Belgium: OneClearstream activation for NBB issued debt instruments - Asset services market specifics
Effective
22 October 2018
with the activation of OneClearstream services for the instruments issued by National Bank of Belgium (NBB) and in addition to the previous announcements (A18111, C18035, A18107), asset servicing will be subject to the following market specific changes.
Corporate actions on stock (based on settled positions)
For Clearstream Banking AG1 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 sub-account 851, proxy voting services).
There is no change of service level for Clearstream Banking S.A.2 customers3.
Corporate actions on flows (market claims, transformations and buyer protection)
For Clearstream Banking AG customers, using the OneClearstream service, corporate actions on flows will be subject to OneClearstream service level as described in the OneClearstream Functional Specifications (for example payment of all market claims proceeds in T2S, asset servicing reporting in OneClearstream standards).
There is no change of service level for Clearstream Banking S.A. customers except 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:
- Cum/Ex indicator will not be taken into account, as this is only applicable to units (equities), not to nominal. All instructions will settle cum;
- Market claims will be processed on a gross basis without tax adjustment.
Please refer to the Market Link Guide for further information.
Note: The market claims instructions will continue to be triggered upon successful payment of the underlying corporate action until 1 December 2018, the date when this dependency will be removed to align the market claims rules with the market practice (C18037).
Transformations
Re-instructions due to transformations applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.
The detection, cancellation and re-instruction rules for transformations on domestic trades will be further aligned with the Issuer-CSD rules.
Please refer to the Market Link Guide for further information.
Buyer protection
Clearstream Banking will adhere to the buyer protection standards by applying the manual buyer protection mechanism.
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 buyer with the relevant information (for example corporate reference, option(s), the quantity of securities and the underlying transaction) and communicated directly to the seller.
No Buyer Protection (BP) key dates are reported as they are not provided by the market.
Further information
Additional information about the OneClearstream services activation and migration can be found on the Clearstream website under Product and Services, OneClearstream.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. 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. Clearstream Banking S.A. (CBL), registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
3. Including Clearstream Banking AG customers with Clearstream Banking S.A. 6-series accounts.