T2S wave 2: Impact on Clearstream Banking services – cutover details
Effective
Tuesday 29 March 2016
the second wave of TARGET2-Securities (T2S) will be launched.
For Belgium (NBB) and Portugal (Interbolsa), please find below the cutover details for the handling of pending transactions for Clearstream Banking1 customers.
Belgium - National Bank of Belgium (NBB)
Matched and unmatched instructions with requested settlement date (SD) up to and including 24 March 2016 and SD 29 March 2016 or later released to NBB
All T2S eligible transactions that are in matched or unmatched status and that have been released to NBB by 18:00 CET on Thursday 24 March 2016 will be migrated to T2S by NBB.
No action is required from Clearstream Banking customers.
Unmatched instructions older than 20 days will not be migrated by NBB, but rejected. Clearstream Banking will cancel such pending instructions prior to the start of the migration process and customers will need to reinstruct in the correct T2S format.
Unmatched instructions with requested settlement date (SD) up to and including 24 March 2016 and SD 29 March 2016 or later not released to NBB
T2S eligible transactions in an unmatched status, but not yet released to KBC by 17:45 CET on Thursday 24 March 2016 will be stored by CBL and released to KBC and subsequently to T2S only after confirmation of the successful NBB migration to T2S.
No action is required from Clearstream Banking customers.
Customers must instruct all T2S eligible instructions in the correct format. Incorrectly formatted instructions will be rejected and customers will be requested to transmit new settlement instructions.
The transactions may subsequently remain unmatched, matched or be settled or rejected. Customers will be informed of the status upon receipt from KBC.
Settlement cut off time
There is no change to the current Clearstream Banking customer settlement deadlines for NBB eligible securities on Thursday 24 March 2016 and they remain as follows:
Against payment in EUR: 15:40 CET
Free of payment: 17:45 CET
Income events
There is no impact on income events for Belgium Bonds.
No action is required from Clearstream Banking or its customers.
Portugal - Interbolsa
Matched and unmatched instructions with requested settlement date (SD) up to and including 24 March 2016 and SD 29 March 2016 or later released to Interbolsa
All T2S eligible transactions that are in matched or unmatched status and that have been released to Interbolsa by 17:00 CET on Thursday 24 March 2016 will be migrated to T2S by Interbolsa.
No action is required from Clearstream Banking customers.
Unmatched instructions with requested settlement date (SD) up to and including 24 March 2016 and SD 29 March 2016 or later not released to Interbolsa
T2S eligible transactions in an unmatched status, but not yet released to BP2S by 16:50 CET on Thursday 24 March 2016, will be stored by CBL and released to BP2S and subsequently to T2S only after confirmation of the successful migration of Interbolsa to T2S.
Customers must instruct all T2S eligible instructions in the correct format.
The transactions may subsequently remain unmatched, matched or be settled or rejected. Customers will be informed of the status upon receipt from BP2S.
Settlement cut off time
In order to facilitate the start of the migration process on 24 March 2016, Interbolsa has shortened the end of day cut off deadline. Clearstream customer deadlines on 24 March 2016 are as follows:
Against payment in EUR: 16:45 CET
Free of payment: 16:50 CET instead of 17:15 CET.
Income and custody events
There is no impact on income events (interest or dividend) on Interbolsa eligible securities. Furthermore, no impact is expected on corporate events over the migration weekend.
No action is required from Clearstream Banking or its customers.
Further information
For further information, customers may contact 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.