Settlement services - Spain

22.03.2018

Pre-matching service

The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL’s pre-matching services, see Pre-matching services for external settlement instructions.

Service offered

Method employed

Start (local time)

All securities

Release of pre-matching instruction (limited to outside the provisioning period) followed by a settlement instruction

Automated through T2S

On receipt of instructions

The hold and release feature available in T2S will be used by CBL for pre-matching only. Therefore, once the customer’s instruction is provisioned and released to the market, it will no longer be possible to place the instruction on hold.

Matching service

Matching is mandatory for all transactions settling in T2S. In addition to the mandatory matching criteria in T2S the following fields may, if present, be matching criteria.

Additional matching field

The following additional matching fields are initially not mandatory but, when one of the counterparties provides a value for them in its instruction, matching values must be provided by the other counterparty.

  • Opt-out indicator;
  • CUM/EX indicator

In their instructions to CBL, customers may use the following fields:

Type and purpose of the additional matching field

Xact via SWIFT and Xact File Transfer

CreationOnline

Opt out indicator

Customer wishes to opt out from market claims or transformations

:22F::STCO//NOMC

Opt-out indicator

Cum indicator

Customer wishes to indicate its transaction as cum coupon

:22F::TTCO//CCPN

CUM/EX indicator

Ex indicator

Customer wishes to indicate its transaction as ex coupon

:22F::TTCO//XCPN

CUM/EX indicator

Optional matching field

The following optional matching fields must match when provided by both counterparties:

  • Common reference;
  • Client of delivering/receiving CSD participant;
  • Securities account of the delivering/receiving CSD participant.

 

Type and purpose of the optional matching field

Xact via SWIFT and Xact File Transfer

CreationOnline

Common reference

Customer wishes to indicate a reference agreed with the counterparty

:20C::COMM

Common Trade Reference

Client of delivering CSD participant

Customer wishes to specify the BIC11 or local code of the counterparty’s underlying client

:95a::SELL

Client of delivering CSD participant

Client of receiving CSD participant

Customer wishes to specify the BIC11 or local code of the counterparty’s underlying client

:95a::BUYR

Client of receiving CSD participant

Securities account of the delivering party

Customer wishes to specify the counterparty’s account

:97A::SAFE with:95a::DEAG

Securities account of the delivering party

Securities account of the receiving party

Customer wishes to specify the counterparty’s account

:97A::SAFE with:95a::REAG

Securities account of the receiving party

Transaction types

The following transaction types are supported.

Xact via SWIFT and Xact File Transfer

CreationOnline

Xact Web Portal

Delivery/Receipt

free and against payment with no change of registry

:22F::SETR//TRAD

 

 

Delivery/Receipt

free of payment with change of registry (different from a sale or purchase) a

:22F::SETR//OWNE

Type of Settlement Transaction = External Own Account Transfer

Sec. transaction type = OWNE - External account transfer

Delivery/Receipt

against or free of payment (OTC sale or purchase) with change of registry b

:22F::SETR//TRAD

:94B::TRAD//OTCO/OTC

Type of Settlement Transaction = Trade Settlement

Additional places : Type = Place of Trade

Code = OTC Trades

Narrative = OTC

Sec. transaction type = TRAD -Trade

Place of trade type = Code

Place of trade identifier = OTCO -Over the counter

Description

Place of trade identification = OTC

Ancillary transactions

:22F::SETR//TRAD

:95P::DEAG or REAG//Counterparty BIC11

:97A::SAFE//account of the Financial Intermediary 35 digits

or

:22F::SETR//TRAD

:70E::SPRO//OAUX

Type of Settlement Transaction = Trade Settlement

Delivering or Receiving Agent/ Party = BIC11 of the CSD / Account = account of the Financial Intermediary 35 digits

or

Type of Settlement Transaction = Trade Settlement

Settlement Processing Narrative = OAUX

Sec. transaction type = TRAD -Trade

Delivering or Receiving Settlement parties / Party 1/ Identifier = BIC11 of the CSD / Safekeeping account = account of the Financial Intermediary 35 digits

or

Sec. transaction type = TRAD -Trade

Settlement instruction processing additional details = OAUX

Cross border trades with other CSDs

:22F::SETR//TRAD

:95P::DEAG or REAG//BIC11 of the CSD

:95a::BUYR or SELL//BIC11 of the Participant in the CSD

:97A::SAFE//Participant account in the CSD

Type of Settlement Transaction = Trade Settlement

Delivering or Receiving Agent / Identifier = BIC11 of the CSD

Seller or Buyer / Party = BIC11 of the Participant in the CSD / Account = Participant account in the CSD

