Settlement services French Registered Securities - France

08.11.2019

The following French registered securities are eligible for settlement:

Essentially Registered Securities - “Valeurs Essentiellement Nominatives” (VEN)

For these securities, registration with the issuer is mandatory. VEN securities are by default registered in the name of CBF (except for French residents or specified otherwise by the customers or counterparties).

Occasionally Registered Securities - “Valeurs Occasionnellement Nominatives” (VON)

These securities can exist in bearer or registered form. The bearer form can be settled whereas the registered form is excluded from any settlement activity, except when a portfolio transfer occurs without a change of beneficial owner; Registration is optional and at the discretion of the customer. In case of registration, it must be done in the name of the final beneficial owner (BO).

Loyalty Bonus Shares (LBS) - "Primes de fidélité" (PF) – (CBF and CBL only)

These securities are a subcategory of VON securities. In order to qualify for a loyalty bonus program, the securities must be registered in the name of the BO. They give the right to a loyalty bonus if the temporary LBS are held by the BO for a pre-defined amount of time (typically 2 years, sometimes 4 years). The temporary LBS (PF) and LBS ISINs cannot be settled. In order to sell them, they must first be converted into VON registered securities and then converted to bearer securities (2-step process). Any right to a loyalty bonus will be lost during this process. The registration activity is decoupled from settlement, but must occur in close proximity. If this is not respected, penalty fees will be levied by the market.

This table summarises which type of securities are eligible via which link:


Form

Eligibility CBL

Eligibility CBF

Eligibility LuxCSD

VEN

Registered

Direct link to CBF a for holding Euroclear France/T2S eligible securities

Direct link to Euroclear France a

Not eligible

VON

Bearer and Registered

Direct link to CBF for holding Euroclear France/T2S eligible securities

Direct link to Euroclear France

Direct link to CBF for holding Euroclear France/T2S eligible securities (Bearer only)

Loyalty bonus shares

Bearer and Registered

Direct operated link via BNP Paribas Securities Services to Euroclear France

Direct link to Euroclear France

Not eligible

a. CBF will access Euroclear France as investor CSD via LuxCSD

Account structure

VEN

CBF customersNo segregated or specific account is required to safekeep and settle VEN securities in CBF (existing main account in CASCADE can be used).
CBL customersNo segregated or specific account is required to safekeep and settle VEN securities in CBL (existing 5-digit customer account in Creation can be used).
LuxCSD customersService not available.

VON in registered form, temporary LBS and final LBS (CBF and CBL only)

CBF customers

Sub-account “xxxx203” is used to hold VON in registered form, temporary LBS and final LBS ISINs This sub-account belongs to account type 240/Konto Art 240 (Registered VON) and is configured for free of payment transactions only with TEILNAHME-DVP=N. Sub-accounts XXXX-203 are automatically opened when customers open a main account XXXX-000.

The settlement of securities in registered form is not allowed. All securities in the registered account must be registered in the beneficial owner’s (BO) name. These securities are safekept in a sub-account where:

  • Conversion instruction to exchange securities form from bearer to registered form and vice versa is possible
  • Transactions FOP input from sub account XXXX-203 to main account and vice e versa will trigger automatically a conversion request and the need for Clearstream to issue a ‘’Bordereau de reference nominative’’ to register or de-register the positions depending on the sense of the instruction
  • Limited settlement instruction types is allowed (no versus payment)

Positions held on the sub-account 203 can only be moved if deregistered or in the context of a portfolio migration with no change of BO.

CBL customers

A dedicated account (registered account) in CBL is required for holding French securities in registered form only. If a new registered account will be opened, customers holding VON in registered form must provide CBL with the list of beneficial owners. The Account Application form is available on the Clearstream website under Key Documents/ICSD/Account Opening Forms.

The registered account will be linked to the customer’s existing account identified at account opening request as ‘’over linked account’’ . This account will be used to credit any security proceeds in bearer form deriving from corporate actions applicable to a position registered in the BO name.

