Asset servicing - Portugal

20.01.2021

For the specific services on the Portuguese market, please refer to the Market Profile – Portugal.

Please refer to the relevant CBL, CBF OneClearstream, or LuxCSD Customer Handbook for information about processing, reporting and connectivity for asset servicing.

This section covers the following business processes:

  • Event announcement and entitlement forecast;
  • Decision management;
  • Payment management;
  • Transaction management;
  • Proxy voting services.

Event announcement and entitlement forecast

Event announcements for Interbolsa issued securities are created based on the information received from the asset servicing provider for this market (BP2S, Paris).

Clearstream informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.

For deposit purposes: The FIA code must be populated under the BENODET field whenever instructions are sent for a centralised EXRI or any other event on which this requirement is necessary.

Event announcements are generated with the Clearstream corporate action reference. The Corporate Action Official Reference (COAF) is available and starts with “PT”.

Decision management

Instructions for predictable events

Customers may instruct Clearstream to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, bond conversions and exercises of warrants.

Instructions for unpredictable events

Clearstream collects and processes customer instructions for voluntary events, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.

Payment management

For Portuguese securities, Market claims are processed on gross basis without tax adjustment (Interest).

Transaction management

Please refer to Transaction Management in T2S.

Market claims and reverse market claims

For the Interbolsa market rules for market claims and reverse market claims, please refer to Transaction management rules – Portugal.

Clearstream detects and process the market claims and reverse market claims on against payment and free of payment instructions of its customers as of status matched, as follows: 

Market claims and reverse market claims on CBL customer transactions 

 

Internal

Bridge

Domestic

Detection

Yes

Yes

Yes

Compensation 

Yes

No

Yes

Market claims and reverse market claims on CBF OneClearstream customer transactions

 

Intra-CSDa

(CBF-CBF, CBF-CBL) 

Cross-CSD

(CBF – LuxCSD)

Cross-CSD

(CBF – T2S counterparty)

Detection

Yes

Yes

Yes

Compensation

Yesb

Yesb

Yesc

a. Including Eurex Clearing and LION related trades (subject to specific rules).

b. Market claims and reverse market claims in non-T2S eligible currencies and securities are processed on the corresponding CBF-i or CBL account of the CBF customers.      

c. Excluding non-T2S eligible currencies and securities.

Market claims and reverse market claims on LuxCSD customer transactions

 

Intra-CSD

(LuxCSD - LuxCSD, LuxCSD - CBL) 

Cross-CSD

(LuxCSD – CBF)

Cross-CSD

(LuxCSD – T2S counterparty)

Detection

Yes

Yes

Yes

Compensation

Yesa

Yesa

Yesb

a. Market claims and reverse market claims in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.

b. Excluding non-T2S eligible currencies and securities.

Both market claims instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows:

 

ICP customers

MT54x

DCP customers 

sese.023/sese.025

Market claim and reverse market claim instruction

:22F::SETR//CLAI

Transaction code: CLAI

Detected market claims are reported to customers in the Custody Market Claims report and via MT564 Claim and Reversal Advice. 

Debits/credits resulting from market claims and reverse market claims compensations are reported in the Custody Market Claims report and via MT564 Claim and Reversal Advice. 

The market claims and reverse market claims are visible in CreationOnline (CBL customers only) and in Xact Web Portal.

For further information on the processing and reporting, please refer to the relevant Customer Handbook.

Transformations

For the Interbolsa market rules for transformations, please refer to Transaction management rules – Portugal.

Clearstream detects and process the transformations on pending matched against payment and free of payment instructions of its customers, as follows: 

Transformations on CBL customer transactions

 

Internal

Bridge

Domestic

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yes

No

Yes

Transformations on CBF OneClearstream customer transactions

 

Intra-CSDa

(CBF-CBF, CBF-CBL) 

Cross-CSD

(CBF – LuxCSD)

Cross-CSD

(CBF – T2S counterparty)

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yesb

Yesb

Yesc

a. Including LION related trades (subject to specific rules).

b. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBF-i/CBL accounts of the CBF customers.   

c. Re-instructions in non-T2S eligible currency/securities.

Transformations on LuxCSD customer transactions

 

Intra-CSD

(LuxCSD - LuxCSD, LuxCSD - CBL) 

Cross-CSD

(LuxCSD – CBF)

Cross-CSD

(LuxCSD – T2S counterparty)

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yesa

Yesa

Yesb

a. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.

b. Re-instructions in non-T2S eligible currency/securities.

Both re-instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows.

 

ICP customers

MT54x

DCP customers 

sese.023/sese.025

Re-instructions in securities

 :22F::SETR//as in the underlying instruction
:22F::STCO//TRAN 

 Transaction code: as in the underlying instruction

Transaction condition: TRAN              

Re-instructions in cash

 :22F::SETR//CORP
:22F::TTCO//TRAN

                                  

Transaction code: CORP

Transaction condition: TRAN

Transformations are subject to settlement reporting.  

For further information on the processing and reporting, please refer to the relevant Customer Handbook. 

Buyer protection 

For the Portuguese market rules for buyer protection, please refer to Transaction management rules – Portugal (Interbolsa).

Clearstream does not introduce an automated buyer protection infrastructure. Instead buyer protection will be handled bilaterally between the counterparties, that is, outside the CSD environment.

In order to comply with the Corporate Actions standards on manual buyer protection, customers must use the Corporate Actions Joint Working Group (CAJWG) Buyer protection invocation template for corporate actions if the requested option is not the default option, referencing the corporate action, the chosen option(s), the quantity of securities and the underlying transaction in the template. The template must be sent electronically (via fax or email) to the seller.

When provided on the market, the below key buyer protection dates will be included in Clearstream MT564 Corporate Action Notifications:

  • Election to counterparty deadline in :98a::ECPD and
  • Guaranteed participation date in :98a::GUPA.

For further information on the processing and reporting, please refer to the relevant Customer Handbook. 

Proxy Voting procedures

Proxy Voting services are available in Clearstream for this market.

CBF, CBL and LuxCSD customers must provide an Interbolsa specific FIA code in the Proxy Voting instructions, otherwise the instructions will be rejected by Interbolsa.

For CBF customers, the FIA code consists of five zeros followed by the 7-digit KUSTA account (customer 4 digit CASCADE main account + sub account) number and should be populated in the field OWND (beneficial owner details Sequence C) in the MT565 message (the same field where BO details are indicated).

All CBL customers need to provide the CBL account number at CBF (000007201112) in the sequence of the MT565 above and LuxCSD customers account number 000007454000 accordingly.

CBF Customers are advised that they need to provide an email address with their instruction so that Clearstream can send realted necessary documents. If no email address is provided, the instruction will be rejected. 

For details about the Proxy Voting services offered by Clearstream, please refer to the relevant Customer Handbook and, for the market specific practices, please refer to the Market Profile - Portugal.