Sec. transaction type = TRAD -Trade

Delivering or Receiving Settlement parties / Party 1/ Identifier = BIC11 of the CSD

Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 Participant in the CSD / Safekeeping account = Participant account in the CSD

Securities Lending

Initiation

Free or against payment

:22F::SETR//SECL

:22F::SETR//SECB

Type of Settlement Transaction = Securities Lending

Type of Settlement Transaction = Securities Borrowing

Sec. transaction type = SECL - Securities lending

Sec. transaction type = SECB - Securities borrowing

Securities Lending

Return

Free or against payment

:22F::SETR//SECL

:22F::SETR//SECB

Type of Settlement Transaction = Securities Lending

Type of Settlement Transaction = Securities Borrowing

Sec. transaction type = SECL - Securities lending

Sec. transaction type = SECB - Securities borrowing

REPO

:22F::SETR//OWNE or //TRAD

and

:22F::STCO//NOMC

:95P::DEAG or REAG//ESPBESMMCCB

:95P::BUYR or SELL// BIC11 of the final Bank beneficiary

Type of Settlement Transaction = External Own Account Transfer or Type of Settlement Transaction = Trade Settlement

And Opt-out indicator

Delivering or Receiving Agent / Identifier = ESPBESMMCCB

Seller or Buyer /  Party = BIC11 of the final bank beneficiary

Sec. transaction type = OWNE - External account transfer or Sec. transaction type = TRAD -Trade

And Opt-out indicator

Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB

Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary

PLEDGE Initiation

 

:22F::SETR/IBRC/CUPG

:95P::DEAG or REAG// ESPBESMMCCB

:95P::BUYR or SELL// BIC11 of the final bank beneficiary

Type of Settlement Transaction = Pledge Initiation

Delivering or Receiving Agent / Identifier = ESPBESMMCCB

Seller or Buyer /  Party = BIC11 of the final bank beneficiary

Sec. transaction type = IBRC/CUPG - Spanish pledge initiation

Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB

Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary

PLEDGE Return

:22F::SETR/IBRC/PGCU

:95P::DEAG or REAG// ESPBESMMCCB

:95P::BUYR or SELL// BIC11 of the final bank beneficiary

Type of Settlement Transaction = Pledge Return

Delivering or Receiving Agent / Identifier = ESPBESMMCCB

Seller or Buyer /  Party = BIC11 of the final bank beneficiary

Sec. transaction type = IBRC/PGCU - Spanish Pledge Return

Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB

Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary

a. Supporting document required.

b. With prior receipt of the relevant documentation for free of payment.

As the transaction type is a mandatory field, but not a matching field, and because the customer of the delivering/receiving party is an optional matching field, if the registration details provided by both parties (that is, beneficial owner details that will be used for the re-registration process) do not match each other, then the instructions will remain unmatched.

Therefore to avoid unwanted settlement failure, customers must ensure that they use the appropriate type of transaction and align the registration details with their respective counterparties. It is customers’ liability to instruct in line with the above recommendation.

In order to better support market efficiency, if incorrect transaction formats are  used for fixed income instructions where registration details indicate a change of registry (BUYR/SELL of DEAG/REAG is not CEDELULLXXX), the transaction type will be defaulted in line with above table.

