Asset servicing - Spain
For the specific services on the Spanish market, please refer to the Market Profile – Spain.
Please refer to the relevant CBL, CBF OneClearstream, or LuxCSD Client Handbook for information about processing, reporting and connectivity for asset servicing.
This section covers the following business processes:
• Event announcement and entitlement forecast;
• Decision management;
• Payment management;
• Transaction management;
• Proxy voting services.
Event announcement and entitlement forecast
Event announcements for Iberclear issued securities are created based on the information received from the asset servicing provider for this market (BBVA, Madrid).
Clearstream informs clients on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.
Event announcements are generated with the Clearstream corporate action reference. The Corporate Action Official Reference (COAF) is not available on the market.
Decision management
Instructions for predictable events
Clients may instruct Clearstream to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, bond conversions and exercises of warrants.
Instructions for unpredictable events
Clearstream collects and processes client instructions for voluntary events, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.
Payment management
For Spanish securities, market claims are processed on gross basis without tax adjustment (interest).
Transaction management
Please refer to Transaction Management in T2S.
Market claims and reverse market claims
For the Iberclear market rules for market claims and reverse market claims, please refer to Transaction management rules – Spain.
Clearstream detects and process the market claims and reverse market claims on against payment and free of payment instructions of its clients as of status matched, as follows:
Market claims and reverse market claims on CBL client transactions
Internal | Bridge | Domestic | |
Detection | Yes | Yes | Yes |
Compensation | Yes | No | Yes |
Market claims and reverse market claims on CBF OneClearstream client transactions
Intra-CSDa (CBF-CBF, CBF-CBL) | Cross-CSD (CBF – LuxCSD) | Cross-CSD (CBF – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Compensation | Yesb | Yesb | Yesc |
a. Including Eurex Clearing and LION related trades (subject to specific rules).
b. Market claims and reverse market claims in non-T2S eligible currencies and securities are processed on the corresponding CBF-i or CBL account of the CBF clients.
c. Excluding non-T2S eligible currencies and securities.
Market claims and reverse market claims on LuxCSD client transactions
Intra-CSD (LuxCSD - LuxCSD, LuxCSD - CBL) | Cross-CSD (LuxCSD – CBF) | Cross-CSD (LuxCSD – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Compensation | Yesa | Yesa | Yesb |
a. Market claims and reverse market claims in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD clients.
b. Excluding non-T2S eligible currencies and securities.
Both market claims instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of client accounts, flagged as follows:
ICP clients MT54x | DCP clients sese.023/sese.025 | |
Market claim and reverse market claim instruction | 22F::SETR//CLAI | Transaction code: CLAI |
Detected market claims are reported to clients in the Custody Market Claims report and via Claim and Reversal Advice.
Debits/credits resulting from market claims and reverse market claims compensations are reported in the Custody Market Claims report and via Claim and Reversal Advice.
The market claims and reverse market claims are visible in Xact Web Portal.
For further information on the processing and reporting, please refer to the relevant Client Handbook.
Transformations
For the Iberclear market rules for transformations, please refer to Transaction management rules – Spain.
Clearstream detects and process the transformations on pending matched against payment and free of payment instructions of its clients, as follows:
Transformations on CBL client transactions
Internal | Bridge | Domestic | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yes | No | Yes |
Transformations on CBF OneClearstream client transactions
Intra-CSDa (CBF-CBF, CBF-CBL) | Cross-CSD (CBF – LuxCSD) | Cross-CSD (CBF – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yesb | Yesb | Yesc |
a. Including LION related trades (subject to specific rules).
b. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBF-i/CBL accounts of the CBF clients.
c. Re-instructions in non-T2S eligible currency/securities.
Transformations on LuxCSD client transactions
Intra-CSD (LuxCSD - LuxCSD, LuxCSD - CBL) | Cross-CSD (LuxCSD – CBF) | Cross-CSD (LuxCSD – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yesa | Yesa | Yesb |
a. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD clients.
b. Re-instructions in non-T2S eligible currency/securities.
Both re-instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of client accounts, flagged as follows.
ICP clients MT54x | DCP clients sese.023/sese.025 | |
Re-instructions in securities | :22F::SETR//as in the underlying instruction | Transaction code: as in the underlying instruction Transaction condition: TRAN |
Re-instructions in cash | :22F::SETR//CORP
| Transaction code: CORP Transaction condition: TRAN |
Transformations are subject to settlement reporting.
For further information on the processing and reporting, please refer to the relevant Client Handbook.
Buyer protection
For the Spanish market rules for buyer protection, please refer to Transaction management rules – Spain (Iberclear).
Clearstream does not introduce an automated buyer protection infrastructure. Instead buyer protection will be handled bilaterally between the counterparties, that is, outside the CSD environment.
In order to comply with the Corporate Actions standards on manual buyer protection, clients must use the Corporate Actions Joint Working Group (CAJWG) Buyer protection invocation template for corporate actions if the requested option is not the default option, referencing the corporate action, the chosen option(s), the quantity of securities and the underlying transaction in the template. The template must be sent electronically (via fax or email) to the seller.
When provided on the market, the below key buyer protection dates will be included in Clearstream MT564 Corporate Action Notifications:
- Election to counterparty deadline and;
- Guaranteed participation date.
For further information on the processing and reporting, please refer to the relevant Client Handbook.
Proxy Voting procedures
Proxy voting services are available in Clearstream for this market. For details about the proxy voting services offered by Clearstream, please refer to the relevant Client Handbook and, for the market specific practices, please refer to the Market Profile - Spain.
Transaction management
Please refer to the Transaction Management rules - Spain (Iberclear).