Reminder: Enhanced MT565 Corporate Action Instruction matching

Clearstream Banking¹ reminds customers of the enhanced MT565 Corporate Action Instruction matching and the additional processing criteria introduced to improve the Straight Through Processing of instructions.

Background

On 18 March 2013, Clearstream’s system was enhanced to identify alternative matching criteria for incoming MT565 Corporate Action Instructions to an open event previously notified via MT564 Corporate Action Notification.

Detailed Information

Customers are reminded that all MT565 or corresponding Xact Web Portal instructions are validated with the following two-step validation logic:

First validation step:

1. If the reference of the :20C:: in the MT565 matches with the :20C:: in the MT564, the instruction is transmitted for further processing.
2. If the :20C::CORP is equal to “NONREF”, an alternative check will done on field :22F::CAEV (event type) and the field :35B::ISIN (Financial Instrument Code) to find an existing corporate action event of the same kind. 
3. If the reference is neither the one of the MT564 nor “NONREF” – The instruction will be considered as unsolicited and will be rejected or repaired on a “best-efforts basis”.

Second validation step:

If a corresponding corporate action event is found (points 1 and 2 above), the second validation checks whether the instructed CAOP code and CAON code from the original corporate action notification do match:

• If the reference of the :20C:: in the MT565 matches with the :20C:: in the MT564, the instruction is transmitted for further processing;
• If not, an alternative logic is applied and Clearstream promotes the instructed CAOP code and :11A:: OPTN and/or :35B::ISIN depending on the option to consider the instruction for further processing. 

Note: The CAON code is disregarded.

• Where options of the same kind are duplicated (for example, two CASH options, two SECU options) and in the absence of an early deadline, any option instructed without the correct number will be automatically rejected. In the event where an early deadline is present, the system considers in priority the option with the earliest deadline if not yet passed, otherwise take the other option.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.