you do not wish the automatic compensation or transformation be applied by the issuer CSD and Clearstream Banking). The Cum/Ex Indicator is not available on transactions with counterparties that are ICPs and access T2S via BOGS. Customers should note that the fields are additional matching fields; that is, matching values must be provided by both counterparties.

Cum/Ex Indicator:

To flag the instruction as “cum”: :22F::TTCO//CCPN
To flag the instruction as “ex”: :22F::TTCO//XCPN

Opt Out Indicator:

To flag the instruction as “opt-out”: :22F::STCO//NOMC

Buyer Protection

In line with the CA market standards (CAJWG), the T2S CA standards do not impose to issuer CSDs to implement buyer protection functionality. However if applied by the Issuer CSD, it could be either:

  • an automated buyer protection functionality in accordance with agreed market standards; or
  • a manual buyer protection mechanism, via a bilateral agreement between the respective counterparties by means of a manual process (no intervention of the market infrastructure regarding the exchange of buyer protection instructions).

If the Issuer CSD offers a buyer protection service, it will handle the execution of the buyer protection and take actions on the underlying transaction (Hold / cancellation / transformation).

If applicable in the issuer CSD, Clearstream Banking will process customers’ instructions related to the buyer protection on a best effort basis and based on feedback received from the agent and/or depository.

Entitlement compensation rules

Market compensation basis:Requested Settlement Date
Automatic Compensation Managed by Local CSD:Yes, via Already Matched instructions in T2S
Restriction on custody events/transaction types:

Cum/Ex Indicator is not available  on transactions with counterparties that are ICP and access T2S via BOGS.

Opt Out Indicator:

To flag the instruction as "opt-out":
:22F::STCO//NOMC

Service offered by CBL:Yes, upon receipt of feedback from the market

Buyer protection

Buyer protection is not available in BOGS.