Baltics, Malta: OneClearstream service activation for Nasdaq CSD (Estonia, Latvia, Lithuania) and MSE

21.08.2019

Following Clearstream Banking1 Announcement C19022 we provide CBF account holders with cutover information about the enhanced OneClearstream Investor-CSD service rollout for Nasdaq CSD and MSE issued securities that will be effective on

2 December 2019

We would like to remind customers that the description of the future OneClearstream Investor-CSD service for the Baltic markets, Estonia, Latvia, Lithuania (Nasdaq CSD) and Malta (MSE) will be available in the OneClearstream Functional Specifications published on the Clearstream website in due course.

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 Nasdaq CSD/MSE issued securities:

  • Securities static data;
  • Account structure;
  • OTC and CCP/ stock exchange settlement;
  • Tax services;
  • Asset servicing;
  • Connectivity;
  • 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 2 December 2019, the T2S eligible securities issued by Nasdaq CSD and currently held in CBL2, will be eligible for settlement in CBF-T2S with the Non-Collective Safe Custody (NCSC-T) status and will become part of the OneClearstream service, with the exception of some securities with an upcoming maturity date (if any).

All existing MSE eligible ISINs held in CSC via a CASCADE account today will be part of the OneClearstream service from 2 December 2019 onward will become subject to the OneClearstream service with the exception of asset types currently not yet supported by Clearstream (that is, investment funds).

Activation timeline

For Nasdaq CSD eligible securities, the activation of the new service will be completed in one step on the following date:

Activation dateImpacted securities Important remarks
On Thursday
28 November 2019

CBF will make the first pool of ISINs NCSC-T eligible.

Those securities will be a selection of ISINs that have been active in CBL within the last twelve months and have no ongoing corporate action events.

Those securities will be setup as:

  • Non-Collective Safe Custody (NCSC-T)
  • CBF T2S eligible
  • Datum ab LMP3 (LMP date from) 2122019

Those additional 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 trades: Customers must be aware that as of 2 December 2019 all non-cleared stock exchange trades (LION) for those securities and cleared stock exchange trades will settle on the CBF accounts. Fixed income instruments, cleared by Eurex Clearing, will continue to settle on CBF 6-series accounts/ CBL accounts, independent of the NCSC-T status.

GSF collateral management services: Those securities will not be made available for GSF collateral management services on CBF CASCADE accounts and therefore should remain available on CBF 6-series accounts/CBL accounts.

For Maltese securities and as CBL uses CBF already to access T2S, no Clearstream migration from the CBL to CBF account is required. To enable the OneClearstream services, the “Datum ab LMP3” (LMP date from) 02122019 will be activated on Thursday 28 November 2019 with effective date 2 December 2019.

List of impacted ISINs

The list of the impacted ISINs (existing and new) will be available on the Clearstream website. The preliminary lists with all impacted ISINs, as well as the list of non-migrating instruments, will be published one month before the migration and then, two weeks before the migration. The final list of ISINs will be published on Thursday prior to each migration date.

The list will be in Excel format and will provide the following information:

  • ISIN;
  • Security long name;
  • Security T2S short name;
  • Issuer CSD;
  • Current Custody value (NCSC);
  • OneClearstream Custody value (NCSC-T );
  • Financial instrument category (debt, equity, warrant, unit, right);
  • Listed on German stock exchange (Yes or No);
  • Current WM values WM-GD400;
  • Current WM values WM-GD100A;
  • Current WN values WM-GD420;
  • OneClearstream WM values WM-GD400;
  • OneClearstream WM values WM-GD420;
  • Subject to OneClearstream asset servicing (either contains the “Datum ab LMP” date or is empty). 

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 is well subscribed to the relevant reporting.

To ensure a smooth OneClearstream activation on  2 December 2019 (and if not done yet with the previous OneClearstream activations):

  • 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.

Non-migrating ISINs

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 Nasdaq CSD or MSE 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 the migration impacts on your CBF 6-series accounts or CBL accounts, please refer to the  Announcement A19097 OneClearstream migration to Estonia, Latvia, Lithuania (Nasdaq CSD) and Malta (MSE) and A19095 OneClearstream: Instruction specification changes for CBL counterparties.

Note: This is the current situation based on latest information, should there be any changes or additional information we will inform you accordingly.

Further information

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. Any T2S eligible securities issued by Nasdaq CSD for which a position was not held on the ICSD (CBL) within the last twelve months will not be made available in CBF upon activation.

3. "Datum ab LMP” is a field in WSS Online Plus that helps customers to identify the Investor CSD securities migrated to OneClearstream.