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Transaction management rules - International

04.07.2022

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: Ex date Trade date Record date Effective settlement date Securities in nominal: Record date Intended settlement date Effective settlement date	Securities in units: Ex date Trade date Record date Effective settlement date Securities in nominal: n/a
Opt-out/Ex/Cum indicator	Supported as additional matching field	Supported as additional matching field
Characteristics of market claims/reverse market instructions	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) On-hold/release status as per underlying instruction	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) On-hold/release status: n/a
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	Bridge settlement instructions are excluded from compensation and subject to detection only. For cross-CSD settlement, the compensations are generated only for the Clearstream Banking customer instruction legs The compensation is generated when the three following conditions are met: The underlying instruction has been successfully settled; The corporate actions event has been paid; The underlying instruction was not flagged as OPT OUT. 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-date^a

ISD before or on RD

ASD before or on RD

Opt-out indicator

Ex/Cum indicator

Market claim

to be created

Direction

Y/N

Blank

N/A

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-date^a	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	Y^b	From Buyer to Seller
Y	n/a	Y	Blank	Ex	Y^b	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-date^a

ISD before or on RD

ASD before or on RD

Opt-out indicator

Ex/Cum indicator

Market claim

to be created

Direction

n/a

Opt-out

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

Compensation

Yes

Yes^a

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

Compensation

Yes

Yes^a

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	Record date, for mandatory reorganisations without options Market deadline, for mandatory reorganisations with options
Opt-out indicator	Supported as additional matching field
Characteristics of re-instructions due to transformations	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 (always NPAR for transformations in cash) On-hold/release status as per underlying instruction
Market specifics	The settlement instructions that are excluded from re-instruction and subject to cancellation only: Bridge instructions; Delivery free of payment without matching. In case of cross-CSD settlement, the cancellations and re-instructions are generated only for the Clearstream Banking/LuxCSD customers’ instruction legs. The re-instruction is generated upon three following conditions are met: The underlying instruction has been successfully matched; The corporate action event has been paid; The underlying instruction was not flagged as OPT OUT. 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	Yes^a

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	Yes^a

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