OneClearstream service activation for securities issued by ESES and LuxCSD - update

15.02.2018

Note: This announcement originally published on 22 December 2017 has been updated following the change of migration date for the ESES markets and LuxCSD. In addition, the impacted ISINs and references to related publications were updated. Changes are highlighted.

Following Clearstream Banking1's Announcements D17028, D17034 and A17129 we provide CBF account holders with cutover information about the enhanced OneClearstream Investor-CSD service rollout for ESES and LuxCSD issued securities that will be effective on

9 April 2018

We would like to remind customers that the description of the future OneClearstream Investor-CSD service for ESES (Euroclear France, Euroclear Belgium and Euroclear Nederland) and LuxCSD issued securities can be found in the OneClearstream Functional Specifications published on the Clearstream website.   

The Functional Specifications document must be read in conjunction with the Release Notes published prior to each implementation of the OneClearstream services and with additional announcements that address the needs of particular product or service in order to understand future service and Legacy impacts. A list of relevant publications is provided under Further information.

The OneClearstream service will introduce the changes affecting the following areas in relation to ESES and LuxCSD issued securities:

  • Securities static data;
  • Account structure;
  • OTC and CCP/ stock exchange settlement;
  • Asset servicing;
  • Tax services; 
  • Connectivity;
  • Xemac activity;
  • Investment fund services.

In order to become acquainted with the new service offering and understand the impacts, customers are strongly encouraged to participate in testing (upon subscription) and explore the new Xact Web Portal features. Please contact the Connectivity Helpdesk for further information.

Scope of securities eligible for CBF OneClearstream service  

All existing CBF eligible ISINs issued by ESES and LuxCSD held in CSC via a CASCADE account will become part of the OneClearstream service from 9 April 2018 onward. More generally, any T2S eligible securities issued by ESES and LuxCSD, including those currently held via CBL2, can be transferred to CBF and would be part of the OneClearstream service with exception of securities that:

  • are subject to ongoing corporate action events(these securities will be made eligible within 20 T2S business days); or
  • are asset types not yet supported by OneClearstream service as per the following table:

Instrument types

Impact description

Market

French Essentially Registered Shares (“Valeurs Essentiellement Nominatives”)

These securities will not be subject to OneClearstream asset servicing.

France

French Occasionally Registered Shares subject to Loyalty Bonus Shares(“Valeurs Occasionnellement Nominatives”)

These securities held in bearer will neither be subject to OneClearstream asset servicing nor benefit from any registration service.

France

Belgian registered shares (BRS)These securities are currently not eligible in Clearstream Banking.Belgium

Global share certificates held in the CBF vaults

These securities held in the CBF vaults will not be subject to OneClearstream asset servicing.

ESES markets

Dutch and Belgian investment funds with a special order routing setup

Some investment funds will not be subject to OneClearstream asset servicing.

The Netherlands and Belgium

LuxCSD-issued investment funds

These funds are currently not eligible for the Investor-CSD link. Further information will be provided at the later stage.

Luxembourg (LuxCSD)

Activation timeline

The activation of the new service will be completed in two steps on the following dates:

Activation date

 

Impacted securities

Important remarks

On Thursday
5 April 2018

CBF will make the first pool of ISINs CSC eligible.

Those securities will be a selection of ISINs that have been active in CBL within the last twelve months and have no ongoing corporate action events. 

Those securities will be setup as:

  • Collective Safe Custody (CSC)
  • CBF T2S eligible
  • Datum ab LMP309042018

Those additional ISINs, made eligible in CBF, will not automatically trigger the migration of customer holdings from their CBF 6-series accounts/CBL accounts to CBF accounts. We leave it to the customer’s discretion to migrate its portfolio of securities if needed.

SE trades: Customers must be aware that as of 9 April 2018 non-cleared stock exchange trades (LION) for those securities and cleared stock exchange trades for equities and equities-like instruments only (Eurex Clearing) will settle on the CBF accounts.

GSF collateral management services: As soon as technical pre-requisites are fulfilled, those securities will also be made available for GSF collateral management services on CBF CASCADE accounts.

Until then, respective securities remain available on CBF 6-series accounts/CBL accounts.  

On Thursday
3 May 2018 (at the latest)

CBF will make the remaining ISINs CSC eligible that could not be migrated at initial migration date, due to ongoing corporate action events, eligible.

Those securities will be setup as:

  • Collective Safe Custody (CSC)
  • CBF T2S eligible
  • Datum ab LMP 07052018 (at the latest)

List of impacted ISINs   

The list of the impacted ISINs (existing and new) will be available on the Clearstream website. The preliminary lists with all impacted ISINs will be published one month before the migration and then, two weeks before the migration. The final list of ISINs will be published on Thursday prior to each migration date.

