Spain: Put-throughs on behalf of individuals and Spanish corporates no longer available

18.06.2019

Clearstream Banking1 would like to inform its customers that, effective

1 July 2019

settlement of instructions requiring the processing of put-through transactions in order to change the registry details on behalf of individuals or Spanish corporates, will no longer be possible via Clearstream Banking.

Due to increased regulatory requirements relating to trading activity, including but not limited to MIFID II and Data Protection rules, Clearstream Bankings agent, BBVA, has reviewed the settlement processes and decided to discontinue the practice of providing put through services (simultaneous on –exchange trades to change registry) on behalf of Spanish resident or non-resident individuals and  Spanish corporates.

Impact on customers

Put-through transactions will no longer be available for customers of Clearstream Banking willing to enter into transactions that require a change of registry details to be made on behalf of individuals or Spanish corporates. Instead customers should consider the following alternatives that are available to all customers, including resident and non-resident individuals and  Spanish corporates:

Transfer of portfolio with no change of beneficial owner

The change of registry can be instructed as follows:

  • :22F::SETR/TRAD type of instruction + “OWNE - MOTIVE 13” in field :70E:: and,
  • an MT599 message certifying that there is no change of final beneficiary and including the TRN reference of the related trade. Template of requested MT599 is available in the Spanish market guide.

    The MT599 must contain the following text:
    Our reference: ______: Change of registration name due to a change of Custodian.
    We instruct Clearstream Banking Luxembourg to take all the necessary measures for [___receipt/deliver__] the Securities traded in the Spanish Market which are listed in the SWIFT MT [____ (complete message identification) ___], through the procedure defined by Iberclear for the change of registration name of securities represented in book entry form (“Change of registration number 13”), by other means than on exchange purchase-sale.

    We confirm that this change of registration name is ought to a change of the custody service provider of the final beneficial owner, [____ (name of the final beneficial owner) ___].

    For the purposes and provisions of this instruction, we have confirmed and verified the documents which support the change of registration name without change of the final beneficiary owner, a copy of which shall be at the disposal of Clearstream Banking Luxembourg and its agent BBVA, at its reasonable request, related to regulatory obligations where Clearstream Banking Luxembourg and BBVA shall keep it strictly confidential, in accordance with provisions of the applicable sub custodian agreement.

    We acknowledge we are responsible for such documents and we assume the liability that may arise towards Clearstream Banking Luxembourg from the execution of this instruction, with the exception of wilful misconduct or serious negligence by Clearstream Banking Luxembourg.”

The same deadlines apply as for standard settlement instructions that are non-STP.

The advantages of these transactions are the flexibility of the settlement cycle (T+0) and that there are no brokerage fees. These instructions will be treated as a manual instruction, and priced accordingly (please refer to the Clearstream Banking Fee Schedule for price details).

OTC purchase and sale agreed between parties

Alternatively, in case there is a need to change registry due to a change of final BO that is, there is an OTC purchase sale agreed between parties, the change of registry will be ensured when the  transaction is instructed as follows:

:22F::SETR/TRAD type of instruction
:94B::TRAD//OTCO/OTC

For against payment OTC, legal documentation evidencing the purchase or sale OTCs prior to the settlement of the same should be made available to Clearstream Banking upon request;

For free of payment OTC, legal documentation evidencing the purchase or sale OTCs prior to the settlement of the same must be provided in all cases.

Please also refer to the Market Link Guide for Spain.

Further information

For further information, customers may contact 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.