Slovak Republic: OneClearstream service activation – Update
Note: This Announcement, originally published on 12 January 2024 and updated on 25 January 2024 and 19 February 2024, has been further amended to update the list (subject to changes) of Slovakian securities impacted by the migration on 15 March 2024.
Further to Announcement C23026, Clearstream Banking1 informs clients that Clearstream Banking S.A. (CBL) will be using Clearstream Banking AG (CBF) as a gateway to TARGET2-Securities (T2S) for the Slovak Republic effective
18 March 2024
The activation of the new direct link to Centrálny depozitár cenných papierov SR (CDCP, the Slovak domestic CSD) will result in the eligibility of all Slovak securities for settlement in T2S.
From Monday, 18 March 2024, CBL will no longer access the market via its own account at CDCP, but through its account in CBF.
As a consequence, T2S counterparties who wish to instruct against CBL clients, should no longer instruct against the CBL account in CDCP, but against the CBL account in CBF, and standing settlement instructions must be updated accordingly.
Impact on clients
New Depository Code: 4W
BIC: CSDSSKBAXXX
CDCP counterparty information
There is no impact on Bridge or internal instructions.
There is no impact on domestic instructions for CBL clients but a change for their Slovak counterparties: change of Place of Settlement from the BIC11 of local CSD 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 CDCP) who wish to transact with a CBL client on CDCP-migrated securities.
Please find below the recommended formats that should be used by CDCP counterparties from 18 March 2024:
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 |
Buyer/Seller (BUYR/SELL) | BIC11 of the CBL client |
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 client |
DEAG/REAG – Party 1 (safekeeping account) recommendation
CBL encourages clients to ask their counterparties not to include the safekeeping account of the DEAG/REAG – Party 1. If counterparties still wish to do so, please be advised that the T2S SAC of CBL at CBF for migrated securities is the following:
CDCP | DAKV7201117 |
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 a BIC (:95P:) with a BIC or a proprietary code (:95R:) with a proprietary code, the client and its counterparty must ensure that they use the identical BIC11 or the identical proprietary code in the BUYR/SELL – Party 2 information.
If the client 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 client has specified a proprietary code in its instruction. For details, please refer to Announcement A16033.
Therefore, CBL recommends that clients and their counterparties use a BIC11 rather than a proprietary code for the BUYR/SELL – Party 2 information.
A new Realignment Guide will be published to reflect the specification changes for the migrated securities.
Migration schedule
Clearstream Banking will proceed with the migration of settled positions to the new custodian on Friday, 15 March 2024, for Settlement Date 18 March 2024.
To facilitate a smooth migration, the Slovak Republic market will close at 11:00 CET on 15 March 2024.
Please note that any unmatched pending settlement instructions will be cancelled after the closing of the domestic market on Friday, 11:00 CET, and clients will be informed to reinstruct after the migration on Monday, 18 March 2024.
As a result, Clearstream Banking recommends that clients request their counterparties to send their matching instructions as soon as possible before market closure to avoid possible cancellation.
Clients will be informed of any cancelled pending instructions via MT548. Clients will need to reinstruct any cancelled instructions in accordance with the new settlement formats.
Clients should also contact their counterparties to cancel their instructions and reinstruct as per the new procedure for counterparties.
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking 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, registered office at Mergenthalerallee 61, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.