Allegements

Not applicable

Identification of CSDs in T2S

In T2S all CSDs will be identified by their BIC11. Customers are required to use the following BIC11 as Place of Settlement for domestic instructions in IBERCLEAR:

CSD

BIC11

Iberclear via T2S

IBRCESMMXXX

Identification of the counterparty

The Place of Settlement (SWIFT: PSET or CreationOnline: Place of settlement)  shall be the BIC11 of Iberclear (IBRCESMMXXX),  the Receiving/Delivering Agent  (SWIFT: REAG/DEAG or CreationOnline: Receiving/Delivering Agent) shall be the BIC of the counterparty’s CSD and the ordering party/beneficiary (SWIFT: BUYR/SELL or CreationOnline: Buyer/Seller Party ) shall be the BIC11 of the participant in the counterparty’s CSD – Final BO.

Additionally for cross-border transactions, it is highly recommended to provide the counterparty BIC11 information into the narrative field in order to improve the identification of the counterparty instructions.


Xact via SWIFT and Xact File TransferCreationOnlineXact Web Portal

Cross border trades with other CSDs

(Optional but recommended)
:70E::SPRO//BIC11 of the underlying counterpartySettlement Processing Narrative/BIC11 of the underlying counterpartySettlement instruction processing additional details/BIC11 of the underlying counterparty

If a customer uses a BIC8 to identify the Receiving/Delivering Agent, CBL shall be entitled to modify the BIC8 provided and the settlement instructions will then be processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules. Accordingly, such customers remain liable for any settlement fails that the use of the BIC8 may cause and the customers furthermore agree to indemnify CBL against losses, liabilities, damages, penalties, expenses and all other costs on any kind suffered by CBL as a result of the customer not complying with the above requirement.

Procedures for domestic counterparties

Securities eligible in Iberclear

Procedure for the domestic counterparty

Deadline

Receipt in CBL/Delivery from CBL

Deliver to/Receive from: BIC BBVAESMMXXX

(T2S SAC number IBRCBBVAESMMXXX000000007T0EX0000004)a

In favour of/By order of: BIC11 (CEDELULLXXX) and account number of the Clearstream customer

17:45

a. The securities account number (SAC) is an optional matching criteria in T2S.

Partial settlement

Partial settlement is available for receipt transactions only.

When counterparties access T2S as an ICP via Iberclear, the default set up will be No Partial Settlement (NPAR) but counterparties can still instruct partial settlement instructions (PART) and Iberclear will send them to T2S.

A settlement instruction will settle partially if both counterparties instruct with the Field :22F::PART.

Partial settlement will also apply to settlement instructions with counterparties and when the delivering party does not have the full amount of securities or the receiving party does not have sufficient cash on the dedicated cash account (DCA) for settlement.

In T2S partial settlement for eligible receipt instructions is allowed by Iberclear at the last night-time settlement cycle in sequence ‘X’; as well as within the real-time settlement period:

  • At 08:00 CET, 10:00 CET, 12:00 CET, 14:00 CET and 15:45 CET.

Customer delivery and receipt instructions will continue to be provisioned for the full quantity and/or cash value before being released for settlement. Consequently, customer receipt instructions may only settle partially if their counterparty is short of securities and the instructions are received by T2S within the times set above.
Customers that do not wish their transactions to settle partially must provide the following field in their instruction:

Connectivitiy medium

Value

Field(s) to be used

CreationOnline

No

Partial Settlement

Xact via SWIFT and Xact File Transfer

NPAR

:22F::STCO//

Allowed countervalue difference

The following T2S cash tolerances will apply to instructions (against payment instructions in EUR only):

  • EUR 2 for transactions with an amount equal to or less than EUR 100,000; and
  • EUR 25 for transactions with an amount greater than EUR 100,000.

In the event of a discrepancy within the limits, in principle the cash amount of the delivering party will prevail.

Bridge settlement

Iberclear eligible securities are Bridge eligible.

Back-to-back processing (Transaction Linking)

Back-to-back processing is available for transactions in all dematerialised securities eligible in this market. If both the customer and the domestic counterparty meet their settlement obligations and fulfil the market's back-to-back requirements within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value.

To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:

Connectivity medium

Pool ID format

Field(s) to be used

CreationOnline

16x a
and
Turnaround

Pool Reference

Type of Settlement Transaction

Xact via SWIFT and Xact File Transfer

:POOL//16x a
and
:SETR//TURN

Field :20C: sequence A1

Field :22F: sequence E

a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.