The list will be in Excel format and provide the following information:

  • ISIN;
  • Security long name;
  • Security T2S short name;
  • Issuer CSD;
  • Current Custody value (CSC or NCSC);
  • OneClearstream Custody value (CSC4 );
  • Financial instrument category (debt, equity, warrant, unit, right);
  • Listed on German stock exchange (Yes or No);
  • Current WM values WM-GD400;
  • Current WM values WM-GD100A;
  • Current WN values WM-GD420;
  • OneClearstream WM values WM-GD400;
  • OneClearstream WM values WM-GD420;
  • Subject to OneClearstream asset servicing (either contains the “Datum ab LMP” date or is empty. 

We remind our customers that all OneClearstream asset servicing bookings in T2S-eligible proceeds and its related reporting will be done at the customer's sub-account level.

Ahead of the OneClearstream activation, customers are requested to make sure that each sub-account has an appropriate account setup and is well subscribed to the relevant reporting.

To ensure a smooth OneClearstream activation on 9 April 2018 (and if not done yet with the OneClearstream activation for Italy on 26 March 2018):

  • The customer's sub-accounts without the appropriate reporting subscription will be subject to a default reporting setup by Clearstream Banking as described in the OneClearstream Migration Guide.
  • The customer's sub-accounts without the appropriate T2S setup will be linked by default by Clearstream Banking to the DCA of their main account. This default linkage is a technical setup and only applies to debits and credits originated by OneClearstream. The current DVP participation flag setup remains unchanged.

Non-migrating ISINs   

The list of non-migrating ISINs currently held in CBL and not in the scope of the migration will be available on the Clearstream website in addition to the list of impacted ISINs.

Note: After migration, to accept in CBF any new ESES and LuxCSD issued securities supported by OneClearstream, customers should contact their dedicated Client Services officer.

Migration impacts on customers

The overview of the generic customer migration impacts can be found in the OneClearstream Migration Guide (please refer to section 2.1) that is attached below.   

There will be additional customer migration impacts for CBF accounts specific to the ESES markets. Those impacts are related to changes in tax services and are subject to dedicated announcements for France (D17073: France T2S: Tax impact on account structure and service offering - update and D17083: France: Annual renewal of Form 5000 and Form RPPM for tax relief on French dividend income  - update), Belgium (C18005: Belgium ESES: Tax services) and the Netherlands (C18006: Netherlands ESES: Tax services).

For information about the migration impacts on your CBF 6-series accounts or CBL accounts, please refer to the announcement A17172: OneClearstream migration to ESES - update and to dedicated tax migration announcements for France (A17174: France T2S: Tax impact on account structure and service offering - update and A17186: France: Annual renewal of Form 5000 and Form RPPM for tax relief on French dividend income  - update), Belgium (C18005: Belgium ESES: Tax services) and the Netherlands (C18006: Netherlands ESES: Tax services).

Further information

Implementation  date

Publications 

Document

20 November 2017

OneClearstream:

Market claims and reverse market claims

Transformations

SWIFT, Xact Web Portal and Xact File Transfer Report

A17099: Clearstream Banking November Release 2017 - update

Legacy:

Tax instructions and certificates

D17050: Use of 7-digit account number format- update II 

12 February 2018

OneClearstream:

Income events

Market claims and reverse market claims

Transformations

Triparty Collateral Management Service

SWIFT and Xact Web Portal

A17147: Clearstream Banking February Release 2018

9 April 2018

OneClearstream:

DVOP on the French market

Realignment formats for:

  • Transfer of securities from CBL/CBF 6-series accounts to CBF accounts
  • Transfer of securities from CBF accounts to CBL/CBF 6-series accounts

C18009: OneClearstream activation for ESES markets and LuxCSD issued securities - Asset services market specifics

Realignment Guide -  Belgium -  France - Netherlands

Investment Funds

A17131: IFS: Investor-CSD solution for ESES markets - update

OneClearstream and Legacy:

Blocking sub-account 851

D17069Implementation of a new blocking sub-account for non-CBF issued securities in T2S - update

Note: This is the current situation based on latest information, should there be any changes or additional information we will inform you accordingly.

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

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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.
2. Any T2S eligible securities issued by ESES for which a position was not held on the ICSD (CBL) within the last twelve months will not be made available in CBF upon activation. However, these securities can be opened upon customer request.
3. “Datum ab LMP” is a new field in WSS Online Plus and helps customers to identify the Investor CSD securities migrated to OneClearstream.
4. A new custody value “NCSC-T” will be added as a possible value in H2 2018.  This value means that those ISINs, even not qualifying for CSC status will be eligible for settlement in T2S via CBF.