Transaction management rules - Denmark

05.08.2022

Market claims and reverse market claims

 

Market claims

Reverse market claims

Processing of market claims and reverse market claims on the market

Applicable

Applicable

Eligible corporate action events  

All income and non-income distribution events in cash and securities

All income and non-income distribution events in cash and securities

Detection period

20 T2S opening days after the record date

20 T2S opening days after the record date

Eligible transactions

All as of status matched

All as of status settled

Detection key dates

Securities in units:

  • Ex date
  • Trade date
  • Record date
  • Effective settlement date

Securities in nominal:

  • Record date
  • Intended settlement date
  • Effective settlement date  

Securities in units:

  • Ex date
  • Trade date
  • Record date
  • Effective settlement date

Securities in nominal: n/a



 

Opt-out/Ex/Cum indicator

Supported as additional matching field

Supported as additional matching field

Characteristics of market claims/reverse market instructions

  • Transaction code “CLAI”
  • Status unmatched  
  • Same trade date as per underlying instruction
  • Settlement date being the payment date of the underlying event
  • Partial settlement indicator as per underlying instruction (always NPAR for claims in cash)
  • On-hold/release status as per underlying instruction
  • Transaction code “CLAI”
  • Status unmatched 
  • Same trade date as per underlying instruction
  • Settlement date being the payment date of the underlying event
  • Partial settlement indicator as per underlying instruction (always NPAR for claims in cash)
  • On-hold/release status: n/a

Tax status of claims

For securities issued by Danish issuers, market claims will be processed on a gross basis for interest payments and on a net basis for the rest. A fix rate of 27% is applied, except for ISIN codes for VP is not the primary registration place and the issuer country is different from Denmark. The withholding tax is then withheld according to the dividend tax rate in the issuer's home country.

For securities issued by Danish issuers, reverse market claims will be processed on a gross basis for interest payments and on a net basis for the rest. A fix rate of 27% is applied, except for ISIN codes for VP is not the primary registration place and the issuer country is different from Denmark. The withholding tax is then withheld according to the dividend tax rate in the issuer's home country.

Market specifics

Not generated for:

  • Cash distributions in non T2S currency
  • Securities distributions in non-T2S eligible securities
  • The following settlement instruction types: INSP, NETT, PLAC, TRPO, TURN
  • DKK distribution: CBF/LuxCSD with a domestic counterparty, CBF/LuxCSD with CBL counterparty

Not generated for:

  • Cash distributions in non T2S currency
  • Securities distributions in non-T2S eligible securities
  • The following settlement instruction types: INSP, NETT, PLAC, TRPO, TURN
  • DKK distribution: CBF/LuxCSD with a domestic counterparty, CBF/LuxCSD with CBL counterparty

Processing of market claims and reverse market claims by Clearstream

Applicable

Applicable

Scenarios for market claim detection for securities in nominal

TD before

Ex-datea

ISD before or on RD

ASD before or on RD

Opt-out indicator

Ex/Cum indicator

Market claim

to be created

(T2S rules)

Direction

Issuer CSD

compliance

Y/N

Y

N

Blank

N/A

Y

From Seller to Buyer

Y  

a. N means TD => Ex-Date but TD <= RD. 

Scenarios for market claims detection for securities in unit

TD before

Ex-datea

ISD before or on RD

ASD before or on RD

Opt-out indicator

Ex/Cum indicator

Market claim

to be created

(T2S rules)

Direction

Y

n/a

N

Blank

Blank/Cum

Y

From Seller to Buyer

N

n/a

N

Blank

Cum

Y

From Seller to Buyer

N

n/a

Y

Blank

Blank/Ex

Yb

From Buyer to Seller

Y

n/a

Y

Blank

Ex

Yb

From Buyer to Seller

a. N means TD => Ex-Date but TD <= RD. 
b. Reverse market claims.

No market claim detection for transactions in which opt-out is present

TD before

Ex-datea

ISD before or on RD

ASD before or on RD

Opt-out indicator

Ex/Cum indicator

Market claim

to be created

(T2S rules)

Direction

n/a

n/a

n/a

Opt-out

n/a

No

n/a

a. N means TD => Ex-Date but TD <= RD. 

Transformations

Transformations

Comments

Processing of transformations on the market:

Applicable

Eligible corporate action events 

All income and non-income mandatory reorganisation events in cash and securities

Voluntary reorganisations are subject to buyer protection

Detection period

20 T2S opening days after the record date

 

Eligible transactions

All as of status matched, but still pending

 

Detection key dates

  • Record date, for mandatory reorganisations without options
  • Market deadline, for mandatory reorganisations with options
 

Opt-out indicator

  • Supported as additional matching field
 

Characteristics of re-instructions due to transformations

  • Transaction condition “TRAN”
  • Status unmatched 
  • Same trade date as per underlying instruction
  • Settlement date being the latest date between the payment date of the underlying event and the intended settlement date of the underlying instruction
  • Partial settlement indicator as per underlying instruction (always NPAR for claims in cash)
  • On-hold/release status as per underlying instruction
 

Market specifics

Transformations are not generated for:

  • For cash distributions in non T2S currency
  • For securities distributions in non T2S eligible securities
  • DKK distribution: CBF/LuxCSD with a domestic counterparty, CBF/LuxCSD with CBL counterparty
 

Processing of transformations by Clearstream:

Applicable

 

Scenarios for transformations

Reorganisation

event type

Cancellation instruction to be created

Opt-out

Indicator

Transformed instruction to be created

MAND

Y

Blank

Y

MAND

Y

Opt-out

N

CHOS

Y

Blank

Y (using default option)

CHOS

Y

Opt-out

N

VOLU

N

Blank

N

VOLU

N

Opt-out

N

Buyer protection

Subject to Manual Buyer Protection mechanism