Corporate Action Harmonisation: Postponement of Production launch from 24 October to 21 November 2022 - Update
Note: This announcement, originally published on 30 September 2022 and updated on 19 October 2022, has been further updated to provide information on the timeline and impact on customers. Changes have been highlighted.
Clearstream Banking AG Frankfurt1 informs customers about the change of the indicated deployment date for the Corporate Action Harmonisation project (KADI DE Migration to OneCAS), originally planned for 24 October 2022. The implementation of the entire Corporate Action Harmonisation project will be postponed to
the weekend 19 and 20 November 2022
for business day, Monday, 21 November 2022
Background
On 30 September 2022, the decision was made by Clearstream Banking that the implementation of Corporate Action Harmonisation will be introduced on 21 November 2022. After a market consultation including customers and partners, it has shown that in order to achieve the best level of confidence for the market, it is best to allow all participants further preparation and testing time to enable a smooth and seamless KADI DE Migration to OneCAS. As a result of this, Clearstream Banking has taken a decision to postpone the KADI DE Migration to OneCAS from initially planned 24 October 2022 to 21 November 2022.
Until the new migration date, 21 November 2022, corporate action processing for the securities and events in scope of KADI DE Migration to OneCAS will continue to take place in KADI, under the current processing model.
Next steps
The customer simulation in the testing environment will be prolonged to ensure extensive coverage of functionalities. Test Cycle 3 (10 October to 21 October 2022) will be used as planned. Additionally, Clearstream Banking will provide Test Cycle 4 in the timeframe of 24 October to 18 November 2022 (dates to be announced in due course) to ensure proper level of market readiness and smooth migration. Test cases and event details for both test cycles will be communicated to the SPOCs of registered customers via the established communication channel.
The published documents below will be adapted to reflect the postponement in the coming days:
- Corporate Actions Harmonisation - KADI DE Migration to OneCAS - Detailed Functional Specifications;
- Announcement D22016; and
- The OneClearstream rollout page.
Impact on customers
Following an interdependency between the Collateral Mobility project, which will be implemented on 24 October 2022, and the Corporate Action Harmonisation project, which has now been postponed to 21 November 2022, there is a change in customer reporting for the time between 24 October and 21 November 2022.
In the event of payment of corporate action proceeds for holdings on collateral (sub)accounts, customers will receive the first payment confirmation (MT566) from CBF Legacy system (KADI). The second payment confirmation after the retrocession will be sent from OneCAS. While the key information (including references and event details) remains, small changes in the formatting of the messages may apply.
Furthermore, customers need to ensure that a reporting subscription for MT566 messages is already in place from 24 October 2022. Depending on the subscription details, this may lead to further differences for the two MT566 messages (for example, different sender BIC).
Additional updates to timeline
Some functionalities will be postponed further than the implementation date on 21 November 2022. Those include:
- MT565 for deductions. Customers may continue to send MT599 or use the CASCADE functionality (MT54x) for the purpose of instructing deductions, as at present. The implementation of MT565 to be used for deductions is planned for the post-release in April 2023.
- Reversal announcement. That is, cancellations of reversal announcements will continue to be announced with :23G::CANC. The implementation of using :23G::ADDB with 22F::ADDB/REVR is planned for the post-release in December 2022.
Contact
If there are any questions, customers may contact their Relationship Officer, Clearstream Client Services or the OneClearstream Customer Readiness 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.