Australia: Austraclear - Mandatory repurchase format requirements
Clearstream Banking1 informs customers that effective
22 November 2021
customers who perform repurchase agreement (repo) transactions in the Australian market will be required to provide repo information in the first leg (opening leg) and second leg (closing leg) instructions.
Impact on customers
Applicable for any market repo instructions received on or prior to Friday, 19 November 2021 where the settlement date is on after Monday, 22 November 2021. Once the instructions are released by Clearstream Banking to its local custodian upon successful provisioning, they will be settled as normal cash trades. The subsequent second leg (closing leg) received on and after Monday, 22 November 2021 will be settled as normal cash trades as well.
Customers are required to instruct two separate instructions corresponding to the first leg and the second leg for the Market Repo transactions, using the settlement narrative (:70E:) to confirm the repo details. The automatic unwind functionality will not apply in this process.
Customers are required to use the same SECO reference for the first and second legs of their repo instructions. The SECO reference indicated in field :70E: for the first and second legs of the instructions must be the same in order for Clearstream Banking’s local custodian to identify the linkage between both legs of the trade. Any updated repo details in the second leg instruction will be used to finalise the repo trade.
Please refer to the following requirements below.
Repo requirements for Xact via Swift and Xact File Transfer
Fields to be used
Settlement narrative for the first leg
:70E::SPRO///<REPO>/<SECO XXXXXXXX>/<TERM YYYYMMDD>/<RATE X,XX>
Settlement narrative for the second leg
:70E::SPRO///<REPO CLOSE>/<FIRST LEG SETT YYYYMMDD>/<RATE X,XX>
Overview of repo requirements for Xact Web Portal
Fields to be used
Settlement instruction processing additional details for the first leg
/<REPO>/<SECO XXXXXXXX>/<TERM YYYYMMDD>/<RATE X,XX>
Settlement instruction processing additional details for the second leg
/<REPO CLOSE>/<FIRST LEG SETT YYYYMMDD>/<RATE X,XX>
If the above-mentioned repo requirements are not respected, Clearstream Banking cannot guarantee timely settlement of customers’ instructions.
Settlement deadlines remain unchanged. Please refer to the Market Link Guide – Australia for further details
Clearstream Banking is currently working on a fully STP bilateral repo service for external settlement which will be made available within Q1 2022. More details will be shared in due course. In the meantime, customers who wish to conduct bilateral repos with their counterparties in Australia may already do so by adopting the process highlighted in this announcement.
Bilateral repo transactions that are settled internally within the Clearstream Banking platform are not impacted by this change.
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.