T2S final wave: Spain - fixed income transaction types and formats - update II
This announcement originally published on 10 August 2017 has been updated to correct the details about the transaction types. The previous update on 11 September 2017 clarifies the meaning of “change of beneficial owner” (that is, transfers that involve a change of registry) and where it applies. It also highlightes that the format type used is critical, and the proper usage of the OWNE and TRAD types of transaction in particular, after the migration to TARGET2-Securities (T2S).
Clearstream Banking1 will implement the required adaptations to its systems in order to comply with the T2S transaction type mandatory specifications of the Spanish market as well as those of its agents and depositories on
18 September 2017
From this date, customers must select the correct transaction type and apply the transaction formats, described below, to their settlement instructions sent to Clearstream Banking and align with their counterparties accordingly, where relevant.
Transaction types and formats
Significant changes apply to the transaction type categories. Incorrect selection of the transaction type may result in settlement failure.
We bring to your attention that the OWNE and OTC transaction types imply that a change of registry is required, and therefore the communication of two different registration details.
As the transaction type is a mandatory field, but not a matching field, and because the customer of the delivering/receiving party is an optional matching field, if the registration details provided by both parties (that is, beneficial owner details that will be used for the re-registration process) do not match each other, then the instructions will remain unmatched.
Note: The unmatched registration details of the counterparty instructions will be reported via an MT548.
In order to avoid unwanted settlement failure, customers must ensure that they use the appropriate type of transaction and align the registration details with their respective counterparties. Please refer to the summary table below for details about the transaction types.
| Xact via SWIFT and Xact File Transfer | CreationOnline | Xact Web Portal |
Delivery/Receipt free of payment with change of registry (different from a sale or purchase) a | :22F::SETR//OWNE | Type of Settlement Transaction = External Own Account Transfer | Sec. transaction type = OWNE - External account transfer |
Delivery/Receipt against or free of payment (OTC sale or purchase) with change of registry b | :22F::SETR//TRAD :94B::TRAD//OTCO/OTC | Type of Settlement Transaction = Trade Settlement Additional places : Type = Place of Trade Code = OTC Trades Narrative = OTC | Sec. transaction type = TRAD -Trade Place of trade type = Code Place of trade identifier = OTCO -Over the counter Description Place of trade identification = OTC |
Ancillary transactions | :22F::SETR//TRAD :95P::DEAG or REAG//Counterparty BIC11 :97A::SAFE//account of the Financial Intermediary 35 digits or :22F::SETR//TRAD :70E::SPRO//OAUX | Type of Settlement Transaction = Trade Settlement Delivering or Receiving Agent/ Party = BIC11 of the CSD / Account = account of the Financial Intermediary 35 digits or Type of Settlement Transaction = Trade Settlement Settlement Processing Narrative = OAUX | Sec. transaction type = TRAD -Trade Delivering or Receiving Settlement parties / Party 1/ Identifier = BIC11 of the CSD / Safekeeping account = account of the Financial Intermediary 35 digits or Sec. transaction type = TRAD -Trade Settlement instruction processing additional details = OAUX |
Cross border trades with other CSDs | :22F::SETR//TRAD :95P::DEAG or REAG//BIC11 of the CSD :95a::BUYR or SELL//Participant in the CSD :97A::SAFE//Participant account in the CSD | Type of Settlement Transaction = Trade Settlement Delivering or Receiving Agent / Identifier = BIC11 of the CSD Seller or Buyer / Party = Participant in the CSD / Account = Participant account in the CSD | Sec. transaction type = TRAD -Trade Delivering or Receiving Settlement parties / Party 1/ Identifier = BIC11 of the CSD Delivering or Receiving Settlement parties / Party 2/ Identifier = Participant in the CSD / Safekeeping account = Participant account in the CSD |
Securities Lending Initiation Free or against payment | :22F::SETR//SECL :22F::SETR//SECB | Type of Settlement Transaction = Securities Lending Type of Settlement Transaction = Securities Borrowing | Sec. transaction type = SECL - Securities lending Sec. transaction type = SECB - Securities borrowing |
Securities Lending Return Free or against payment | :22F::SETR//SECL :22F::SETR//SECB | Type of Settlement Transaction = Securities Lending Type of Settlement Transaction = Securities Borrowing | Sec. transaction type = SECL - Securities lending Sec. transaction type = SECB - Securities borrowing |
REPO | :22F::SETR//OWNE :95P::DEAG or REAG//ESPBESMMCCB :95P::BUYR or SELL// BIC11 of the final Bank beneficiary | Type of Settlement Transaction = External Own Account Transfer Delivering or Receiving Agent / Identifier = ESPBESMMCCB Seller or Buyer / Party = BIC11 of the final bank beneficiary | Sec. transaction type = OWNE - External account transfer Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary |
PLEDGE Initiation
| :22F::SETR/IBRC/CUPG :95P::DEAG or REAG// ESPBESMMCCB :95P::BUYR or SELL// BIC11 of the final bank beneficiary | Type of Settlement Transaction = Pledge Initiation Delivering or Receiving Agent / Identifier = ESPBESMMCCB Seller or Buyer / Party = BIC11 of the final bank beneficiary | Sec. transaction type = IBRC/CUPG - Spanish pledge initiation Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary |
PLEDGE Return | :22F::SETR/IBRC/PGCU :95P::DEAG or REAG// ESPBESMMCCB :95P::BUYR or SELL// BIC11 of the final bank beneficiary | Type of Settlement Transaction = Pledge Return Delivering or Receiving Agent / Identifier = ESPBESMMCCB Seller or Buyer / Party = BIC11 of the final bank beneficiary | Sec. transaction type = IBRC/PGCU - Spanish Pledge Return Delivering or Receiving Settlement parties / Party 1/ Identifier = ESPBESMMCCB Delivering or Receiving Settlement parties / Party 2/ Identifier = BIC11 of the final bank beneficiary |
a. Supporting document required.
b. With prior receipt of the relevant documentation for free of payment.
Further information
The Creation Link Guide - Spain will be updated on 18 September 2017.
For further information, customers may contact 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 (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.