Russia: Equities migration to Foreign Nominee Holder account
Effective
7 July 2014
Clearstream Banking1 will offer delivery versus payment (DvP) settlement of CSD-eligible equities in its Foreign Nominee Holder (FNH) account at the National Settlement Depository (NSD) in Russia.
We are taking advantage of the new Russian regulatory environment, in which 1 July 2014 has been set as the first day on which international depositories can hold local equities on their direct nominee accounts.
Accordingly, we will transfer our equities portfolio to our direct FNH account at the central securities depository NSD, working closely with its Account Operator in Russian, Deutsche Bank Moscow and the NSD, and launch the migration at end of day on 4 July 2014.
We hereby highlight the following adjustments to our services that will result from the migration.
Corporate Action events
Participation in Voluntary Corporate Action events will entail the following requirements:
- A Power of Attorney (PoA), notarised and apostilled, issued by the final beneficial owner and received by Deutsche Bank Moscow in time to have it translated and notarised.2
- Disclosure of the details of the final beneficial owner.
Note: Disclosure is still required in the event of non-participation. - Additional documents that the final beneficial owner may need to provide in order to participate3. CBL will inform customers of the additional documents to be provided as soon as the requirements are made public.
These requirements result from the fact that the “Cascade Principle” is not yet implemented. It is expected to be voted on in the State Duma in the autumn, for implementation by year-end 2014, at which point the PoA would no longer be needed.
We are monitoring the market reform closely and we will inform customers in due course as soon as the PoA is no longer required.
Ad-hoc disclosure
In addition to the corporate action event requirements listed above, the final beneficial owner may be requested, on an ad-hoc basis, at the discretion of the regulators and/or the issuer, to disclose details of their identity. Upon such request, CBL will require the appropriate information from its customers.
Tax
All income from equities is taxable according to the regime of the final beneficial owner. We will publish details of CBL’s tax service in the coming days.
Settlement timings
The deadlines shown below will be valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in CBL and in the local market. Customers must also ensure that any necessary provision is available. If any of these criteria are not met, CBL cannot guarantee timely settlement
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | |||
start | End | from | to | value | ||
AP=Against payment FOP=Free of payment SD=Settlement date | ||||||
Settlement times in Central European Time (CET)
1 July 2014 - 25 October 2014
| CSD-eligible Equities - domestic counterparty | |||||||
Receipts | FOP | 17:25 | 17:20 | 17:20 | 08:00 | 18:00 | |
AP | 21:30 | 13:10 | 13:10 | 08:00 | 18:00 | SD | |
Deliveries | FOP | 21:30 | 17:20 | 17:20 | 08:00 | 18:00 | |
AP | 21:30 | 13:10 | 13:10 | 08:00 | 18:00 | SD | |
26 October 2014 - 28 March 2015
| CSD-eligible Equities - domestic counterparty | |||||||
Receipts | FOP | 16:25 | 16:20 | 16:20 | 07:00 | 17:00 | |
AP | 21:30 | 12:10 | 12:10 | 07:00 | 17:00 | SD | |
Deliveries | FOP | 21:30 | 16:20 | 16:20 | 07:00 | 17:00 | |
AP | 21:30 | 12:10 | 12:10 | 07:00 | 17:00 | SD | |
Settlement times in Moscow Time - All year
| CSD-eligible equities | |||||||
Receipts | FOP | 19:25 | 19:20 | 19:20 | 10:00 | 20:00 | |
AP | 00:30 | 15:10 | 15:10 | 10:00 | 20:00 | SD | |
Deliveries | FOP | 00:30 | 19:20 | 19:20 | 10:00 | 20:00 | |
AP | 00:30 | 15:10 | 15:10 | 10:00 | 20:00 | SD | |
a. Provisioning start time for FOP deliveries is 23:00 on SD-1 Moscow time during CET summer time.
Procedures for domestic counterparties
| Procedure for the domestic counterparty | Deadline | ||||
| CSD-eligible equities: Receipt in CBL and Delivery from CBL | |||||
| Local instructions must include the NSD account and sub-account details of CBL: | Market deadline | ||||
| 12-digit account number: TF1304260025 | |||||
| 17-digit sub-account number: 00000000000000000 (all zeroes) | |||||
| Instructions via the LUXH system must include CBL’s NSD depositor code: | |||||
| MC0360000000 | |||||
| Delivering/Receiving Agent: | |||||
| FOP: CBL BIC: CEDELULL DVP: CBL or Deutsche Bank Moscow BIC: CEDELULL or DEUTRUMMXXX | |||||
Instruction specifications - Creation via SWIFT and CreationDirect
In the following tables, M=Mandatory; O=Optional; C=Conditional;
Seq=SWIFT Message (sub)sequence.
