Iceland: Migration of assets to a new CSD account
Clearstream Banking1 would like to inform customers that effective
24 August 2020
LuxCSD2 (Clearstream Banking depository), will migrate Icelandic securities to a new segregated account with Nasdaq CSD SE.
Background
On Monday, May 25 2020, Nasdaq announced the merger of Nasdaq CSD Iceland with Nasdaq CSD SE (Nasdaq CSD). The combined company, Nasdaq CSD SE, will operate in Latvia, Estonia, Lithuania and Iceland, supervised by Baltic and Icelandic regulatory institutions cooperating in accordance with the CSDR. Nasdaq CSD operates four securities settlement systems (the Estonian SSS, the Icelandic SSS, the Latvian SSS and the Lithuanian SSS), with national jurisdiction in each country. The legal name of the company remains Nasdaq CSD SE.
Migration of the securities settlement system in Iceland is scheduled to be fully implemented on 24 August 2020. Settlement arrangements due to the transition will be announced at a later date.
Impact on customers
Clearstream Banking would like to invite customers to take into consideration the information provided in the below sections as applicable for their activity in Iceland. The depository details remain unchanged.
Depository
LuxCSD S.A.
42, avenue J.F. Kennedy
L-1855 Luxembourg
Grand Duchy of Luxembourg
Depository code: 1I
BIC address: LUXCLULLXXX
Procedures for domestic counterparties
Customers of Clearstream Banking must inform their counterparties of the following changes:
- Deliver to/receive from (Nasdaq CSD SE): There is no change to the Standard Settlement Instructions (SSI);
- Instruction specifications for Xact Web Portal, Xact via SWIFT, Xact File Transfer and CreationOnline remain unchanged.
Settlement timing
Settlement times in Central European Time (CET)
29 March 2020 - 24 October 2020
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | ||||
start | end | from | to | value | |||
FOP=Free of payment SD=Settlement date | |||||||
OTC instructions via off-market method | |||||||
Receipts | FOPa | 20:30 | 18:50 | 18:50 | 11:00 | 22:00 | |
Deliveries | FOPa | 20:30 | 18:50 | 18:50 | 11:00 | 22:00 | |
a. When free of payment book-entry receipts or deliveries are transmitted after the “Deadline for receipt of valid instruction”, instructions will still be transmitted with the same requested settlement date and may therefore still settle on settlement day.
25 October 2020 - 27 March 2021
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | ||||
start | end | from | to | value | |||
FOP=Free of payment SD=Settlement date | |||||||
OTC instructions via off-market method | |||||||
Receipts | FOPa | 20:30 | 17:50 | 17:50 | 10:00 | 21:00 |
|
Deliveries | FOPa | 20:30 | 17:50 | 17:50 | 10:00 | 21:00 |
|
a. When free of payment book-entry receipts or deliveries are transmitted after the “Deadline for receipt of valid instruction”, instructions will still be transmitted with the same requested settlement date and may therefore still settle on settlement day.
Settlement times in Reykjavik time
All year
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | ||||
start | end | from | to | value | |||
FOP=Free of payment SD=Settlement date | |||||||
OTC instructions via off-market method | |||||||
Receipts | FOPa | 19:30 | 16:50 | 16:50 | 09:00 | 20:00 | |
Deliveries | FOPa | 19:30 | 16:50 | 16:50 | 09:00 | 20:00 | |
a. When free of payment book-entry receipts or deliveries are transmitted after the “Deadline for receipt of valid instruction”, instructions will still be transmitted with the same requested settlement date and may therefore still settle on settlement day.
Settlement formats
Format changes are as follows:
- New PSET: :95P::PSET//LCDELV22XXX;
- SSN or NCSD participant codes are no longer valid entry in level party 1 and 2. Only BIC is accepted:
- Usage of BIC for level party 1: :95P::DEAG or REAG//Counterparty or Beneficiary party’s BIC;
- Usage of BIC for level party 2: :95P::BUYR or SELL//Counterparty or Beneficiary party's BIC.
Updated instruction specifications will be available in the Market Link Guide – Iceland.
Cutover guidelines
Cutover guidelines will be provided in due time.
Further information
The Market Link Guide – Iceland will be updated accordingly.
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 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 AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. LuxCSD refers to LuxCSD, société anonyme registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, Luxembourg, registered with the Trade and Company Register of Luxembourg, under number B. 154 449.