Ireland: Corporate securities at Euroclear Bank – Settlement and asset servicing - Update

23.04.2021

Note: This announcement, originally published on 30 March 2021 and updated on 20 April 2021, has been updated to include Xact Web Portal instruction specifications and to remove references to CreationOnline formats. Changes have been highlighted.

Further to Announcement A21026, Clearstream Banking¹ would like to inform customers that effective

26 April 2021

Clearstream Banking and its local custodian Citibank NA London branch will transfer Irish corporate securities where Euroclear Bank acts as the issuer CSD to new accounts at Euroclear Bank. In this announcement, Clearstream Banking provides customers with details of the settlement services, Irish stamp duty requirements and asset servicing. For the list of migrating securities, customers should refer to Announcement A21028.

After migration, cross border transfer of those Irish corporate securities from the CREST system to Euroclear Bank will no longer be available. Cross border settlement formats to transfer from Euroclear Bank to the CREST system will be published in due course.

Impact on customers

CSD link details

Type of CSD link

Indirect link to Euroclear Bank NV/SA via Citibank NA London branch as custodian

Settlement timings

The following settlement deadlines will be applicable to customers:

Irish equities and other corporate securities	Deadlines
Receipt and delivery free of payment	18:25 CET SD
Receipt and delivery against payment (EUR, GBP, USD)	14:55 CET SD^a

a. Effective 3 May 2021, the Against payment deadline will be enhanced to 15:25 CET SD.

New procedures for domestic counterparties

Customers are requested to inform their counterparties in Euroclear Bank to use the following details for instructions that settle against Clearstream Banking:

Counterparty delivering to / receiving from Citibank/CBL omnibus account 90842
Procedure for the domestic counterparty	Deadline
Deliver to: Citibank NA London participant account in Euroclear Bank 90842 For account of: Clearstream Banking S.A. In favour of: Account number of CBL customer	Market deadline
Receive from: Citibank NA London participant account in Euroclear Bank 90842 From account of: Clearstream Banking S.A. By order of: Account number of CBL customer	Market deadline
Counterparty delivering to /receiving from Citibank/CBL Irish QI account 90853 Note: Applicable only to customers who have certified their CBL accounts for Irish QI relief purposes.
Procedure for the domestic counterparty	Deadline
Deliver to: Citibank NA London participant account in Euroclear Bank 90853 For account of: Clearstream Banking S.A. In favour of: Account number of CBL customer	Market deadline
Receive from: Citibank NA London participant account in Euroclear Bank 90853 From account of: Clearstream Banking S.A. By order of: Account number of CBL customer	Market deadline

Settlement services and related requirements

Customers are requested to consider the following requirements and information with regard to settlement with counterparties in Euroclear Bank:

(Please see the detailed SWIFT and Xact Web Portal instruction specifications below).

Place of settlement (PSET)	MGTCBEBE(XXX)
Bridge settlement	Not available for Irish equities subject to stamp duty (for example, Irish equities) Available for Irish corporate securities not subject to stamp duty (input media SWIFT only. Should customers use Xact Web Portal, Bridge settlement is currently not supported)
Place of safekeeping	To settle against counterparties in Euroclear Bank on non-Bridge eligible securities, customers must include the place of safekeeping in their instructions to Clearstream Banking as follows: SWIFT: :94F::SAFE//CUST/CITIGB2L(XXX) Xact Web Portal: CITIGB2LXXX (included in Xact by default) If this field is omitted, customers settlement instruction will be rejected.
Partial settlement	Euroclear Bank will apply partial settlement when the delivering party does not have the full amount of securities or the receiving party does not have sufficient cash for settlement. Customer delivery and receipt instructions will continue to be provisioned for the full quantity or cash value before being released for settlement. Consequently, customer delivery and receipt instructions may only settle partially if their counterparty is short of securities or cash. Customers that do not wish their transactions to settle partially must provide field :22F::STCO//NPAR or Partial Settlement set to “Partial not allowed” in their instruction.
Allowed countervalue difference	The following cash tolerances are applicable in Euroclear Bank in EUR (or their equivalent in USD and GBP as determined by Euroclear Bank): EUR 2 for transactions with an amount less than or equal to EUR 100,000; and EUR 25 for transactions with an amount greater than EUR 100,000.
Back-to-back processing	Clearstream Banking is currently reviewing the conditions for continuing to provide the service to customers. Further details will be shared as soon as possible.
Nationality declaration and disclosure requirements	No change to current process as described in the MLG and disclosure requirements.
Management of failed instructions	The following rules apply in Euroclear Bank: Unmatched instructions that have not been matched at Euroclear Bank by the fifteenth (15) business day after the instruction was sent to Euroclear Bank via the custodian, are cancelled. Matched instructions that remain unsettled at Euroclear Bank after the intended settlement date are recycled until they are either settled or bilaterally cancelled.

