Finland: Euroclear Finland T2S adaptation plan
Clearstream Banking1 informs clients that effective
11 September 2023
Euroclear Finland Ltd (EFI), the central securities depository (CSD), will change its settlement processes by outsourcing its settlement activity to T2S. Clearstream Banking S.A. (hereinafter referred to as "Clearstream Banking") has direct domestic access to Finland.
Euroclear Finland will send securities settlement instructions received from its participants to T2S for matching and subsequent settlement. Clearstream Banking will continue to access Euroclear Finland via its account operator Citibank Europe Plc.
Impact on clients
Matching and instruction specifications
The BIC11 of the client of delivering/receiving CSD participant (BUYR/SELL) is a mandatory matching field at present and will become an optional matching field on the T2S settlement platform.
Procedure for clients’ counterparties
In T2S, the CSD participants are identified exclusively by the combination of their home CSD (Swift: PSET or Xact Web Portal: Place of settlement), that is, the PSET shall be the BIC of the CSD the counterparty uses to access T2S and their BIC11 (Swift: REAG/DEAG or Xact Web Portal: Receiving/Delivering Agent).
If a client uses a BIC8 to identify the Receiving/Delivering Agent, Clearstream Banking is entitled to modify the BIC8 provided and the settlement instructions will then be processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules. Accordingly, such clients remain liable for any settlement fails that the use of the BIC8 may cause and the clients furthermore agree to indemnify Clearstream Banking against losses, liabilities, damages, penalties, expenses and all other costs of any kind suffered by Clearstream Banking as a result of the client not complying with the above requirement.
Clients are requested to inform their local counterparties to use the following details for instructions sent via Euroclear Finland that settle against Clearstream Banking in T2S:
- BIC11 of CBL: CEDELULLXXX;
- By order of: Client BIC11 and account number.
To allow clients to fully utilise the settlement process in T2S, the start of the provisioning time will be amended from 21:30 SD-1 to 20:05 SD-1.
Client guidelines for the cut-over
Euroclear Finland will be closed for business on Friday, 8 September 2023 before the T2S migration.
Instructions with an intended settlement date (ISD) of 11 September 2023 or later need to be held back by clients.
Additional information will be communicated in a separate client announcement in H2 2023.
The Market Link Guide will be updated on the website on the effective date.
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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 clients 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.