Further enhancements to transaction management rules - update
Note: This announcement originally published on 24 August 2018 and updated on 5 September 2018, has been amended to add further operational details about eligible types of trades.
Clearstream Banking1 informs customers that OneClearstream will further comply with the Issuer-CSD rules for each T2S market, driven by the T2S standards and adapt its current market claims and reverse market claims compensation processing as well as its transformations processing.
The below applies to all trades (OTC and SE) unless otherwise specified.
Compensation instructions for T2S securities (Market claim and reverse market claim)
For internal and cross-border trades in T2S securities, depending on the market practice, the compensation instruction is either generated:
- on record date end of day, regardless of the payment status of the related corporate action event (all T2S markets for Eurex Clearing2 trades and all T2S markets except Austria and Germany for LION and OTC trades); or
- when the corporate action event has been paid if the underlying instruction is at least matched, or settled in case of a reverse market claim (non-T2S markets, Austria and Germany, not applicable for Eurex Clearing trades).
In both cases, the intended settlement date of the compensation is the payment date of the event.
Compensation instructions for proceeds not eligible in T2S
For cross-border trades with counterparties from non-Clearstream entities on all T2S markets, where the event’s cash or security proceed is not T2S eligible, Clearstream Banking will only perform the detection.
Note: For other trades (for example, internal (including stock exchange trades), domestic), Clearstream Banking will still perform the detection and the compensation that will be paid to the corresponding ICSD account of the customer.
Transformations for proceeds not eligible in T2S
For cross-border trades with counterparties from non-Clearstream entities on all T2S markets, when the event’s cash or security proceed is not T2S eligible, Clearstream Banking will only perform the cancellation.
Note: For other trades (for example internal (including stock exchange trades), domestic), Clearstream Banking will still perform the cancellation and the re-instruction that will be paid to the corresponding ICSD account of the customer.
Multiple proceeds resulting from a corporate action (cash and securities)
The detection will always be done and the compensation instructions for multiple proceeds (cash and securities) will always be generated except for the markets where not applicable as indicated in the Market Link Guides.
The detection and cancellation for transformations will always be generated. The re-instruction will be generated as well except for the markets where not applicable as indicated in the Market Link Guides.
Eurex Clearing trades are always compensated and re-instructed regardless of market specific rules.
Market claim report statuses
The market claim lifecycle will be modified to ease the monitoring of compensations. The list of market claim statuses will be updated as follows:
- Awaiting local market feedback
- To be compensated
- Compensation created (New)
- Reversal created (New)
- Repayment created (New)
- Cancellation created (New)
- No compensation by Clearstream
- Partially paid
- To be reversed
- To be repaid
From implementation date 1 December 2018, the above described changes will be applicable to both on-going and new market claims and transformations instructions.
For further information, customers 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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.