Implementation of a new blocking sub-account for non-CBF issued securities in T2S - update

05.12.2017

Note: This announcement originally published on 5 December 2017 has been updated following the change of migration date for the ESES markets and LuxCSD. hanges are highlighted.

With the implementation of our enhanced Investor-CSD solution, effective

26 March 2018

Clearstream Banking1 will start to reflect customer's blocked positions due to corporate actions on a new sub-account /851. This sub-account will only be used for non-CBF issued securities that will be part of the OneClearstream migration. Starting with the Italian market on 26 March 2018, the change will also apply to the ESES markets (France, Netherlands and Belgium) and LuxCSD-issued securities from 9 April 2018 and all subsequent OneClearstream migrations as communicated in announcement D17034 dated 9 June 2017.

This change does not apply to OneClearstream reports for Settlement & Reconciliation.

CASCADE reporting (ISO 15022)

Blocking of customer positions due to a corporate action event on a non-CBF issued security will be processed by moving the positions to a separate sub-account /851. This booking will be visible in the Settlement & Reconciliation reports listed below:

  • MT535 Statement of Holdings;
  • MT536 Statement of Transactions;
  • MT537 Statement of Pending Transactions;
  • MT544/546 Settlement Confirmations;
  • MT548 Settlement Status & Processing Advice.

The new sub-account /851 will automatically be opened on behalf of customers and will be reserved for the blocking of position due to corporate action events and subject to the same report subscriptions as its main account. Customers will not be able to instruct on sub-account /851.

Use of blocking sub-accounts for securities Legacy versus OneClearstream:

Blocking typeCorporate event type (CAEV)For CBF-issued securities,
being both Legacy and OneClearstream		Non-CBF issued securities not migrated under OneClearstreamNon-CBF issued securities migrated
under OneClearstream
BLCA - Blocked for corporate actionsAny reorganisation event requiring a position to be blocked
(for example, EXOF, TEND, MRGR, DVOP etc)		 /850/850/851
BLOK - Blocked from settlement activityMEET, CMET, BMET, XMET, CONS and blocking at customer request/850
 /850		/851
DRAW - Blocked for redemptionDRAWn.an.a/851
RSTR - Blocked for certificationCERT/671/671/851

T2S DCP reporting (ISO 20022)

DCP customers receiving their reports in ISO 20022 standard directly from T2S will not see the position booked on the specific sub-account /851 but will see the positions remaining on the relevant safekeeping account and blocked with one of the blocking sub-positions below:

  • BLCA - Blocked for Corporate Action
  • BLOK – Blocked (from settlement activities)
  • DRAW – Drawn (blocked for Redemption)
  • RSTR – Restricted (blocked for Certification)

CBF would like to remind customers acting in DCP mode that they need to subscribe to T2S semt.013/semt.014/semt.015 in order to see these movements.

OneClearstream reporting (ISO 15022)

For the OneClearstream reporting, the positions are represented on the customer’s safe-keeping account with the concept of sub-positions (same as the T2S logic). The movements from the customer’s account to sub-account /851 as well as the sub-account’s positions will not be reported. Additionally, it will not be possible to schedule OneClearstream reports for sub-account /851.

Reflecting the T2S booking, customers that have subscribed to OneClearstream reports in ISO 15022 standard will see the positions remaining on the relevant safekeeping account.

The blocked position will be reported with the below qualifier:

  • BLCA - Blocked for Corporate Action;
  • BLOK - Blocked (from settlement activities);
  • DRAW – Drawn (blocked for Redemption);
  • RSTR – Restricted (blocked for Certification).

Example

CASCADE

T2S

OneClearstream

:35B: ISIN IT0003187215

<ISIN> IT0003187215

:35B: ISIN IT0003187215

…

…

…

:97A::SAFE//12340851

<SfkpgAcct> DAKV12340000

:97A::SAFE//12340000

…

…

…

:93B: :AGGR//FAMT/650000,

<SubBalanceType> BLCA 650000,

:93C::BLCA//FAMT/NAVL/650000,

Further information

Please also refer to the OneClearstream Functional Specifications for CBF.

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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.