The settlement versus payment of securities in registered form is not allowed. All securities in the registered account must be registered in the BO name.

These securities are safekept on this dedicated account where:

  • Conversion instruction to exchange securities form from bearer to registered form and vice versa is possible
  • Transactions FOP input from ‘’ registered account’’ to standard account and vice versa will trigger automatically a conversion request and the need for Clearstream to issue a ‘’Bordereau de reference nominative’’ to register or de-register the positions depending on the sense of the instruction
  • Limited settlement instruction types are allowed (no versus payment)
  • This ‘’registered’’ account becomes a MUST to HAVE if customers want to participate to the corporate action event to enter in a LBS programme.

Securities Reference Data

VEN and VON in bearer or registered form, LBS (CBF, CBL only)

CBF customers

The legal form of the French registered securities is displayed in WSS Online Plus in the field “Französische Namensaktien” with the following possible values:

  • “Valeur essent. nominative” if VEN;
  • “Valeur occasion.nominat.” if VON;
  • “Valeurs occ. nominat.” LBS if LBS;
  • “Valeurs occ. nominat.” PDF if PDF.

And in Xact Web Portal as follows:

  • ‘’Registered” if VEN, VON PDF and VON LBS;
  • ‘’Bearer or Registered” if VON.
CBL customers

The legal form and the sub category of instrument of the French Registered Securities is displayed in Xact Web Portal, CreationOnline and Codelist in the field “Legal form” with the following possible values:

  • “Registered” if VEN, VON PDF and VON LBS;
  • “Bearer or Registered” if VON.

and the sub-category field with the following values:

  • VEN to identify Valeur essentiellement nominative;
  • VON PDF to identify‚ "Prime de fidélité‘’ ( =temporary LBS);
  • VON LBS to identify Loyalty Bonus Shares;
  • VON to identify Valeur occasionnellement nominative.
LuxCSD customersService not available.

Settlement flows

Registration process

Clearstream Banking will handle the registration process for VEN, VON directly with Euroclear France (Issuance of BRN – “Bordereau de Référence Nominative”) on behalf of customers.

If registration fails with Euroclear France or the issuer, Clearstream Banking will inform customers accordingly, if action is required from customers. Receipt instructions will trigger a registration while delivery instructions will trigger a de-registration.

VEN

CBF customers

Generally, all VENs will be registered in the name of CBF as a default. For an individual registration, registration or de-registration can be requested in the settlement instruction by populating either :70D::REGI of the MT54x or using CASCADE/CASCADE-PC. Registration or de-registration information is requested in the following cases:

  • impacting an underlying customer being a French resident (in accordance with art 228-1 of the French “Code de commerce”); or
  • aiming to sell a position registered in the name of a final BO; or
  • acquiring a position which needs to be registered under a BO name.

For registration into a BO name, Clearstream Banking will block the position and transfer it to sub-account xxxx851.

The blocked position will be reported via MT564 under “Blocked balance” (except for Drawing events). If a customer would like to sell their position or participate to a voluntary corporate action, they will first have to request the unblocking of such position to CBF via an MT599 sent for the attention of “Settlement OCB Cross Border”.

CBL customers

MT54x instructions (internal, external and Bridgea) will be enhanced with field :70D::REGI (Registration Details in Sequence E/ Sequence E1 Settlement Parties) to allow for registration under the BO name. For further information on the format, please see the instruction specifications.

Field :70D::REGI is required for the following transactions:

  • impacting an underlying customer being a French resident (in accordance with art 228-1 of the French “Code de commerce”); or
  • aiming to sell a position registered in the name of a final BO; or
  • acquiring a position which needs to be registered under a BO name.

For registration into a BO name, Clearstream Banking will block the position. If a customer would like to sell their position, they will first have to request the unblocking of the position to CBL via an MT599 sent for the attention of “Settlement OCB Cross Border”.

