CBF extending its service offering by making further markets T2S eligible
As part of a strategic initiative, Clearstream Banking AG (CBF)1 intends to pave the way for T+1 settlement and enhance settlement in T2S with increased volumes. This initiative still being subject to approval by the competent authorities, will bring cost benefits, reduced complexity, and more efficiency to clients.
CBF informs clients in advance of service adaptations that will be implemented starting June 2025 (optional service offering) and pilot market activations starting December 2025 (Norway and Australia). In this announcement, we provide below a high-level description of what changes will imply from a client viewpoint.
The aim of this strategic initiative is to enable CBF to focus on its core business as a CSD for record keeping, safekeeping and securities settlement, resulting from the regulatory opportunities brought by CSDR Refit.
Currently, CBF operates two types of accounts: CBF (4-digit) accounts and CBF-i (6-series) accounts.
CBF accounts are mainly used for settlement of T2S securities (CSC as well as NCSC-T) executed exclusively via the T2S system with the EUR cash leg held as central bank money via T2S Dedicated Cash Accounts (DCAs) or the non-EUR cash leg processed via CBF-i accounts.
CBF-i accounts are mainly used for settlement of non-T2S securities (NCSC) in EUR as well as for non-EUR cash payments.
With this initiative, all CBF-i accounts will be closed and technically decommissioned. Against this background, all securities2 on CBF-i accounts will be made T2S eligible to enable settlement in T2S via CBF accounts. This eligibility process will be carried out in multiple market activation/migration waves, beginning in December 2025, and currently planned to continue until end of 2026.
As soon as a market has become eligible for settlement in T2S, clients will be able to transfer their holdings from their CBF-i accounts to their CBF accounts. For the settlement of non-T2S eligible securities,Clearstream Banking S.A., Luxembourg (CBL) accounts will be used. After all markets in scope have been activated/migrated, all non-EUR cash payments resulting from delivery versus payments (DVP) or non-EUR asset servicing activities will be processed on CBL accounts.
For non-EUR proceeds and non-EUR settlement, CBF clients are required to have an account with CBL. After the go-live, currently envisaged for end 2026/beginning 2027, CBF-i accounts will be closed.
CBF will provide further information on this initiative in this year to allow for appropriate preparation and a smooth business transition. This includes client documentation, client summary sessions and workshops and a dedicated web page for relevant matters in context of this initiative. A first summary session is planned for 17 March 2025 (further details, including an invitation, will be provided in due course) and a dedicated web page under “Strategy & Initiatives” will be activated in Q1 2025.
In addition, clients can send their inquiries and questions to the dedicated mailbox UNO@clearstream.com.
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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.
2. To the highest extent possible, considering potential specificities and constraints.