Customers who want to link more than one instruction (either one delivery with two or more receipts or one receipt with two or more deliveries) can do so if both the following conditions are met:

  • The instructions contain the following wording in the narrative field of their settlement instructions (xx = number of linked instructions):
    “B2B LINK xxREC/xxDEL REGI” plus either the BIC address, CODxxxxxxx or Tax ID (CIF/NIF) representing the registration name of the counterparty in which the securities are (to be) registered or the exact name in which the securities are registered.
  • The customer advises CBL’s settlement department, in an authenticated free-format message, of the transaction references of the linked instructions.

Note: Multiple linking will be executed by CBL and the depository on a “best efforts” basis only.

Example:

A customer receives securities from the domestic market and wants to deliver them onward to two domestic counterparties (xx = number of linked instructions):

The customer’s receipt instruction will contain, in the first line of the narrative, the text “B2B LINK xxREC/xxDEL REGI” plus the exact name under which the securities are registered.

The customer’s two delivery instructions will each contain, in the first line of the narrative, the text “B2B LINK xxREC/xxDEL REGI” plus the same name as in the receipt instruction.

Note: The customer must also ensure that Spanish counterparties are advised of the exact registration details.

Cancellation

Unmatched instructions can be cancelled unilaterally, at any time, by the party who placed the instruction or until cancelled by T2S.

Matched instructions must be cancelled bilaterally by both counterparties.

Recycling rules

Unmatched instructions will be recycled for 20 business days (starting from the initial settlement date), after which they will be cancelled.

Unmatched cancellation requests will be recycled for 20 business days (starting from the date of receipt).

Matched instructions will have no cancellation limit and will be recycled until a business rule is violated (for example, security reaches maturity).

Specific settlement rules / Iberclear-ARCO II settlement restrictions

Iberclear has connected the platform ARCO to T2S for all type of securities.

There are different ways to settle instruments via the ARCO platform, as follows:

a) On-exchange activity settlement options:

  • “Ancillary” transactions (a bilateral settlement procedure that may be used by brokers for settling orders);
  • No Change of Beneficial Owner (NCBO) transfer against payment (“Traspaso”);
  • Give-ups – this model is not available with Clearstream Banking.

b) Bilateral activity settlement options:

  • No Change of Beneficial Owner (NCBO) transfer against payment (“Traspaso”);
  • Purchases/Sales OTCs (formerly named CV instruction type);
  • Transfer of ownership different than Purchases/Sales (“cambios de Titularidad - OWNE);

For those trades, that are free of payment only, official documentation that supports the change of ownership is required.

  • Inclusion/exclusion of ADRs, crossborder securities with foreign CSDs (with direct account at Iberclear or via a link entity);
  • Third party lending activity.

As there are different options in the market for the settlement of OTC trades and in order to avoid failed transactions, customers should agree with their counterparty, in advance and in each case, on the instruction type to be used.

N.B.:If the instruction is sent to the market on trade day (T) or matching day (M) for requested settlement date T+2 or M+2, the Immediate Release Flag must be set (see “Pre-matching service” above).

Ancillary

On-exchange transactions settling via bilateral Ancillary method will take place against the account of the financial intermediary (broker) settling the transaction.

Ancillary instructions must be formatted according to one of the following two options:

Xact via SWIFT and Xact File Transfer

CreationOnline

Option 1

:22F::SETR/TRAD

:95P::DEAG or REAG //Counterparty’s BIC11

:97A::SAFE//Account of the Financial Intermediary (broker) (35-digit)

Type of Settlement Transaction = Trade Settlement

Delivering/Receiving Agent BIC

Party Counterparty's BIC11
Account of the financial intermediary (broker) (35-digit)

Option 2

:22F::SETR/TRAD

:70E::SPRO//OAUX

Type of Settlement Transaction = Trade Settlement

Settlement Processing Narrative OAUX

Although the format remains at the choice of the customer (option 1 or option 2), both counterparties must use the ancillary type otherwise the instruction will not settle.

If none of the above indicators is received, the trade will be considered a bilateral Traspaso trade.

Traspaso

The following instruction specifications apply to free of payment and against payment transactions in listed equities and rights between Iberclear members that use Traspaso procedure and are matched in T2S.

