Spain: OneClearstream migration to Spain (Iberclear) – Customer impacts – Cutover information on the re-registration process
Further to Announcement C20022, Clearstream Banking S.A.1 (CBL) would like to provide CBL account holders with specific cutover information on the OneClearstream Investor-CSD service rollout for Iberclear.
Effective settlement date
23 November 2020
and in order to facilitate the start of the migration process on Friday, 27 November 2020, the re-registration procedure via put-through will no longer be available.
Impact on customers
Instead, CBL customers who have instructions that involve a change of beneficial owner, leading to a change in registration name, should consider one of the following alternatives described below and in accordance with the nature of the trade involved.
Instructions via counterparties (for against and free of payment)
CBL customers should arrange with their counterparty and ensure that the securities are received or delivered in the name of Clearstream Banking S.A. with BIC CEDELULLXXX.
Instructions via OTC trades (for against payment only)
The OTC trade in the Spanish market can only be used to instruct the settlement of purchases or sales on securities listed on the stock exchange and executed over the counter. OTC type of trade allows parties to concentrate the whole settlement chain (that is, transfer of shares and registration) in just one instruction. For this type of transaction, the change of registry is on the final settlement of the OTC.
Instructions via change of ownership – OWNE (free of payment)
This transaction requires stock exchange supervision and supportive documentation. The supportive documentation must be provided by customers to CBL to evidence the underlying sale/purchase agreement. As with any bilateral trade, settlement is agreed between the parties and therefore trades can be matched and settled on the same day. OWNE transactions can be used in the following cases:
- Mergers; and
Instructions via NCBO transfers without re-registration
In order to instruct no-change-of-beneficial-owner (NCBO) transfers of Spanish equities with no re-registration, customers must instruct a free of payment settlement instruction, with :22F::SETR/TRAD (for SWIFT) or Type of Settlement Transaction = Trade Settlement (for CreationOnline) and populated with narrative text "OWNE - MOTIVE 13" in field 70E: (for SWIFT) or in field narrative (for CreationOnline).
Instructions involving a change of registration name, that will be received with an expected settlement date of 23 November 2020 or later, will be processed without re-registration, hence will be sent to the market with registration details CEDELULLXXX.
CBL will not be responsible for late or unsettled instruction due to missing re-registration.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking S.A. (CBL) registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.