Spain: Impact of new Securities Market Act and Reforma 3

22.01.2025

Clearstream Banking1 informs clients that effective

10 March 2025

the required adaptations to its systems will be implemented to comply with the new Securities Market Law 6/2023 (SMA), of 17 March 2023. With the new SMA, the Spanish securities market will improve its transparency and efficiency as well as harmonising the Spanish market practices with T2S standards.

From this date, clients must consider the below changes in transaction types and formats while instructing from their account with Clearstream Bankingand align with their counterparties accordingly.

Impact on clients

The Spanish Market Reforma 3 delivers multiple amendments to the Spanish post trade environment. The following impacts have been identified as relevant for clients of Clearstream Banking:

  • elimination of the Financial Intermediary Model;
  • adjusted list of available transaction types;
  • amended rules for the Party 2 field.

Transaction types - OAUX, PORT, OWNE, OWNI

With the elimination of the Financial Intermediary Model, the associated OAUX transaction type is removed.

The new list of available transaction types aligns with T2S market practices This alignment includes the harmonisation of the usage for OWNE and ONWI, and the introduction of the PORT transaction type.

Clients are required to adapt their processes and consider the below changes while formatting and providing transaction type information in their settlement instructions. Clearstream Banking also reminds their clients that the transaction type is a mandatory but a non-matching field.

Other transaction types remain unchanged. The complete list of available transaction types is available in the Market Link Guide - Spain.

Instruction type

Transaction type -

code and description

Xact via SWIFT and Xact File Transfer

Xact Web Portal

Portfolio move a

Transfer from one investment manager to another or from an account servicer to another

:22F:SETR//PORT

Sec. transaction type = PORT – Portfolio transfer

External Account Transfer

Transfer involving more than one instructing party (messages sender) or account servicer (messages receiver)

:22F::SETR//OWNE

Sec. transaction type = OWNE - External account transfer

Internal Account Transfer

Transfer involving one instructing party (messages sender) at one account servicer (messages receiver)

:22F::SETR//OWNI

Sec. transaction type = OWNI - Internal account transfer

Ancillary transaction

decommissioned

a. The usage of the PORT transaction type requires SII_UPORT privilege. DCP clients registered with Clearstream Banking AG will automatically be granted that privilege and need to take no additional action. T2S users who belong to a DCP (DCP’s clients) must request this privilege from their DCP administrators.

Instruction format - Party 2 field

The Party 2 field usage aligns to the standard T2S practices, in designating the client BIC of delivering/receiving CSD participant, and no longer the registration details.

Clients are required to adjust their instructions accordingly and align with their counterparty to avoid mismatching, considering that the Party 2 field is an optional matching field (fields must match when provided by both counterparties).

Cut-over details

The transaction type PORT will be available from 10 March 2025. Clearstream Bankingclients who belong to a DCP other than Clearstream Banking AG (DCP’s clients) must request this privilege from their DCP administrators.

All instructions with requested settlement date up to Friday 7 March 2024, that are not yet settled, will remain available for further matching and settlement, with no action required.

Further information

The Market Link Guide - Spain and the DCP Connectivity Handbook will be updated accordingly on the effective date to reflect the changes.

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 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.