New corporate action model: Note to the main paying agents

19.10.2020

Since the introduction of the new corporate action model in June 2020, cash payments from corporate actions and income for securities issued in Clearstream Banking AG1 have been processed on T2S.

The cash payments are created in the form of Payment Free of Delivery (PFOD) instructions and executed holistically as pooled instructions.

CBF would like to raise awareness towards the main paying agents that the funds for a cash payment event must be made available on the Dedicated Cash Account, which is linked to their respective four-digit CBF securities account number. CBF would also like to point out that each individual cash payment event is carried out separately. 

If funds for the payment of an event are not made available on time, the respective event cannot be paid out.

Due to the disjunct treatment of each event, this behavior would be transparent and obvious to all market participants.

We want to make sure that there is no negative experience and therefore address the above situation again.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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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.