T2S: Introduction of Danish Kroner as settlement currency
Clearstream Banking AG, Frankfurt1 informs customers that VP Securities will offer settlement in Danish Kroner (DKK) in TARGET2-Securities (T2S). The migration is scheduled for
Monday, 29 October 2018
T2S is defined as a multicurrency system. The platform offers settlement in securities against Euro as well as against other non-Euro currencies provided there is an agreement in place with the respective central banks.
On 12 September 2016, the Danish CSD2 VP Securities migrated to T2S and enabled settlement in Euro. VP Securities announced that if the Danish central bank makes DKK available in T2S, VP Securities will also settle DKK on the platform.
CBF maintains a cross-border link to VP Securities. This link was set up for free of payment (FoP) and delivery versus payment (DvP) in Euro instructions. For settlement processing the T2S Party BIC "VPDKDKKKKXXX" as well as the CBF Counterparty CSD account "4706" can be used.
CBF’s implementation approach
Even though VP Securities will offer DKK on T2S starting 29 October 2018, CBF continues to operate the cross-border link with its current service offering. This means that the existing procedures for safe custody processes, securities managementand settlement instructions remain unchanged for CBF customers.
Also in future, CBF will receive income proceeds from corporate actions provided via VP Securities on a fiduciary cash account that is held with the cash correspondence bank (Danske Bank A/S). After the payment has been received, a liquidity transfer to the Creation platform of Clearstream Banking S.A., Luxembourg will be initiated. The proceeds will be distributed to the 6-series cash account agreed with the customer.
VP Securities plans to offer market claims and transformations for corporate actions in DKK. Currently, the scope of services is being defined and will be evaluated by CBF with regard to a possible enhancement for the processing of corporate actions. Independent of this further development, the aim is to migrate Danish securities for a processing via OneClearstream. As part of this transition, CBF will enhance the cross-border link with VP Securities and will enable securities settlement for against payment (DvP) instructions in DKK.
CBF will inform customers of further steps in a timely manner.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Particular questions related to this Release Information will be routed to the experts of the T2S Settlement Functionality team.
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. CSD = Central Securities Depository