Denmark: T2S migration update

19.11.2018

Further to announcement A18151 on the T2S migration of DKK and the settlement difficulties encountered in the following days, Clearstream Banking informs customers about the temporary actions that will be taken in order to support market efficiency and avoid negative impacts from the ongoing market issues.

Impact on customers

  • The Hold/Release functionality will be available again for settlement activities with Clearstream Banking on the Danish market starting on Monday 19 November 2018.
  • When instructing in DKK, Clearstream Banking customers and their respective counterparties must provide the information about 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 format requirements are illustrated in the below table:

 

How Clearstream Banking customers and their counterparties should instruct

Customer Delivery

Customer Receipt

DEAG

CEDELULLXXX

Custodian BIC

SELL

Customer BIC

Counterparty BIC

REAG

Custodian BIC

CEDELULLXXX

BUYR

Counterparty BIC

Customer BIC

  • Although VPDK codes are still valid for REAG/DEAG, BIC codes are preferable as VP will stop supporting VPDK codes in the future.
  • Counterparty party 2 field (BUYR/SELL) does not need to be quoted if counterparty is a Remote Participant.
  • Customers must agree with their counterparties whether to use either BIC or VPDK codes. If the parties do not use the same formats, the transaction will not match.
  • Clearstream Banking customer accounts can be used in party 2 field but both the customers and their counterparties need to use the same field, in order for the transaction to match.

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

  • The SAFE field will be accepted if provided with :95Q::BUYR/SELL.
  • The SAFE field is however not populated in the instructions Clearstream Banking sends for “unpublished accounts”.

Unless otherwise announced, the above-mentioned changes remain applicable until at least 26 November 2018.

Clearstream Banking will continue to closely monitor the situation and inform customers about 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.