United Kingdom: Euro (EUR) settlement information

03.11.2020

Clearstream Banking1 would like to inform customers that effective

29 March 2021

the current arrangements with the European Central Bank (ECB) allowing Euroclear UK and Ireland (EUI), the UK based CSD, to access TARGET2 will expire and consequently impact EUI’s ability to provide Euro settlement in central bank money. EUI have submitted a request to retain Euro settlement, there are however no guarantees that their access to Euros under the current model will be available.

Impact on customers

Customers may no longer be able to settle against payment instructions in EUR with counterparties in CREST (external settlement either through CBL direct link for UK guilts or CBL indirect link for UK and foreign corporate securities) unless EUI will retain Euro settlement.

Further information

Clearstream Banking will continue to monitor the situation closely and inform customers of further developments.

For further information, please contact Clearstream Banking Client Services or your 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.