IFS: Investor-CSD solution for Austrian market - update
Note: This Announcement, originally published on 14 September 2018, has been updated to include Creation OI related information.
Effective
10 December 2018
Clearstream Banking’s1 Vestima platform will be enhanced for the implementation of the Investor-CSD solution for investment funds issued in Oesterreichische Kontrollbank Aktiengesellschaft (OeKB).
This enhancement will impact the following customer groups (the sections can be found in the attached PDF):
- Order Issuers (OIs) with a settlement account in Creation (Creation OIs) placing orders in Vestima in OeKB-Clearstream link eligible non-EUR currencies (CHF, GBP, USD) for against payment (DVP) settlement with an Order Handling Agent (OHA) using an account in OeKB for settlement (OeKB OHA) (please refer to sections 1.4 and 1.5),
- OIs with settlement account in CASCADE (CASCADE OIs) who opted for optional automatic generation of settlement instructions by Vestima (please refer to section 2),
- CASCADE OIs placing orders in Vestima in EUR or non-EUR for DVP settlement with an OeKB OHA in Austria (please refer to sections 2.1 and 2.2),
- OeKB OHAs receiving orders via Vestima in EUR or non-EUR for DVP settlement from Creation OIs (please refer to sections 4.1, 4.2, 4.4 and 4.5),
- OeKB OHAs receiving orders via Vestima in EUR for DVP settlement from CASCADE OIs (please refer to section 4.3),
- OeKB OHAs might face CASCADE OIs in the future (please refer to section 4.3).
Detailed impact descriptions can be found in the PDF attached below. All impacts described are based on subscription orders. The impacts equally apply to redemption orders in opposite direction.
Switch orders will be supported2 with free of payment settlement.
Note:
- Settlement instructions submitted by OIs and OHA are recommended to be aligned with the indications given in the settlement detail level of the respective MT515/setr.012 and MT502/setr.010 messages.
- Creation OIs intending to migrate to a CASCADE OI Vestima setup after the effective date, must consider the impacts described for CASCADE OIs below, especially the fact that CASCADE OIs will not be able to place orders for DVP settlement in non-EUR with an OeKB OHA.
- CASCADE OIs will not be able to place cash based orders in Austrian investment funds where the number of decimals available for CBL's record keeping of the fund class is in the range of 4 to 6 (inclusive).
- For CASCADE OIs, placing orders in Vestima in non-EUR for DVP settlement with an OeKB OHA in Austria will no longer be possible as CASCADE/T2S does not support non-EUR via conditional settlement mechanism.
Additional cutover related information for Creation OIs
The PDF attached to this publication details the different impacts on Creation OIs placing orders in non-EUR (CHF, GBP, USD) for against payment (DVP) settlement, depending on the behaviour of the Order Handling Agents using an account in OeKB for settlement (OeKB OHA).
In the meantime, the OeKB OHAs have communicated their future setup to Clearstream. Please find below an overview by OHA name, announcement section relevant for Creation OIs and the OHA CBL account number for future settlement:
OHA Name | Announcement section | OHA account | Impact on Creation OI: |
SEMPER CONSTANTIA PRIVATBANK AKTIEN | n/a | n/a | Settlement instructions need to be instructed as for EUR orders. |
RAIFFEISEN BANK INTERNATIONAL AG (A | 1.5 | 12467 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:12467 |
BANK GUTMANN AG (WIEN) | 1.4 | generic 19222 | 1.4 applies, hence, PSET:CEDELULLXXX, SAFE:19222 |
ERSTE GROUP BANK AG (AT) | 1.5 | 12173 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:12173 |
RAIFFEISENLANDESBANK OBEROSTERREICH | 1.5 | 12173 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:12173. |
STATE STREET BANK INTERNATIONAL GMB | 1.4 | generic 19222 | 1.4 applies, hence, PSET:CEDELULLXXX, SAFE:19222 |
MEINL BANK (AUSTRIA) | n/a | n/a | Settlement instructions need to be instructed as for EUR orders. |
UNICREDIT BANK AUSTRIA AG (AT) | 1.5 | 18481 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:18481 |
OBERBANK (AUSTRIA) | 1.4 | generic 19222 | 1.4 applies, hence, PSET:CEDELULLXXX, SAFE:19222 |
VORARLBERGER LANDES- UND HYPOTHEKEN | n/a | n/a | OHA does not have non-EUR NAV currency funds set up in Vestima. |
SCHOELLERBANK AG AUSTRIA | 1.5 | 15296 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:15296 |
ALLGEMEINE SPARKASSE OBEROSTERREICH | n/a | n/a | OHA does not have non-EUR NAV currency funds set up in Vestima. |
BKS BANK AG (AT) | 1.5 | 62013 | 1.5 applies, hence, PSET:CEDELULLXXX, SAFE:62013 |
BANK FUER TIROL UND VORARLBERG (AT) | n/a | n/a | OHA does not have non-EUR NAV currency funds set up in Vestima. |
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-9248, and 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.
2. Switch orders between fund share classes without Euro as a NAV-currency and fund share classes with Euro as a NAV-currency will not be supported.