OneClearstream Migration for French Registered Securities - CBF- LBS only

24.05.2019

Following Announcement C18043, Clearstream Banking1 provides customers with the cutover information about the extended scope of T2S-eligible French registered securities migrated to CBF with effect from

24 June 2019

This migration will impact temporary LBS and final LBS ISINs.

Settlement and migration impacts

After the activation, direct settlement between CBF, CBL and ESES counterparties in Euroclear France will be possible.

New settlement time 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.

OTC instructions (only free of payment instructions)

CBF customers will settle directly from their CBF account via the T2S settlement platform. Similar to other OneClearstream migrated securities in CBF, French registered securities can be settled using the following OTC settlement instructions:

  • Domestic instructions, that is,  intra-CSD transactions between CBF customers (only between sub-accounts XXXX-203);
  • Cross-border instructions, that is, transactions between a CBF customer and a counterparty in Euroclear France;
  • Instructions with a CBL counterparty (being a customer with a registered account).

Note: LBS are not eligible for trading and stock exchange instructions are not possible

Post migration - settlement recommendation

Customers are highly recommended to restrict all free of payment transfers for temporary LBS and final LBS ISINs between 24 June 2019 until 31 July 2019.

Domestic instructions, cross-border transactions with a Euroclear France counterparty and CBF-CBL instructions are impacted.

During this period of time, 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 

Procedure for domestic counterparties

For all migrated securities from 24 June 2019, T2S counterparties should adapt their instructions format, as CBF customers will be directly reachable. To do so, the place of settlement to be used will be DAKVDEFFXXX for all migrated securities. 

Portfolio migration preparation

On Friday 21 June 2019, the temporary LBS and final LBS positions will be transferred by Clearstream from customers’ CBF 6-series accounts to customers KUSTA linked sub-account XXXX-203.

If a CBF customer holding a 6-series account has opted to keep the positions on the ICSD platform, Clearstream will transfer the positions on Friday 14 June 2019 from the 6-series account to the CBL dedicated account opened for French registered securities.

The migration will take place on Friday 21 June 2019 or at the latest, on Monday 24 June 2019, in either case, transactions will have an Intended Settlement Date of 21 June 2019, with an effective settlement date between 21 and 24 June.

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 impacts

Announcement D17073 referring to “France T2S: Tax impact on account structure and service offering continues to apply also for the migration of LBS with the following exceptions:

Segregation of holding at sub-account XXXX-203

The sub-account XXXX-203 dedicated to French registered securities will be opened for the main account and no further segregation per tax rate can be performed within this sub-account. Consequently, tax relief requests for positions held on behalf of several beneficial owners on sub-account XXXX-203, must exclusively be sent via SWIFT MT565 or Xact Web Portal instruction before each income event including the tax rate per applicable holding.

Tax certification

Impact on customers holding T2S-eligible French securities migrated to CBF

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

The duplication and renewal process is the one described in Announcement D17073.

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 D17073.

To certify the sub-account XXXX-203, customers are required to send a SWIFT MT599 or Message Exchange via Xact Web Portal 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 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."

Further information

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

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1. This announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.