Settlement services - Ireland - Equities and corporate bonds - Euroclear Bank

02.06.2021

Pre-matching service

The table below summarises CBL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.

Service offeredMethod employedStart (local time)
Equities

Immediate Release Flag available

Automated through Citibank NA, London

On receipt of instructions

Connectivity mediumInstruction format

Xact Web Portal

Tick to enable the “Immediate Release” option.

Xact via SWIFT and Xact File Transfer

Field :22F::STCO/CEDE/IREL

Procedures for domestic counterparties

Counterparty delivering to / receiving from Citibank/CBL omnibus account 90842

Procedure for the domestic counterparty

Deadline

Receipt in CBL

Deliver to: Citibank NA London participant account in Euroclear Bank 90842
For account of: Clearstream Banking S.A.*
In favour of: Account number of CBL customer

Market deadline

Delivery from CBL

Receive from: Citibank NA London participant account in Euroclear Bank 90842

From account of: Clearstream Banking S.A.*
By order of: Account number of CBL customer

Market deadline

Counterparty delivering to /receiving from Citibank/CBL Irish QI account 90853

Note: Relevant for customers who have certified for Irish QI relief

Procedure for the domestic counterparty

Deadline

Deliver to: Citibank NA London participant account in Euroclear Bank 90853

For account of: Clearstream Banking S.A.* 

In favour of: Account number of CBL customer

Market deadline

Receive from: Citibank NA London participant account in Euroclear Bank 90853

From account of: Clearstream Banking S.A.*

By order of: Account number of CBL customer

Market deadline

* the corresponding BUYR/SELL fields are optional matching fields in Euroclear Bank and become matching when populated by both parties.

Allowed countervalue difference

The following cash tolerances are applicable in Euroclear Bank in EUR (or their equivalent in USD and GBP as determined by Euroclear Bank):

  • EUR 2 for transactions with an amount less than or equal to EUR 100,000; and
  • EUR 25 for transactions with an amount greater than EUR 100,000.

Specific settlement rules/settlement restrictions

Partial settlement

Euroclear Bank will apply partial settlement when the delivering party does not have the full amount of securities or the receiving party does not have sufficient cash for settlement. Customer delivery and receipt instructions are provisioned for the full quantity or cash value before being released for settlement. Consequently, customer delivery and receipt instructions may only settle partially if their counterparty is short of securities or cash. Customers that do not wish their transactions to settle partially must provide field :22F::STCO//NPAR or Partial Settlement set to “Partial not allowed” in their instruction.

Partial settlement is not applicable to cross border settlement between Euroclear Bank and EUI.

Nationality Declaration

Some Irish equities are subject to Nationality Declaration on transfer in the domestic market.

For holdings of Irish securities subject to Nationality Declaration, the registrar must be informed of the nationality of the beneficial owner. This process allows issuing companies to monitor the level of ownership by foreigners.

Irish equities held in CBL will always be declared to the registrar as held by a Luxembourg national. If a CBL customer purchases such securities but, at the point of registration, is unable to register them because the limit of foreign ownership has been reached, CBL’s custodian will contact the counterparty to arrange for the trade to be cancelled and for any settlement proceeds to be returned. The cash account of the customer will be debited at the point of settlement and will be re-credited only upon receipt of the monies from the counterparty. Back valuation will not be applied to the re-credit of funds.

Note: The breach of the limit does not apply to a CBL customer that is an Irish national. CBL will advise the customer to provide an Irish Nationality Declaration so that the trade can be re-instructed by CBL’s custodian.

CBL will accept no responsibility with regard to any problems resulting from the registration process applicable to securities subject to Nationality Declaration.

The following issues are subject to Nationality Declaration. This list is not exhaustive; it is provided for information purposes only and is correct according to the best information available to CBL at the time of publication. However, CBL accepts no responsibility for any inaccuracies or omissions.

ISINName of Security

IE00BYTBXV33

Ryanair EUR 0.006

Back-to-back processing

This service is not currently available.

Management of failed instructions

Unmatched instructions that have not been matched at Euroclear Bank by the fifteenth (15) business day after the instruction was sent to Euroclear Bank via the custodian, are cancelled.

Matched instructions that remain unsettled after the intended settlement date are recycled until they are either settled or bilaterally cancelled.

