CASCADE-RS: Introduction of an optional bilateral matching requirement for portfolio transfers to active matching clients – Update

Note: This announcement, originally published on 2 July 2026, has been updated to provide clearer information on how to subscribe to the new service.

Clearstream Europe AG¹ informs its clients that effective

16 November 2026

portfolio transfers (“Depotüberträge”) in CASCADE-RS registered shares will require a matching-eligible securities transfer combined with a balance transfer, provided that the receiving client uses active matching and the new optional CEU service "Portfolio Transfer CASCADE-RS Matching".

Background

In the event of a portfolio transfer without a change of the beneficial owner (for example, when the beneficial owner changes its custodian bank), CEU transfers the registered shares of the beneficial owner to the account of the new custodian bank and informs the registrars of the new custodian bank (without changing the details of the beneficial owner).

However, this process runs contrary to the demand of "active matchers," who do not want to receive unsolicited positions in their accounts without corresponding receipt instructions from their side.

New option "portfolio transfer CASCADE-RS matching" for active matching clients

To avoid unsolicited securities credits in the accounts of active matchers, CEU is introducing a new field "AA01/P Exclusion" in the client master data of each CEU main or sub-account. Through this field, active matching clients can exclude unsolicited securities credits resulting from portfolio transfers of CASCADE-RS registered shares (by setting the field value to "J" ("Ja"; “Yes”).

If, in the future, a portfolio transfer is submitted against an account with the value "J" in the "AA01/P Exclusion" field, the delivery will be rejected with the error code “Registrierte Aktien, aktives Matching erforderlich“ („registered shares, active matching required“). Consequently, the transferring custodian bank must have the beneficial owner deregistered from the registers and transfer the unregistered positions to the new custodian bank via a standard securities transfer (“Wertpapierübertrag”; free of payment and requiring matching). The receiving bank must match the delivery with corresponding receipt instructions and ensure that the positions are re-registered in the name of the beneficial owner (The CASCADE-RS Praxisführer Teil 1 describes the process (pages 46f)). 

Generic workflow

Current process:

Today, the deliverer enters a CASCADE-RS portfolio transfer via CASCADE Online order type "KVEE/ DV" (“Depotübertrag”; portfolio transfer) or via Swift MT542 with field allocation :22F: :SETR//OWNE.

Future process: 

1. The deliverer must check in advance whether the receiving CEU account requires active matching and "Portfolio Transfer CASCADE-RS Matching," or be prepared to process the new CEU rejection messages with the error code "Namensaktie, Aktiv-Matching erforderlich/ Registered shares, active matching required".
2. If “CASCADE-RS matching” is applied, the deliverer must submit a “to be matched” securities transfer (“WP-Übertrag”, not “Depotübertrag” (portfolio transfer)) delivery free of payment (CASCADE Online order type “KVEE/ WE” or SWIFT MT542 with field allocation :22F: :SETR//PORT). Analogous to non-CASCADE-RS instruments, prior coordination with the receiving CEU client may be necessary. The delivering client must transfer the registered balance into the free registration balance (unregistered position) prior to the transfer.
3. The receiver submits a corresponding "to be matched" securities receipt instruction (“WP-Übertrag”) free of payment.
4. Once the client is deregistered from the share register (a separate process to move the shares from the main position into the free registration position), the delivery release can occur, and the transfer can settle.

Ordering the service by active matching clients

By default, all values in this new master data field are blank (meaning portfolio transfers with unsolicited securities credits are allowed). Active matching clients can request to set the new value to "J" via a free-format text message in ClearstreamXact or via a Swift MT599 message under the reference "CASCADE-RS matching" addressed to CEU OSM Client Data Management for the to be explicitly listed² CEU main or sub-accounts. Please note that client instructions will only be accepted as of the effective date 16 November 2026.

Further Information

For further information, please contact Clearstream Client Services or your Relationship Manager.

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1. This Announcement is published by Clearstream Europe AG (CEU), 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. Wording suggestions: „for the main account 1234 000“, „for the main account 1234 000 and any of its sub-accounts“, „for the main account 1234 000 and its following sub-accounts: xxx“.