CSD-eligible equities
| MT540 | Receive Free | Seq | ||
| M | :98a: | :TRAD | //Trade date/time | B |
| M | :95P: | :PSET | //NADCRUMM | E1 |
| M | :95P: | :DEAG | //Counterparty’s BIC | |
| or | :95Q: | :DEAG | //Counterparty’s name (if BIC does not exist) | |
| M | :97A: | :SAFE | //Counterparty’s NSD account a | |
| O | :95P: | :SELL | //Ordering party’s BIC, if different from DEAG | |
| or | :95Q: | :SELL | //Ordering party’s name, if different from DEAG (if BIC does not exist) | |
MT541 | Receive Against Payment |
| ||
| M | :98a: | :TRAD | //Trade date/time | B |
| M | :95P: | :PSET | //NADCRUMM | E1 |
| M | :95P: | :DEAG | //Counterparty’s BIC | |
| or | :95Q: | :DEAG | //Counterparty’s name (if BIC does not exist) | |
| M | :97A: | :SAFE | //Counterparty’s NSD account a | |
| O | :95P: | :SELL | //Ordering party’s BIC, if different from DEAG | |
| or | :95Q: | :SELL | //Ordering party’s name, if different from DEAG (if BIC does not exist) | |
| M | :95P: | :PAYE | //NADCRUMM | E2 |
| M | :97A: | :CASH | //30411810100017000386 b | |
MT542 | Deliver Free |
| ||
| M | :98a: | :TRAD | //Trade date/time | B |
| M | :95P: | :PSET | //NADCRUMM | E1 |
| M | :95P: | :REAG | //Counterparty’s BIC | |
| or | :95Q: | :REAG | //Counterparty’s name (if BIC does not exist) | |
| M | :97A: | :SAFE | //Counterparty’s NSD account a | |
| O | :95P: | :BUYR | //Beneficiary’s BIC, if different from REAG | |
| or | :95Q: | :BUYR | //Beneficiary’s name, if different from REAG (if BIC does not exist) | |
MT543 | Deliver Against Payment |
| ||
| M | :98a: | :TRAD | //Trade date/time | B |
| M | :95P: | :PSET | //NADCRUMM | E1 |
| M | :95P: | :REAG | //Counterparty’s BIC | |
| or | :95Q: | :REAG | //Counterparty’s name (if BIC does not exist) | |
| M | :97A: | :SAFE | //Counterparty’s NSD account a | |
| O | :95P: | :BUYR | //Beneficiary’s BIC, if different from REAG | |
| or | :95Q: | :BUYR | //Beneficiary’s name, if different from REAG (if BIC does not exist) | |
| M | :95P: | :PAYE | //NADCRUMM | E2 |
| M | :97A: | :CASH | //30411810100017000386 b | |
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a. The account details must be in the format <12-digit account number>/KRZD/<17-digit sub-account number> or <12-digit account number>/<17-digit sub-account number> (that is, the inclusion of the expression “/KRZD” is optional).
b. CBL’s cash account at NSD; entry of any other details in this field will cause settlement to fail.
Instruction specifications - CreationOnline
In the following tables, M=Mandatory; O=Optional; C=Conditional.
CSD-eligible equities
| Receive Free | ||
| M | Trade Date | |
| M | Place of Settlement | BIC |
| Party | NADCRUMM | |
| M | Delivering Agent | BIC |
| Party | counterparty’s BIC | |
| or | Delivering Agent | Name and Address (if BIC does not exist) |
| Party | counterparty’s name | |
| M | Account | counterparty’s NSD account a |
| O | Seller | BIC |
| Party | ordering party’s BIC | |
| or | Seller | Name and Address (if BIC does not exist) |
| Party | ordering party’s name | |
Receive Against Payment | ||
| M | Trade Date | |
| M | Place of Settlement | BIC |
| Party | NADCRUMM | |
| M | Delivering Agent | BIC |
| Party | counterparty’s BIC | |
| or | Delivering Agent | Name and Address (if BIC does not exist) |
| Party | counterparty’s name | |
| M | Account | counterparty’s NSD account a |
| O | Seller | BIC |
| Party | ordering party’s BIC | |
| or | Seller | Name and Address (if BIC does not exist) |
| Party | ordering party’s name | |
| M | Paying Institution | BIC |
| Party | NADCRUMM | |
| M | Account | 30411810100017000386 b |
Deliver Free | ||
| M | Trade Date | |
| M | Place of Settlement | BIC |
| Party | NADCRUMM | |
| M | Receiving Agent | BIC |
| Party | counterparty’s BIC | |
| or | Receiving Agent | Name and Address (if BIC does not exist) |
| Party | counterparty’s name | |
| M | Account | counterparty’s NSD account a |
| O | Buyer | BIC |
| Party | beneficiary’s BIC | |
| or | Buyer | Name and Address (if BIC does not exist) |
| Party | beneficiary’s name | |
Deliver Against Payment | ||
| M | Trade Date | |
| M | Place of Settlement | BIC |
| Party | NADCRUMM | |
| M | Receiving Agent | BIC |
| Party | counterparty’s BIC | |
| or | Receiving Agent | Name and Address (if BIC does not exist) |
| Party | counterparty’s name | |
| M | Account | counterparty’s NSD account a |
| O | Buyer | BIC |
| Party | beneficiary’s BIC | |
| or | Buyer | Name and Address (if BIC does not exist) |
| Party | beneficiary’s name | |
| M | Beneficiary of Money | BIC |
| Party | NADCRUMM | |
| M | Account | 30411810100017000386 b |
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a. The account details must be in the format <12-digit account number>/KRZD/<17-digit sub-account number> or <12-digit account number>/<17-digit sub-account number> (that is, the inclusion of the expression “/KRZD” is optional).
b. CBL’s cash account at NSD; entry of any other details in this field will cause settlement to fail
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
2. The PoA filing procedure will be described in the Creation Links Guide - Russia. The standard PoA will be available in due course.
3. For corporates, the documents would be the Articles of Association, Extract from the Trade Register, Authorised Signature List and Board of Directors Resolution. For Individuals it will be the passport copy. These documents must be notarised and apostilled before sending to Deutsche Bank Moscow. These documents will be translated and the translation notarised when Deutsche Bank Moscow receives them.