Traspaso transactions do not imply trading in the market, but just a delivery from one custodian to another without change of beneficial owner. Where there is a change of beneficial owner, a re-registration process (on-exchange buy and sell in the market or via put-through) is required (see “Re-registration procedures” below).

Customers must include the following information:

  • For transactions with a foreign counterparty (for example, Global custodian, International broker etc.), these fields must contain in each case:
    BIC address: Must be 11 alphanumeric characters; that is, branch code or XXX must be included.
    If the branch code or XXX is omitted, the depository will automatically add XXX to complete this market requirement but does not guarantee that the BIC will be accepted as correct).
    or
    If no BIC address exists, Iberclear's assigned code “CODnnnnnnnn”.
  • For transactions with a national/resident counterparty (for example, Spanish resident entity, Spanish branch of a non-resident entity etc.), this must be the local Tax ID (CIF/NIF).

N.B.: Customers are strongly encouraged to authenticate the following information with their counterparties before instructing:

  • For domestic transactions with a counterparty that is a Euroclear participant, the ordering party’s account / beneficiary’s account;
  • Re-registration (“Put-through”) information

Customers must indicate at all times, in their delivery and receipt settlement instructions, whether they want to have the securities re-registered by CBL’s depository (see “Re-registration procedures” below).

Purchase/Sale OTC trades

The Purchase/Sale OTC procedure allows the parties to concentrate all the settlement chain in just one instruction (including the transfer of share and the registration). With this type of transaction the change of registry stands on the final settlement of the Purchase/Sale OTC. The Purchase/Sale OTC trade can be matched and settled the same day.
For free of payment OTC trades, it is mandatory to provide the legal documentation evidencing the Purchase/Sale OTC trades prior to settlement of the trade. Trades will be released for settlement provided that the Clearstream Banking agent, BBVA, has validated the document. For against payment OTC trades, such documentation may be provided upon request.

Customers should identify their settlement instruction for a Purchase/Sale OTC trade using one of the options from the following table. Failure to do so will cause the transaction to be executed as a Traspaso trade.

CreationOnline

Xact via SWIFT and Xact File Transfer

Type of settlement transaction

Type of Settlement Transaction = Trade Settlement

:22F::SETR//TRAD

Place of Trade/Additional Places

Type: Place of Trade
Code: OTC Trade
Narrative: OTC

:94B::TRAD//OTCO/OTC


Having identified the instruction type for a Purchase/Sale OTC equity trade as described above, the counterparty and registration details must be identified as follows:

EITHER:

Receiving/Delivering Custodian (Counterparty’s client/Ordering Party)

Receiving/Delivering Custodian Party:
BIC or COD or CIF/NIFb

:95P::RECU/DECU//BIC or
:95R::RECU/DECU a //COD or NIFb

Buyer/Seller Party (including registration details)

Buyer/Seller Party:
BIC or COD or NIF b

:95P::BUYR/SELL//BIC or
:95R::BUYR/SELL//CODnnnnnnnn or CIF/NIF b

OR:

Buyer/Seller Party only (including registration details)

Buyer/Seller Party:
BIC or CODnnnnnnnn  or NIF b

:95P::BUYR/SELL//BIC or
:95R::BUYR/SELL//CODnnnnnnnn or CIF/NIF b

a. DECU RECU is required only whenever there is a trade with EOC /CBL on traspasos, OTC and lending.
b. Iberclear’s assigned code, where nnnnnnnn is eight digits; or, for transactions with a national/resident counterparty, the local TID (CIF/NIF).

The BIC address must be 11 alphanumeric characters; that is, branch code or XXX must be included. If the branch code or XXX is omitted, the depository will automatically add XXX to complete this market requirement but does not guarantee that the BIC will be accepted as correct).

If no BIC address exists, customers can provide Iberclear’s assigned code or, for transactions with a national/resident counterparty (for example, Spanish resident entity, Spanish branch of a non-resident entity etc.), this must be the local Tax ID (CIF/NIF).

