ENDE
Governing

Alternative Funds Services: Release notes

Investment Fund Services

Reference

Code
A15052
Service level
CBL
Last Updated
12.03.2015
This page contains Governing Information.

Effective

16 March 2015

Clearstream Banking1 will implement several improvements to the Alternative Funds Services (AFS).

Clearstream Funds Net (CFN)

The branding of the web-based user interface and the associated print reports has been upgraded to reflect the ownership of Clearstream Banking.

Revisions have been made to the following screens:

  • Fund profile;
  • Fund rules;
  • Pricing; and
  • FX rates.

Market registration information has been enhanced in the following reports:

  • The Portfolio holding report will specify the current market registration reference; and
  • The Lot position report will specify how the position is registered in the market.

For further information and detailed descriptions of all updates to CFN, customers may contact their AFS Client Team.

Intraday cash provisioning

Clearstream Banking is introducing improved cash management facilities for AFS customers, allowing for later provisioning2 of their Clearstream Banking cash account.

Customers are reminded that their Clearstream Banking cash account must be sufficiently provisioned for the timely execution of subscription orders. If the cash account does not hold sufficient cash provisions, the subscription order may miss the cut-off deadline, and only be considered for the next trading cycle of the fund. Clearstream Banking cannot accept responsibility for any loss incurred when an order execution is delayed due to insufficient funding on the customer’s cash account.

Most funds require “Valueday Cash” payments of subscriptions, and the deadline for provisioning of the Clearstream Banking cash account is as per the cash deadline of Clearstream Banking (see Cash Timings Matrix). This allows Clearstream Banking to pay to the fund’s collection account on the relevant value date.

Subscriptions in some funds require “Intraday Cash” payments to have reached the collection account of the fund at a specific time of the day (the “Intraday Cash Deadline”). Clearstream Banking will, in such cases, need to debit the customer’s Clearstream Banking cash account at an earlier time of day.

Release of outgoing payments

Each outgoing payment for subscriptions will be released on the day when it is due. As per the Cash Timings Matrix referenced above, some currencies require the payment to be instructed prior to the value date:

  • At 07:00 UTC3  payments for Intraday Cash subscriptions are released; and
  • At 10:00 UTC payments for Valueday Cash subscriptions are released.

All valid subscription orders will be paid promptly at these times provided the Clearstream Banking cash account of the customer is sufficiently provisioned, otherwise the payment(s) will remain pending until sufficient provisioning is available.

Information on cash deadlines for subscriptions

The information given for subscriptions that require Valueday Cash for subscription payments remains showing the due date as before.
For funds that require Intraday Cash payments of subscriptions, the following indicators have been introduced:

  • The Fund profile in CFN will show the Intraday Cash Deadline; and
  • For all subscriptions:
    • The Order to Client Fax will show the Intraday Cash Deadline;
    • The CFN Trade Notification Email will have a new fund rule section with the Intraday Cash Deadline; and
    • A new notification service is available for customers ordering via SWIFT; an email with the Intraday Cash Deadline can be sent along with the MT509 status advice.
      Customers wishing to use this service may contact their AFS Client Team.

Provisioning deadline

Clearstream Banking will effectuate payments for subscriptions provided the Clearstream Banking cash account of the customer is sufficiently provisioned by the “Provisioning Deadline”. After the Provisioning Deadline has expired, payments will be made on a best effort basis only. Clearstream Banking does not accept responsibility for any loss incurred for late subscription payment(s) if the customer has failed to meet the Provisioning Deadlines, which are as follows:

  • Valueday Cash: as per the Cash Timings Matrix referenced above; and
  • Intraday Cash: 90 minutes prior to the Intraday Cash Deadline.

Note: Some funds may require that orders are only placed on the payment day. Customers are reminded that the Provisioning Deadlines need to be respected also in these cases, and then the provisioning of their Clearstream Banking cash accounts must then be made when their orders are placed.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
2. For information on the provisioning of cash, please refer to the Clearstream Banking Customer Handbook.
3. Times are in UTC 0/GMT, and remain without adjustment for Daylight Saving Time (DST).