Belgium: EU Issuance Service (EIS)
Note: This Announcement, originally published on 22 February 2023, has been updated to inform about a second testing period. The changes have been highlighted.
Clearstream Banking1 informs customers that further to the announcement made by the European Commission regarding the NextGenerationEU issuance that will take place in Q3 2023 (date to be confirmed by the EU), Clearstream Banking will fully support customers that are part of the EU issuance Service via its existing link to the National Bank of Belgium (NBB).
Background
On 12 July 2022, the European Commission launched the process for organising the settlement of NextGenerationEU and other EU bonds through the payment and settlement infrastructure of the Eurosystem. In following this route, EU bond issuance will be aligned with the arrangements used by EU sovereign issuers and the European Stability Mechanism (ESM) whose bond transactions are settled in central bank money.
Following a selection process, the European Commission has decided to work with the European Central Bank (ECB), which will serve as a paying agent, and the NBB, which will act as Issuer CSD and settlement agent for all EU debt securities once the EU issuance service is in place.
The total assets under custody (AuC) that will be issued by the EU will quickly reach more than EUR 1000 bn.
Over time, this will also include the European Investment Bank (EIB) issuance, the European Stability Mechanism (ESM) and similar supranational entities.
Impact on customers
Customers can access this issuance via Clearstream Banking following Investor CSD links:
Via CSD: | Clearstream Banking AG Frankfurt (CBF) |
Via ICSD: | Clearstream Banking S.A. Luxembourg (CBL) (Relayed Link via CBF) |
Customers are invited to test during the proposed testing window.
Testing period and scenarios
The testing period has been confirmed during the info session held by the EU and NBB on 7 February 2023 and will take place between 28 February 2023 and 10 March 2023.
A second testing period has been confirmed and will take place between 3 May 2023 and 16 May 2023.
Test case scenariosand testing timeline can be found on the NBB website.
Testing instructions formats
Requirements for customer testing participation
Steps | Requirements |
Step 1 | Customers should provide Clearstream Banking with either their CBL or CBF account that will be used for testing. |
Step 2 | Customers should let Clearstream Banking know if they are requesting any settlement message configurations for the selected accounts in Step 1. |
Step 3 | The ISIN within the scope of testing is EUCOMMI12347. |
Step 4 | When instructing an RVP instruction (MT541 leg), the corresponding details in NBB for the EU Commission are presented on the following pages, depending on whether a CBF or CBL account is used. For their convenience, customers should refer to the "allegement sese.028/MT578" format sent by T2S and the corresponding 2nd leg PLAC instructions to be sent by the Primary Dealer sese.023/MT541 in the attached document. |
Step 5 | For corporate action processing, customers should ensure that the selected test account can receive MT564/seev.031, MT564/seev.035 and MT566 messages. If a message configuration setup is required, customers should contact the Clearstream Connectivity Support team at connect@clearstream.com. |
Step 6 | Customers should ensure that their DCA or cash account is sufficiently funded. |
Cross-CSD settlement between a CBL participant and a NBB participant
MT541 (Primary Dealer) | MT543 (NBB / European Commission) |
:16R:GENL | :16R:GENL |
:20C::SEME//XXXX | :20C::SEME//XXXX |
:23G:NEWM | :23G:NEWM |
:16S:GENL | :16S:GENL |
:16R:TRADDET | :16R:TRADDET |
:98A::SETT//2023XXXX | :98A::SETT//2023XXXX |
:98A::TRAD//2023XXXX | :98A::TRAD//2023XXXX |
:35B:ISIN XXXXXXXXXXXX | :35B:ISIN XXXXXXXXXXXX |
:16S:TRADDET | :16S:TRADDET |
:16R:FIAC | :16R:FIAC |
:36B::SETT//FAMT/XXXX, | :36B::SETT//FAMT/XXXX, |
:97A::SAFE//5 digit account of the CBL client | :97A::SAFE//NBB account |
:16S:FIAC | :16S:FIAC |
:16R:SETDET | :16R:SETDET |
:22F::SETR//PLAC | :22F::SETR//PLAC |
:22F::STCO//NOMC | :22F::STCO//NOMC |
:22F::STCO//NPAR | :22F::STCO//NPAR |
:16R:SETPRTY | :16R:SETPRTY |
:95P::DEAG//EUCOLULLXXX | :95P::REAG//CEDELULLXXX |
:16S:SETPRTY | :16S:SETPRTY |
:16R:SETPRTY | :16R:SETPRTY |
:95P::BUYR//BIC 11 of CBL client (automatically populated by Clearstream, client do not need to mention it) | :95P::BUYR//BIC 11 of CBL client |
:16S:SETPRTY | :16S:SETPRTY |
:16R:SETPRTY | :16R:SETPRTY |
:95P::PSET//NBBEBEBB216 | :95P::PSET//DAKVDEFFXXX |
:16S:SETPRTY | :16S:SETPRTY |
:16R:AMT | :16R:AMT |
:19A::SETT//EURXXXX | :19A::SETT//EURXXXX |
:16S:AMT | :16S:AMT |
:16S:SETDET | :16S:SETDET |
Cross-CSD settlement between a CBF participant and a NBB participant (CASCADE via Swift connectivity)
MT541 (Primary Dealer) | MT543 (NBB / European Commission) |
:16R:GENL | :16R:GENL |
:20C::SEME//XXXX | :20C::SEME//XXXX |
:23G:NEWM | :23G:NEWM |
:16S:GENL | :16S:GENL |
:16R:TRADDET | :16R:TRADDET |
:98A::SETT//2023XXXX | :98A::SETT//2023XXXX |
:98A::TRAD//2023XXXX | :98A::TRAD//2023XXXX |
:35B:ISIN XXXXXXXXXXXX | :35B:ISIN XXXXXXXXXXXX |
:16S:TRADDET | :16S:TRADDET |
:16R:FIAC | :16R:FIAC |
:36B::SETT//FAMT/XXXX, | :36B::SETT//FAMT/XXXX, |
:97A::SAFE//4-digit account master or 7-digit account in CASCADE | :97A::SAFE//NBB account |
:16S:FIAC | :16S:FIAC |
:16R:SETDET | :16R:SETDET |
:22F::SETR//PLAC | :22F::SETR//PLAC |
:22F::STCO//NOMC | :22F::STCO//NOMC |
:22F::STCO//NPAR | :22F::STCO//NPAR |
:16R:SETPRTY | :16R:SETPRTY |
:95P::DEAG//NBBEBEBB216 | :95P::REAG//BIC 11 of CBF client |
:16S:SETPRTY | :16S:SETPRTY |
:16R:SETPRTY | :16R:SETPRTY |
:95P::SELL//EUCOLUL0XXX | :95P::PSET//DAKVDEFFXXX |
:16S:SETPRTY | :16S:SETPRTY |
:16R:SETPRTY | :16R:AMT |
:95P::PSET//DAKVDEFFXXX | :19A::SETT//EURXXXX |
:16S:SETPRTY | :16S:AMT |
:16R:AMT | :16S:SETDET |
:19A::SETT//EURXXXX | |
:16S:AMT | |
:16S:SETDET |
The EU Primary Dealer Network
A list of the EU primary dealers can be found on the European Commission’s website.
Further information
For further information, please contact Clearstream Banking Client Services or your Relationship Officer.
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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.