T2S wave 1: Impact on Clearstream Banking services – cutover details
Further to our announcement A15152, dated 23 July 2015, customers are reminded that Monte Titoli (the Central Securities Depository in Italy) will migrate to the TARGET2-Securities (T2S) settlement system as part of wave 1b, effective Monday 31 August 2015.
Please find below the cutover procedure details for the migration weekend, 28 - 31 August 2015.
Monte Titoli migration to T2S
In wave 1b, Monte Titoli will change their settlement processes by outsourcing their settlement activity to T2S. Clearstream Banking1 has an existing direct domestic link to this CSD.
The CSD will send securities instructions received from its participants to T2S for matching and subsequent settlement. Clearstream Banking will continue to access the CSD via its local agent and depository:
Country | CSD | Type of link | Securities impacted | Services impacted by T2S wave 1b |
Italy | Monte Titoli | Direct link operated by Intesa SanPaolo, Milan | Debt securities and equities eligible in Monte Titoli | Settlement free of and against payment in EUR |
Cutover procedures for migration weekend 28 - 31 August 2015
Pending matched and unmatched T2S eligible transactions with requested settlement date (SD) up to and including 28 August 2015
These transactions will be cancelled at the end of the business day and they will be automatically reinstructed in T2S by ISP.
No action is required from Clearstream Banking customers.
Pending matched and unmatched T2S eligible transactions with requested SD 31 August 2015 or later
These transactions will be automatically migrated by Monte Titoli to T2S.
No action is required from Clearstream Banking customers.
Settlement cut off time
There is no change to the current Clearstream Banking deadline for Monte Titoli eligible securities on 28 August 2015. The deadlines remain as 16:30 SD for free of payment instructions and 16:15 SD for against payment instructions.
Income and custody events
For income and custody events with a record date up to and including 28 August 2015 and a payment date of 31 August 2015 or after, there is no impact on, or action required from, Clearstream Banking customers.
Transaction management
We remind customers that market claims and transformations will not be implemented for Italian bonds and OTC equities transactions by Monte Titoli as part of this T2S migration, and no buyer protection services will be provided by Monte Titoli.
Until further notice, there are therefore no changes to the transaction management operations.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers 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.