Portugal: Change of settlement and safekeeping accounting
Effective
1 July 2014
all securities listed in the attached spreadsheet will, with the reduction of nominal value, change from the current safekeeping accounting FAMT into UNIT.
Impact on the settlement process
Currently, customer instructions are in FAMT and sent, as is, to Banco Santander Totta, our custodian in Portugal, where they are converted into UNIT to comply with local market practice.
As of 1 July 2014, customers will be required to instruct in UNIT directly.
Note: The Bridge will be re-opened for settlement at a later stage, date to be confirmed.
Cutover procedure
For all domestic instructions:
- Matched instructions for settlement value 30 June 2014 will settle, as today, in FAMT.
- Unmatched instructions for settlement value 30 June 2014 will be cancelled and customers are recommended to re-instruct.
- Pending instructions with settlement date after 30 June 2014 will be cancelled and customers are recommended to re-instruct these in UNIT.
For all internal instructions:
- Pending instructions with settlement date 30 June 2014 will be cancelled and customers are recommended to re-instruct.
- Pending instructions with settlement date after 30 June 2014 will be cancelled and customers are recommended to re-instruct these in UNIT.
Impact on the custody/income process
On income notifications, the Corporate Action Event Indicator (CAEV) “LIQU” will be used instead of “PRED”.
Further information
For further information, customers may contact Clearstream Banking1 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 (CBF) and Clearstream Banking S.A., 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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