Irish stamp duty in Euroclear Bank

Unless an exemption applies, transactions in Irish equities with counterparties in Euroclear Bank are, in principle, subject to Irish stamp duty (“stamp duty”).

Euroclear Bank applies the following rules for the usage of the stamp duty indicator to determine who will be debited with the stamp duty:

Buyer	Seller	Stamp duty debited from
No stamp status indicator	No stamp status indicator	Buyer
No stamp status indicator	Stamp exempt indicator	Buyer
Stamp exempt indicator	No stamp status indicator	Stamp exempt
Stamp exempt indicator	Same stamp exempt indicator	Stamp exempt
Stamp exempt indicator	Different stamp exempt indicator	Stamp exempt
Stamp eligible indicator	No stamp status indicator	Buyer
Stamp eligible indicator	Stamp exempt indicator	Buyer
Stamp exempt indicator	Stamp eligible indicator	Seller
No stamp status indicator	Stamp eligible indicator	Seller
Stamp eligible indicator	Stamp eligible indicator	Buyer

The following stamp status indicators are available in Euroclear Bank:

Stamp status indicator	Status	Description
IEYX	Exempt	Irish exempt, no change in beneficial ownership (NCBO)
IE8X	Exempt	Irish exempt, new issue
IEPX^a	Exempt	Irish exempt, acting as a recognised intermediary, approved by the Revenue Commissioners
IELX^a	Exempt	Irish exempt, stock borrowing
IEQX	Exempt	Irish exempt, for any other reason
IE1X	Stamp duty is due	Irish 1% ad valorem (exact percentage)

a. Use of these stamp status indicators is subject to certain conditions.

Stampable consideration

The current requirements for including the stampable consideration amount in instructions remain applicable. In addition to EUR, Euroclear Bank also considers a stampable consideration expressed in GBP.

Input of Irish stamp duty fields

Customers must input stamp duty details in the relevant field of each instruction. The following rules apply to Irish securities subject to stamp duty and must be completed as such in the appropriate fields of the receipt and delivery instructions to Clearstream Banking:

Receipt of a security subject to Stamp Duty
	Xact via SWIFT and Xact File Transfer	Xact web portal	Meaning
1	An exemption is claimed by the customer because there is no change of beneficial ownership.
	MT540 :19A::DEAL// not used :22F::STAM/ECLR/IEYX	Stamp duty tax basis: IE Exempt	Transaction exempted from stamp duty
2	An exemption is claimed by the customer because the deliverer is a broker and accountable or the receipt is the result of a new issue from an on-exchange member.
	MT540/541 :19A::DEAL// not used :22F::STAM// not used	Stamp duty tax basis: Not used	Stamp duty to be paid by the delivering party
3	An exemption is claimed by the customer because the receipt is a result of a new issue from a non-exchange party.
	MT540/541 :19A::DEAL// not used :22F::STAM/ECLR/IE8X	Stamp duty tax basis: IE New Issue	Transaction exempted from stamp duty as new issue
4	An exemption is claimed by the customer because the deliverer is a custodian and has paid the stamp duty on a previous transaction.
	MT540/541 :19A::DEAL// not used :22F::STAM/ECLR/IEYX	Stamp duty tax basis: IE Exempt	Transaction exempted from stamp duty as the stamp duty was paid on a previous transaction
5	No exemption is claimed. The receiver is accountable.
	MT540/541 :19A::DEAL// not used :22F::STAM// not used	Stamp duty tax basis: Not used	Stamp duty to be paid by the receiving customer
6	An exemption is claimed by the customer acting as a recognised intermediary, approved by the Revenue Commissioners^a.
	MT540/541 :19A::DEAL// not used :22F::STAM/ECLR/IEPX	Stamp duty tax basis: To be confirmed^a	Transaction exempted from stamp duty
7	An exemption is claimed by the customer because the receipt related to stock borrowing^a.
	MT540/541 :19A::DEAL// not used :22F::STAM/ECLR/IELX	Stamp duty tax basis: To be confirmed^a	Transaction exempted from stamp duty
8	Irish exempt for any other reason.
	MT540/541 :19A::DEAL// not used :22F::STAM/ECLR/IEQX	Stamp duty tax basis: IE Other reason	Transaction exempted from stamp duty

a. Use of these stamp status indicators is subject to certain conditions.

