Transaction management rules - International
Market claims and reverse market claims
Market claims | Reverse market claims | |
Processing of market claims and reverse market claims | Applicable | Applicable |
Eligible corporate action events | All income and non-income distribution events in cash and securities | All income and non-income distribution events in cash and securities |
Detection period | 20 T2S opening days after the record date | On the record date |
Eligible transactions | All as of status matched | All as of status settled |
Detection key dates | Securities in units:
| Securities in units:
|
Opt-out/Ex/Cum indicator | Supported as additional matching field | Supported as additional matching field |
Characteristics of market claims/reverse market instructions |
|
|
Tax status of claims | Subject to specific rules on a case-by-case basis | Subject to specific rules on a case-by-case basis |
Market specifics |
Note: For market claims on the transactions against counterparties in CBL (that is, CBF - CBL and LuxCSD - CBL), will be generated automatically and paid on the corresponding CBL accounts. |
Scenarios for market claim detection for securities in nominal
TD before Ex-datea | ISD before or on RD | ASD before or on RD | Opt-out indicator | Ex/Cum indicator | Market claim to be created | Direction |
Y/N | Y | N | Blank | N/A | Y | From Seller to Buyer |
a. N means TD => Ex-Date but TD <= RD.
Scenarios for market claims detection for securities in units
TD before Ex-datea | ISD before or on RD | ASD before or on RD | Opt-out indicator | Ex/Cum indicator | Market claim to be created | Direction |
Y | n/a | N | Blank | Blank/Cum | Y | From Seller to Buyer |
N | n/a | N | Blank | Cum | Y | From Seller to Buyer |
N | n/a | Y | Blank | Blank/Ex | Yb | From Buyer to Seller |
Y | n/a | Y | Blank | Ex | Yb | From Buyer to Seller |
a. N means TD => Ex-Date but TD <= RD.
b. Reverse market claims.
No market claim detection for transactions in which opt-out is present
TD before Ex-datea | ISD before or on RD | ASD before or on RD | Opt-out indicator | Ex/Cum indicator | Market claim to be created | Direction |
n/a | n/a | n/a | Opt-out | n/a | No | n/a |
a. N means TD => Ex-Date but TD <= RD.
Market claims and reverse market claims on CBL customer transactions
Internal CBL-CBL | Bridge CBL-EB | Cross - CSD CBL-CBF, CBL - LuxCSD | |
Detection | Yes | Yes | Yes |
Compensation | Yes | No | Yesa |
a. Market claims and reverse market claims in cash will be generated and paid on the corresponding CBL accounts.
Market claims and reverse market claims on CBF OneClearstream customer transactions
Intra-CSD CBF-CBF | Cross-CSD CBF – EB | Cross- CSD CBF-CBL, CBF - LuxCSD | |
Detection | Yes | Yes | Yes |
Compensation | Yes | No | Yesa |
Market claims and reverse market claims in non-T2S eligible proceeds are processed on the corresponding CBF-i or CBL account of the CBF OneClearstream customer.
a. For the trades with counterparties in CBL, market claims and reverse market claims in cash will be generated and paid on the corresponding CBL accounts.
Both market claims instructions, in cash and in securities, are generated as matching settlement instructions on behalf of customer accounts, flagged as follows:
MT54x | sese.023/sese.025 | |
Market claim and reverse market claim instruction | :22F::SETR//CLAI | Transaction code: CLAI |
All detected market claims are reported to customers in the Custody Market Claims report; all detected market claims subject to compensation are reported via MT564 Claim and Reversal Advice.
All processed market claims and reverse market claims are reported in the Custody Market Claims report and via MT566 CA Confirmation.
The market claims are also visible in Xact Web Portal.
Transformations
Transformations | Comments | |
Processing of transformations | Applicable | |
Eligible corporate action events | All income and non-income mandatory reorganisation events in cash and securities | Voluntary reorganisations are subject to buyer protection |
Detection period | 20 T2S opening days after the record date | |
Eligible transactions | All as of status matched | |
Detection key dates |
| |
Opt-out indicator |
| |
Characteristics of re-instructions due to transformations |
| |
Market specifics |
Note:Transformations in cash on the transactions against counterparties in CBL (that is, CBF - CBL and LuxCSD - CBL), will be generated automatically and paid on the corresponding CBL accounts. |
Scenarios for transformations
Reorganisation event type | Cancellation instruction to be created | Opt-out Indicator | Transformed instruction to be created |
MAND | Y | Blank | Y |
MAND | Y | Opt-out | N |
CHOS | Y | Blank | Y (using default option) |
CHOS | Y | Opt-out | N |
VOLU | N | Blank | N |
VOLU | N | Opt-out | N |
Transformations of CBL customer transactions
Internal CBL-CBL | Bridge CBL-EB | Cross - CSD CBL-CBF, CBL - LuxCSD | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yes | No | Yesa |
a. Re-instructions in cash are generated and paid on the corresponding CBL accounts.
Transformation of CBF OneClearstream customer transactions
Intra-CSD CBF-CBF | Cross-CSD CBF – EB | Cross- CSD CBF-CBL, CBF - LuxCSD | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yes | No | Yesa |
Re-instructions in non-T2S eligible proceeds are processed on the corresponding CBF-i or CBL account of the CBF customer.
a. Re-instructions in cash are generated and paid on the corresponding CBL accounts.
Both re-instructions, in cash and in securities, are generated as matching settlement instructions on behalf of customer accounts, flagged as follows:
MT54x | sese.023/sese.025 | |
Re-instructions in securities | :22F::SETR//as in the underlying instruction :22F::STCO//TRAN | Transaction code: as in the underlying instruction Transaction condition: TRAN |
Re-instructions in cash | :22F::SETR//CORP :22F::STCO//TRAN | Transaction code: CORP Transaction condition: TRAN |
Transformations are subject to settlement reporting.
Buyer protection
The Buyer Protection key dates are currently not available. However, the buyers having the pending positions impacted by a corporate action are notified about relevant events details and deadlines via MT564 CA Notifications. In line with CASG standards, they can use the CAJWG compliant BP invocation template (see attached) to communicate their CA election choice to the seller.