OneClearstream: Instruction specification changes for CBL counterparties
Clearstream Banking S.A. (CBL1) informs customers that Clearstream Banking AG (CBF) will be used as a gateway to T2S for Nasdaq CSD (Estonia, Latvia, Lithuania) eligible securities from
2 December 2019
For the migrated securities, CBL will no longer access the Baltic markets via its own account at Nasdaq CSD, but will instead access these markets through its account in CBF.
As a consequence, T2S counterparties that want to instruct against CBL customers, should no longer instruct against the CBL account in Nasdaq CSD, but against the CBL account in CBF and standing settlement instructions must be updated accordingly.
OneClearstream services will be activated for Maltese securities with effective date 2 December 2019 as well, but there is no change in the instruction specifications for Maltese counterparties, as they instruct against the CBL account in CBF already today.
Customer impacts
- No impact on Bridge or internal instructions;
- No impact on Nasdaq CSD domestic instructions for CBL customers but a change for their counterparties (change of Place of Settlement from the BIC11 of local CSDs to DAKVDEFFXXX for all migrated securities);
- The change of Place of Settlement is applicable to all CBL T2S counterparties (even if the counterparty is not located in Nasdaq CSD)2 that want to transact with a CBL customer on Nasdaq CSD migrated securities;
- A new Realignment guide will be published to reflect the specification changes for the migrated securities;
- All T2S Nasdaq CSD-eligible securities currently held in CBL will be eligible for settlement in CBF-T2S with the exception of some securities with an upcoming maturity date (if any).
Nasdaq CSD counterparties should use the following recommended format from 2 December 2019:
For ICP counterparties (SWIFT ISO 15022)
Note: ICP counterparties should ask their domestic CSDs or agents for the proper formats to reach the CBL omnibus account in CBF. Some CSDs or agents may still have proprietary formats that differ from the below
| Settlement party details of CBL | Migrated securities |
| Place of settlement (PSET) | DAKVDEFFXXX |
| Delivering/Receiving Agent (:95P::DEAG/REAG) | CEDELULLXXX |
| :97A::SAFE of the DEAG/REAG | Should not be specified. If specified, it must be the valid CBL SAC within CBF for the given market |
| Buyer/Seller (BUYR/SELL) | BIC11 of the CBL customer |
For DCP counterparties (SWIFT ISO 20022)
| Settlement party details of CBL | Migrated securities |
| Depository | DAKVDEFFXXX |
| Party 1 | CEDELULLXXX (Party 1 SAC should not be specified. If specified, it must be the valid CBL SAC within CBF for the given market) |
| Party 2 | BIC11 of the CBL customer |
DEAG/REAG - Party 1 (safekeeping account) recommendation
| Nasdaq CSD | DAKV7201115 |
It must be the valid CBL SAC for the given market, for example, DAKV7201115 for Nasdaq CSD (independent of where the counterparty is located in T2S).
By not mentioning the CBL T2S SAC in the instruction, the counterparty will be able to benefit from one single instruction specification for all OneClearstream migrated securities.
BUYR/SELL - Party 2 recommendation
As T2S only matches BIC (:95P:) with BIC; or proprietary code (:95R:) with proprietary code the customer and its counterparty must ensure that they use identical BIC11s or identical proprietary codes in the BUYR/SELL – Party 2 information.
If the customer has not identified themselves in the instruction, CBL will default the matching BIC linked to the account in their T2S instruction, if the counterparty uses a proprietary code this may lead to mismatches unless the customer has specified a proprietary code in its instruction. Please see Announcement A16033.
Therefore, Clearstream Banking always recommends that customers and their counterparty use a BIC11 rather than a proprietary code for the BUYR/SELL- Party 2 information.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. CBL refers collectively to 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, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. Provided that the counterparty CSD has established the relevant set-up to allow cross-CSD settlement with CBF for these securities.