ENDE
Announcement

Internal instructions: New cash tolerance level for EUR instructions

Settlement

Reference

Code
A16108
Service level
CBL
Last Updated
18.07.2016

Effective

17 October 2016

Clearstream Banking1 will change its current cash tolerance validation rule.

Central Securities Depository Regulation (CSD-R) technical standards on settlement discipline will require that the same cash tolerance level for settlement instructions against payment in EUR is applied as currently applicable in T2S.

In anticipation of these new standards and to align our International Central Securities Depository (ICSD) and Central Securities Depository (CSD) offerings Clearstream Banking will change its current cash tolerance validation rule as follows:

For all internal instructions against payment in EUR, Clearstream Banking will apply the following cash tolerance levels:

  • EUR 2 for transactions of an amount up to or equal to EUR 100,000; and
  • EUR 25 for transactions of an amount greater than EUR 100,000.

Clearstream Banking will keep the current tolerance level of USD 25 (or its equivalent in other currencies) for:

  • All internal instructions against payment in all currencies except EUR.
  • All Bridge instructions against payment in all currencies including EUR.
    Bridge settlement remains unchanged; however the cash tolerance will be changed in the future when the Bridge is upgraded to comply with CSD-R requirements.

For external settlement, please refer to the Creation Link Guides, for the relevant cash tolerance level applicable on the market.

Cutover

There will be no specific cutover procedure. The new cash tolerance rule will apply to instructions that are received by Clearstream Banking on or after 17 October 2016. Pending instructions that have been matched prior to 17 October 2016 with the previous cash tolerance rule will remain matched.

Further information

For further information, please contact Clearstream Banking Client Services or your 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 CBF customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.