The message should contain the following details:

  • Account number (CBL, or CBF-i 6-series account number);
  • ISIN code;
  • Quantity;
  • Beneficial owner details (Identifier at issuer (ICER), Final beneficiary's name, Final beneficiary's address).
LuxCSD customersService not available.

b. Bridge instructions are permitted however instructions containing registration details will be treated as follows in terms of registration handling.

No position registered in BO name will be transferred in Euroclear Bank books.
Clearstream will de-register the position in the name of the BO and re-register it in the name of Clearstream Banking AG.
It will be up to the counterparty in Euroclear Bank to ask for a re-registration if securities need to be held in the name of the BO.

If the position needs to be held in the BO name at Euroclear Bank, Clearstream will recommend to transfer the position via cross border instruction (Instruction specifications - France).

VON in registered form, LBS (CBF and CBL only)

CBF customers

Conversion

Such conversion may be requested by submitting a free of payment already matched instruction. This is required to request a conversion from bearer to registered form between the customer’s main account and the sub-account “xxxx203” and vice versa to de-register.

Portfolio transfer

A free of payment instruction (subject to matching) is required to request a portfolio transfer between sub-accounts xxxx-203 as long as there is no change of BO.

  • :22F::BENE/NBEN must be used to ensure that BO will not change at issuer level and all rights attached to this position are kept;
  • Registration of BO details via MT54x :70D::REGI or CASCADE/CASCADE-PC or MT599 free message format but only if the BO details exceed capacity of field :70D::REGI.
CBL customers

Conversion

  • A settlement instruction free of payment (without matching) is required to request a conversion from bearer to registered form between the customer’s standard  account and the registered account and vice versa to de-register.
  • Field :70D::REGI must be used with BO details and once VON securities are registered, no settlement versus payment is allowed.

Portfolio transfer

  • A free of payment instruction (subject to matching) is required to request a portfolio transfer between -‘’registered’’ accounts as long as there is no change of BO.
  • :22F::BENE/NBEN must be used to ensure that BO will not change at issuer level and all rights attached to this position are kept;
  • :70D::REGI must be used with BO details;
  • Type of instructions: Internal and Domestic transfers possible, Bridge instructions are not allowed.
LuxCSD customersService not available.

Registration details and format

VEN, VON in registered form, temporary and final LBS

CBF and CBL customers

For any registration, the BO details are required under :70D::REGI (MT54x) or :70E::REGI (MT565).

If a new BO has to be registered, full details are requested. If the BO is a known one, the minimum details are required.

Settlement instructions

:70D::REGI should be used to declare BO details; or CASCADE/CASCADE-PC. The line break at the end of a line (35th character) cannot be interpreted as a space. If a space is to be set at the beginning or the end of a line, the customer has to enter the space.

All elements pertaining to the registration must be entered consecutively and the last element of the registration details must not finish with a slash (please see below example).

Alternatively, an MT599 can be used only if the BO details exceed the capacity of field :70D::REGI.

For a new BO, the following information is required

  • Holder Type;
  • Surname or Corporate name;
  • Forename or Corporate name (only for personal entitya);
  • Maiden name or Corporate name;
  • Woman's forename or Corporate name;
  • Nationality code of the holder;
  • Country code of the address;
  • Building;
  • Street;
  • Additional address information;
  • Postal code;
  • City;
  • Date restriction ends;
  • Personal title.

For existing BOs with an Issuer Identifier (ICER) already assigned, full details are not necessary.

Minimum details must be provided and must contain the following information:

Simple registration details (One BO assigned to one Issuer ID)

  • Holder Type;
  • Surname or Corporate name;
  • Forename or Corporate name (only for personal entitya);
  • Issuer Identifier.

Example: :70D::REGI///HTYP 03/NAME Smith/FNAM John/ICER 13090

One slash should be entered to start the input of details. Then a space needs to be included between the qualifier (e.g. HTYP) and the information required, then a slash immediately after the information. This must be repeated until all elements pertinent to the registration are input.

Note:All elements pertaining to the registration must be entered consecutively and the last element of the registration details must not finish with a slash.

