CBF Release July 2022: KADI – MT564 and MT566 update of field content
Clearstream Banking AG, Frankfurt1 informs customers about modifications to the automated connectivity channels for Corporate Actions provided via the application Kapitaldienste (KADI) effective on
Monday, 4 July 2022
Background
As part of the preparation of Clearstream's Corporate Actions Harmonisation project, the changes will be implemented in July 2022. With this step, CBF aims to implement customer related technical requirements for the production launch on 24 October 2022.
Implementation approach
With the release in July 2022, two functional adjustments will be implemented:
Change in the reporting for automatic exercises of warrants
CBF will align the detailed information on the exercise of warrants for the KADI event types 280 and 281 to the SWIFT standard, thus achieving a further step towards the harmonisation in automated processing between Clearstream's corporate actions systems. The message types affected by the change are Corporate Action Notification (MT564) and Corporate Action Confirmation (MT566).
Event type2 280
At present, the following SWIFT values can be used:
- “VOLU“ (Voluntary CA Event; Participation in the corporate action is voluntary. If the owner wishes to take part in the event, instructions from the account owner are required); and
- “CHOS“ (Mandatory CA Event; Participation in the corporate action is mandatory and further instructions from the account owner are required).
These values are reported in MT564 in Sequence A - General Information in field ":22F::CAMV (Mandatory / Voluntary Indicator)".
In the future, CBF will only provide the value "CHOS". This change also has an impact on the event types (Terminarten) 122 (warrant payout) and 222 (worthless withdrawal). In future:
- In MT564, the value "CHOS" will also be used exclusively and the value "EXER" will always be provided in the field ":22F::CAOP (CA Option Code)" in Sequence E - Corporate Action Options.
- In MT566, the value "EXER" is always provided in the field ":22F::CAOP (CA Option Code)" in Sequence D - Corporate Action Confirmation.
Event type 281
At present, only the SWIFT value "MAND" (Mandatory CA Event; participation in the CA event is mandatory. Further instructions from the account holder are not required) is used.
This value is already displayed in MT564 in Sequence A - General Information in field ":22F::CAMV". In addition, CBF will display the value "LAPS" (Lapsed; Allow event or entitled security to expire) in Sequence E - Corporate Action Options in field ":22F::CAOP".
This change also impact the event types (Terminaren) 122 (warrant payout) and 222 (worthless withdrawal). In future:
- In MT564, the value "MAND" will only be provided in the field ":22F::CAMV" in Sequence A and in Sequence E - Corporate Action Options the value "EXER" will be provided using the field ":22F::CAOP".
- In MT566, in Sequence D - Corporate Action Confirmation, the value "EXER" is always provided in the field ":22F::CAOP (CA Option Code)".
Removal of the SWIFT field "Conversion Price Rate" (:90A::PRPP)
At present, information on potential fees for corporate actions related to the conversion of securities can be announced by CBF using this field. As CBF does not charge a fee for these corporate actions, the field can be removed from the message transfer (SWIFT, MQ and File Transfer (FT)) without replacement.
Customer Simulation
CBF supports simulation activities during the period from 30 May to 29 June 2022. In the ongoing customer simulation for CBF July Release 2022, additional corporate action events will be added.
Customers who have already registered to execute test cases for corporate actions will receive with separate information, a detailed test case description for the additional scheduled corporate actions with the event types 280 and 281 and associated event types 122 and 222. These test cases are expected to be executed from 13 June 2022.
Customers who have not yet registered for the customer simulation in the IMS23, are kindly asked to send a request for test participation concerning the additional corporate events to T2S-Support@clearstream.com.
Customer impact
Although the enhancements aim to harmonise procedures, customers are advised to validate the above-mentioned modifications and check whether operational and / or functional changes are necessary in their processes.
Changes in Sequence A and E of MT564 and MT566
Regarding the cutover activities of ongoing corporate actions for the above enhancements, CBF will transmit MT564 Replacement ("REPL") as outlined below:
- Event type 280 – during the processing day 4 July 2022;
- Event types 122, 222 and 281 at the end of the processing day 4 July 2022.
Removal of SWIFT field "Conversion Price Rate" (:90A::PRPP)
After the implementation of the software, this information will no longer be provided as of Monday, 4 July 2022.
Contact
Please contact your Relationship Officer if you have questions. Particular questions related to the update of field contents for MT564 and MT566 will be routed to and answered by the experts of the CBF Corporate Action 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.
2. Event type = Specific term defined in the application KADI and stands for Terminart (TA).