Changes to guidelines applied by Clearstream Banking and Euroclear Bank for the back-valuation of new issues on closing date

30.07.2021

Clearstream Banking S.A.1 and Euroclear Bank (together the ICSDs) continue to analyse the merits of a possible review of the back-valuation scope and guidelines, taking into account upcoming market changes that may also impact this service.

In summary, the guidelines and process currently in place remain unchanged until further notice.

As announced on 17 July 2020, the implementation of the changes described in Announcement A20076 were delayed until a new effective date could be confirmed – This is linked to further analysis being conducted.

In the meantime, the ICSDs have decided to further review the implementation timeline of these changes in order to better understand the possible impacts that CSDR settlement discipline will have on settlement efficiency and back-valuation usage as from 1 February 2022 when the new penalties will come into force. The ICSDs will also consider future, planned market developments in Europe, such as ECMS in Q4 2023, in order to design the most efficient service for all our clients.

Over the course of 2022, post-CSDR penalties implementation, the ICSDs will revisit the back-valuation scope and provide a further update to advise of any determined “new” scope of the back-valuation service, as well as any applicable effective date.

At present, the current guidelines and scope for back-valuation remain applicable in both ICSDs until further notice.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

------------------------------------------

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.