OneClearstream (Iberclear and Interbolsa): Instruction specification changes for CBL counterparties in T2S - Update

27.11.2020

Note: This announcement, originally published on 7 October and updated on 20 October 2020, has been further updated to specify the Safekeeping details of the delivering/receiving agent for for ICP counterparties. Changes have been highlighted.

As previously communicated in Announcement C20022, Clearstream Banking1 informs customers that Clearstream Banking S.A. (CBL) will be using Clearstream Banking AG (CBF) as a gateway to T2S for Iberclear and Interbolsa eligible securities.

For the migrated securities and from Monday 30 November 2020 for Spain and Monday 14 December 2020 for Portugal, CBL will no longer access the markets via its own accounts at BBVA and BNP Paribas Securities Services, but through its account in CBF.

As a consequence, T2S counterparties who wish to instruct against CBL customers, should no longer instruct against the CBL account in BBVA and BP2S, but against the CBL account in CBF, and standing settlement instructions must be updated accordingly.

Impact on customers

There is no impact on Bridge or internal instructions.

There is no impact on domestic instructions for CBL customers but a change for their Portuguese counterparties (change of Place of Settlement from the BIC11 of local CSDs Interbolsa to DAKVDEFFXXX for all migrated securities).

There is no change in the Place of Settlement for Spanish counterparties. All Spanish ICPs should continue to use the BIC11 of Iberclear (IBRCESMMXXX) in the Place of Settlement.

The change of Place of Settlement is applicable to all CBL T2S counterparties (even if the counterparty is not located in Iberclear or Interbolsa)2 who wish to transact with a CBL customer on Iberclear and Interbolsa migrated securities.

A new Realignment Guide will be published to reflect the specification changes for the migrated securities.

Some of the securities may not be part of the migration and may be kept with the current depository (the exact list will be provided closer to the migration). For these non-migrated securities, the counterparties must continue to use the current instruction format specifications.

Please find below the recommended formats that should be used by Iberclear counterparties from 30 November 2020 for Spain and 14 December 2020 for Portugal:

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 (Portugal)

IBRCESMMXXX (Spain)

Delivering/Receiving Agent (:95P::DEAG/REAG)

CEDELULLXXX

:97A::SAFE of the DEAG/REAG

Should be specified for Spain as required by Iberclear to identify CBF as CSD in T2S (DAKV7201102)

Should not be specified for Portugal. If specified, it must be the valid CBL SAC within CBF for the given market.

Buyer/Seller (BUYR/SELL)

BIC11 of the CBL customer

For DCP counterparties (SWIFT ISO 20022)

Settlement party details of CBL

Migrated securities

Depository

DAKVDEFFXXX (Portugal)

No DCP currently uses Iberclear to access T2S

Party 1

CEDELULLXX

(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 customer

DEAG/REAG - Party 1 (safekeeping account) recommendation

CBL encourages customers to ask their counterparties not to include the safekeeping account of the DEAG/REAG- Party 1 in their instructions to avoid any matching issues for Portugal. If counterparties still wish to do so, please be advised that the T2S SACs of CBL at CBF for migrated securities are:

Iberclear

DAKV7201102

Interbolsa

DAKV7201112

It must be the valid CBL SAC for the given market, for example, DAKV7201112 for Interbolsa (independent of where the counterparty is located in T2S).

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 customer 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 customer 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 customer has specified a proprietary code in its instruction. For details, please refer to Announcement A16033.

Therefore, CBL always recommends that customers and their counterparty use a BIC11 rather than a proprietary code for the BUYR/SELL- Party 2 information.

Further information

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

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1. CBL 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 (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. Provided that the counterparty CSD has established the relevant setup to allow cross-CSD settlement with CBF for these securities.