Italy: OneClearstream activation for Monte Titoli issued securities - Asset services market specifics
Effective
26 March 2018
with the activation of OneClearstream services for Monte Titoli issued securities and in addition to the previous communications via Release Notes and Announcements (see links below), asset servicing will be subject to the following market specific changes.
Corporate actions on stock (based on settled positions)
For Clearstream Banking AG1 customers, using the OneClearstream service, corporate actions on stock will be subject to the OneClearstream service level as described in the OneClearstream Functional Specifications (for example payment of all corporate action proceeds in T2S, TEFRA D procedure handling via corporate action flows, asset servicing instructions and reporting in OneClearstream standards and at sub-account level, the use of blocking sub-account 851).
There is no change of service level for Clearstream Banking S.A.2 customers.
We remind our customers that the Sale and Purchase of Rights for the Italian market will be suspended from 26 March 2018 as announced in D17070 for Clearstream Banking AG customers and in A17164 for Clearstream Banking S.A customers.
Corporate actions on flows (market claims, transformations and buyer protection)
For CBF customers, using the OneClearstream service, corporate actions on flows will be subject to OneClearstream service level as described in the OneClearstream Functional Specifications (for example payment of all market claims proceeds in T2S, asset servicing reporting in OneClearstream standards).
There is no change of service level for CBL customers except the below:
Market claims and reverse market claims
Market claims and reverse market claims applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.
The detection and compensation rules for market claims and reverse market claims on domestic trades will be further aligned with the Issuer-CSD rules.
Please refer to the Market Link Guide for further information.
Transformations
Re-instructions due to transformations applied to domestic trades with OneClearstream market counterparties will be generated as matching settlement instructions.
The detection, cancellation and re-instruction rules for transformations on domestic trades will be further aligned with the Issuer-CSD rules.
Please refer to the Market Link Guide for further information.
Buyer protection
Clearstream Banking will adhere to the buyer protection standards by applying the manual buyer protection mechanism.
The manual buyer protection mechanism is a bilateral agreement between the trading parties by means of a manual process (no intervention from the market infrastructure regarding the exchange of buyer protection instructions).
Clearstream Banking will report the following key buyer protection dates in the MT564/568 Corporate Action Notification, if applicable, for the relevant events.
- :98a: Guaranteed participation date :98A::GUPA
- :98a: Election to counterparty deadline :98C::ECPD
Customers must use the CASG compliant template, attached below, for buyer protection invocation (BPI) if the requested corporate action option is not the default option. The template must be completed by buyer with the relevant information (for example corporate reference, option(s), the quantity of securities and the underlying transaction) and communicated directly to the seller.
Further information
Additional information about the OneClearstream services activation and migration can be found on the Clearstream website under Product and Services, OneClearstream.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. 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. Clearstream Banking S.A. (CBL), registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
3. Including Clearstream Banking AG customers with Clearstream Banking S.A. 6-series accounts.