U.S.A.: Prospective changes: New matching scheme: Update VI

09.12.2014

Effective

12 January 2015

Background

In Announcement A14103, dated 15 July 2014, we informed customers that Depository Trust & Clearing Corporation (DTCC) against payment deliveries would be subject to intraday confirmation.

In order to align processes and improve customer cash management, Clearstream Banking1 has decided to also confirm the other types of deliveries intraday.

Impact on customers

To date, with the exception of against payment deliveries for DTCC eligible securities, Clearstream Banking customers receive delivery settlement confirmations by the end of the processing day at Citibank, Clearstream Banking's depository in the U.S.A. This will change from 12 January 2015 as follows:

Type of instructionCurrent timing of settlement confirmationTiming of settlement confirmation from 12 January 2015
DTCC eligible securities
Receipts FOP & AP

from 04:30 SD until end of RTP SD+1.

from 04:30 SD until end of RTP SD+1.

Deliveries APfrom 04:30 SD until end of RTP SD+1.from 04:30 SD until end of RTP SD+1.
Deliveries FOPfrom 22:00 SD until end of RTP SD+1.from 04:30 SD until end of RTP SD+1.
FED eligible securities  

Receipts FOP & AP

from 14:30 SD until end of RTP on SD+1.

from 14:30 SD until end of RTP SD+1.

Deliveries FOP & APfrom 22:00 SD until end of RTP SD+1.from 14:30 SD until end of RTP on SD+1.

Note: As all FED deliveries (free and against payment) and DTCC free of payment deliveries remain subject to DK (“Don’t Know”), customers should bear in mind that their deliveries will be reversed if DKed by the US counterparty. In this case, the standard process as described in the CLG – USA will apply. In order to limit the risk of DK, customers are encouraged to contact their counterparty in advance of the settlement date to ensure that the counterparty is aware of the delivery and accepts it instead of applying a DK.

Further information

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

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and 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.