OneClearstream service activation for securities issued by Monte Titoli - update
Note: This update includes the latest list of ISINs and additional references to recently published announcements.
Following Clearstream Banking1’s Announcements D17028, D17034 and D17066, we provide CBF account holders with cutover information about the enhanced OneClearstream Investor-CSD service rollout for Monte Titoli issued securities that will be effective on:
26 March 2018
We would like to remind customers that the description of the future OneClearstream Investor-CSD service for Monte Titoli issued securities can be found in the OneClearstream Functional Specifications.
The Functional Specifications document must be read in conjunction with the Release Notes published prior to each implementation of the OneClearstream services and with additional announcements that address the needs of particular product or service in order to understand future service and Legacy impacts. A list of relevant publications is provided under Further information.
The OneClearstream service will introduce the changes affecting the following areas in relation to Monte Titoli issued securities:
- Account structure;
- OTC and CCP/ stock exchange settlement;
- Asset servicing;
- Tax services;
- Connectivity;
- Xemac activity;
- Investment fund services.
In order to become acquainted with the new service offering and understand the impacts, customers are strongly encouraged to participate in testing (upon subscription) and explore the new Xact Web Portal features. Please contact the Connectivity Helpdesk for further information.
New access to Italian bonds
As published in announcement D17066, CBF will enhance its link to Italian market by extending the existing scope of eligible assets to the fixed income securities issued by Monte Titoli.
If customers want to benefit from tax exemptions on Italian fixed income securities, they must provide relevant documentation including their tax identification numbers (TIN) to CBF to allow the tax exemption process. Customers settling on an account with multiple beneficial owners (X account) must include TIN information in their settlement instructions for each tax-exempt beneficial owner.
For more information about the TIN requirements, please refer to the OneClearstream Functional Specifications.
Scope of securities eligible for CBF OneClearstream service
All existing CBF eligible ISINs issued by Monte Titoli held in CSC on a CASCADE account will become part of the OneClearstream service from 26 March 2018 onward. More generally, any T2S eligible securities issued by Monte Titoli, including those currently held in CBL2, can be transferred to CBF and would be part of the OneClearstream service with exception of securities that:
- are subject to ongoing corporate action events (these securities will be made eligible within 20 T2S business days); or
- are asset types not yet supported by OneClearstream service as per the following table:
Instrument types | Impact description | Market |
Physical securities that are not T2S eligible | These securities will not be subject to OneClearstream asset servicing. | Italy |
Activation timeline
The activation of the new service will be completed in two steps on the following dates:
Activation date | Impacted securities | Important remarks |
Thursday 22 March 2018 | CBF will make the first pool of ISINs CSC eligible. Those securities will be a selection of ISINs that have been active in CBL within the last twelve months and have no ongoing corporate action events. Those securities will be setup as:
| Portfolio migration:
Stock Exchanges trades: Customers must be aware that as of Settlement date 26 March non-cleared stock exchange instructions (LION) and cleared stock exchange instructions for equities and equity-like instruments only (Eurex Clearing) in migrating securities will settle on CBF accounts. GSF collateral management services: As soon as technical pre-requisites are fulfilled, those securities will also be made available for GSF collateral management services on CBF CASCADE accounts. Until then, respective securities remain available on CBF 6-series accounts/CBL accounts. |
Thursday 19 April 2018 (at the latest) | CBF will make the remaining ISINs (in scope of the migration) CSC eligible that could not be migrated at initial migration date, due to ongoing corporate action events, eligible. Those securities will be setup as:
|
List of impacted ISINs
The list of the impacted ISINs (existing and new) will be available on the Clearstream website. The preliminary lists with all impacted ISINs will be published two weeks before the migration. The final list of ISINs will be published on Thursday prior to each migration date.
The list will be in Excel format and provide the following information:
- ISIN;
- Security long name;
- Security T2S short name;
- Issuer CSD;
- Current Custody value (CSC or NCSC);
- OneClearstream Custody value (CSC4);
- Financial instrument category (debt, equity, warrant, unit, right);
- Listed on German stock exchange (Yes or No);
- Current WM values WM-GD400;
- Current WM values WM-GD100A;
- Current WN values WM-GD420;
- OneClearstream WM values WM-GD400;
- OneClearstream WM values WM-GD420;
- Subject to OneClearstream asset servicing (either contains the “LMP - Datum ab” date or is empty.
