OneClearstream migration to Denmark (VP/Euronext Securities Copenhagen)
Clearstream Banking1 (CBL) has appointed Clearstream Banking AG (CBF) as its single gateway to the T2S Settlement platform. This will lead to the migration of VP / Euronext Securities Copenhagen (ES Copenhagen) T2S-eligible securities to CBF on and effective:
11 July 2022
This forms part of our ongoing efforts to harmonise and enhance our services allowing customers to benefit across multiple areas of our business.
Scope of securities relevant for the migration and exceptions
Clearstream Banking access VP/ES Copenhagen for settlement in T2S via CBF as follows:
Country | CSD | Type of link | Securities eligible |
Denmark | VP/ES Copenhagen | Direct link to Clearstream Banking AG, Frankfurt for holding VP/ES Copenhagen eligible securities | Government bonds, corporate bonds, mortgage bonds, money markets instruments, equities |
This will not apply to the following securities:
- Some securities with an upcoming maturity date;
- Securities subject to ongoing corporate action events (with key dates around 8 or 11 July 2022), will remain in the former setup (under CBL depository code 85) and be migrated as soon as possible after the migration date. Customers will be informed as from two weeks prior to the initial migration date about the impacted securities. The final list will be provided on the Thursday before the migration.
New depository details
The change of depository will be effective as of settlement date 11 July 2022.
For all T2S assets to be migrated to CBF, the following new depository code will apply:
Entities | Depository code |
Current Provider: Den Danske Bank | 85 |
New Provider: VP Denmark/ES Copenhagen | 4D |
Settlement timings
The following settlement deadlines will be applicable to customers:
Link | Current | New | Current | New |
VP Denmark | 15:40 SD | 15:55 SD | 17:40 SD | 17:55 SD |
Procedures for domestic counterparties
Customers are requested to inform their local counterparties to use the following details for instructions that settle against Clearstream Banking:
CBL
Migrated securities | |
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent | CEDELULLXXX |
SAFFE2 of the DEAG/REAG | Not to be instructed - If instructed, it must be the valid CBL SAC VP Denmark: DAKV7201101 |
Buyer/Seller | BIC11 of the CBL customer |
Settlement cut-off time 8 July 2022
Migration impact on customers
In order to facilitate the start of the migration process on 8 July 2022, CBL will set-up an earlier end of day cut- off deadlines. The Clearstream Banking customer deadlines on Friday 8 July are as follows:
- Against payment in EUR / DKK: 12:00 CET instead of 15:40 CET;
- Free of payment: 12:00 CET instead of 17:40 CET.
Domestic instructions
Clearstream Banking will proceed with the migration of settled positions to the new depository, CBF, from 12:00 CET on 8 July 2022. No action is required from customers for all domestic instructions that settle before 12:00 CET.
Customer instructions for migrating securities:
- received by Clearstream Banking after the cut-off time of 12:00; or
- that have been sent to Clearstream Banking before the early cut-off time at 12:00, but are not yet released to the domestic market, for example, due to lack of provisioning,
will be sent to the new depository CBF in the course of the migration and may match and settle on a “best efforts” basis.
All pending unmatched domestic instructions will be cancelled by CBL before the start of the migration at 12:00 CET.
For all pending matched domestic instructions, customers must contact their counterparties as early as possible to ensure that these instructions are cancelled by both counterparties by 12:00 CET, as the bilateral cancellation principle applies.
All instructions cancelled before migration must be reinstructed by customers and their counterparties (with the new place of settlement DAKVDEFFXXX) after 15:00 CET.
- Important Note
Customers should note that late matching penalties will be applied by T2S for the reinstructions when the initial, that is, past intended settlement date is kept by the customers. Such penalties will NOT be waived by T2S/Clearstream.
In order to reduce the number of matched instructions at the time of migration to a minimum, Clearstream Banking will suspend the instruction pre-matching service one week before the migration weekend on the evening of Friday 1 July 2022.
The re-activation of the Instruction Pre-Matching service is scheduled for the evening of Friday 15 July 2022. Customers should be aware that domestic settlement instructions sent for pre- matching purposes only (with field :23G::PREA) will not be forwarded to Danske Bank while the Instruction Pre- Matching service is suspended. The Immediate Release Flag service, that triggers immediate provisioning and submission of the instruction to the domestic market, will be available for exceptional use while the Instruction Pre-Matching service is suspended.
- Important Note
Customers should advise their counterparties that for new instructions sent to CBL after migration and in relation to the migrated securities, the counterparty details (SSI) will change and that counterparties need to instruct against the place of settlement DAKVDEFFXXX.
Internal and Bridge instructions
There is no impact on internal and Bridge instructions.
Further information
This is the current situation based on latest information, should there be any changes we will inform you accordingly. 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.
2. Although the safekeeping account of Party 1 (REAG/DEAG) is an optional matching field in T2S, if it is present on one instruction only it will only match with instructions instructed by this account.
As CBL does not forward its own SAC to the settlement parties, if the customer counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.
We encourage customers to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securi- ties account of the delivering/receiving party).