Asset servicing - Irish equities, corporate bonds and other instruments

10.09.2019

Income collection

For equities, CBL record date is payment date -1 business day and ex-date equals payment date.

Record dates for equities are determined by the relevant companies according to domestic market practice and are updated by CBL in accordance with information received from depositories, newspapers, companies and information suppliers.

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid  with the value with which they are received. 

Income payments following elections in an Optional Dividend (DVOP) or Dividend Reinvestment Plan (DRIP) will be paid to customers only upon receipt of funds. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. 

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

a. Ex-date generally falls on a Thursday with the Record date on the following Friday.
b. Record date for equities is determined by the respective company according to domestic market practice is are updated by CBL in accordance with information received from depositories, newspapers, companies and information suppliers.

Corporate actions

Service offeredRemarks
Notification to customers
CBL advises customers of their entitlement to participate in Irish corporate actions (including, but not limited to, stock dividends, rights issues, bonuses and takeovers/mergers).No specific deviations from standard reporting provided by CBL apply to the Irish market.
Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security.

In addition, CBL informs customers, on an “as and if received” basis, of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc.

Mandatory Rights Distribution: For mandatory with choice or voluntary call or exercise on nil paid securities or intermediate securities resulting from an intermediate securities distribution, the default action on pending trades is to be to carried out according to the LSE rules. The current applicable rulesa dictate the following:

Rule 5430: A seller to whom a rights claim is issued shall deliver the rights at or before the latest time for delivery and a buyer is not obliged to accept delivery of rights after that time.
Guidance to Rule: Where either the seller fails to deliver, or the buyer does not accept delivery, settlement of the rights shall take place in accordance with rule 5440.

Rule 5440: Where nil paid or partly paid rights are not delivered by the latest time for delivery, the seller shall, unless a lapsing instruction has been given, make any payment due on the call payment day on behalf of the buyer. The buyer shall then refund to the seller the call payment against delivery of the paid-up shares, or partly paid rights, as the case may be.

The rules of the LSE can be found in the London Stock Exchange website.

a. Current rules are applicable as of 23 February 2016 and are subject to change.

Proxy Voting procedures

Proxy voting services are available in CBL for this market. For details, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile - Ireland.

Entitlement compensation rules

Please refer to the Entitlement Compensation Rules - Ireland.