Transaction management rules - Netherlands

08.06.2018

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 Dutch issuers, market claims will be processed for an amount equal to the income net of the maximum withholding tax rate.

Note: Market claims are considered as indemnities. Recipients of indemnities are not able to reclaim Dutch withholding tax.

For securities issued by Dutch issuers, market claims will be processed for an amount equal to the income net of the maximum withholding tax rate.

Note: Market claims are considered as indemnities. Recipients of indemnities are not able to reclaim Dutch withholding tax.

Market specifics

Not generated for:

  • Fractions
  • Multiple proceeds
  • Cash distributions resulting in a negative payment, for example, negative interest rate.
  • The following settlement instruction types: AUTO, CORP, COLI/COLO, ISSU/PLAC, NETT, TRPO, INSP/TURN, OWNE/OWNI
  • Cash distributions in a currency other than EUR 
  • Securities distributions in non-T2S eligible securities

Not generated for:

  • Fractions
  • Multiple proceeds
  • Cash distributions resulting in a negative payment, for example, negative interest rate.
  • The following settlement instruction types: AUTO, CORP, COLI/COLO, ISSU/PLAC, NETT, TRPO, INSP/TURN, OWNE/OWNI
  • Cash distributions in a currency other than EUR 
  • Securities distributions in non-T2S eligible securities

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  


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

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. 
b. Reverse market claims.

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:

  • If the corporate action event is not in status complete (i.e. not in a PROC/COMP status). The Clearstream leg for cross-border trades will not match and will be cancelled by T2S after 20 BD

  • For fractions

  • If there are multiple proceeds

  • For cash distributions resulting in a negative payment, for example, negative interest rate; 

  • For the following settlement instruction types: AUTO, CORP, COLI/COLO, ISSU/PLAC, NETT, TRPO, INSP/TURN, OWNE/OWNI

  • For cash distributions in a currency other than EUR

  • For securities distributions in non T2S eligible securities

 

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.