N.B.:Customers are strongly encouraged to authenticate the following information with their counterparties before instructing:

  • For domestic transactions with a counterparty that is a Euroclear participant, the ordering party’s account / beneficiary’s account;
  • Re-registration information.

For equities, a change of beneficial ownership for a trade must be indicated as follows:

CreationOnline

Xact via SWIFT and Xact File Transfer

Beneficial Ownership Indicator

Beneficial Ownership Indicator:
Change of beneficial owner

:22F::BENE//YBEN

In addition customers must indicate at all times, in their delivery and receipt settlement instructions, the registration information in field 70E::SPRO.

Purchase/Sale OTC transaction fees for listed equities

The following fees apply per transaction sent through to the market in addition to the standard fees charged by Clearstream for Spanish transactions and they will be charged as received from the Spanish Depository as out of pocket expense on the monthly invoice:

  • Purchase/Sale OTC trades: Minimum EUR 125; maximum EUR 250. These will be charged per leg.

For against payment transactions the 10bp fee applies to the cash value of the transaction with the above minimum and maximum limits.

For FOP transactions, the cash value to consider is based on the security’s closing price on the Stock Exchange on trade date, multiplied by the quantity of securities involved in the trade.

  • Traspaso trades: These will be charged within the current published fee schedule for Spanish transactions;
  • Purchase/Sale OTC trades: These will be charged per the above per leg.

Re-registration procedures

Whenever the transaction of shares involves a change of beneficial owner, a re-registration process is required. The re-registration in the Spanish Market takes place through one of the following methods:

Via Put-through: simultaneous on exchange sale (in the currently recorded name) and buy (in the new recorded name), placed by the broker at the Stock Exchange. Since Reforma phase one the T+2 settlement cycle of the put-through can no longer be guaranteed and is dependent on the settlement of both the purchase and the sale legs. The latter are not linked to each other. Consequently there is a possible liquidity risk, including the fact that one or other leg may remain pending until a counterparty is found.

Via OTC: The OTC trade in the Spanish Market can only be used to instruct the settlement of purchases or sales on securities listed in the Stock Exchange and being executed Over The Counter. The OTC allows the parties to concentrate the whole settlement chain (that is, transfer of shares and registration) in just one instruction. With this type of transaction, the change of registry stands on the final settlement of the OTC.
For free of payment OTCs, Clearstream Banking agent, BBVA, will always request the legal documentation (agreement between the buyer and the seller) evidencing the Purchase/Sale OTCs prior to the settlement of the same, because it is legally understood that a purchase/sale has a cash payment linked to such transaction.

Via Change of ownership (OWNE): This transaction needs the Stock Exchange supervision and supportive documentation is required in each case. As any bilateral trade, the settlement is agreed between the parties, and trades can therefore be matched and settled the same day. OWNE transactions can be used in the following cases:

  • mergers, spin offs, etc
  • transfer free of payment between two custodians with no change of beneficial owner .

Procedure and formats for NCBO transfers without re-registration

In order  to instruct no-change-of-beneficial-owner (NCBO) transfers of Spanish equities listed on Iberclear’s platform ARCO with no re-registration fees, customers must instruct following the  requirements below:

  • A free of payment settlement instruction, with :22F::SETR/TRAD (for SWIFT) or Type of Settlement Transaction = Trade Settlement (for CreationOnline), and populated with narrative text "OWNE - MOTIVE 13" in field 70E: (for SWIFT) or in field narrative (for CreationOnline).
  • An MT599 message certifying that there is no change of final beneficiary and including the TRN reference of the related trade. The MT599 must contain the following text:
    Our reference: ______: Change of registration name due to a change of Custodian
    We instruct Clearstream Banking Luxembourg to take all the necessary measures for [___receipt/deliver__] the Securities traded in the Spanish Market which are listed in the SWIFT MT
    [____ (complete message identification) ___], through the procedure defined by Iberclear for the change of registration name of securities represented in book entry form (“Change of registration number 13”), by other means than on exchange purchase-sale.
    We confirm that this Change of registration name is ought to a change of the custody service provider of the final beneficial owner, [____ (name of the final beneficial owner) ___]
    For the purposes and provisions of this instruction, we have confirmed and verified the documents which support the Change of registration name without change of the final beneficiary owner, a copy of which shall be at the disposal of Clearstream Banking Luxembourg and its agent BBVA, at its reasonable request, related to regulatory obligations where Clearstream Banking Luxembourg and BBVA shall keep it strictly confidential, in accordance with provisions of the applicable subcustodian agreement.
    We acknowledge we are responsible for such documents and we assume the liability that may arise towards Clearstream Banking Luxembourg from the execution of this instruction, with the exception of wilful misconduct or serious negligence by Clearstream Banking Luxembourg.”

