Corporate Actions Harmonisation - KADI DE migration to OneClearstream Asset Servicing (OneCAS) - Update

12.10.2022

Note: This announcement originally published on 21 March 2022 and updated on 7 June 2022 and 4 July 2022, has been further updated following the postponement announced in D22059. Changes have been highlighted.

Clearstream Banking1 would like to inform customers that, as part of its Corporate Actions Harmonisation (CAH) project, effective 

21 November 2022

asset servicing for CBF-issued securities will be upgraded to OneClearstream Asset Servicing level (CAH – KADI DE migration to OneCAS) and will become mandatory.

Background

Clearstream Banking AG (CBF) has established the Corporate Actions Harmonisation (CAH) project focusing on the following aspects:

  • Continuous effort to ensure compliance with the Securities Market Practice Group (SMPG) standards and anticipate future changes such as SCoRE Corporate Actions standards and ECMS launch in November 2023;
  • Modernisation of the technical infrastructure;
  • Functional simplification and harmonisation achieved through the consolidation of the processing environments;
  • Reduction of the complexity of operating dual asset servicing processing on different technical platforms (KADI versus custody); and
  • Promotion of straight-through-processing (STP).

Within the framework of this initiative, corporate actions and income processing for CBF-issued securities, which is currently performed on KADI, will be gradually migrated into the existing OneClearstream Asset Servicing (OneCAS) performed on the Clearstream Banking S.A. (CBL) custody platform. The processing for CBF-issued securities will generally be aligned with current OneCAS processing. Exceptions resulting from regulatory requirements or deviating market standards for CBF-issued securities may apply.

During the first migration phase in November 2022, the harmonisation will take place for all CBF-issued securities (Lagerland 099, as per Wertpapier Mitteilungen (WM)) like equities, bonds, warrants and certificates with the exception of investment funds and non-German-taxable DE-ISINs (for example, U.S. taxable DE-ISIN). All corporate action events with the exception of meeting events, TEFRA D, class actions and non German-taxable Corporate Actions Events are affected.

In the next phase preliminarily scheduled for November 2023, the remaining DE market, that is CBF-issued investment funds, is to be migrated. Further markets that are currently processed by KADI such as Switzerland, Finland and the U.S.A. are planned to be migrated earliest in 2024.

Impact on customers

OneClearsteam Asset Servicing for migrated CBF-issued securities will become mandatory2. This enhancement will benefit CBF customers using the current CBF Legacy KADI DE processing and aims to harmonise and improve asset servicing processes across Clearstream Banking entities.

OneClearstream Asset Servicing processing for OneClearstream eligible securities (Investor-CSD Link) will also be enhanced for certain events resulting in harmonisation across the markets.

Detailed information regarding the upcoming changes are available in the "Detailed Functional Specifications” attached below and on the OneClearstream Rollout Documentation page.

Customer simulation

Clearstream Banking will offer a guided customer simulation and test cases related to the enhancements of the Corporate Actions Harmonisation Project (KADI DE Migration to OneCAS).

The participation in the guided customer simulation is optional but highly recommended. Customers wishing to participate in the simulation will be asked to register. Completed Customer Simulation Registration Form has to be submitted by latest Friday, 15 July 2022. Further details regarding customer simulation are provided in the attached form.

A detailed description of simulation activities and test cases will be provided with the “Customer Simulation Guide” in due course. Preliminary information on the testing period can also be found on the Availability and schedules of the customer simulation page.

Cut-over

After the migration, CBF will generally process corporate action events in OneCAS. However, any ongoing corporate action event at the time of implementation will continue to be processed in KADI.

Detailed information in form of a Migration Guide will be provided in due time.

Further information

For further information, customers may contact OneClearstream@clearstream.com, 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.

2. The current optional OneClearstream Asset Servicing for CBF-issued securities will be replaced by OneClearstream mandatory service.