IFS: Investor-CSD solution for Danish market
Effective
Monday, 11 July 2022
Following Announcement C22015, Clearstream Banking1 (CBL) has appointed Clearstream Banking AG (CBF) as its single gateway to the T2S Settlement platform. This will lead to the migration of VP and Euronext Securities Copenhagen (ES Copenhagen) T2S-eligible securities to CBF.
Clearstream Banking’s Vestima platform will be enhanced for the implementation of the Investor-CSD solution for investment funds issued in ES Copenhagen.
Changes for Order Handling Agents (OHAs)
Currently for a primary market order of a CBL investor in an investment fund issued in ES Copenhagen, the OHA must instruct against the CBL omnibus at ES Copenhagen, with the CBL investor as the final beneficiary.
From 11 July 2022, transactions will be settled via CBF. Therefore, OHAs using accounts in ES Copenhagen and receiving orders from Clearstream Vestima are advised that orders will specify new settlement details. CBL’s account in ES Copenhagen (11900) will be replaced by the account of CBF (17100) for CBL customer holdings. OHAs will therefore have to change the counterparty’s details in settlement instructions for Vestima as per below:
- For Order Issuers (OIs) using a CBL account (5-digits account):
For OIs using a CBL account, OHAs will recognise CBL as the counterparty in their instructions to T2S, and will recognise CBL participants as the final beneficiary (Buyer or Seller):
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent (DEAG/REAG) | CEDELULLXXX |
Buyer/Seller | BIC11 of the Order Issuer (OI) |
- For OIs using CBF accounts (4-digit account):
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent (DEAG/REAG) | BIC11 of the OI |
Changes for CBL OIs
For CBL OIs placing orders in Vestima for the DK funds ISINs in EUR or DKK currency, settlement details information provided in the order confirmation MT515/setr.006/setr.012 will change. The SAFE account in DEAG/REAG against which the OI’s settlement instruction will have to be instructed to will change from the OHA’s account at ES Copenhagen to the OHA’s BIC in ES Copenhagen.
For OIs who did not opt for automatic generation of settlement instructions by Vestima, settlement of orders in DK funds with settlement currency DKK or EUR must be instructed as follows:
Place of settlement | VPDKDKKKXXX |
Delivering/Receiving Agent (DEAG/REAG) | BIC11 of the OHA |
Changes for CBF OIs
OIs using CBF accounts will be able to issue orders in Vestima for EUR and DKK2 settling delivery against payment, with optional automatic generation of settlement instructions.
Against payment settlement in DKK will also optionally be available under the condition that a relevant DKK DCA is provided by the CBF customer.
CBF customers should not anticipate any change to the existing settlement features for Danish securities – settling free of and against payment in EUR in T2S on their DCAs will remain available.
Cutover
These settlement details will apply fromsettlement date 11 July 2022.
Further information
This is the current situation based on latest information, should there be any changes we will inform you accordingly. For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers 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.