The same deadlines apply as for standard settlement instructions that are non STP.

The advantages of these transactions are the flexibility of the settlement cycle (T+0) and that there are no brokerage fees. These instructions will be treated as a manual instruction, and priced accordingly (please refer to the Clearstream Banking Fee Schedule for price details).

The put-through procedure

Receipts

Securities for credit to an account in CBL can be delivered to CBL’s depository registered in the name of either “Clearstream Banking S.A.” or the delivering party.

  • Securities that have been re-registered before their delivery to the depository must be registered in the exact name of “Clearstream Banking S.A.”.
  • Securities that have been received by the depository and registered in the delivering party's name will, upon instruction from the customer, be sent for re-registration by the depository in the name of “Clearstream Banking S.A.”. The CBL account to which the securities are credited will be debited with the “put-through”/re-registration charges.

Note: Non-resident/foreign counterparties are identified in the registry of Iberclear by the BIC address (11 alphanumeric characters) or, if no BIC is available, a CODnnnnnnnn is assigned by the CSD. If none of the previous values is known, the exact registration name is to be used.

If re-registration details are not specified, the instruction remains unmatched in the CSD’s system.

In cases of re-registration procedures concerning Spanish residents and due to the related tax implications, a specific disclaimer shall be signed by the customer, in order to enable CBL depository to register a settlement instruction under the name of the Spanish resident to the Spanish Tax Authorities.

Note: As ETF “put-throughs” function as limited orders, final execution of any “put-through” routed to BBVA’s Trading Desk for these instruments cannot be guaranteed.

Registration or re-registration fees for listed corporate bonds and equities

Note: The price to take into consideration is the actual value of the stock in the market on the (re-)registration day.

Registration or re-registration fees for listed corporate bonds and equities are as follows (with a minimum of EUR 35 in each case):

Listed corporate bonds: EUR 0.01%;
Equities: Trades under EUR 2 million, 0.075% per trade;
Equities: Trades over EUR 2 million, 0.04% per trade.

In addition, those securities going on “special” have the following minimum initial charges:

Listed corporate bonds: EUR 150;
Equities: EUR 260.

These fees are charged by the depository and passed on to customers upon settlement confirmation of instructions. Re-registration costs may also apply to trades that have been reversed or cancelled.

N.B.: Customers transferring securities from their CBL account to their account at their domestic custodian bank in Spain for onward delivery to a domestic counterparty should inform their Spanish broker that the domestic sale will settle in the name of CBL. If they do not do so, a put-through will be required to change registration from CBL to the name in which the sale will settle and such a put-through, being requested after TD, would involve substantial fees for short-selling.

As per market usage, re-registration of securities is performed (when not via OTC) via a put-through, by a broker through the stock exchange, and consists of a sale (in the name currently recorded) and an immediate purchase stating the new name. Both sale and purchase transactions are introduced at market price and, in the vast majority of cases, both are closed at the same price. However, this may not be the case when the stock is, for example, traded on the Open Outcry market (“Mercado de Corros”). Based on a possible lack of stock liquidity, any difference of market price will be passed on to the customer as an out-of-pocket expense or as a credit, as appropriate. If there is a timing difference between the market processing of the sale and the purchase legs, CBL will debit or credit the respective cash amounts on a gross basis.

