Reporting of the Market Identification Code (MIC) for stock exchange trades (LION) – Update due to transition period
Note: This announcement, originally published on 13 March 2020 and updated on 28 August 2020, has been further updated to inform customers about a transition period agreed with market participants regarding the CBF settlement reporting in the data field "Place of Trade".
Clearstream Banking AG, Frankfurt1 informed customers in March 2020 about the implementation approach of the future mapping of the field “Place of Trade” in stock exchange trades provided for settlement via LION. From Monday, 23 November 2020, in alignment with the local stock exchanges and their service providers, the information related to the “Place of Trade“ was supposed to be provided in the CBF Settlement Reporting using exclusively the "ISO 10383 Market Identification Code (MIC)“ list.
Now the transition for the display of the MIC in LION instructions will be done at a later time. According to the current planning, the change will be implemented in two stages. In the first phase expected in June 2021, the MIC sent by the stock exchanges will be transmitted in instructions which are sent for processing to the settlement platform Creation of Clearstream Banking S.A. (CBL). From November 2021, this rule will also apply to securities settled via TARGET2-Securities (T2S).
Therefore, the current LION reporting will remain available even after
Monday, 23 November 2020
The “Börsenplatzschlüssel” (“Pseudo-MIC”) will be shown as today.
Background
Along with the implementation of the T2S Release 3.2 in November 2019, for CBF instruction types AA01 (delivery instructions) and AA02 (receipt instructions) a validation of the Place of Trade (“BOERSENPL”) against the "ISO 10383 Market Identification Code (MIC)“ list was introduced. The related functional description was published in Announcements D19036 and D19058.
CBF will implement the modification of the settlement reporting concerning the MIC for stock exchange instructions (CBF intruction type AA10) so that the established ISO standard is availble to all customers consistently.
Implementation approach
The Central Securities Depository Regulation (CSDR) requires all CSDs, to implement the necessary measures in a timely manner. CBF provides trading venues the option to transmit the ISO standard compliant place of trading for LION instructions.
After the implementation of the CBF Release November 2020, CBF will continue to send current MICs for further processing on TARGET2-Securities (T2S) to comply with the for ISO standards requirements on the pan-european settlement platform. This means, CBF will continue to report in outbound messages to T2S the ISO standard compliant MIC provided by the stock exchanges and their trading venues.
Potential customer impact
CBF will store the place of trading data as provided by the stock exchanges in the repository and will send it for further processing to T2S.
- For customers acting in ICP mode, the settlement reporting for stock exchange trades (for example MT537 “SE Statement of pending Transactions” continues to show in field “94B::TRAD//EXCH/”) the CBF generated Börsenplatzschlüssel (“Pseudo-MIC”).
- For customers acting in DCP mode, a valid MIC will be displayed in the T2S reporting, if this value was transmitted to CBF by the trading venues. CBF will transmit the MIC to T2S using “Securities Settlement Transaction Instruction (sese.023)” in field “<Id><MktIdrCd>” together with the value “<Tp><Cd><EXCH>” in sequence “<MktTpAndId>”.
Contact
Please contact our Client Services teams for questions regarding the functionality. Questions related to the technical connection can be addressed to our Connectivity Support team. Particular questions related to the Market Identification Code and its allocation will be routed to the experts of the T2S Settlement Functionality team.
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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.