LuxCSD: Bilateral cancellation of transactions with counterparties in Clearstream Banking : update
Further to Announcement L12054, dated 12 October 2012, LuxCSD customers are hereby advised that, effective
3 December 2012
Clearstream Banking Luxembourg (CBL)1 will amend its rules on “irrevocability and finality of transactions”.
Impact on LuxCSD customers
As of the effective date, with regard to non-LuxCSD issued securities eligible in the Clearstream system (Creation), once an instruction is matched, has reached the requested settlement date and has been presented for settlement in Creation, LuxCSD customers will have to agree with their counterparties in Clearstream Banking1 before the instruction is cancelled.
In the absence of such agreement, LuxCSD customers will be unable to unilaterally cancel an instruction with a counterparty in Clearstream Banking once such instruction is irrevocable.
Impact on instructions
Any irrevocable instruction with a counterparty in Clearstream Banking that has not been settled and has not been cancelled by the customer as described above will remain in the Clearstream system for further reprocessing attempts until such instruction is successfully settled or automatic cancellation has been applied at the latest 60 calendar days after the requested settlement date.
The reporting related to cancellations is the same for all internal instructions (that is, instructions with counterparties on the common settlement platform Creation).
Note: There is no change to the current cancellation rules applicable to:
- Settlement transactions between two LuxCSD customers;
- Settlement transactions in instruments issued in LuxCSD.
These remain subject to bilateral cancellation as set out in the LuxCSD Customer Handbook.
Further information
For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.
1. Unless otherwise indicated, Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, 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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