Delivery of a security subject to Stamp Duty
	Xact via SWIFT and Xact File Transfer	Xact web portal	Meaning
1.	The delivering customer is not subject to stamp duty (the receiving party is accountable).
	MT542/543 :19A::DEAL// not used :22F::STAM// not used	Stamp duty tax basis: Not used	Stamp duty to be paid by the receiving party
2.	Delivery where the delivering party is accountable, that is, the delivering customer wants to account for the stamp duty and the receiver is not accountable.
	MT542/543 :19A::DEAL//EUR15d^a :19A::DEAL//GBP15d^a :22F::STAM/ECLR/IE1X	Amount: “Trade Amount” EUR 15d Stamp duty tax basis: IE applicable	Stamp duty to be paid by the delivering customer

a. This field must contain the ISO currency code (EUR or GBP) followed by the total amount of the deal (deal price * quantity of securities) in 1-13 numeric characters (no leading zeroes), the mandatory comma decimal separator and 0-2 decimal positions.

Asset servicing

Clearstream Banking will inform customers of upcoming corporate action and income events applying to Irish corporate securities migrated to Euroclear Bank in accordance with information Clearstream Banking receives from its custodian.

Clearstream Banking acting as Irish Qualified Intermediary (QI) continues to provide relief at source services to customers. For details please refer to Market Taxation Guide – Ireland.

With regard to proxy voting, Euroclear Bank has advised that there may be meetings on Irish corporate securities for which the deadline may be either before or after the record date. For the order of dates, Euroclear Bank will process voting instructions as follows:

If the Euroclear Bank deadline, date and time is before the record date, then Euroclear Bank will block instructed position until end-of-day on the record date.
If Euroclear Bank date and time is after the record date, then Euroclear Bank will not block instructed positions.

We are currently liaising with our custodian Citibank and our proxy voting provider ISS with regard to the process and will provide further details as soon as available.

Instruction specifications - Xact via SWIFT and Xact File Transfer - Irish equities, corporate bonds and other instruments in Euroclear Bank

MT540 Receive Free

M	:98a:	:TRAD	//Trade date/time	B
O	:90a:	:DEAL	//Deal price
C	:22F:	:STAM	^a
M	:95P:	:PSET	//MGTCBEBE(XXX)
M	:94F:	:SAFE	//CUST/CITIGB2L(XXX)^b
M	:95R:	:DEAG	/ECLR/xxxxx (Counterparty's Euroclear Bank participant account number)
O	:95P:	:SELL	//Ordering party's BIC, if different from DEAG	E1
or	:95Q:	:SELL	//Ordering party's name, if different from DEAG (if BIC does not exist)
O	:97A:	:SAFE	//Ordering party's account

a. The use of these fields is dependent on whether the transaction is subject to or exempt from stamp duty and on the appropriate accountability. For details, please refer to “Irish stamp duty in Euroclear Bank” and “Input of Irish stamp duty fields”.
b. This field is mandatory for transactions on non-Bridge eligible securities.

MT541 Receive Against Payment

M	:98a:	:TRAD	//Trade date/time	B
O	:90a: :DEAL		//Deal price
C	:22F:	:STAM	^a
M	:95P:	:PSET	//MGTCBEBE(XXX)	E1
M	:94F:	:SAFE	//CUST/CITIGB2L(XXX)^b
M	:95R:	:DEAG	/ECLR/xxxxx (Counterparty's Euroclear Bank participant account number)
O	:95P:	:SELL	//Ordering party's BIC, if different from DEAG
or	:95Q:	:SELL	//Ordering party's name, if different from DEAG (if BIC does not exist)
O	:97A:	:SAFE	//Ordering party's account

MT542 Deliver Free

M	:98a:	:TRAD	//Trade date/time	B
O	:90a:	:DEAL	//Deal price
C	:22F:	:STAM	^a	C
M	:95P:	:PSET	//MGTCBEBE(XXX)	E1
M	:94F:	:SAFE	//CUST/CITIGB2L(XXX)^b
M	:95R:	:REAG	/ECLR/xxxxx (Counterparty's Euroclear Bank participant account number)
O	:95P:	:BUYR	//Beneficiary's BIC, if different from REAG
or	:95Q:	:BUYR	//Beneficiary's name, if different from REAG (if BIC does not exist)
O	:97A:	:SAFE	//Beneficiary's account
C	:19A:	:DEAL	^a	E3