Complex registration details (Multiple BOs assigned to one Issuer ID)

  • Registration 1:
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya);
    • Issuer Identifier.
  • Registration 2:
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya).
  • Registration n
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya).

Example: :70D::REGI///HTYP 03/NAME Smith/FNAM John/ICER 13090/HTYP 03/NAME Brown/FNAM James/HTYP 03/NAME Bond/FNAM Jack

One slash should be entered to start the input of details. Then a space needs to be included between the qualifier (e.g. HTYP) and the information required, then a slash immediately after the information. This must be repeated until all elements pertinent to the registration are input.

Note:All elements pertaining to the registration must be entered consecutively and the last element of the registration details must not finish with a slash.

Corporate action instructions

Field :70E::REGI must be used for registration details, the usage of minimum details is strongly recommended :

For existing BOs with an Issuer Identifier (ICER) already assigned, full details are not necessary. Minimum details must be provided and must contain the following information:

Simple registration details (One BO assigned to one Issuer ID):

  • Holder Type;
  • Surname or Corporate name;
  • Forename or Corporate name (only for personal entity);
  • Issuer Identifier.

Example: :70D::REGI///HTYP 03/NAME Smith/FNAM John/ICER 13090

One slash should be entered to start the input of details. Then a space needs to be included between the qualifier (e.g. HTYP) and the information required, then a slash immediately after the information. This must be repeated until all elements pertinent to the registration are input.

Note:All elements pertaining to the registration must be entered consecutively and the last element of the registration details must not finish with a slash.

Complex registration details (Multiple BOs assigned to one Issuer ID):

  • Registration 1:
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya);
    • Issuer Identifier.
  • Registration 2:
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya).
  • Registration n
    • Holder Type;
    • Surname or Corporate name;
    • Forename or Corporate name (only for personal entitya).

Example: :70D::REGI///HTYP 03/NAME Smith/FNAM John/ICER 13090/HTYP 03/NAME Brown/FNAM James/HTYP 03/NAME Bond/FNAM Jack

One slash should be entered to start the input of details. Then a space needs to be included between the qualifier (e.g. HTYP) and the information required, then a slash immediately after the information. This must be repeated until all elements pertinent to the registration are input.

All elements pertaining to the registration must be entered consecutively and the last element of the registration details must not finish with a slash.

Note: For corporate action instructions sent via SWIFT, field :70E::INST can be used, but straight-through processing will not be possible and Clearstream will have to repair the instruction manually, incurring repair fees.

For a new BO, the following information is required

  • Holder Type;
  • Surname or Corporate name;
  • Forename or Corporate name (only for personal entitya);
  • Maiden name or Corporate name;
  • Woman's forename or Corporate name;
  • Nationality code of the holder;
  • Country code of the address;
  • Building;
  • Street;
  • Additional address information;
  • Postal code;
  • City;
  • Date restriction ends;
  • Personal title.

Alternatively, an MT599 can be used only if the BO details exceed the capacity of field :70E::REGI.

If an MT599 is sent because the BO details to be provided exceed the capacity of :70E::REGI or :70E::INST, in order to avoid rejection of the MT565, customers should input the following statement "Please refer to MT599".

 The details should be sent in the MT599 as follows:

  • Sender's reference of original MT565
  • Clearstream Corporate Action ID
  • Account number (CBL, CBF or CBF 6-series account number);
  • ISIN code;
  • Quantity;
  • Beneficial owner details.

Note: For corporate action instructions sent via SWIFT, field :70E::INST can be used, but straight-through processing will not be possible and Clearstream will have to repair the instruction manually, incurring repair fees.

LuxCSD customersService not available.

a. Personal entity applies if the Holder Type values are different from 01, 02 and 07 (data are available in the new query "Registered Securities: Beneficial Owner Details" in Xact Web Portal).

