T2S Custody and other services - CBF - Spain

18.09.2017

Income collection

Service offered

Remarks

Notification to customers

No specific deviations from standard reporting provided by CBF.

General information on income proceeds is available in WSS data (a database available from CASCADE and WSS-Online).

Information on income proceeds can be retrieved using CASCADE's online KVGI function or CASCADE-PC, under the Custody Services section. This information is available from the 14th business day preceding the payment of proceeds.

In addition, an MT564 Income Pre-Advice Report (IPAR) is sent to customers that have subscribed to this service (see the CBF Connectivity Handbook Part III).

Payment of proceeds

The cash proceeds (interest, redemptions) are either booked in central bank money (T2-Cash, cycle DD2) or in commercial bank money (foreign currency accounts, 6-series accounts).

After successful cash booking (interest, redemptions) an MT566 is sent to the customer - for format description and transmission timeline, see the CBF Connectivity Handbook Part III.

CBF will use a Dedicated Cash Account (DCA) for the processing of income payments. CBF customers will have the payment credited to their RTGS account after settlement of the Direct Debit 2 (DD2 - 13:45) and Direct Debit 3 (DD3 - 15:15) processing cycle. The respective reporting will be sent to customers via MT56x messages.

Corporate actions

Service offered

Remarks

Notification to customers

General information on corporate events is available in WSS data (a database available from CASCADE and WSS-Online).

Information on mandatory and voluntary corporate actions, as well as the maturity date on individual corporate actions can be retrieved using CASCADE's online KVGI function or CASCADE-PC, under the Custody Services section. This information is available from the 14th business day preceding the ex-date or the beginning of the corporate action period.

In addition, an MT564 Income Pre-Advice Report (IPAR) is sent to customers that have subscribed to this service (see the CBF Connectivity Handbook Part III).

On voluntary and mandatory events, CBF informs customers, on an "as and if received " basis, of unscheduled securities events occurring on account holdings.

Instruction to CBF

For events for which the notification is published in WSS, customers can instruct CBF to carry out options foreseen in the terms and conditions of the underlying security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants.

Customers are requested to instruct within the deadlines and/or procedures specific to each type of event. In the absence of instructions from its customer, CBF will apply a "default option", which may differ for each type of event.

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 and Transformations

Once a market claim or a transformation has been successfully settled on T2S, CBF will receive the settlement confirmation from Iberclear. The following processes will be carried out based on this information:

  1. The amounts are settled as part of the DD settlement cycles.
  2. A message is produced in MT566 format – confirmation of the corporate action.
  3. The securities are moved using CASCADE order type “AA99“ and reason for transfer “507“ OTC KOMPENSATION (market claims) or “501“ CORPORATE ACTION UMTAUSCH (transformations)
  4. The results of the processing will continue to be forwarded to CBF customers. On the one hand, as a settlement confirmation (MT54x – for movement of securities) and on the other hand via the corporate actions report (MT56x).

For further information, please refer to Transaction Management Rules.

Buyer protection

Buyer protection is not available in Iberclear.

Proxy Voting procedures

Proxy voting services are available in CBF. Customers that want to vote at general meetings (physically or by proxy) must instruct CBF to register in the name of the shareholder before the general meeting's record date as defined by the respective company. For details on the proxy voting services offered by CBF, please refer to the Customer Handbook.

Entitlement compensation rules

Please refer to the Clearstream Banking Compensation Handbook.

Other services

Disclosure requirements

Please refer to the Clearstream Banking Disclosure Requirements - Spain, which is an appendix to the Creation Market Guide.

Holding restrictions

Please refer to the Investment regulation section of the Market Profile - Spain.

Tax services

Please refer to the Clearstream Banking Spain Tax area.