OneClearstream Migration for French Registered Securities - CBL - update
Note: This Announcement, originally published on 25 January 2019, has been amended to provide customers with important migration impact information and updated securities lists in scope for the migration.
Following Clearstream Banking’s1 announcement C18043 and effective
18 February 2019
Clearstream Banking will enhance its current OneClearstream service offering on the French market by extending the scope of the eligible assets to cover the French registered securities.
The migration will impact only the two below categories of French registered securities existing on the French market:
- Essentially registered shares (VEN);
- Occasionally registered securities subject to LBS program (VON subject to LBS).
The LBS securities category will not be part of this migration. These securities will be migrated at a later stage during the year 2019 (target is before LBS season).
Clearstream Banking will access the Euroclear France CSD for settlement in T2S via CBF or BNP Paribas Securities Services as follows:
Country | CSD | Type of link | Securities eligible |
France | Euroclear France (EF) | Direct link to Clearstream Banking AG, Frankfurt for holding Euroclear France/T2S eligible securities | VON |
France | Euroclear France (EF) | Direct link to Clearstream Banking AG, Frankfurt a for holding Euroclear France /T2S eligible securities | VEN |
France | Euroclear France (EF) | Direct operated link via BP2S to Euroclear France | LBS |
a. CBF will access Euroclear France as investor CSD via LuxCSD
Note: All timings on this page are CET.
New depository details
The change of depository will be effective as of settlement date 18 February 2019.
For all T2S assets to be migrated to CBF, the following new depository codes will apply:
Depository | Current CBL depository code | New CBL depository code |
Euroclear France | 23 | 4F |
New settlement timings for domestic instructions
The following settlement deadlines will be applicable to customers:
Link | Current EUR AP deadline | New EUR AP deadline | Current FOP deadline | New FOP deadline |
Euroclear France via CBF | 15:45 SD | 15:55 SD | 17:45 SD | 17:55 SD |
Scope of the securities relevant for the migration and exceptions
The list of migrating French Registered Securities can be found in the attachments below.
ISINs open in Clearstream Banking even with no position will also be migrated. Therefore, the list of securities attached may be different from the ones circulated in September and November 2018
In line with general migration rules, the French registered securities with upcoming maturity date and/or in default will be excluded from migration.
For the non-migrated securities, please refer to the attached list.
Pre-requisites for migration
Customer’s account setup
We remind CBL customers that a new dedicated account qualified as registered account must be opened, if not already done, to continue holding VON in registered form.
The same applies to 6-series accounts that want to continue to hold such securities in registered form on the ICSD platform, for which only a dedicated CBL registered account can be opened.
Migration impact on customers
Portfolio migration preparation
- On Monday 11 February 2019, the VON positions (in registered form only) will be transferred by Clearstream from the main account to the registered account (if the customer is the holder of such a position).
- On Thursday 14 February 2019between 16:00 and 18:00, Clearstream will prepare the technical setup and adaptations required for the migration and the below listed securities cannot be realigned between CBL and CBF counterparties for technical reasons:
- ISIN FR0000121261 Michelin S.A;
- ISIN FR0000130213 Lagardère S.C.A, and;
- ISIN FR0010040865 Gecina S.A.
Handling of realignments in the pre-migration period
In order to avoid settlement delays, we highly recommend customers to initiate any realignment between CBL and CBF before 16:00 on Thursday 14 February 2019 by using the existing formats for Transfer of securities between CBL and CBF counterparties published in the Market Link Guide - International.
At 16:00 and due to the technical adaptations required, this format becomes invalid.
After 16:00, customers are requested to instruct in the new format published in the Market Link Guide - France, but any realignment instruction received after 16:00 will stay pending and will settle only once the migration has been completed successfully on Friday 15 February 2019.
This realignment format for non-migrated securities is valid until the start of the migration at 12:00 on Friday 15 February 2019.
Management of pending domestic instructions on Thursday 14 February 2019
All pending instructions in T2S (matched or unmatched) will be cancelled by Clearstream Banking between 16:00 and 18:00 if not settled in the meantime.
Earlier settlement cut-off time on 15 February 2019
In order to facilitate the start of the migration process on 15 February 2019, Clearstream Banking has earlier end of day cut-off deadlines. The Clearstream Banking customer deadlines on Friday 15 February 2019 are as follows:
- Against payment in EUR: 12:00 instead of 15:45.
- Free of payment: 12:00 instead of 17:45.
