Belgium: OneClearstream service activation for debt instruments issued by NBB
Following the Clearstream Banking1 Announcement C18034 we provide CBF account holders with cutover information about the enhanced OneClearstream Investor-CSD service rollout for National Bank of Belgium (NBB) issued debt instruments that will be effective on
22 October 2018
We would like to remind customers that the description of the future OneClearstream Investor-CSD service for NBB issued securities can be found in the OneClearstream Functional Specifications published on the Clearstream website.
The Functional Specifications document must be read in conjunction with the Release Notes published prior to each implementation of the OneClearstream services and with additional announcements that address the needs of particular product or service in order to understand future service and Legacy impacts.
The OneClearstream service will introduce the changes affecting the following areas in relation to NBB issued securities:
- Account structure;
- OTC and CCP/ stock exchange settlement;
- Asset servicing;
- Tax services;
- Xemac activity.
In order to become acquainted with the new service offering and understand the impacts, customers are strongly encouraged to participate in testing (upon subscription) and explore the new Xact Web Portal features. Please contact the Connectivity Helpdesk for further information.
Scope of securities eligible for CBF OneClearstream service
As of 22 October 2018, the T2S eligible debt instruments issued by NBB and being currently held in CBL, will be eligible for settlement in CBF-T2S with the Collective Safe Custody (CSC) status and will become part of the OneClearstream service, with the exception of securities that (if any):
- are securities in default; and
- are securities with redemption date close to migration date.
The activation of the new service will be completed as following:
CBF will make all announced scope of ISINs CSC eligible.
Those securities will be setup as:
Those ISINs, made eligible in CBF, will not automatically trigger the migration of customer holdings from their CBF 6-series accounts/CBL accounts to CBF accounts. We leave it to the customer’s discretion to migrate its portfolio of securities if needed.
SE non-cleared trades (LION): As of 22 October 2018 non-cleared stock exchange trades for those securities will settle on the CBF accounts.
SE cleared trades (Eurex Clearing): As of 22 October 2018 cleared stock exchange trades for those securities will continue to settle on the CBF 6-series accounts/CBL accounts.
GSF collateral management services: Those securities will not be made available for GSF collateral management services on CBF CASCADE accounts and therefore should remain on CBF 6-series accounts/CBL accounts.
List of impacted ISINs
The preliminary lists with all impacted ISINs will be published on the Clearstream website one month before the migration and then, two weeks before the migration. The final list of impacted ISINs will be published on Thursday prior to the migration date.
We remind our customers that all OneClearstream asset servicing bookings in T2S-eligible proceeds and its related reporting will be done at the customer's sub-account level.
Ahead of the OneClearstream activation, customers are requested to make sure that each sub-account has an appropriate account setup and certification and is well subscribed to the relevant reporting.
To ensure a smooth OneClearstream activation on 22 October 2018, the below would be applied (if identified for some customers):
- The customer's sub-accounts without the appropriate reporting subscription will be subject to a default reporting setup by Clearstream Banking as described in the OneClearstream Migration Guide.
- The customer's sub-accounts without the appropriate T2S setup will be linked by default by Clearstream Banking to the DCA of their main account. This default linkage is a technical setup and only applies to debits and credits originated by OneClearstream. The current DVP participation flag setup remains unchanged.
The list of non-migrating ISINs currently held in CBL and not in the scope of the migration will be available, if any, prior to migration on the Clearstream website in addition to the list of impacted ISINs.
Note: After migration, to accept in CBF any new NBB issued securities supported by OneClearstream, customers should contact their dedicated Client Services officer.
Migration impacts on customers
The overview of the generic customer migration impacts can be found in the OneClearstream Migration Guide (please refer to section 2.1).
For information about specific customer migration impacts for CBF customers, please refer to the dedicated announcements (C18035: Belgium NBB: Tax impact on account structure and service offering).
For information about the migration impacts on your CBF 6-series accounts or CBL accounts, please refer to the announcements A18111: OneClearstream migration to NBB, A18107: OneClearstream (NBB): Instruction specification changes for CBL counterparties in T2S and to dedicated tax migration announcements (C18035: Belgium NBB: Tax impact on account structure and service offering).
For consolidated overview of migration impacts in relation to OneClearstream service activation for the NBB debt instruments, please refer to our website under Products and Services > OneClearstream > Rollout documentation.
Note: This is the current situation based on latest information, should there be any changes or additional information we will inform you accordingly.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.
2. “Datum ab LMP” is a field in WSS Online Plus that helps customers to identify the Investor CSD securities migrated to OneClearstream.