Clearstream Banking Release April 2014
On
Monday 28 April 2014
Clearstream Banking1 will implement enhancements to connectivity and customer reporting.
Enhancements to outgoing customer reports
Note: The enhancements to outgoing customer reports will be reflected in the relevant connectivity media according to the nature of the change. Variations may appear in certain report formats owing to inherent space constraints.
Custody corporate action notification and confirmation for accrued interest
Accrued interest for the following events will be paid separately from the main proceeds of the event and will generate two individual corporate action confirmations:
EXOF - Exchange Offer;
TEND - Tender/Acquisition/Take over/Purchase Offer;
BIDS - Repurchase Offer;
DTCH - Dutch Auction;
BPUT - Redemption at Holder’s Option.
These changes will be implemented to ensure SWIFT SMPG compliance with the correct payment and notification of accrued interest payments for the specified events, which may be generated from corporate actions on equities, depository receipts and warrants.
The display of the interest rate and accrued interest amount for certain events will be amended to the following:
- MT564 Corporate Action Notification
Sequence E - Corporate Action Options
Subsequence E2 - Cash Movements
:92A::INTP//percentage - where the interest rate is expressed as a percentage.
:92F::INTP//specified currency and interest amount - for payment where the instrument is denominated in UNIT.
Updates will be reflected in the ISO, PDF, XML and XLS report formats and in CreationOnline.
- MT566 Corporate Action Confirmation
Sequence D - Corporate Action Confirmation
Subsequence D2 - Cash Movements
:92A::INTP//percentage - where the interest rate is expressed as a percentage.
:92F::INTP//specified currency and interest amount - for payment where the instrument is denominated in UNIT.
:19B::ACRU//specified currency and accrued interest amount.
Updates will be reflected in the ISO, PDF, XML and XLS report formats and in CreationOnline.
Distribution events for investment funds
Distribution events related to investment funds are executed upon receipt of funds by Clearstream Banking. These are confirmed to customers with the corporate action confirmation (MT566).
From 28 April 2014, we will, for investment funds as for other asset types, when we have received the relevant information from our depository/agent, send a prior corporate action notification (MT564) with a complete processing status (:25D::PROC//COMP).
Clearing and settlement reports
The Clearstream Banking April Release will include the following enhancements to clearing and settlement reports:
- MT548 Settlement Status and Processing Report
The reason for rejection of settlement will no longer be reported in the :70D: Reason Narrative field but new code words will be used in the existing :24B: Reason field in Subsequence A2a -Reason:
:24B::REJT//MINO to indicate the Minimum Settlement Quantity, when the quantity instructed is lower than the minimum of the existing settlement quantity for the financial instrument.
:24B::REJT//MUNO to indicate Multiple Settlement Quantity, when the quantity instructed is not a multiple of an existing settlement quantity lot for the financial instrument.
Updates will be reflected in the ISO format only.
Further information
For more details of Clearstream Banking message formats and reporting guides, please refer to the Information Centre, Connectivity section.
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).
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