Changes to the handling of the corporate actions requiring payment of exercise price


Note: This Announcement, originally published on 28 October 2019 has been updated  to change the implementation date.

Clearstream Banking1 informs customers of the changes to the handling of the corporate actions requiring payment of exercise price which become effective 

18 May 2020

The change will be implemented in order for Clearstream Banking to comply with requirements of the Commission Delegated Regulation (EU) 2017/390 of 11 November 2016.

For the corporate actions events requiring payment of exercise price and in line with Article 18 of CBL General Terms and Conditions, customers who have given their instruction to exercise should ensure their account is sufficiently provisioned on the payment date.

Impacted corporate action events include, but are not limited to, priority issue, warrant exercise and exercise of rights.

The following changes will be introduced to the current process:

  • debit of customer accounts with the exercise price on payment date will be subject to a cash provisioning check based on available cash or credit line of the customer;
  • the unsuccessful cash provisioning of the account on the payment date will lead to:
    • daily penalties fee for a late cash provisioning;
    • a delay in securities distribution and other actions as per Article 21 of CBL General Terms and Conditions.

Customers are, and remain, liable for such payment or payment default in these circumstances.

To facilitate proper handling of the impacted corporate action events by customers, the following enhancements will be implemented to the current reporting: 

  • The MT564 Corporate Action Notification will include a narrative reminding customers of a timely cash provisioning of the account on the payment date;
  • In the case of insufficient cash provisioning of the account on payment date, customers will receive an MT567 Corporate Action Instruction Status Advice with a status IPRC//PEND and a new reason code PEND//MONY, as well as reporting via MT940/942. 

Note: Customers that have these reports in place must take immediate action to fund their account as soon as possible. The credit of securities proceeds will be dependent on the settlement of the cash debit instruction.  

Failed cash debit instructions will be recycled until the account is successfully provisioned as per Article 18 of CBL General Terms and Conditions or until the instruction is cancelled by Clearstream Banking in accordance with CBL Customer Handbook.

There will be no other changes to the processing and reporting of these corporate action events and instructions.  

Further information

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


1. Clearstream Banking refers collectively to 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, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.