Portugal: OneClearstream activation for Interbolsa issued securities - Asset services market specifics

07.12.2020

Clearstream Banking1 would like to inform customers that effective

14 December 2020

the activation of OneClearstream services for instruments issued by Interbolsa Asset Servicing will be subject to the following market specific changes.

Corporate actions on stock (based on settled positions)

For Clearstream Banking AG (CBF) customers using the OneClearstream service, corporate actions on stock will be subject to the OneClearstream service level as described in the OneClearstream Functional Specifications (for example, payment of all corporate action proceeds in T2S, asset servicing instructions and reporting in OneClearstream standards and at sub-account level, the use of blocking on sub-account 851).

Please note that for deposit purposes, the FIA (Fund Issuance Account) code must be populated under the BENODET field whenever instructions are sent for a centralised EXRI or any other event on which this requirement is necessary.

Proxy Voting

Customers that want to vote at general meetings (physically or by proxy) must instruct to register holdings in the name of the shareholder before the record date of the general meeting as defined by the respective company.

The minimum requirement for participation and exercising of voting rights at a general meeting is for the shareholder to have at least one share registered in their name at 00:00 (GMT) on RD (MD - five business days).

Split and partial voting is not allowed on the Portuguese market.

Please refer to OneClearstream Functional Specifications 4.7 for further details.

There is no change of service level for Clearstream Banking S.A. (CBL) customers.

Corporate actions on flow (market claims, transformations and buyer protection)

For CBF customers using the OneClearstream service, corporate actions on flow will be subject to the OneClearstream service level as described in the OneClearstream Functional Specifications (for example, payment of market claim proceeds in T2S and asset servicing reporting in OneClearstream standards).

There is no change of service level for CBL customers, except for the below.

Market Claims

Market claims applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.

The detection and compensation rules for market claims on domestic trades will be further aligned with the Issuer CSD rules:

  • Market claims will be processed on gross basis.
  • Market claim instructions will be generated on pending trades as of status matched and regardless of the payment status of the underlying corporate action event.
  • For CHOS events neither market claims nor transformations will be generated. For other events, the standard Clearstream Banking rules apply as described in the CBL Customer Handbook.
  • No market claims will be generated for non-T2S eligible proceeds (for example, cash distributions in another currency than EUR) for cross-border trades when the counterparty is outside of Clearstream Banking. All other trades will be subject to market claims as per standard Clearstream service description using the corresponding CBF-i/CBL accounts of CBF customers.

Please refer to Market Link Guide - Portugal for further information.

Transformations

Re-instructions due to transformation applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.

Detection, cancellation and re-instruction rules for transformations on domestic trades will be further aligned with Issuer CSD rules:

  • Interbolsa processes transformations at the end of record date. For unmatched instructions, this means cancellation only. Clearstream Banking will not cancel any pending unmatched instruction but waits for T2S to cancel the trade when the securities are redeemed.
  • For CHOS events neither market claims nor transformations will be generated. For other events, the standard Clearstream Banking rules apply as described in the CBL Customer Handbook.
  • Re-instructions in non-T2S eligible proceeds (for example non-EUR) will not be generated for cross-border trades when the counterparty is outside of Clearstream Banking. All other trades will be subject to transformations as per the standard Clearstream service description using the corresponding CBF-i/CBL accounts of CBF customers.

Please refer to Market Link Guide - Portugal for further information.

Buyer protection

The manual buyer protection mechanism applies.

The manual buyer protection mechanism is a bilateral agreement between the trading parties by means of a manual process (no intervention from the market infrastructure regarding the exchange of buyer protection instructions).

Customers must use the CAJWG compliant template, attached below, for buyer protection invocation (BPI) if the requested corporate action option is not the default option. The template must be completed by the buyer with the relevant information (for example corporate reference, options, the quantity of securities and the underlying transaction) and communicated directly to the seller. 

In line with the CAJWG Market standards for Corporate actions processing, the MT564/568 Corporate Action Notification messages will include the following Buyer Protection (BP) key dates:

  • Election to counterparty deadline in :98a::ECPD;
  • Guaranteed participation date in :98a::GUPA.

Further information

Please refer to Market Link Guide - Portugal for further information.

Additional information about the OneClearstream service activation and migration can be found on the OneClearstream page.

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

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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.