We remind our customers that all OneClearstream asset servicing bookings in T2S-eligible proceeds and its related reporting will be done at the customer's sub-account level.
Ahead of the OneClearstream activation, customers are requested to make sure that each sub-account has an appropriate account setup and is subscribed to the relevant reporting.
To ensure a smooth OneClearstream activation on 26 March 2018:
- The customer's sub-accounts without the appropriate reporting subscription will be subject to a default reporting setup by Clearstream Banking as described in the OneClearstream Migration Guide and Announcement C18014: Automatic subscription to OneClearstream Asset Servicing reports.
- The customer's sub-accounts without the appropriate T2S setup will be linked by default by Clearstream Banking to the DCA of their main account. This default linkage is a technical setup and only applies to debits and credits originated by OneClearstream. The current DVP participation flag setup remains unchanged.
Note: As today, customers can follow the current procedure if they wish to have a new security eligible in CBF-T2S.
Migration impacts on customers
The overview of the generic customer migration impacts can be found in the OneClearstream Migration Guide (please refer to section 2.1).
There will be additional customer migration impacts specific for CBF accounts specific to the Italian market. Those impacts are related to tax services and are subject to dedicated announcements (C18002 Italy: Mandatory One-Time Certificate for capital gains tax on Italian securities – reminder, C18008 Italy T2S Monte Titoli: Cutoff tax method for debt securities and C18010 Italy: Reminder: Annual renewal of Certificate of Residence).
For information about the migration impacts on your CBF 6-series accounts or CBL accounts, please refer to the announcements A17129 Process changes due to the OneClearstream migration in 2018 - update; A18007 OneClearstream migration to Monte Titoli and C18007 Instruction specifications changes for CBL counterparties in T2S and to dedicated tax announcements (C18002 Italy: Mandatory One-Time Certificate for capital gains tax on Italian securities – reminder, A18025 Italy T2S Monte Titoli: Cutoff tax method for debt securities and A18026 Italy: Reminder: Annual renewal of Certificate of Residence).
Note: From 26 March, all customers are required to have the mandatory One-Time Certificate for Capital Gains Tax on Italian securities in place. This certificate covers the CBF customer’s entire Italian portfolio of Italian securities and is mandatory, irrespective of whether the customer holds or does not hold Italian securities. It remains valid until revoked.
Further information
Implementation date | Publications | Document |
20 November 2017 | OneClearstream: Market claims and reverse market claims Transformations SWIFT, Xact Web Portal and Xact File Transfer Report | A17099: Clearstream Banking November Release 2017 – update |
Legacy: Tax instructions and certificates | ||
12 February 2018 | OneClearstream: Income events Market claims and reverse market claims Transformations Triparty Collateral Management Service SWIFT and Xact Web Portal | A17147: Clearstream Banking February Release 2018 |
26 March 2018 | OneClearstream: Realignment formats for:
| |
| OneClearstream and Legacy: | ||
Blocking sub-account 851 | D17069: Implementation of a new blocking sub-account for non-CBF issued securities in T2S - update | |
Suspension of Sales and Purchase of rights service | ||
Italian market specifics activation | D18022: OneClearstream activation for Monte Titoli issued securities - Asset services market specifics | |
Access to Italian fixed income securities | D17066: Italy: Enhancement of the T2S link to Monte Titoli to offer fixed income securities |
Note: This is the current situation based on latest information, should there be any changes or additional information we will inform you accordingly.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.
2. Any T2S eligible securities issued by Monte Titoli for which a position was not held on the ICSD (CBL) within the last twelve months will not be made available in CBF upon activation. However, these securities can be opened upon customer request.
3. “LMP - Datum ab” is a new field in WSS Online Plus and helps customers to identify the Investor CSD securities migrated to OneClearstream.
4. A new custody value “NCSC-T” will be added as a possible value in H2 2018. This value means that those ISINs, even not qualifying for CSC status will be eligible for settlement in T2S via CBF.