ESES Markets: Transfer of foreign T2S eligible securities from Euroclear Nederland and Euroclear Belgium to Euroclear France - Update II
Further to our Announcement A15185, dated 2 October 2015 and Announcement A15193, dated 7 October 2015, Clearstream Banking1 wishes to inform customers of the new effective date of
Friday 18 March 2016
for the Euroclear Belgium and Euroclear Nederland Central Securities Depositories (CSDs) to transfer the below foreign securities to Euroclear France.
This transfer is a result of Euroclear’s TARGET2-Securities (T2S) strategy whereby Euroclear France has been appointed investor CSD within the Euroclear Settlement of Euronext-zone Securities (ESES) CSD structure. As a result, all eligible foreign securities from Euroclear Nederland and Euroclear Belgium will be transferred to Euroclear France as the CSD of reference.
This transfer of securities is planned for Friday 18 March 2016, with the CSD of reference change taking effect on Monday 21 March 2016, based on end of day positions on Friday 18 March 2016.
The foreign securities this applies to are as follows and are attached below:
- Securities that were primarily issued via a T2S CSD other than the ESES CSDs;
- Securities that were issued via a T2S CSD with which the ESES CSDs currently have, or will develop, a direct link; and
- Securities for which the settlement currency is EUR.
All other securities (including Eurobonds) will remain in their current CSD of reference.
Impact on customers
Settlement
No action is required by Clearstream Banking customers as Clearstream Banking will process the transfer on their behalf.
As a result of the migration, Euroclear anticipates that the results of the ESES overnight settlement for the accounting day of Friday 18 March 2016 might be delayed.
However, customers should note that on Friday 18 March 2016, starting from 18:00 CET, pending instructions with intended settlement date prior to 21 March 2016 will be automatically modified with the new Place of Settlement (PSET), Euroclear France.
The new PSET for settlement instructions with settlement date (SD) as of 21 March 2016 for these securities must be as follows:
:95P::PSET//SICVFRPPXXX.
Instructions with the incorrect PSET will be rejected.
Note: Instructions with the new PSET sent prior to and on 18 March 2016, with requested settlement date (RSD) equal to or later than 21 March 2016, will be accepted, but only released to ESES on the morning of 21 March 2016.
Tax
No action is required by customers since there will be no change to the processes of tax reclaims for these securities.
Impacted securities
Please find the latest list of impacted securities attached below.
This list may be updated until the close of business on Friday 11 March 2016, where the final list of ISINs will be frozen. Securities not migrated on 18 March 2016 will be transferred after the corporate actions season.
________________________
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.