T2S Final Wave: Impact on Clearstream Banking services – cutover details

23.08.2017

Effective

Monday 18 September 2017

the final wave of TARGET2-Securities (T2S) will be launched.

For Estonia, (EVK), Latvia (LCD), Lithuania (CSDL) and Spain (Iberclear), please find below the cutover details for the handling of pending transactions for Clearstream Banking1 customers. The Baltic CSDs (EVK, LCD and CSDL) will merge into one common CSD (NASDAQ CSD) operating three parallel securities settlement systems for the Baltic countries with effective date 18 September 2017.

Please refer to Announcement A17076, dated 21 August 2017 for instruction specifications.

Estonia, Latvia and Lithuania

Important note: Friday 15 September 2017 is a technical T2S migration related non-business day and no settlement will take place on this day.

Matched and unmatched instructions with requested settlement date (SD) up to and including Thursday 14 September 2017 and SD Monday 18 September 2017 or later released to EVK, LCD and CSDL.

All T2S eligible transactions that are in matched or unmatched status and that have been released to our depository, SEB, by 14:50 will not be migrated to T2S, but cancelled by the respective CSDs.

Customers are requested to re-instruct in the correct T2S format after successful migration of NASDAQ CSD to T2S has taken place.

Pending instructions with requested settlement date (SD) up to and including 14 September 2017 and SD 18 September 2017 or later not released to EVK, LCD and CSDL.

Pending T2S eligible transactions in an unmatched status, but not yet released to SEB by 14:50 CET on Thursday 14 September 2017, will be stored by CBL and released to SEB and subsequently to T2S only after confirmation of the successful migration of NASDAQ CSD to T2S.

Customers must instruct all T2S eligible instructions in the correct format to avoid settlement delays.

The transactions may subsequently remain unmatched, matched or be settled or rejected. Customers will be informed of the status upon receipt from SEB.

Settlement deadline

There is no change to the current Clearstream Banking settlement deadlines for EVK, LCD and CSDL eligible securities on Thursday 14 September 2017 and they remain as follows:

Against payment in EUR: 13:50 CET (Estonia) and 07:50 CET (Latvia and Lithuania)

Free of payment: 14:50 CET (Estonia, Latvia and Lithuania)

Note: The cut-off times provided above represent the current status of information and might be subject to changes. Any change in the timeline will be communicated to customers accordingly as soon as received from the markets.

Income and custody events

Market claims and Transformations

There is no impact on income events (interest or dividends) on EVK, LCD and CSDL eligible securities.

Furthermore, no impact is expected on corporate action events over the migration weekend.

Spain

Matched and unmatched instructions with requested settlement date (SD) up to and including 15 September 2017 and SD 18 September 2017 or later released to Iberclear

Bonds

All T2S eligible transactions that are in matched or unmatched status and that have been released to our depository, BBVA, by 14:55 CET on Friday 15 September 2017 will be migrated to T2S.
No action is required from Clearstream Banking customers.

Equities

All T2S eligible transactions that are in matched status and that have been released to BBVA by 17:25 CET on Friday 15 September 2017 with an SD on or after Friday 15 August will be migrated to T2S.
No action is required from Clearstream Banking customers.

Pending T2S eligible transactions that are in unmatched status and that have been released to BBVA by 17:25 CET on Friday 15 September 2017 will not be migrated by Iberclear to T2S, including pending matched instructions with a SD prior to 15 August. Such instructions will be cancelled by Iberclear, but re-instructed by BBVA with the correct T2S format.

No action is required from Clearstream Banking customers.

Pending instructions with requested settlement date (SD) up to and including 15 September 2017 and SD 18 September 2017 or later not released to Iberclear.

Pending T2S eligible transactions in an unmatched status, but not yet released to Iberclear by 14:55 CET (Bonds) and 17:25 CET (Equities) on Friday 15 September 2017, will be stored by CBL and released to Iberclear and subsequently to T2S only after confirmation of the successful migration of Iberclear to T2S.

Customers must instruct all T2S eligible instructions in the correct format to avoid settlement delays.

The transactions may subsequently remain unmatched, matched or be settled or rejected. Customers will be informed of the status upon receipt from Iberclear.

Settlement cut-off time

There is no change to the current Clearstream Banking settlement deadlines for Iberclear eligible securities on Friday 15 September 2017 and they remain as follows:
Against payment in EUR: 15:10 CET (ARCO 1) and 14:55 CET (CADE)
Free of payment: 17:25 CET (ARCO 1) and 14:55 CET (CADE)

Income and custody events

Market claims and transformations

There is no impact on income events (interest or dividends) on Iberclear eligible securities. Furthermore, no impact is expected on corporate action events over the migration weekend.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.