Transaction management rules - International

04.07.2022

Market claims and reverse market claims

Market claims

Reverse market claims

Processing of market claims and reverse market claims

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

On 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

Subject to specific rules on a case-by-case basis

Subject to specific rules on a case-by-case basis

Market specifics

  • Bridge settlement instructions are excluded from compensation and subject to detection only.
  • For cross-CSD settlement, the compensations are generated only for the Clearstream Banking customer instruction legs
  • The compensation is generated when the three following conditions are met:
  1. The underlying instruction has been successfully settled;
  2. The corporate actions event has been paid;
  3. The underlying instruction was not flagged as OPT OUT.

Note: For market claims on the transactions against counterparties in CBL (that is, CBF - CBL and LuxCSD - CBL), will be generated automatically and paid on the corresponding CBL accounts.

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

Direction

Y/N

Y

N

Blank

N/A

Y

From Seller  to Buyer

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

Scenarios for market claims detection for securities in units

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

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

Direction

n/a

n/a

n/a

Opt-out

n/a

No

n/a

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

Market claims and reverse market claims on CBL customer transactions

Internal

CBL-CBL

Bridge

CBL-EB

Cross - CSD

CBL-CBF,

CBL - LuxCSD

Detection

Yes

Yes

Yes

Compensation 

Yes

No

Yesa

a. Market claims and reverse market claims in cash will be generated and paid on the corresponding CBL accounts.

Market claims and reverse market claims on CBF OneClearstream customer transactions

Intra-CSD

CBF-CBF

Cross-CSD

CBF – EB

Cross- CSD

CBF-CBL,

CBF - LuxCSD

Detection

Yes

Yes

Yes

Compensation

Yes

No

Yesa

Market claims and reverse market claims in non-T2S eligible proceeds are processed on the corresponding CBF-i or CBL account of the CBF OneClearstream customer.

a. For the trades with counterparties in CBL, market claims and reverse market claims in cash will be generated and paid on the corresponding CBL accounts.
 

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

 

MT54x

sese.023/sese.025

Market claim and reverse market claim instruction

:22F::SETR//CLAI

Transaction code: CLAI

All detected market claims are reported to customers in the Custody Market Claims report; all detected market claims subject to compensation are reported via MT564 Claim and Reversal Advice.

All processed market claims and reverse market claims are reported in the Custody Market Claims report and via MT566 CA Confirmation. 

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

Transformations

Transformations

Comments

Processing of transformations

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

 

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 transformations in cash)
  • On-hold/release status as per underlying instruction
 

Market specifics





  • The settlement instructions that are excluded from re-instruction and subject to cancellation only:
    • Bridge instructions;
    • Delivery free of payment without matching.
  • In case of cross-CSD settlement, the cancellations and re-instructions are generated only for the Clearstream Banking/LuxCSD customers’ instruction legs.
  • The re-instruction is generated upon three following conditions are met:
  1. The underlying instruction has been successfully matched;
  2. The corporate action event has been paid;
  3. The underlying instruction was not flagged as OPT OUT.

Note:Transformations in cash on the transactions against counterparties in CBL (that is, CBF - CBL and LuxCSD - CBL), will be generated automatically and paid on the corresponding CBL accounts.

 

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

Transformations of CBL customer transactions

Internal

CBL-CBL

Bridge

CBL-EB

Cross - CSD

CBL-CBF,

CBL - LuxCSD

Detection

Yes

Yes

Yes

Cancellation

Yes

Yes

Yes

Re-instruction 

Yes

No

Yesa

a. Re-instructions in cash are generated and paid on the corresponding CBL accounts.

Transformation of CBF OneClearstream customer transactions

Intra-CSD

CBF-CBF

Cross-CSD

CBF – EB

Cross- CSD

CBF-CBL,

CBF - LuxCSD

Detection

Yes

Yes

Yes

Cancellation

Yes

Yes

Yes

Re-instruction

Yes

No

Yesa

Re-instructions in non-T2S eligible proceeds are processed on the corresponding CBF-i or CBL account of the CBF customer.

a. Re-instructions in cash  are generated and paid on the corresponding CBL accounts.

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

 

MT54x

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::STCO//TRAN

Transaction code: CORP

Transaction condition: TRAN

Transformations are subject to settlement reporting. 

Buyer protection

The Buyer Protection key dates are currently not available. However, the buyers having the pending positions impacted by a corporate action are notified about relevant events details and deadlines via MT564 CA Notifications. In line with CASG standards, they can use the CAJWG compliant BP invocation template (see attached) to communicate their CA election choice to the seller.