Denmark - T2S migration: Update on the impact on Clearstream Banking services

01.11.2018

Further to T2S migration of DKK and the settlement difficulties encountered along the following days, Clearstream Banking1 would like to inform its customers about temporary actions that are required to better support market efficiency and avoid negative impacts subsequent to ongoing market issues.

Effective

5 November 2018

Clearstream Banking will implement the following changes:

  • Temporary suspension of the Hold / Release functionality;
  • Amendment of the format requirements for the deliverer/receiver party.

Impact on customers

  • Until further notice, the Hold / Release functionality will no longer be available for settlement activities with Clearstream Banking on the Danish market.
  • While instructing in DKK, Clearstream Banking customers and their respective counterparties must provide the information on the participant of the delivering/receiving CSD. Other than the T2S standards, the Danish CSD, VP Securities, considers the provision of this field a mandatory matching criteria. Not providing this field will lead to unmatched instructions.
  • The SAFE field will be accepted if provided with :95Q BUYR/SELL.

Note: T2S does not report the account field with the second party level in the allegement messages. Clearstream Banking therefore recommends customers to request their counterparties to include the CBL customer account number in field :70C::PACO instead of :97A::SAFE.

Unless otherwise announced, the above-mentioned changes remain applicable until at least 26 November 2018. Clearstream Banking's agent has informed that there are ongoing discussions regarding the BUYR/SELL issue between members of Finance Denmark.

Clearstream Banking will closely monitor the situation and keep customers up to date on all developments regarding these market issues.

Further information

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.