Irish stamp duty in Euroclear Bank

Charge to stamp duty

  • External transfers
    Stamp duty, charged at the rate of 1% on the stampable consideration amount (see below), applies when the title to Irish equities is transferred electronically in Euroclear Bank. Unless an exemption applies or the delivering party (that is, the transferor) is accountable for payment, stamp duty is due on external receipts of Irish equities in CBL. 
  • Internal transfers
    No stamp duty is due from CBL on internal transfers of Irish equities between CBL customers. Customers, other intermediaries or beneficial owners may, however, be liable or accountable for payment of stamp duty on internal transfers and should consult their tax advisers to ensure that they comply with Irish stamp duty regulations.

Accountable and liable person

In accordance with Irish stamp duty regulations, the person purchasing the securities (that is, the transferee) is accountable and liable for payment of stamp duty on a transfer of Irish equities through Euroclear Bank. If the delivering party is accounting for the stamp duty, then the ultimate liability rests with the receiving party (that is, the purchaser).

Euroclear Bank rules to charge stamp duty

Euroclear Bank applies the following rules to determine who is debited with the stamp duty (i.e. accounts for the stamp duty). Customers are requested to pay specific attention to these rules and in particular the scenario 2 when the customer receives securities from a broker.

 

Buyer

Seller

Stamp duty debited from

Comments

1

No stamp status indicator

No stamp status indicator

Buyer

 

2

No stamp status indicator

Stamp exempt indicator

Buyer

When the delivering counterparty is a broker, who generally accounts for the stamp duty either outside Euroclear Bank or include the stamp amount in the contract and subsequently exempt the delivery from stamp duty. As per Euroclear Bank stamp duty rules, in this situation the stamp duty is charged to the receiving party, i.e. CBL and subsequently to its customer.

The process at Euroclear Bank related to this scenario is different compared to CREST. Customers are requested to align with their brokers to ensure appropriate use of stamp status indicators to avoid stamp duty being paid twice.

3

Stamp exempt indicator

No stamp status indicator

Stamp exempt

 

4

Stamp exempt indicator

Same stamp exempt indicator

Stamp exempt

 

5

Stamp exempt indicator

Different stamp exempt indicator

Stamp exempt

 

6

Stamp eligible indicator

No stamp status indicator

Buyer

 

7

Stamp eligible indicator

Stamp exempt indicator

Buyer

 

8

Stamp exempt indicator

Stamp eligible indicator

Seller

 

9

No stamp status indicator

Stamp eligible indicator

Seller

 

10

Stamp eligible indicator

Stamp eligible indicator

Buyer

 


Stamp status indicators in Euroclear Bank

The following stamp status indicators are available in Euroclear Bank. Customers should pay specific attention to the conditions under which some stamp duty indicators may be used.

Stamp status indicator

Status

Description

IEYX

Exempt

Irish exempt, no change in beneficial ownership (NCBO)

IE8X

Exempt

Irish exempt, new issue

IEPX

Exempt

Irish exempt, acting as a recognised intermediary, approved by the Revenue Commissioners

This stamp duty exemption can be used only when the receiving customer has been approved as recognized intermediary by the Revenue Commissioners. Customers are, and remain, fully responsible for ensuring appropriate use of the stamp status indicator in their receipt instructions.

IELX

Exempt

Irish exempt, stock borrowing

Loans on Irish equities are exempted from stamp duty as long as the return leg is processed within 12 months (or less than 365 days) of the settlement of the opening leg.

Customers are, and remain, fully responsible for managing their lending trades and the use of the stamp status indicator only when the exemption conditions are fulfilled.  

IEQX

Exempt

Irish exempt, for any other reason

IE1X

Stamp duty is due

Irish 1% ad valorem (exact percentage)

Input of Irish stamp duty indicators in customers domestic settlement instructions

Stamp duty details must be input in the relevant field of each instruction. Exemption of stamp duty is only possible if applicable and the relevant exemption code is included in the settlement instruction.

Customers should pay particular attention to the input of the fields, as penalties may be incurred if the information subsequently proves to have been incorrect.

The following rules apply to Irish securities subject to stamp duty and must be completed as such in the appropriate fields of the CBL receipt and delivery instructions, as indicated.

Receipt of a security subject to Stamp Duty​​​​

Xact via SWIFT
and Xact File Transfer a

Xact web portal

Meaning

1

An exemption is claimed by the customer because there is no change of beneficial ownership.