Third-party lending in the domestic market

Customers are requested to include in their stock lending settlement instructions the following information:

  • Ordering party / beneficiary
  • For transactions with a foreign counterparty (for example, Global custodian, International broker etc.), these fields must contain in each case:
    BIC address: Must be 11 alphanumeric characters; that is, branch code or XXX must be included.
    If the branch code or XXX is omitted, the depository will automatically add XXX to complete this market requirement but does not guarantee that the BIC will be accepted as correct).
    or
    If no BIC address exists, Iberclear's assigned code “CODnnnnnnnn”.
  • For transactions with a national/resident counterparty (for example, Spanish resident entity, Spanish branch of a non-resident entity etc.), this must be the local Tax ID (CIF/NIF).
  • N.B.: The information for the ordering party / beneficiary should correspond with the actual registration of the loan. If not, the effective registration information must be included in the narrative field as included in “Type of trade”. Customers are strongly encouraged to authenticate this information with their counterparties before instructing.
  • Ordering party’s account / Beneficiary’s account
  • For domestic transactions with a counterparty that is a Euroclear participant, this field must be populated.
  • In addition, depending on the connectivity media used, the following information is to be given:
CreationOnline
Customers must specify whether the instruction refers to securities lending or borrowing by entering in the “Type of Settlement Transaction” field "Securities Lending" or "Securities Borrowing".
If the loan return is performed in one instalment at a fixed known date, the customer may populate the “closing date” of the loan expressed as DD/MM/YY.
So that BBVA, Clearstream Banking's depository, can identify a loan instruction as a new loan or a loan return/cancellation, customers must populate the “deal reference” field in their instruction. This information is mandatory and if not populated, the instruction will be rejected in Clearstream. However, it will not be used by BBVA for matching purposes in the market.
Xact via SWIFT and Xact File Transfer

If instructing a third-party loan in the domestic market, customers must specify that the instruction refers to securities lending or borrowing as follows:

For securities borrowing :22F::SETR//SECB;
For securities lending :22F::SETR//SECL.

This information is mandatory, but it will not be used by the depository for matching purposes in the market. However, failure to provide such information will prolong the process of loan identification and may lead to settlement delays.

Cross-border collateralisation

To get credit from their Central Banks, customers can either:

  • Transfer collateral to the Bank of Spain in favour of their Central Bank's account (the repo method); or
  • Pledge the securities (the pledge method).

In their instructions, customers must specify (as appropriate for the connectivity medium):

  • In the delivering or receiving agent field, the BIC of the National Central Bank in favour of which the securities are to be delivered or pledged (ESPBESMMCCB for Bank of Spain);
  • In the ordering party (for receipts) or beneficiary (for deliveries) field, the BIC11 of the final Bank beneficiary;
  • For the repo method the type of transaction OWNE or TRAD must be used in field :22F::SETR of sequence E of the REPO instruction / and the opt-out indicator must be provided into the :22F::STCO field, or CreationOnline equivalent.
  • For the pledge method the qualifier IBRC/CUPG or PGCU for the deliveries/pledge initiation or receipts/pledge return respectively) must be provided into the field :22F::SETR of sequence E of the pledge instruction.

For the pledge method the securities will be blocked with Iberclear in the Proprietary accounts or Individual accounts opened in the Central Registry under the name of the pledgor, according to market rules, the account must be open in the name of the pledgor, where pledgor stands for the entity who receives funding from the Central Bank of Spain country in which such entity is established and that actually pledges the collateral.

Note: Pledging securities on the Spanish market requires the pledgor to hold specific pledge accounts with Iberclear, that is. an individual account and an individual for pledge accounts, which have for sole purpose the holding of the securities that are pledged and that will be kept in favor of the Bank of Spain. The pledge accounts must be opened at Iberclear under the name of the pledge counterparty. Opening procedure may take a couple of days.

It is required that the above described pledge accounts are activated before any pledge activity can be initiated. Absence of active pledge account will result into the failure of the pledge instructions.

In order to open such accounts, please contact your Relationship Manager.

N.B.: A custody fee is charged for the duration of the pledge; please refer to the Clearstream Banking Fee Schedule for further details. Customers will be paid interest and tax reclaim proceeds when applicable, but redemption payments (partial or total) will be credited to Iberclear.

New issues settlement

Customers interested in the service for new issues of Iberclear government bonds should contact Clearstream Banking Customer Service or their Relationship Officer.