T2S Wave 4: Cross-border settlement of French Registered Shares with Euroclear France


Clearstream Banking AG, Frankfurt1 would like to inform customers that in the future French Essentially Registered Shares (“Valeurs Essentiellement Nominatives”) will be supported via the CBL link into ESES. CBF will perform the transition of French Essentially Registered Shares from CBF-Euroclear France link to CBF-CBL link on

Friday, 27 January 2017

From this time, Essentially Registered Shares will no longer be supported on the direct link between CBF and ESES. CBF will perform the transition in a way that CBF customers’ positions will not be affected by this transfer.


The market specific configuration for ESES France requires that Essentially Registered Shares are held under a specific legal form, and only on accounts that are compatible with the form. As long as CBF is outside TARGET2-Securities (T2S), the ESES legal form is handled in such a way that Essentially Registered Shares can be settled on the CBF platform.

Currently, CBF supports the settlement of three Essentially Registered Shares:

  • Michelin S.A. ISIN FR0000121261;
  • Lagardère S.C.A. ISIN FR0000130213;
  • Gecina S.A. ISIN FR0010040865.

When CBF migrates to T2S, the T2S cross-border logic applies and the segregation needs by Euroclear France (in ESES) will affect CBF customers. The ESES setup where CBF holds Essentially Registered Shares on a segregated omnibus account will also be imposed on CBF customers, that is, with T2S Wave 4, Essentially Registered Shares can only be held on dedicated CBF sub-accounts, and no longer on main accounts. As a consequence, they will no longer be eligible for stock exchange transactions (LION and CCP business).

In order to avoid these limitations, the affected ISINs will be supported via the link to CBL in the future.

Implementation approach

In order to maintain the current LION and CCP service for CBF customers, the three Essentially Registered Shares are withdrawn from the CBF-Euroclear France (ESES) direct link, and supported via the CBF-CBL direct link.

CBF customers can still acquire French registered securities, but they need to go in two steps:

  • In one step a transfer of Essentially Registered Shares between ESES France and CBFi 6-series accounts takes place by using a standard domestic instruction in Creation.
  • In another step the Essentially Registered Shares are realigned between 6-series accounts in Creation and CASCADE via the CBF-CBL link.

The static data of the three securities will be changed in WSS Securities Service System and Wertpapier-Mitteilungen (WM) for the following attributes:

  • LGL/LGS from “997/006” to “991/060”;
  • Market from “006/ ESES Frankreich“ to “60/ CBL“;
  • GD 430 from “249 (France)” to “419 (CSD/CBL)”.

After changing the static data in WSS, the information is passed to WM for the update there (presumably on the next day).

Instruction management

Starting from Monday, 30 January 2017 at 05:00, CBF customers may acquire or sell Essentially Registered Shares via the two steps approach:

  • For the one step (that is the transfer between CBL and ESES), customers have to inform their counterparty in Euroclear France to instruct against the 6-series account in CBL.
    Further CBL-Euroclear France instruction details in CBL apply as specified in the Creation Link Guide - France.
    In the Creation instruction, the customers will have to use depository code “23"2 that represents Euroclear France (ESES) in CBL.
  • For the other step (that is the transfer between CBF and CBL), CBF customers have to instruct the CBF account master 4496 (“CBF W/CBL-AUSLAENDISCHE WERTE”), use UEB-GRUND 220 and the 6-series counterparty account in Creation. Instructions in Essentially Registered Shares against the currently used CBF account master 4500 ("CBF MIRROR W/EUROCLEAR FRANCE”) will be rejected due to validation for LGL/LGS.

Between 30 January and 3 February 2017, CBF-CBL instruction details apply as specified in the CASCADE Link Guide - International.

Starting from 6 February 2017, after the migration of CBF to T2S, CBL will be a T2S Out-CSD to CBF. From this date, CBF-CBL instruction specifications will have to consider the specifics for T2S Out-CSDs.

Because of the transfer of the securities, the corporate action procedures of CBL will apply. A segregation in tax-related CBF sub-accounts will no longer be possible.

Transition information

The transition from the CBF-Euroclear France (ESES) direct link to the CBF-CBL direct link will take place on Friday, 27 January 2017 starting at 14:00.

Therefore, CBF customers and their counterparties in ESES are advised to cancel all CBF-Euroclear France pending cross-border instructions for Essentially Registered Shares before Friday, 27 January 2017 at 12:00. If pending cross-border instructions for Essentially Registered Shares remain in CASCADE after this time, CBF will cancel these instructions. Customers will be notified via MT548 cancellation information, if the related subscription is in place.

The required position transfers will only occur on respective CSD accounts. Those transfers will be triggered by CBF, and will not be visible to customers. The transfer will take place on Friday, 27 January 2017 after 14:00. Customer positions are not affected and remain unchanged.
During the transition activities, the cross-border settlement will be stopped for Essentially Registered Shares on this day from 14:00 until the CBF End of Day has been reached.

New cross-border instructions for Essentially Registered Shares for the CBF account master 4496 (“CBF W/ CBL AUSLAENDISCHE WERTE”, T2S Party BIC “CEDELULLCPI”) can be entered starting on Monday, 30 January 2017 at 05:00.


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. On the 27 January 2017, CBL will already have implemented the change from remote common code to home common code for the French market as described in Announcement A16159, dated 31 October 2016.