CBF Release November 2021: Enhancement of corporate action cash payments on T2S
Clearstream Banking1 informs customers about enhancements in the Corporate Action cash payment process that will be effective on
Monday, 22 November 2021
With the implementation of the German model for corporate action cash payments in June 2020, cash payments for securities where CBF is the Issuer-CSD were moved from TARGET2 to the TARGET2-Securities (T2S) platform.
This effort to further harmonise corporate action cash payments across Europe will be further enhanced. As next step, corporate action cash payments in Euro for securities where CBF acts in its role as Investor-CSD, and which are not governed by the OneClearstream model (LMP), will also be moved from TARGET2 to T2S. This mainly affects the issuing countries Switzerland and Finland for events with outturn currency Euro.
It should be noted that the process chain that was established in June 2020 for securities where CBF acts in the role as Issuer-CSD will be applied as well. CBF will provide the same T2S message flow and reporting to the customers.
Contrary to the market claim processing where CBF acts in its role as tax agent, market claims for instruments where CBF acts as Investor-CSD and that are not governed by the OneClearstream model will be processed net instead of gross.
It should further be noted that the cash statement messages MT942 and MT950 will not be decommissioned with the CBF November Release 2021. These messages will further be used and provided by CBF.
The following table shows securities in and out of scope for the relocation of cash flow to T2S whereas the highlighted entry is envisaged for implementation in the upcoming CBF November Release 2021:
Implemented in June 2020
Switzerland and Finland
a. The depository country of a security is defined as “Germany” as classified by the WertpapierMitteilungen (WM). i.e. when field GD430 contains the value “099”.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Questions related to this Customer Information can be addressed to the 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.