Unblocking request content

VEN registered in BO name

CBF and CBL customers

Unblocking request for delivery settlement instruction via MT599 instructions or Message Exchange via CreationOnline and Xact Web Portal will contain the following:

  • Account number (CBL, CBF or CBFi 6-series account number);
  • ISIN code;
  • Quantity;
  • Intended/Requested settlement date;
  • Transaction reference number (Sender'Reference);
  • Beneficial owner details (simple registration details);
  • Holder Type; 
  • Surname or Corporate name;
  • Forename or Corporate name (only for personal entity);
  • Issuer Identifier.

For delivery instructions (DvP, DFoP) the related position will be unblocked by CBF based on the MT599.

For receipt instructions (RvP, RFoP) the related position will be blocked by CBF based on BO details available in MT54X

Registration details format table 

Customers are reminded that all elements pertaining to the registration process of any Beneficial Owner details required for French Registered Securities are assumed to have been already checked through the Clearstream customer's usual KYC/AML procedure with their underlying customers.

Field
name

Length and
Type

Mandatory/
Optional/
Conditional

Values


HTYP

Holder type

2N

M (if registration information is provided)

01 Company
02 Foreign correspondent
03 Mr
04 Mrs/Ms
05 Miss/Ms
06 Mr AND Mrs
07 Other
08 Mr or Mrs

NAME

Surname or Corporate name

32AN

M (if registration information is provided)

n/a

FNAM

Forename or Corporate name (cont.)

32AN

M (If Holder type <> 01 or 02 or 07)

O (If Holder type = 01 or 02 or 07)

n/a

ICER

Issuer Identifier

23N

O

For example: 13090

In general, this field is optional. However, it must be filled in certain cases, such as:

  • a transfer of account;
  • BRN for registration or deregistration created by the issuer, and;
  • a response sent accepted by the issuer.

MNAM

Maiden name or Corporate name (cont.)

32AN

O

n/a

WFNA

Woman’s forename or Corporate name (cont.)

32AN

O

n/a

NACO

Nationality code of the holder

3AN

C

If this field is input, its value must conform to the ISO 3166 standard. This field is mandatory if identifier has not been implemented previously

CDCO

Country code of the address

3AN

C

If this field is populated, its value must conform to the ISO 3166 standard. In general, this field is optional. However, it must be input in certain cases.

For example, it must be input if the identifier is not input

BUID

Building

32AN

O

n/a

STRE

Street

32AN

O

n/a

ADIN

Additional address information

32AN

O

n/a

CDPO

Postal code

5AN

O

If this field is populated, its value must conform to postal standards.

CITY

City

27AN

O

If this field is populated, its value must comply with postal standards.

PSTT

Personal title

32AN

O

n/a

The above table is compiled based on information extracted from the ESES Data Dictionary.


Reporting of beneficial owner details

All details related to the registration of each individual beneficial owner are available via a query in Xact Web Portal.

The query can be run under Settlement / Securities / ‘’Registered securities: beneficial owner details’’.

Procedure for domestic counterparties

CBL


CBL depository – CBF

Place of settlement

DAKVDEFFXXX

Delivering/Receiving Agent

CEDELULLXXX

SAFEof the DEAG/REAG

Not to be instructed. If instructed, it must be the valid CBL SAC:
Euroclear France: DAKV7201103b or DAKV7201203 (registered account)

Buyer/Seller

BIC11 of the CBL customer

a. Although the safekeeping account of Party 1 (REAG/DEAG) is an optional matching field in T2S, if it is present on one instruction only it will only match with instructions instructed by this account. As CBL does not forward its own SAC to the settlement parties, if the customer counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.
We encourage customers to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securities account of the delivering/receiving party).

b. In case of portfolio transfers (VEN registered in BO name), we recommend customers to agree with counterparties to ensure the BRN is issued by the delivering party with a transaction code TO.

CBF

Place of settlement

DAKVDEFFXXX

Delivering/Receiving Agent

T2S Party BIC11 CBF participant

LuxCSD (VON in Bearer form only)

Place of settlement

LUXCLULLXXX

Delivering/Receiving Agent

T2S Party BIC11 LuxCSD participant