Portugal: Debt securities - conversion from UNIT to FAMT instructions
Further to our Announcement L16026, dated 26 February 2016, LuxCSD1 wishes to inform customers that, effective
28 March 2016
all securities in the attached list will, with the Portuguese Central Securities Depository (CSD) conversion of Portuguese bonds, change from the current safekeeping accounting instructions UNIT into FAMT.
Note: The attached impacted securities list may be subject to change. LuxCSD will update the list as and when updated information is received.
Impact on settlement process
Currently, further to our Announcement L14074, dated 20 June 2014, customers are to instruct in UNIT directly. However, in order to harmonise EU market practice on the settlement of debt in nominal amount, Portuguese CSD Interbolsa will convert debt securities registered in UNIT into FAMT. The conversion will be conducted over the weekend of 25 March 2016 to 27 March 2016.
Starting on Settlement Date Tuesday 29 March 2016, customers will be required to instruct in FAMT.
Cutover procedure
For all domestic instructions:
Customers are requested to avoid using the immediate release (IREL) functionality for instructions with Settlement Date (SD) on or after Tuesday 29 March 2016. Any instruction entered into Clearstream Banking2 with such functionality with a SD of Tuesday 29 March 2016 or later will be cancelled.
- Trades with Requested Settlement Date up to and including Thursday 24 March 2016 that remain unsettled at the end of business day on Thursday 24 March 2016 with status UNMATCHED will be cancelled by Clearstream Banking.
- Trades with Requested Settlement Date up to and including Thursday 24 March 2016 that remain unsettled at the end of business day on Thursday 24 March 2016 with status MATCHED will be cancelled by Clearstream Banking. In order to enable a smooth migration, customers are recommended to advise their counterparty to cancel their trades on the market as well.
- Trades with Requested Settlement Date of Tuesday 29 March 2016 or later will be cancelled by Clearstream Banking.
- In all cases, customers are requested to re-instruct all cancelled transactions with FAMT no earlier than Monday 28 March 2016.
For internal instructions:
All pending instructions with Settlement Date before or after Friday 25 March 2016 will be cancelled by Clearstream Banking on Friday 25 March 2016, end of business day.
- Customers are requested to re-instruct with FAMT no earlier than Monday 28 March 2016.
Note: On an exceptional basis, internal settlement on Friday 25 March 2016 will close at 18.30 CET.
For Bridge settlement:
- All pending instructions with Settlement Date before or after Thursday 24 March 2016 will be cancelled by Clearstream Banking at the end of business day on Thursday 24 March 2016.
- Customers are requested to re-instruct with FAMT no earlier than Monday 28 March 2016.
Note: On an exceptional basis, Bridge settlement will be closed on Friday 25 March 2016.
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1. 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.
2. 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.