Latvia, Lithuania: Migration of assets to a new CSD account

04.10.2018

Effective

Friday 19 October 2018

Clearstream Banking1 will migrate all Latvian and Lithuanian securities to the account where the Estonian securities are currently held.

This will ensure compliance with CSDR and provide better protection of customer assets.

Background

The Estonian, Latvian and Lithuanian central securities depositories merged in September 2017 and formed a single CSD, Nasdaq CSD. Following this merger, it has been possible to deposit securities of the three Baltic markets in a single CSD account.

Clearstream Banking currently deposits Estonian securities with AS SEB Pank, Tallinn, while Latvian securities are further sub-deposited with AS SEB Banka, Riga and Lithuanian securities are sub-deposited with AB SEB Bankas, Vilnius.

Impact on customers

The migration will begin on Friday 19 October 2018 and will be completed on Monday 22 October 2018 when securities are expected to settle on the new account. Estonian securities will not be impacted by this migration.

In order to facilitate the migration, Clearstream Banking will apply an early deadline on Friday 19 October 2018 at 11:00 for all free of and against payment domestic settlement instructions on Latvian and Lithuanian securities.

After the early deadline, Clearstream Banking will cancel any domestic settlement instructions, that are pending and unmatched, including unprovisioned instructions. Customers will have to re-instruct after the successful completion of the migration on Monday 22 October 2018.

For all pending matched domestic instructions, customers must contact their counterparties as early as possible to ensure that these instructions are cancelled by both counterparties before 11:00, as the bilateral cancellation principle applies.

Customers are requested to provide their settlement instructions with requested settlement date on or after Monday 22 October 2018 only from 22 October 2018.

Procedures for domestic counterparties

Customers must advise their counterparties that effective settlement date Monday 22 October 2018 the new Standard Settlement Instructions (SSI) will apply for Latvian and Lithuanian securities as follows:

Deliver to / Receive from: BIC EEUHEE2XXXX

In favour of/By order of: BIC CEDELULLXXX and SAFE 99100039827

Instruction specifications

Instruction specifications for Xact via SWIFT, Xact File Transfer, CreationOnline and Xact Web Portal remain unchanged.

Settlement times

The deadlines shown below will apply from 22 October 2018 and are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in Clearstream Banking and in the local market. Customers must also ensure that any necessary provision is available. If any of these criteria are not met, Clearstream Banking cannot guarantee timely settlement.

Important Note: As part of Clearstream Banking’s internal compliance procedures, all incoming customer instructions will be automatically scanned before entering transaction processing. Instructions that are internally flagged as requiring further manual investigation are set to status pending, with such status immediately reported to the customer via their chosen media channel(s), until either being manually released for processing or rejected. In order to ensure that instructions being investigated do not miss the applicable deadlines, customers are advised to input instructions at least 15 minutes before the associated deadline.

Instruction

Provisioning

Deadline for receipt of valid instruction

Expected settlement results

start

end

from

to

value

AP=Against payment FOP=Free of payment SD=Settlement date

Receipts

FOP

15:00
SD-1

17:30
SD

17:20
SD

22:00
SD-1

18:00
SD

 

AP

15:00
SD-1

15:30
SD

15:20
SD

22:00
SD-1

18:00
SD

SD

Deliveries

FOP

15:00
SD-1

17:30
SD

17:20
SD

22:00
SD-1

18:00
SD

 

AP

15:00
SD-1

15:30
SD

15:20
SD

22:00
SD-1

18:00
SD

SD

Further information

The Market Link Guide – Latvia and the Market Link Guide – Lithuania will be updated on Monday 22 October 2018.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500. (CBL).