 

MT540
:19A::DEAL// not used
:22F::STAM/ECLR/IEYX

Stamp duty tax basis:
IE Exempt

Transaction exempt from stamp duty

2

An exemption is claimed by the customer because the deliverer is a broker and accountable or the receipt is the result of a new issue from an on-exchange member b.

 

MT540/541
:19A::DEAL// not used
:22F::STAM// not used

Stamp duty tax basis:
Not used

Stamp duty expected to be paid by the delivering party.

3

An exemption is claimed by the customer because the receipt is a result of a new issue from a non-exchange party.

 

MT540/541
:19A::DEAL// not used
:22F::STAM/ECLR/IE8X

Stamp duty tax basis:
IE New Issue

Transaction exempt from stamp duty as new issue

4

An exemption is claimed by the customer because the deliverer is a custodian and has paid the stamp duty on a previous transaction

 

MT540/541
:19A::DEAL// not used
:22F::STAM/ECLR/IEYX

Stamp duty tax basis:
IE Exempt

Transaction exempt from stamp duty as the stamp duty was paid on a previous transaction

5

No exemption is claimed. The receiver is accountable.

 

MT540/541
:19A::DEAL// not used
:22F::STAM// not used

Stamp duty tax basis:
Not used

Stamp duty to be paid by the receiving customer

6

An exemption is claimed by the customer acting as a recognised intermediary, approved by the Revenue Commissioners c

 

MT540/541
:19A::DEAL// not used
:22F::STAM/ECLR/IEPX

Stamp duty tax basis:
To be confirmed c

Transaction exempt from stamp duty.

7

An exemption is claimed by the customer because the receipt related to stock borrowing c

 

MT540/541
:19A::DEAL// not used
:22F::STAM/ECLR/IELX

Stamp duty tax basis:
To be confirmed c

Transaction exempt from stamp duty

8

Irish exempt for any other reason

 

MT540/541
:19A::DEAL// not used
:22F::STAM/ECLR/IEQX

Stamp duty tax basis:
IE Other reason

Transaction exempt from stamp duty

a. To ensure correct processing of the instruction, please enter code words exactly as presented here, including the slash characters.
b. If the broker exempts its delivery from stamp duty, Euroclear Bank will charge the stamp duty to the receiver even if exemption is claimed in the receipt instruction.
c. The use of this exemption is subject to certain conditions explained above. The appropriate stamp status indicator in Xact Web Portal will be available from 3 May 2021 and will be confirmed then.

Delivery of a security subject to Stamp Duty

 

Xact via SWIFT
and Xact File Transfera

Xact Web Portal

Meaning

1

The delivering customer is not subject to stamp duty (the receiving party is accountable)

 

MT542/543
:19A::DEAL// not used
:22F::STAM// not used

Stamp duty tax basis:
Not used

Stamp duty to be paid by the receiving party

2

Delivery where the delivering party is accountable, that is, the delivering customer wants to account for the stamp duty and the receiver is not accountable.

 

MT542/543
:19A::DEAL//EUR15db

:19A::DEAL//GBP15db

:22F::STAM/ECLR/IE1X

Amount: “Trade Amount” EUR 15d or GBP 15db

Stamp duty tax basis:
IE applicable

Stamp duty to be paid by the delivering customer

a. To ensure correct processing of the instruction, please enter code words exactly as presented here, including the slash characters.

b. This field must contain the ISO currency code (EUR or GBP) followed by the total amount of the deal (deal price * quantity of securities) in 1-13 numeric characters (no leading zeroes), the mandatory comma decimal separator and 0-2 decimal positions.

Stampable consideration amount

The amount of stamp duty charged is calculated as 1% of the stampable consideration amount, which is one of the following:

  • If the securities are being transferred for consideration in money or money’s worth, the amount or value of the consideration; or
  • In other cases, the value of the securities.
Input of the stampable consideration amount

Customers should pay particular attention to the input of the stampable consideration amount, as penalties may be incurred if the information subsequently proves to have been incorrect.

The following factors apply when including the stampable consideration amount in instructions:

  • The currency of the stampable consideration amount must always be euros (EUR) or sterling (GBP).
  • The stampable consideration must be bigger than zero.
  • The amount of the stampable consideration can be up to 15 digits but must always include two decimal places preceded by a comma separator (not a period). For example:
    123456789012,12 and 57,12 are valid amounts;
    123456789012 or 123456789012.12 or 57.12 are not valid amounts.
  • No blank space must be left between the currency (EUR or GBP) and the amount.
  • The stampable consideration amount must always be preceded by the code word “DEAL//” for Xact via SWIFT and Xact File Transfer.

