Eurobonds eligibility in T2S – Phase 2

25.06.2020

As a further milestone in implementing our enhanced Investor-CSD solution, effective as of

14 December 2020

Clearstream Banking AG1 is pleased to announce the second phase for the eligibility of Eurobonds for settlement in CBF-T2S, in order to further extend the high-quality post trade suite of services offered by OneClearstream as a single gateway to all TARGET2-Securities (T2S) and global markets and to offer customers the key benefits as described below.

Customer benefits of Eurobonds eligibility in T2S

  • Unlock T2S benefits with liquidity pooling on a single Dedicated Cash Account (DCA) and therefore capital savings.
  • Offer a choice of money quality to customers between central bank money (via CBF) and commercial bank money (via CBL).
  • Use Eurobonds for collateral purposes in T2S.
  • Extend counterparty reach by allowing CBF customer to reach Euroclear Bank counterparty.

Type of assets

Clearstream continues by making additional XS Eurobonds eligible in T2S in December 2020 in a second phase after having released the first five ISIN in T2S last December.

Phase 2 – 14 December 2020

The asset scope of phase two encompasses a high amount of approximately 13 0002 Eurobonds ISINs that match the following conditions:

  • ECB Collateral eligible.
  • German Stock Exchange eligible.
  • Eurex CCP eligible.
  • Issued under NGN Euro-system form.
  • Global bearer form and NSS.
  • Currency is an ECB eligible currency.
  • Issuer EEA + G103 (Qualifying Issuers).

Settlement

In Phase 1, the following settlement flows were enabled for settlement of Eurobonds in T2S:

  • CBF/CBF.
  • CBF/CBL.
  • CBF/LuxCSD.

As of December, in Phase 2, Clearstream will additionally offer the following Eurobonds settlement links:

  • CBF/EB.

Asset servicing

The selected Eurobonds will be processed according to OneClearstream asset servicing standards.

Safe custody type

Clearstream reminds customers that the ISINs that will become eligible in T2S will be flagged in WM with the sub-custody value “NCSC-T” represented by field GD400 = 60.

Physical form

The physical form of the ISINs that will become eligible in T2S are NGN or CGN whereby the WM Field GD430 will enable customers to identify the physical form.

Current T2S-eligible Eurobonds

One Eurobond which is currently already T2S eligible remains CSC and will continue to be served by KADI:

  • XS1071847245.

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. Quantity may vary according to new issuances and/or redemptions until December 2020.

3. EEA and G10: United States of America – Canada – Japan – Switzerland and supranational.