New Zealand: Change of local custodian – migration details - update II
Note: this Announcement, originally published on 31 May 2021 and updated on 15 June 2021, has been updated with details on the handling of inflight corporate actions and a provisional list of securities that will not be migrated to the new custodian (final list). Changes have been highlighted.
Further to Announcement A21053, Clearstream Banking1 is pleased to inform its customers of a change of local custodian in New Zealand.
Effective Settlement Date
21 June 2021
BNP Paribas Securities Services, Sydney Branch will replace JPMorgan Chase Bank, N.A. New Zealand Branch, as Clearstream Banking’s local custodian.
Customers are requested to take note of Clearstream Banking’s new custodian details as follows and to update their records and advise their counterparties accordingly:
New custodian details
BNP Paribas Securities Services, Sydney Branch
Level 4, 60 Castlereagh Street
Sydney NSW 2000, Australia
Depository Code: 2H
BIC address: PARBAU2SLCC
Note: Australia and New Zealand Banking Group will remain Clearstream Banking’s cash correspondent bank for New Zealand Dollar (NZD).
New procedure for domestic counterparties
For instructions with a requested settlement date on or after 21 June 2021, customers must advise their counterparties to use the following new standard settlement instructions:
Procedure for the domestic counterparty |
Deliver to/Receive from: BNP Paribas Nominees (NZ) Limited |
Settlement Deadlines
Settlement deadlines remain unchanged. Please refer to the Market Link Guide – New Zealand for further details.
Migration and impact on customers
Clearstream Banking will proceed with the migration of settled positions to the new custodian at close of business in New Zealand on Friday, 18 June 2021 for Settlement Date 21 June 2021.
As such, for all trades with settlement date up to and including 18 June 2021 settling via JPMorgan, we request that customers send their instructions as early as possible and ensure that they are complete, accurate and eligible for straight-through processing (STP) in Clearstream Banking and in the local market. Customers should also ensure that any necessary provision is available for the instructions and that their counterparty’s instructions are also in place.
For trades that are received by the exceptional earlier deadline on 18 June 2021 for Settlement Date 21 June 2021 and beyond, customers are requested not to use the “Immediate Release” (IREL) flag in their instructions. This is to avoid instructions from settling at JPMorgan after the migration.
If any of these criteria are not met, Clearstream Banking cannot guarantee timely settlement and migration of such positions to the new custodian.
Customers should be made aware that all delivery instructions for settlement date 21 June 2021 will only be released to the market as soon as the migration to the new custodian is completed, at the start of market opening on Monday 21 June 2021.
Exceptional settlement deadline for Friday 18 June 2021
In order to facilitate the migration to the new custodian, Clearstream Banking will apply an earlier customer deadline for all instructions received on 18 June 2021 as follows:
Settlement times in CET
Instruction type | Current deadline | Earlier deadline |
Receipt and delivery free of | 05:55 SD | 04:45 SD |
Receipt and delivery against payment | 05:00 SD | 04:45 SD |
Settlement times in NZST
Instruction type | Current deadline | Earlier deadline |
Receipt and delivery free of | 15:55 SD | 14:45 SD |
Receipt and delivery against payment | 15:00 SD | 14:45 SD |
Specific settlement instruction processing on Friday 18 June 2021
- All instructions with requested settlement date up to and including 18 June 2021 provisioned and released to the market before the above-mentioned exceptional earlier deadline will be processed through JPMorgan;
- All instructions with requested settlement date up to and including 18 June 2021 that are received after the customer deadline will be processed through BNP Paribas Securities Services. Customers will need to contact their counterparties to cancel their instructions and reinstruct as per the new procedures for domestic counterparties, via the new custodian;
- Clearstream Banking recommends that customers request their counterparties to send their matching instructions as soon as possible to avoid possible cancellation.
Handling of pending trades on Friday 18 June 2021
- Unmatched instructions that have been released to the market and are still pending by the earlier deadline of 04:45 CET will be cancelled;
- Customers will be informed of any cancelled pending instructions via MT548. Customers will need to reinstruct any cancelled instructions, and in accordance with the new custodian details. Customers should also contact their counterparties to cancel their instructions and reinstruct as per the new procedures for domestic counterparties, via the new custodian;
- Matched instructions pending settlement that have been instructed up to 18 June 2021 will remain in place and continue to be processed through JPMorgan. Clearstream Banking will transfer any residual positions from JPMorgan to the new custodian once the instructions have either been cancelled or settled.
Handling of inflight corporate action events and securities held back at JPMorgan on 21 June 2021
- Positions of customers who have participated in any corporate action events resulting in their holdings being blocked will be excluded from the migration on 21 June 2021;
- Upon completion of the corporate action events, securities (if any) will be transferred from JPMorgan to the new custodian on PD+1;
- Please refer to the list of impacted inflight securities and their associated CA Reference that will be excluded from the migration on 21 June 2021 below;
- Please refer to the updated list below.
Further information
The Market Link Guide – New Zealand will be updated accordingly and available on the effective date to reflect the changes.
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.