Corporate actions CSD
Clearstream offers customers fully-automated monitoring and reporting on corporate actions. Transactions on voluntary, mandatory with choices, or mandatory events are settled via the CASCADE platform or Creation if the new shares (for example, subscription rights) are in non-collective safe custody (NCSC). The settlements are based on the holdings of the customer, and the service includes all corporate action events for securities held in collective safe custody.
Reporting sent via SWIFT MT564 and MT566 complies fully with ISO 15022 corporate action messaging standards.
Event lifecycle monitoring
The information required to settle voluntary corporate actions is usually communicated to Clearstream by the lead manager or the exchange agent in relation to the individual event.
On the disclosure of a voluntary corporate action, Clearstream provides customers with pre-advice. Through the online information function, customers can access data on forthcoming corporate action events that are relevant to their positions. This can be done up to 14 business days before the start of the actionable period. This information is updated daily until settlement ends on expiry of the period.
Clearstream publishes data which has been confirmed by the issuer or the issuing agent in WSS/CBF. This data can be viewed via the respective systems.
In addition, customers can obtain pre-advice relevant to their positions via the SWIFT MT564 service. The first SWIFT MT564 message on an event will not be sent out before the 30th business day prior to the start of the period. Further SWIFT MT564 messages follow if the event data is modified or if the customer acquires new positions in the securities class prior to the deadline, or as a reminder before instruction deadlines. Details concerning SWIFT services for non-income events are described in the Connectivity Handbook.
Flexible services
Clearstream offers customers the opportunity to configure their corporate action services to suit their needs. Clients can choose between one event segment and a combination of several event segments.
They can also choose whether to receive both 'confirmed' and 'unconfirmed' pre-advice information or 'confirmed' information only. Confirmation of cash and securities accounting entries after an event is another optional service.
Customers' instructions
Customers would issue instructions either to Clearstream, or directly to the lead manager or exchange agent, depending on the rules for the settlement of voluntary corporate actions determined by the lead manager or the exchange agent. Customers must observe the instruction deadline fixed by Clearstream, the lead manager or the exchange agent.
Clearstream customers who use the SWIFT service can generally communicate their instructions to Clearstream via a SWIFT MT565 message. If instructions are issued to Clearstream, the instruction and all further settlement steps are carried out via the CASCADE platform.
If instructions are issued to the lead manager or the exchange agent, Clearstream does not generally take any action in relation to customers' positions. Execution of instructions and all further necessary processing steps take place bilaterally between the customer and the lead manager or the exchange agent via the CASCADE platform. This would include securities transfers by Clearstream customers in favour of the lead manager or the exchange agent.