Domestic instructions
Clearstream Banking will proceed with the migration of settled positions to the new depository, Clearstream Banking AG (CBF), from 12:00 on 15 February 2019. No action is required from customers for all domestic instructions that settle before 12:00.
All pending unmatched domestic instructions will be cancelled by CBL before the start of the migration at 12:00.
For all pending matched domestic instructions, customers must contact their counterparties as early as possible to ensure that these instructions are cancelled by both counterparties by 12:00, as the bilateral cancellation principle applies.
All instructions cancelled before migration must be reinstructed by customers and their counterparties (with the new place of settlement) after 12:00.
If a customer instruction is received by Clearstream Banking after 12:00 with a Requested Settlement Date 18 February 2019 or after, it will be put in a queue and only released to CBF after a successful migration has taken place.
Procedures for domestic counterparties
Customers are requested to inform their local counterparties to use the following details for instructions that settle against Clearstream Banking:
| Migrated securities | Non-migrated securities |
Place of settlement | DAKVDEFFXXX | SICVFRPPXXX |
Delivering/Receiving Agent (DEAG/REAG) | CEDELULLXXX | CEDELULLXXX |
SAFEa of the (DEAG/REAG) | Not to be instructed. If instructed, it must be the valid CBL SAC Euroclear France: DAKV7201103b Or, DAKV7201203c (registered account) | Not to be instructed. If instructed, it must be the valid CBL SAC Euroclear France: SICVCEDELULLXXX000L10 |
Buyer/Seller | BIC11 of the CBL customer | BIC11 of the CBL customer |
a. Although the safekeeping account of Party 1 (REAG/DEAG) is an optional matching field in T2S, if it is present on one instruction only it will only match with instructions instructed by this account.
As CBL does not forward its own SAC to the settlement parties, if the customer counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.
We encourage customers to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securities account of the delivering/receiving party).
b. To be used to settle VEN and VON in bearer form.
c. To be used to settle transfer of portfolio of VON in registered form from or to the French domestic market.
Important note: Customers should advise their counterparties that for new instructions sent to Clearstream Banking after migration and in relation to the migrated securities, the counterparty details (SSI) will change and that counterparties need to instruct against the place of settlement DAKVDEFFXXX.
Internal and Bridge instructions
There is no impact on internal and Bridge instructions.
Registration
Clearstream will ensure that the securities will remain registered in the name of final beneficiary known in Clearstream Banking Luxembourg books.
Handling of ongoing asset servicing events and related migration rules
Currently not foreseen as no ongoing events have been identified.
Tax
Announcement A17174 referring to “France T2S: Tax impact on account structure and service offering” continues to apply also for the migration of VEN/VON with the following exception:
- Tax certification
Impact on customers holding French T2S eligible securities migrated to CBF
No renewal is required for this migration if valid certification has been already submitted for the activity performed through CBF acting as French tax agent. However, customers must request the duplication of existing certificates on the new created account(s).
Impact on customers with no holdings in T2S-eligible French securities migrated to CBF
The duplication and renewal process is the one described in Announcement A17174.
To certify the accounts dedicated to French VEN/VON, customers are required to send a SWIFT MT599 requesting the duplication of existing certificates and indicating the following:
- Request for duplication of tax certificates
- ATTN: Tax Services
- Market: France VEN/VON
- Source Account:
- Destination Account:
- Clearstream Banking references of the impacted certificate(s):
- The following text:
"We hereby confirm that above-mentioned original tax certificate(s) is/are still valid and should not be revoked. We irrevocably authorise Clearstream Banking(1) to apply tax relief based on the information contained in the original tax certification duplicated for the destination account.
We hereby appoint Clearstream Banking and Clearstream Banking depository for the Securities as our attorneys-in-fact with authority to collect and forward the tax certification or a copy of the tax certification, any attachments and any information relating to it to the tax authorities if these prove relevant to any administrative or legal proceedings or official inquiries undertaken or threatened.
We accept full responsibility and indemnify Clearstream Banking in the case of any claims or additional taxes, interest thereon or penalties levied by tax authorities in connection with any payments made in reliance upon this duplication of certification including any additional information provided in connection to it.
We certify, under penalty of perjury, that the information contained in the tax certification is true, correct and complete
(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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500."
Non migrated LBS securities impact
The service description for the handling of LBS securities, in terms of portfolio transfer or asset servicing, published in announcement C18043, will not be applicable until those securities are migrated to CBF.
Further information
This is the current situation based on latest information, should there be any changes we will inform you accordingly.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
The Market Link Guide for France, with validity from 18 February 2019 will be available on the Clearstream Banking website.
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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.