Entitlement Compensation Rules - Spain

22.03.2018

Bonds

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:Yes, see Additional information below
Restriction on custody events/transaction types:Not applicable
Tax status of claimGross amount

Equities

Market compensation basis:Trade date
Automatic Compensation Managed by Local CSD:Yes, see Additional information below.
Restriction on custody events/transaction types:No restriction
Tax status of claimGross amount

Additional information:
Cash market claims will be processed gross.

Market claims (for both cash and securities where applicable) for instructions on securities
eligible in Iberclear will be detected and processed by the issuer CSDs and subsequently by the agent
and/or the depository and Clearstream Banking. Once detected by the issuer CSDs after the close of
business on record date and for the next 20 T2S business days, Clearstream Banking will report them to customers in the Market Claim Report with the relevant status of the market claim. In addition to the
existing statuses, a new status “Partially compensated” will be available. Compensation credits/debits
will be reported to customers via MT566 with indicator :22F::ADDB//CLAI.

The issuer CSDs apply trade date accounting for securities that are in units and settlement date
accounting for securities that are in nominal.

Market claims in T2S will have their own lifecycle once matched (via Already Matched instructions) by
the issuer CSD and will settle independently from the underlying settlement instruction. Although no
action is required from customers, if the customer and its counterparty bilaterally cancel the
underlying settlement instruction, the customer will need to agree directly with its counterparty about the reversal or the cancellation of the market claim.

Service offered by CBL:
Adjustment is performed based on information received from the depository. Depending on the complexity of the trades involved, the compensation process can take up to several months on the Spanish market.