Stock Exchange Transactions Go OTC (SET-GO): Asset Servicing Transaction Management on German Stock Exchange instructions
Reference
Further to Announcement C20053 and the Stock Exchange Transactions Go OTC - Introduction Note (May 2021) published on 14 May 2021, Clearstream Banking1 (CBL) would like to inform customers about the implementation of enhanced custody flows, effective
22 November 2021
Background
With the SET-GO ICSD Migration (Phase 1) on 22 November 2021, instruction and lifecycle management for non-cleared stock exchange (SE) instructions in Non-Collective Safe Custody (NCSC) securities will be executed and reported via Creation. The entire processing will be “OTC-like”. This step will enable the CSDR-compliant (“on flow”) processing of corporate actions for SE instructions (NCSC).
Scope
These enhancements will focus on the Asset Servicing Transaction Management (market claims and transformations) on German stock exchange instructions where processing is based on pending/settled transactions in Creation. For further information on transaction management rules, please refer to the customer handbook on the Clearstream website.
SWIFT tag | Compensations | Transformations |
:20C::COMM Common (Trade) Reference in sequence A in MT54x instruction and confirmation | For CBL internal instructions, if market claims are applied on the market, CBL automatically generates the market claim or reverse market claim compensation on behalf of customers. These claims are generated via matching settlement instructions against customer accounts. For cash compensations, this corresponds to an against payment instruction with zero quantity of securities (Payment Free of Delivery – PFoD). | For CBL internal instructions, if transformations are applied on the market, CBL automatically generates re-instructions for customers via matching settlement instructions on customer accounts. For a cash re-instruction this corresponds to an against payment instruction with zero quantity of securities (Payment Free of Delivery – PFoD). |
:95R::BENM Beneficiary of Money in sequence D2a in MT566 Corporate Action Confirmation | If applicable, the Beneficiary of Money will be reported with the party level 2 (BUYR/SELL) of the underlying instruction | n/a |
:95R::BUYR or :95R::SELL Settlement party in sequence D1b in MT566 Corporate Action Confirmation | Based on the instruction details of the underlying instruction, the information of Buyer or Seller, respectively, will be reported as indicated by the German Stock Exchange. | n/a |
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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.