Transaction Management Rules - Luxembourg

06.03.2020

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

Compensation basis Net, at maximum withholding tax rate without tax adjustmenta.

Compensation basis Net, at maximum withholding tax rate without tax adjustmenta.

Market specifics

n/a

n/a

Processing of market claims and reverse market claims by Clearstream

Applicable

Applicable

a. Short Selling of income or corporate action proceeds is not authorised for settlement in CBF and CBL as outlined in CBL Customer Handbook, OneClearstream Customer Handbook and CBF Customer Handbook.

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

n/a

n/a

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.