Finland: Launch of new system – migration details

Further to announcements A18021, A18017 and A17187 Clearstream Banking¹ advises customers that the migration of equities to Infinity system Release 2 is planned to go live on

 Monday 7 May 2018

The Finnish Market Advisory Committee (MAC) will make the final go-live determination on 25 April 2018.

Impact on customers

In order to prepare for the migration to Infinity system Release 2, Euroclear Finland has received permission from the Bank of Finland and the European Central Bank to close the current CSD systems HEXClear, Central Register and Infinity system Release 1 at 12:00 CEST on Friday, 4 May 2018.

Clearstream Banking advises customers that all instructions with settlement date (SD) 4 May 2018 must be sent to Clearstream Banking at the latest by 09:55 SD CEST.

All pending transactions will be queued by Nordea Bank and released to the new platform on Sunday, 6 May 2018.

As from 7 May 2018

New settlement times 

Euroclear Finland will introduce new settlement deadlines for equities applicable via Clearstream Banking.

Note: All times are Central European Summer Time (CEST).

Place of settlement

The place of settlement for all securities is APKEFIHHXXX.

Partial settlement

Euroclear Finland will not implement partial settlement in Infinity Release 2. If a customer sends  an instruction with the partial settlement indicator this will be sent to Euroclear Finland but it will be ignored and the partial amount will not settle. If a customer would like to partially settle an instruction, the original instruction must be cancelled and a new instruction must be sent with the required amount.

Additional matching field

The following additional matching fields are initially not mandatory unless one of the counterparties provides a value for them in its instruction. In that case matching values must be provided by the other counterparty.

• Opt-out indicator;
• CUM/EX indicator.

Optional matching field

The following optional matching fields must match when provided by both counterparties.

• Common reference;
• Client of delivering/receiving CSD participant;
• Securities account of the delivering/receiving CSD participant.

These optional matching fields are initially not mandatory, even when one counterparty includes a value and the other does not, the instructions will still match. If both parties provide a value, the value must be identical in both instructions in order for them to match. If this is not the case, the instruction remains unmatched.

Allowed countervalue difference

The following cash tolerances are applicable in Infinity Release 2:

• EUR 2 for transactions with an amount less than or equal to EUR 100,000;
• EUR 25 for transactions with an amount greater than EUR 100,000.

In the event of a discrepancy within the limits, in principle the cash amount of the delivering party will prevail.

Recycling rules

The following recycling rules will apply in Infinity Release 2:

• Unmatched instructions will be recycled for 20 business days (starting from the initial settlement date), after which they will be cancelled.
• Unmatched cancellation requests will be recycled for 20 business days (starting from the date of receipt).
• Matched instructions will have no cancellation limit and will be recycled until a business rule is violated (for example, security reaches maturity).

Change in SSIs

Remote brokers will no longer have a member status in Infinity Release 2

In the REAG/DEAG field, customers must quote the remote broker agent’s BIC and in the BUYR/SELL field, customers must quote the remote broker’s BIC.

:95P::REAG/DEAG//  BIC of Receiver / Deliverer agent

:95P::BUYR/SELL// BIC of Receiver / Deliverer

All transactions with settlement date of 7 May 2018 or later must be instructed with the new format above.

Market claims and transformations  

With Infinity Release 2, Euroclear Finland will introduce automatic detection for market claims and transformations for equities in addition to warrants, structured products and funds that are already supported.

The market claims and transformations detection period is set at 20 business days after the event record date.

As from 14 May 2018

Pre-Matching

The hold and release feature available in Infinity Release 2 will be used by Clearstream Banking for pre-matching only. Therefore, once the customer’s instruction is provisioned and released to the market, it will no longer be possible to place the instruction on hold.

If the customer’s counterparty has placed its instruction on hold, we will report the status and reason as follows:

Xact via SWIFT and Xact File Transfer: SETT//PENx PENx//PRCY

CreationOnline: Counterparty Instruction on Hold in CreationOnline.

Xact Web Portal: Counterparty Instruction on Hold in Xact Web Portal

Further information

For further information, customers may contact Clearstream Banking 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.