OneClearstream Migration for French Registered Securities - CBL- LBS only

24.05.2019

Following Announcements C18043 and A19014 Clearstream Banking1 informs customers that it will enhance its current OneClearstream service offering on the French market by extending the scope of the eligible assets to include the French registered securities and effective

24 June 2019


This migration will complete the service offering for the French registered securities, that started on 18 February 2019, by transferring the temporary and final LBS ISINs to CBF.

Clearstream Banking will access the Euroclear France CSD for settlement in T2S via CBF as follows:

Country

CSD

Type of link

Securities eligible

France

Euroclear France (EF)

Direct link to Clearstream Banking AG, Frankfurt for holding Euroclear France/T2S eligible securities

LBS

New depository details

The change of depository will be effective as of settlement date 24 June 2019.

For all remaining French registered securities (LBS) to be migrated to CBF, the following new depository codes will apply:

Depository

Current CBL

depository

code

New CBL

depository

code

Euroclear France

23

4F

New settlement timings for domestic instructions

The following settlement deadline will be applicable to customers:

Link

Current FOP deadline

New FOP deadline

Euroclear France via CBF

17:45 SD

17:55 SD

The ISINs in scope are not eligible for against payment settlement.

The same deadline and type of settlement instructions apply for transactions between CBL and a CBF counterparty.

Scope of the securities relevant for the migration and exceptions

The list of migrating French Registered Securities (LBS) can be found in the attachments below.

ISIN codes open in Clearstream Banking even with no position will also be migrated. Therefore, the list of securities attached may be different from the ones circulated in September and November 2018

Pre-requisites for migration

Customer account setup

Clearstream Banking reminds customers that a new dedicated account (registered account) must be opened for the sole purpose of holding VON in registered form and LBS securities.

If customers have not opened such an account yet, they should contact their Relationship Manager.

The same applies to customers with CBF 6-series accounts that want to continue to hold these securities in registered form on the ICSD platform, for which only a dedicated CBL registered account can be opened.

Settlement recommendation

Customers are highly recommended to restrict all transfers free of payment for temporary LBS and final LBS ISINs between 3 June 2019 and 31 July 2019.

Internal, Bridge and domestic transactions are impacted.


For the period between 3 June 2019 and 21 June 2019

In order to facilitate the migration, a final reconciliation with issuers/registrars and depository is required by Clearstream Banking before the first migration step occurs on 14 June 2019


For the period between 24 June 2019 and 31 July 2019

The issuers/registrars will process the ‘’bordereau de reference nominative’’ linked to the migration and this may take up to several weeks due to the high volume.

For this reason, Clearstream Banking needs to receive first the feedback from the issuers/registrars before starting the registration activity for those ISINs  

Migration impact on customers

Portfolio migration preparation

On Friday 14 June 2019, the temporary LBS and the final LBS ISINs positions will be transferred by Clearstream from the main account to the registered account (if the customer is the holder of such a position and a registered account is available).

Domestic instructions

Clearstream Banking will proceed with the migration of settled positions to the new depository, Clearstream Banking AG (CBF), from 10:00 on 21 June 2019.

If there are pending unmatched domestic instructions, they will be cancelled by CBL before the start of the migration at 10:00.

For all pending matched domestic instructions, customers must contact their counterparties as early as possible to ensure that these instructions are cancelled by both counterparties by 10:00, as the bilateral cancellation principle applies.

All instructions cancelled before migration must be reinstructed by customers and their counterparties (with the new place of settlement DAKVDEFFXXX) after 12:00.

If a customer instruction is received by Clearstream Banking after 12:00 with a Requested Settlement Date 24 June 2019 or after, it will be put in a queue and only released to CBF after a successful migration has taken place.

Procedures for domestic counterparties

Customers are requested to inform their local counterparties to use the following details for instructions that settle against Clearstream Banking:


Migrated securities

Place of settlement

DAKVDEFFXXX

Delivering/Receiving Agent (DEAG/REAG)

CEDELULLXXX

SAFEa of the (DEAG/REAG)

Not to be instructed. If instructed, it must be the valid CBL SAC

Euroclear France:

DAKV7201203 (registered account)

Buyer/Seller

BIC11 of the CBL customer

a. Although the safekeeping account of Party 1 (REAG/DEAG) is an optional matching field in T2S, if it is present on one instruction only it will only match with instructions instructed by this account.

As CBL does not forward its own SAC to the settlement parties, if the customer counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.

We encourage customers to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securities account of the delivering/receiving party).

Important note: Customers should advise their counterparties that for new instructions sent to Clearstream Banking after migration and in relation to the migrated securities, the counterparty details (SSI) will change and that counterparties need to instruct against the place of settlement DAKVDEFFXXX.

Registration

Clearstream Banking will ensure that the securities will remain registered in the name of final beneficiary known in Clearstream Banking Luxembourg books.

Handling of ongoing asset servicing events and related migration rules

This is not foreseen as no ongoing events have been identified.

Impact on Xact Web Portal

We inform customers that not all beneficial owner details will immediately be available on 24 June 2019 in the new Xact Web Portal query, under "Settlement, Registered securities - Beneficial owner details".

The details will be available as soon we will receive the feedback from issuers/registrars and we expect to get it completed by end of July 2019.

Tax

Announcement A17174 referring to “France T2S: Tax impact on account structure and service offering” continues to apply also for the migration of VEN/VON with the following exception:

  • Tax certification

Impact on customers holding French T2S eligible securities migrated to CBF

No renewal is required for this migration if valid certification has been already submitted for the activity performed through CBF acting as French tax agent. However, customers must request the duplication of existing certificates on the new created account(s).

Impact on customers with no holdings in T2S-eligible French securities migrated to CBF

The duplication and renewal process is the one described in Announcement A17174.

To certify the accounts dedicated to French VEN/VON, customers are required to send a SWIFT MT599 requesting the duplication of existing certificates and indicating the following:

  • Request for duplication of tax certificates
  • ATTN: Tax Services
  • Market: France LBS
  • Source Account:
  • Destination Account:
  • Clearstream Banking references of the impacted certificate(s):
  • The following text:
    "We hereby confirm that above-mentioned original tax certificate(s) is/are still valid and should not be revoked. We irrevocably authorise Clearstream Banking(1) to apply tax relief based on the information contained in the original tax certification duplicated for the destination account.
    We hereby appoint Clearstream Banking and Clearstream Banking depository for the Securities as our attorneys-in-fact with authority to collect and forward the tax certification or a copy of the tax certification, any attachments and any information relating to it to the tax authorities if these prove relevant to any administrative or legal proceedings or official inquiries undertaken or threatened.

    We accept full responsibility and indemnify Clearstream Banking in the case of any claims or additional taxes, interest thereon or penalties levied by tax authorities in connection with any payments made in reliance upon this duplication of certification including any additional information provided in connection to it.
    We certify, under penalty of perjury, that the information contained in the tax certification is true, correct and complete.
    (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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500."

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, 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.