Asset servicing - U.S.A.
Reference
Please refer to the CBL Client Handbook or CEU OneClearstream Client Handbook, as applicable, for information about processing, reporting and connectivity for asset servicing.
Income collection
Debt securities
| Service offered | Remarks |
| Notification to clients | |
Standard Asset Servicing reporting via Swift MT56x, Xact Web Portal and Xact File Transfer. | See Section “Asset servicing” of the relevant Client Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the client's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “Financing: availability of funds” of the relevant Client Handbook. |
Equities
| Service offered | Remarks |
| Notification to clients | |
Standard Asset Servicing reporting via Swift MT56x, Xact Web Portal and Xact File Transfer. | See Section “Asset servicing” of the relevant Client Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the client's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “Financing: availability of funds” of the relevant Client Handbook. |
Non-USD payments related to transactions settling during the DTC Due Bill Period
With regard to securities for which custody proceeds are paid in a currency other than USD, the following cases may arise for transactions in such securities that settle during the DTC Due Bill Period (the period during which a trade includes the current income distribution, usually from record date +1 to ex-date +2):
- If the securities are received from a U.S. domestic counterparty during the Due Bill Period, the proceeds will be paid in USD rather than in the original payment currency. (The DTC pays custody proceeds in USD only.) The exchange rate applied is determined by the concerned Paying Agent when transferring the due proceeds in USD to the DTC.
- If the securities are received from an internal or Bridge counterparty during the Due Bill Period, the proceeds will be reflected as part of the entitlement on PD-1 and be paid in the original currency. However, if those securities were purchased by their counterparty on the local market during the Due Bill Period, clients purchasing securities from such counterparty during the Due Bill Period will be debited in the original currency and re-credited in USD.
Corporate actions
| Service offered | Remarks |
| Notification to clients | |
Standard reporting. For voluntary, mandatory and mandatory with choices events, CBL informs clients, on an “as and if received” basis, of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc. | No specific deviations from standard provided by CBL apply to the U.S. market. |
| Instruction to CBL | |
Clients may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants etc. | Clients are requested to instruct within the deadlines and/or procedures specific to each type of event. In the absence of instructions from its client, CBL will apply a “default option”, which may differ for each type of event. |
Bonus events
The U.S. market does not recognise a bonus (BONU) event. A BONU that occurs in the home market of the underlying securities of an ADR programme will be processed as a stock dividend (DVSE) or a split (SPLF), depending on whether the interim tracking period runs before or until after ex-date.
The interim tracking period is not always known at the time the event is notified and, if it is announced later, it may change the event type such that the originally announced event would be cancelled and a new one created with an event type amended in accordance with the interim tracking period.
Proxy voting
Proxy voting services are available in Clearstream for this market.
For notices of shareholders meetings, meeting agendas and proxy documentation, Clearstream informs clients on an “as and if received” basis.
For entry card requests / proxy voting instructions, the deadline for sending instructions to Clearstream is included in Clearstream’s notification.
For details about the proxy voting services offered by CBL, please refer to the relevant Client Handbook.
Transaction management rules
For the U.S. market rules regarding detection and processing of the Market Claims and Transformations, please refer to the Transaction Management Rules - U.S.A.
