Greece: New link to Bank of Greece (BoGS) to offer debt instruments

21.12.2018

As a next milestone in implementing our enhanced Investor-CSD solution, effective

24 June 2019

Clearstream Banking AG1 is pleased to announce the activation of the direct access to the Bank of Greece (BoGS) and the eligibility of the BoGS issued securities for settlement in T2S.

We would like to remind customers that the description of the future OneClearstream Investor-CSD service for the Greek market (BOGS eligible securities only) can be found in the OneClearstream Functional Specifications published on the Clearstream website. 

The Functional Specifications document should be read in conjunction with the Release Notes published prior to each implementation of the OneClearstream services and with the additional announcements that address the needs of particular product or service in order to understand future service and Legacy impacts.

Customer benefits

  • Highest protection of assets under collective safe custody (CSC);
  • CBF as a single access to the securities issued in BoGS;
  • End to end Asset Services via our local partner Citibank Europe plc, Greece Branch;
  • All BoGS-eligible instruments available for increased liquidity pooling;
  • Payment of asset servicing proceeds on DCA;
  • New Connectivity solutions, with single user interface and harmonised A2A formats.

Type of assets

All Greek securities that are available in CBL and T2S eligible will be made CBF-T2S eligible with Collective Safe Custody (CSC) status and OneClearstream asset servicing.

The securities to be eligible2 for holding in CBF in CSC are, but not limited to3

  • Government debt securities:
    • Fixed rate bonds;
    • Savings certificates;
    • Privatisation certificates.
  • Treasury bills.

Settlement

The following high-level settlement services will be available:

  • OTC transactions with another CBF/CBL  participant (intra-CSD) or T2S participants (cross-CSD) subject to capital restrictions as detailed below 3
  • Stock-exchange instructions coming from LION (non cleared) will be routed to CBF accounts (instead of CBFi accounts) as soon as these instruments are made eligible in CBF with the CSC status. If the account does not have the status X (exempt), these instructions will be recycled until the relevant tax documentation has been provided.
  • Stock-exchange instructions cleared by Eurex Clearing will continue to settle in CBFi accounts (as today).
  • Customers can realign their position from their CBFi accounts to their CBF accounts and vice versa.

Customers are reminded that due to capital restrictions in Greece certain types of transactions are subject to limitations, for example:

  • Against payment transactions are allowed by BoGS provided that they refer to transfers between different counterparties and do not constitute portfolio transfers. Customers are responsible to ensure compliance with this requirement.
  • Free of payment deliveries from Greek BoGS participants to foreign BoGS participants (that is, receipts in CBF) are allowed under the following conditions:
    • The free of payment transfer aims to cover an onward delivery that has already been concluded abroad;
    • The sale proceeds of the onward delivery must be returned to a cash account maintained in the Greek banking system as specified in the Ministerial Decision of 31.7.2015/Article 1-par 5.

The responsibility to provide evidence that the above conditions are met lies with the deliverer of the securities.

Market claims

In line with market practice, the market claims will be processed on a gross basis and without tax adjustment.

Further information

For the detailed market specifics for the BoGS issued securities, please refer to the OneClearstream Functional Specifications published on the Clearstream website.

Further details on the OneClearstream service activation as well as the new Market link guide and Realignment guide will be available in due course.

-------------------------------

1. This announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.

2. The scope of eligible securities will exceptionally include one warrant with ISIN GRR000000010.

3. All securities will be eligible upon activation of the link. However the scope of ISINs to be made eligible at OneClearstream activation will follow the same rules as for previous OneClearstream activations.
4. Provided that the counterparty CSD has established the relevant set-up to allow Cross-CSD settlement with CBF for these securities.