Announcement

Eurobonds eligibility in T2S – Phase 1

Custody | Settlement

Reference

Code
C19033
Service level
CEU OneClearstream
Last Updated
21.11.2019

As a next milestone in implementing our enhanced Investor-CSD solution, effective

2 December 2019

Clearstream Banking AG1 is pleased to announce the eligibility of Eurobonds for settlement in CBF-T2S, in its objective to further extend the high-quality post trade suite of services offered by OneClearstream as a single gateway to all TARGET2-Securities (T2S) and global markets and to offer customers the key benefits as described below.

Customer benefits of Eurobonds eligibility in T2S

  • Unlock T2S benefits with liquidity pooling on a single Dedicated Cash Account (DCA) and therefore capital savings;
  • Offer a choice of money quality to customers between central bank money (via CBF) and commercial bank money (via CBL);
  • Use Eurobonds for collateral purposes in T2S.

Type of assets

Clearstream is taking a staggered approach by making the first XS Eurobonds eligible in T2S in December 2019, followed by subsequent phases to be announced, and including cross-CSD settlement at a later stage.

Phase 1 – 2 December 2019

The asset scope of phase one encompasses a short-list of Eurobonds which are:

  • ECB collateral eligible only;
  • Stock exchange, Eurex Repo, and CCP eligible Eurobonds will not be in scope of the first phase.

The scope of ISINs is determined as follows:

  • XS1509110877 – BIL Luxembourg S.A.
  • XS1513754991 – BIL Luxembourg S.A.
  • XS1739993308 – Municipality FIN
  • XS1883348226 – Aktia Bank PLC
  • XS2033330569 – BIL Luxembourg S.A.

Settlement

The following high-level Eurobonds settlement in T2S flows are available as of Phase 1:

  • CBF/CBF;
  • CBF/CBL;
  • CBF/LuxCSD;
  • LuxCSD/LuxCSD.

Asset servicing

The selected Eurobonds will be processed with OneClearstream asset servicing.

Safe custody type

Clearstream reminds customers that the five ISINs that will become eligible in T2S will be flagged in WM with the sub-custody value “NCSC-T” represented by field GD400=60. As communicated ahead of the introduction of the NCSC-T flag in June 2019, value “60“ will replace any value currently allocated to this field2.

Current T2S-eligible Eurobonds

The two Eurobonds which are currently already T2S eligible remain CSC and will continue to be served by KADI:

  • XS1071847245
  • XS1196862889

Further information

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. Field GD430 will enable customers to identify an NGN.