Calculation and payment of the stamp duty

In Euroclear Bank stamp duty is calculated as follows.

Against payment transactions subject to stamp duty:

  • when the party accounting for the stamp duty has indicated a stampable consideration in EUR or GBP in their instruction, 1% will be applied to this amount.
  • When the party accounting for the stamp duty has not indicated a stampable consideration or has provided a stampable consideration in another currency than EUR or GBP, 1% will be applied to the cash amount indicated in the seller’s instruction (converted to EUR by application of the daily ECB exchange rate, if the cash amount is expressed in another currency than EUR or GBP)

Free of payment transactions subject to stamp duty:

  • The party accounting for the stamp duty has indicated a stampable consideration in EUR or GBP in their instruction, 1% will be applied to this amount.
  • The party accounting for the stamp duty has not indicated a stampable consideration or has provided a stampable consideration in another currency than EUR or GBP, 1% will be applied to the transaction quantity multiplied by the closing price of the share on the previous business day converted to EUR, if applicable

Stamp duty is calculated on the matching date and debited on the settlement date + 1 business day. No stamp duty is however debited for instructions that are cancelled after matching but before actual settlement. Should a transaction settle partially, stamp duty is calculated and debited on the partially settled portion.

When applicable, CBL debits the stamp duty from the customer accounts upon being debited by its custodian.

Note: Customers that are liable to pay stamp duty but do not comply with the delays set forth by the IRC may be charged additional non-refundable interest, penalties and surcharges. Customers are strongly recommended to always ensure that the appropriate stampable consideration is input in their instructions, along with the respective codes, to avoid the incorrect calculation of stamp resulting in under- or over-payments to the IRC.

For further details about how to obtain a refund or make a payaway, please refer to the Market Taxation Guide - Ireland.

Irish stamp duty on cross-border transactions

Euroclear Bank has advised that when an instruction is sent from Euroclear Bank to the CREST system of Euroclear UK & Ireland, Euroclear Bank will assess the settlement instruction for Irish stamp duty based on the stamp status indicator input in the settlement instruction to Euroclear Bank. Separately, the associated matching instruction input in the CREST system of Euroclear UK & Ireland by the relevant account holder (counterparty) will be subject to the stamp duty rules set out by Euroclear UK & Ireland. 

It is therefore possible for both the counterparty in Euroclear UK & Ireland, and CBL and subsequently CBL customer to incur stamp duty charges in the respective systems, if the appropriate Irish stamp duty indicators are not specified on the respective instructions. If this does occur, a reclaim may subsequently be made by the customer to the Irish Revenue Commissioners directly.

Customers should pay specific attention to stamp duty values in their cross-border instructions and when there is no change of beneficial owner, use the stamp duty indicators as provided in the Market Link Guide - Ireland – Equities and corporate bonds in Euroclear Bank.

Responsibility and indemnification

CBL will not bear any responsibility with regard to the stampable consideration amount mentioned in the customer's instruction. If the Revenue Commissioners question or make inquiries in relation to the stampable consideration amount input in the instruction or any other details of any of the customer's transactions, it is the responsibility of the customer to provide CBL with all required explanations and/or documentation.

By sending CBL an external receipt or delivery instruction for securities subject to Irish stamp duty, the customer is deemed to indemnify CBL for any taxes, penalties, interest thereon and other costs that CBL may incur as a result of CBL's reliance on the information included in the customer's instruction, including the stampable consideration amount indicated by the customer or the claim to be entitled to exemption from stamp duty.

Retention and disclosure of documentary evidence

Documentary evidence of details of all transactions and, where applicable, proof of relief from stamp duty must be retained for six years from the settlement date of each transaction and must be forwarded upon request from CBL or the Revenue Commissioners. By holding Irish equities in an account with CBL, customers will be deemed to appoint CBL and CBL's depository for Irish equities as their attorneys-in-fact for the purpose of providing the information to the Revenue Commissioners, if requested by the latter.

Stamp Duty Reclaim request charges

Please refer to the Clearstream Banking Fee Schedule.

New issues settlement

Transactions in new issues are settled on the day on which the distribution takes place on the Irish market. For confirmation times, please refer to Settlement times.