Asset servicing - Netherlands

25.10.2022

For the specific services on the Dutch market, please refer to the Market Profile – Netherlands.

Please refer to the relevant CBL, CBF OneClearstream, or LuxCSD Customer Handbook for information about processing, reporting and connectivity for asset servicing.

This section covers the following business processes:

• Event announcement and entitlement forecast;

• Decision management;

• Payment management;

• Transaction management;

• Proxy voting services.

Event announcement and entitlement forecast

The record date for equities is ex-date +2 business days.

Event announcements for Dutch issued securities are created based on the information received from the asset servicing provider for this market (BNP Paribas S.A, Paris).

Clearstream informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc.

Event announcements are generated with both the Clearstream corporate action reference and the Corporate Action Official Reference (COAF) as applied on the market.

For further information on event announcements and entitlement forecast processing and reporting, please refer to the relevant Customer Handbook and to Market asset servicing – Netherlands.

Decision management

Instructions for predictable events

Customers may instruct Clearstream to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, bond conversions and exercises of warrants.

Instructions for unpredictable events

Clearstream collects and processes customer instructions for voluntary events, such as subscription offer, choice dividend, reinvestment option, exchange offer, purchase offer, merger with instruction etc. The most common voluntary event on the Dutch market is the choice dividend.

For further information about decision management processing and reporting, please refer to the relevant Customer Handbook and to Market asset servicing – Netherlands.

Payment management

For Dutch taxable securities, cash distributions are made net of the maximum withholding tax rate.

Clearstream provides the tax reclaims service. Non-residents may obtain a refund in accordance with any applicable tax treaty upon submission of a tax reclaim form available from Clearstream. Forms may be submitted through Clearstream.

For further information on the payment management processing and reporting, please refer to the relevant Customer Handbook.

Transaction management

Please refer to Transaction Management in T2S.

Market claims and reverse market claims

For the Dutch market rules for market claims and  reverse market claims, please refer to Transaction management rules - Netherlands.

Clearstream detects and process the market claims and reverse market claims on against payment and free of payment instructions of its customers as of status matched, as follows: 

Market claims and reverse market claims on CBL customer transactions

 

Internal

Bridge

Domestic

Detection

Yes

Yes

Yes

Compensation 

Yes

No

Yes

Market claims and reverse market claims on CBF OneClearstream customer transactions

 

Intra-CSDa

(CBF-CBF, CBF-CBL) 

Cross-CSD

(CBF – LuxCSD)

Cross-CSD

(CBF – T2S counterparty)

Detection

Yes

Yes

Yes

Compensation

Yesb

Yesb

Yesc

a. Including Eurex Clearing and LION related trades (subject to specific rules).

b. Market claims and reverse market claims in non-T2S eligible currencies and securities are processed on the corresponding CBF-i or CBL account of the CBF customers.      

c. Excluding non-T2S eligible currencies and securities.

Market claims and reverse market claims on LuxCSD customer transactions

 

Intra-CSD

(LuxCSD - LuxCSD, LuxCSD - CBL) 

Cross-CSD

(LuxCSD – CBF)

Cross-CSD

(LuxCSD – T2S counterparty)

Detection

Yes

Yes

Yes

Compensation

Yesa

Yesa

Yesb

a. Market claims and reverse market claims in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.

b. Excluding non-T2S eligible currencies and securities.

Both market claims instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows:

 

ICP customers

MT54x

DCP customers 

sese.023/sese.025

Market claim and reverse market claim instruction

22F::SETR//CLAI

Transaction code: CLAI

Detected market claims are reported to customers in  the Custody Market Claims report and via MT564 Claim and Reversal Advice. 

Debits/credits resulting from market claims and reverse market claims compensations are reported in the Custody Market Claims report and via MT564 Claim and Reversal Advice. 

The market claims and reverse market claims are visible in Xact Web Portal.

For further information on the processing and reporting, please refer to the relevant Customer Handbook.

Transformations

For the Dutch market rules for transformations, please refer to Transaction management rules - Netherlands.

Clearstream detects and process the transformations on pending matched against payment and free of payment instructions of its customers, as follows: 

Transformations on CBL customer transactions

 

Internal

Bridge

Domestic

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yes

No

Yes

Transformations on CBF OneClearstream customer transactions

 

Intra-CSDa

(CBF-CBF, CBF-CBL) 

Cross-CSD

(CBF – LuxCSD)

Cross-CSD

(CBF – T2S counterparty)

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yesb

Yesb

Yesc

a. Including LION related trades (subject to specific rules).

b. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBFi/CBL accounts of the CBF customers.   

c. Re-instructions in non-T2S eligible currency/securities.

Transformations on LuxCSD customer transactions

 

Intra-CSD

(LuxCSD - LuxCSD, LuxCSD - CBL) 

Cross-CSD

(LuxCSD – CBF)

Cross-CSD

(LuxCSD – T2S counterparty)

Detection

Yes

Yes

Yes

Cancellation  

Yes

Yes

Yes

Re-instruction

Yesa

Yesa

Yesb

a. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.

b. Re-instructions in non-T2S eligible currency/securities.

Both re-instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows.

 

ICP customers

MT54x

DCP customers 

sese.023/sese.025

Re-instructions in securities

:22F::SETR//as in the underlying instruction

:22F::STCO//TRAN

Transaction code: as in the underlying instruction

Transaction condition: TRAN

Re-instructions in cash

:22F::SETR//CORP

:22F::STCO//TRAN                          

Transaction code: CORP

Transaction condition: TRAN

Transformations are subject to settlement reporting.  

For further information on the processing and reporting, please refer to the relevant Customer Handbook. 

Buyer protection

For the Dutch market rules for buyer protection, please refer to Transaction management rules - Netherlands.

Clearstream does not introduce an automated buyer protection infrastructure. Instead buyer protection will be handled bilaterally between the counterparties, that is, outside the CSD environment.

In order to comply with the Corporate Actions standards on manual buyer protection, customers must use the Corporate Actions Joint Working Group (CAJWG) Buyer protection invocation template for corporate actions if the requested option is not the default option, referencing the corporate action, the chosen option(s), the quantity of securities and the underlying transaction in the template. The template must be sent electronically (via fax or email) to the seller.

When provided on the market, the below key buyer protection dates will be included in Clearstream MT564 Corporate Action Notifications:

  • Election to counterparty deadline in :98a::ECPD and
  • Guaranteed participation date in :98a::GUPA.

For further information on the processing and reporting, please refer to the relevant Customer Handbook. 

Proxy Voting procedures

Proxy voting services (including electronic proxy voting and access card request services, for physical attendance at meetings) are available in Clearstream for this market.

For details on the proxy voting services offered by Clearstream, please refer to the relevant Customer Handbook and Market asset servicing – Netherlands.