MT543 Deliver Against Payment

M	:98a:	:TRAD	//Trade date/time	B
O	:90a:	:DEAL	//Deal price
C	:22F:	:STAM	^a
M	:95P:	:PSET	//MGTCBEBE(XXX)	E1
M	:94F:	:SAFE	//CUST/CITIGB2L(XXX)^b
M	:95R:	:REAG	/ECLR/xxxxx (Counterparty's Euroclear Bank participant account number)
O	:95P:	:BUYR	//Beneficiary's BIC, if different from REAG	O
or	:95Q:	:BUYR	//Beneficiary's name, if different from REAG (if BIC does not exist)
O	:97A:	:SAFE	//Beneficiary's account
C	:19A:	:DEAL	^a	E3

Instruction specifications - Xact Web Portal - Irish Irish equities, corporate bonds and other instruments in Euroclear Bank

In the following tables, M=Mandatory; O=Optional; C=Conditional.

Receive Free

M	Trade date
O	Deal price
	Delivering Settlement parties
M	Depository - Format	BIC
	Depository Identifier	MGTCBEBEXXX
M	Place of safekeeping^b	BIC
		CITIGB2LXXX
M	Party 1 Format	Euroclear
	Party 1 Identifier	Euroclear Bank participant account number
O	Party 2 Format	BIC
	Party 2 Identifier	ordering party's BIC
or	Party 2 Format	Name (if BIC does not exist)
	Party 2 Identifier	ordering party's name
O	Party 2 safekeeping account	ordering party's account
C^a	Settlement parameters – Stamp duty tax basis	Code: as appropriate

Receive Against Payment

M	Trade date
O	Deal price
	Delivering Settlement Parties
M	Depository Format	BIC
	Depository Identifier	MGTCBEBEXXX
M	Place of safekeeping^b	BIC
		CITIGB2LXXX
M	Party 1 Format	Euroclear
	Party 1 Identifier	Euroclear Bank participant account number
O	Party 2 Format	BIC
	Party 2 Identifier	ordering party's BIC
or	Party 2 Format	Name (if BIC does not exist)
	Party 2 Identifier	ordering party's name
O	Party 2 safekeeping account	ordering party's account
C^a	Settlement parameters – Stamp duty tax basis	Code: as appropriate

Deliver Free

M	Trade date
O	Deal price
	Amounts - Other amounts
	Receiving Settlement parties
M	Depository Format	BIC
	Depository Identifier	MGTCBEBEXXX
M	Place of safekeeping^b	BIC
	Party	CITIGB2LXXX
M	Party 1 Format	Euroclear
	Party 1 Identifier	Euroclear Bank participant account number
O	Party 2 Format	BIC
	Party 2 Identifier	beneficiary's BIC
or	Party 2 Format	Name (if BIC does not exist)
	Party 2 Identifier	beneficiary's name
O	Party 2 Safekeeping Account	beneficiary's account
C^a	Settlement parameters – Stamp duty tax basis	Code: as appropriate
C^a	Amount - Stamp duty indicator	Tick, if delivering customer accounts for stamp duty.

Deliver Against Payment

M	Trade date
O	Deal price
	Amounts - Other amounts
	Receiving Settlement parties
M	Depository Format	BIC
	Depository Identifier	MGTCBEBEXXX
M	Party 1 Format	Euroclear
M	Place of safekeeping^b	BIC
	Party	CITIGB2LXXX
	Party 1 Identifier	Euroclear Bank participant account number
O	Party 2 Format	BIC
	Party 2 Identifier	beneficiary's BIC
or	Party 2 Format	Name (if BIC does not exist)
	Party 2 Identifier	beneficiary's name
O	Party 2 safekeeping account	beneficiary's account
C^a	Settlement parameters – Stamp duty tax basis	Code: as appropriate
C^a	Amount - Stamp duty indicator	Tick, if delivering customer accounts for stamp duty.

......................................

The use of these fields is dependent on whether the transaction is subject to or exempt from stamp duty and on the appropriate accountability. For details, please refer to "Irish stamp duty in Euroclear Bank’ and ‘Input of Irish stamp duty fields’.
This field is mandatory for transactions on non-Bridge eligible securities. CBL system currently adds this field and value by default to all customer instructions sent via Xact Web Portal and no action is required from customers.

Further information

Market Link Guide - Ireland - Equities, corporate bonds and other instruments will be updated to reflect the changes and published on the website on the effective date.

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.

Reference Number

A21036

Service levels

CBL

Products and Services

Settlement, Custody

Market

Ireland

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