Usage of Party Level 2 with Euroclear Bank participants

04.05.2017

In February 2017, in preparation of the migration of T2S Wave 4, Clearstream Banking AG, Frankfurt (CBF)1 informed about the usage of T2S Party Level 2 by Clearstream Banking S.A., Luxembourg (CBL) and Euroclear Bank SA/NV. Both ICSDs announced that they would modify the procedure to address the counterparty to support the T2S optional matching criteria. The modification shall be implemented during the first months after CBF migrated to T2S.

In April 2017, Euroclear Bank SA/NV informed their customers, that starting

22 May 2017

instructions with counterparties in the German market will provide in Party Level 2 the BIC11 of the Euroclear Bank participants.

Usage of BIC11

In T2S, the matching logic applies for Party Level 2 “Client of Delivering / Receiving CSD Participant”. The usage of the BIC11 can reduce the mismatching risk.

Based on the details provided by Euroclear Bank SA/NV, CBF asks customers to use the BIC11 information for their counterparties in Party Level 2.

Starting on 22 May 2017, all CBF customers transmitting instructions to participants in Euroclear Bank are requested to use the BIC11 of the counterparty. Therefore, CBF recommends – if not already done – to agree with the counterparty on the BIC11 details.

Please note, that the usage of the BIC11 is independent from your connectivity mode, that is, customer acting in ICP and / or DCP mode shall transmit the agreed BIC11 in Party Level 2.

Existing pending instructions will remain unchanged and are not required to be modified. As today, such matched instructions can be successfully settled on the intended settlement day (ISD).

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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.