Second-level matching mandatory for transactions with counterparties in CASCADE
Effective from settlement date
3 February 2014
second-level matching information will become mandatory on internal securities transactions against account 18757 of Clearstream Banking AG1 in Creation at Clearstream Banking S.A.2
This is further to our Announcement L13126, dated 23 September 2013, and is related all securities eligible for settlement on the account 18757, including Finnish domestic securities.
Impact on instructions
Information to be included in the customer instructions
As of the effective date, all internal instructions against account 18757 will need to match on the second-level matching field details identifying the CBF customer in CASCADE acting as the counterparty of the customer in Creation.
Customers instructing against CBF account 18757 in Creation must populate their settlement instructions as follows:
- Receipt free of payment from CBF account
The customer’s instruction must include in the SELL field the details of the CBF customer in CASCADE that will deliver the securities; the DECU field is optional. - Deliver free of payment to CBF account
The customer’s instruction must include in the BUYR field the details of the CBF customer in CASCADE that will receive the securities; the RECU field is optional.
If the customer’s instruction against the CBF account in Creation is not in line with above rules, the instruction will be rejected and the customer will receive the following information in the appropriate MT548 message:
:25D::IPRC//REJT
:24B::REJT//NARR
:70D::REAS//second-level matching fields mandatory with counterparty
Important notes:
If one of the parties uses both fields BUYR/SELL and DECU/RECU and the other party uses only the field BUYR/SELL, this will not result in umatched status or rejection.
For the purposes of identifying the counterparty, both the customer and its counterparty in CASCADE must use either field :95P: and the BIC or field :95R: with account identification details. If one of the parties uses :95P: and the other party uses :95R:, the instructions will remain unmatched.
Treatment of pending instructions on effective date
The new rules will be applicable to internal transactions transmitted to CBL on/after the effective date.
Any matched instructions pending on the effective date will become unmatched if the second-level matching details were not included in the initial instructions. In such cases, customers are requested to cancel their pending instructions and reinstruct with the second-level matching details.
Further information
For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.
------------------------------------------
1. 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).
2. 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).
| As a registered customer, subscribe to our free email alerts service to receive immediate, daily and/or weekly notification of the latest customer publications on our website. Unsubscribe at any time; we respect your email privacy. |