Transaction management rules - Ireland

25.11.2024

Market Claims

Overview

Detection

Yes

Processing

Yes

Detection

Detection period

20 Clearstream business days after the record date

Eligible corporate action events

All income and non-income distribution events in cash and securities 

Eligible transactions for detection

Internal
All as of status matched

External
All as of status matched

Detection key dates

Events on securities in units

  • Trade date
  • Ex-date
  • Record date
  • Effective settlement date

Events on securities in nominal

  • Record date
  • Intended settlement date
  • Effective settlement date

Processing

Eligible transactions for processing

Securities in units

  • All as of status matched

Securities in nominal

  • Settled (Corporate bonds)
  • n/a (Government bonds)

Opt-out/Ex/Cum indicator

Supported as additional matching field.

Characteristics of generated market claim instructions

Internal:

  • Transaction code “CLAI”
  • Status unmatched  
  • Same trade date as per underlying instruction
  • Settlement date being the payment date of the underlying event
  • Partial settlement indicator as per underlying instruction (always NPAR for claims in cash)
  • Instruction will be generated in released mode even if the underlying instruction was on hold.

External:

  • Transaction code “CLAI”

Cash and securities proceeds are compensated upon receipt of confirmation from the CSD.
Applicable to CBL clients only. Market claims between the CBF/LuxCSD client and domestic counterparty are n/a since the CBF/LuxCSD client must first transfer its holding to a CBL/ICSD account to trade with a domestic counterparty.

 

Market specifics

Market claims are not processed for:


  • Events on government bonds

Taxation of market claims

Type of market claim

Withholding tax rate

Compensation basis

Tax relief available

Tax Reclaim available

Cash dividend

25%

Net

No

Yes

Interest payment

0%

n/a

n/a

n/a

Further
specifics

As an exception, the market claim will be debited gross of withholding tax from the seller (or buyer in case of reverse market claim) and the withholding tax amount will be returned by us to the Revenue Commissioners, if the following conditions are cumulatively met:

1. the seller (or buyer) account is set-up as a segregated account exclusively holding its proprietary assets

2. the seller (or buyer) is a qualifying non-resident person or an excluded Irish person

3. the market claim amount being debited represents a dividend amount received by the seller (or buyer) gross of withholding tax based on its record date position

Transformations

Overview

Transformation Cancellation

Yes

Transformation Reinstruction

Yes

Detection/Cancellation

Detection period

20 Clearstream business days after the record date

Eligible corporate action events

All income and non-income mandatory reorganisation events in cash and securities

Eligible transactions for detection/cancellation

Internal:
 

Status matched, but still pending

External:

Status unmatched and matched, but still pending


 

Detection key dates

Mandatory reorganisation events without options

Record date

Mandatory reorganisation events with options

Market deadline

Processing

Eligible transactions for processing

Internal:

Detected and cancelled

External:

Detected and cancelled

Opt-out indicator

Supported as additional matching field.

Characteristics of reinstruction instructions


 

Internal:

  • Transaction condition “TRAN”
  • Status unmatched
  • Same trade date as per underlying instruction
  • Settlement date being the latest date between the payment date of the underlying event and the intended settlement date of the underlying instruction
  • Partial settlement indicator as per underlying instruction
  • On-hold/release status as per underlying instruction

External:

  • Cash and securities proceeds are reinstructed upon the receipt of the settlement confirmation from the CSD.

Applicable to CBL clients only. Transformations between CBF/LuxCSD client and domestic counterparty are N/A since CBF/LuxCSD client must first transfer its holding to CBL/ICSD account to trade with a domestic counterparty.

Market specifics




 

Transformations are processed only on mandatory reorganisations in securities without options with a ratio that is a whole integer.

Euroclear Bank cancels pending instructions and replace them with new instructions in the new security proceeds.

For mandatory reorganisations with a more complex ratio, Euroclear Bank only cancels pending instructions. Customers need to agree with their counterparties to input new instructions in the new security outturn.

There are no transformations on a mandatory reorganisation in securities with option and no transformation on a mandatory reorganisation in cash

There are no transformations on voluntary events.

Euroclear Bank generates the replacement instruction with the same stamp duty transaction fields as the original cancelled instruction.

Equities in Euroclear UK & International

Please refer to Entitlement compensation rules – UK which are also applicable to Irish equities eligible in the CREST system.

Buyer protection

Subject to Manual Buyer Protection mechanism.

Additional information can be found in the CBL Client Handbook, the Client Handbook for clients using the OneClearstream service and the Client Handbook – LuxCSD, respectively.