Asset servicing - Denmark

10.09.2019

Income collection

Debt securities

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. 

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.

Equities

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. 

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.

Early redemptions

CBL performs drawings on Danish mortgage credit institution bonds and government bonds by applying, to the appropriate customer holding, a percentage rate that is as close as possible to the rate announced in the domestic market. Settlement transactions over the Bridge will not be presented for settlement between the beginning (00:45) and the end of day of the drawing day.

Corporate actions

Service offeredRemarks
Notification to customers
Standard reporting. For voluntary and mandatory events, CBL informs customers, on an "as and if received" basis, of unscheduled securities events occurring on account holdings.No specific deviations from the standard provided by CBL apply to the Danish market.
Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants etc.Customers are requested to instruct within the deadlines and/or procedures specific to each type of event. In the absence of instructions from its customer, CBL will apply a “default option”, which may differ for each type of event.

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.

Proxy Voting procedures

Proxy voting services are available in CBL for this market.

Customers that want to vote at general meetings (physically or by proxy) must instruct CBL to register their shares in the name of the beneficial owner prior to the general meeting's record date as defined by the respective company. The re-registered shares must be transferred to a separate VP account.

For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile - Denmark.

Entitlement compensation rules

Please refer to the Entitlement Compensation Rules - Denmark.

Transaction management

Please refer to Transaction management in T2S.

Cum/ex indicator and opt out indicator

In line with the new T2S functionalities, unless otherwise specified, the cum/ex indicator or opt out indicator can be used on the original settlement instructions as follows (for example, if the automatic compensation or transformation should not be applied by VP and Clearstream Banking). Customers should note that the fields are additional matching fields, that is matching values must be provided by both counter parties. For further details on the indicators and services available, please refer to the section “Additional matching fields” above.

Buyer protection

In line with the CA market standards (CAJWG), the T2S CA standards do not impose VP to implement buyer protection functionality. However if applied by the issuer CSD, it could be either:

  • an automated buyer protection functionality in accordance with agreed market standards; or
  • a manual buyer protection mechanism, via a bilateral agreement between the respective counterparties by means of a manual process (no intervention of the market infrastructure regarding the exchange of buyer protection instructions).

If the issuer CSD offers a buyer protection service, it will handle the execution of the buyer protection and take actions on the underlying transaction (Hold / cancellation / transformation).

Note: It has now been confirmed that no automated buyer protection services will be offered by VP and will therefore not be offered by Clearstream Banking.