Spain: Procedure and formats for NCBO transfers without re-registration
Clearstream Banking1 is pleased to inform customers that effective
10 February 2017
no-change-of-beneficial-owner (NCBO) transfers of Spanish equities listed on Iberclear’s platform ARCOwith no re-registration fees will become available.
Background information
Currently the re-registration of shares for a change of custodian can only be achieved via a put-through.
As from 10 February customers of Clearstream Banking will have access to an alternative solution allowing them to change registry without the need to perform an on-exchange registration. Such procedure foresees that when there is a transfer of securities that implies a name change due to a change of custodian, and that transfer does not involve a change of the final beneficiary, a special transaction called "change of ownership" can be used. This type of transaction does not require the usual on-exchange put-through.
Impact on customers
Customers wishing to instruct a transfer of shares between custodians with no change of beneficial owner must use an OWNE type of instruction and are required to provide the following documents:
- Customer settlement instruction, free of payment, populated with narrative text "OWNE - MOTIVE 13" in field 70E: (for SWIFT) or in field narrative (for CREATION ONLINE); and
- MT599 message certifying that there is no change of final beneficiary (see MT599 template) and include the TRN reference of the related trade.
The same deadlines apply as for standard settlement instructions that are non-STP.
The advantages of these transactions are the flexibility of the settlement cycle (T+0) and that there are no brokerage fees. These instructions will be treated as a manual instruction, and priced accordingly (please refer to the Clearstream Banking Fee Schedule for price details).
Please also refer to the Creation Link Guide - Spain for detailed format and deadline information.
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 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, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.