Further to the implementation of the new platform by the Belgian National Bank’s Securities Settlement System (NBB SSS), Clearstream Banking1 wishes to provide customers with further clarification regarding the reporting of the matching status of their instructions.
Background
NBB SSS has implemented the TARGET2-Securities (T2S) matching rules to its platform effective
2 February 2015.
This means in practice that in accordance with T2S rules should the instructions of the counterparties not match, an unmatched status is no longer released by NBB SSS.
Impact on customers
This change of service can be partly mitigated by customers via the allegement and matching service offered by Clearstream Banking. Clearstream attempts to match customer instructions with the allegement received from the domestic markets and reports to customers with either an inferred matching or mismatch reason using the INMH status. In order for this service to be optimal we encourage customers to request that their counterparties quote the customer’s Clearstream account number in the counterparty’s instructions.
Market Claims and Transformations
Note: further to the decision of the NBB not to implement the Market Claim and Transformation service, we have configured the “No Market Claim” indicator at our account level with the NBB SSS. Customers therefore do not need to include this indicator in their settlement instructions sent to Clearstream.
As the same set-up is made by all participants in the NBB SSS, allegements are received by Clearstream with the “No Market Claim” indicator. Such an indicator is detected as a mismatch in our comparison algorithm when the indicator is not provided on our customer’s instructions. Customers should ignore this mismatch reason reported on their instructions until the NBB implements the service. The NBB has not yet announced an implementation date.
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 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, and 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.