Asset servicing - Portugal
For the specific services on the Portuguese market, please refer to the Market Profile – Portugal.
Please refer to the relevant CBL, CBF OneClearstream, or LuxCSD Customer Handbook for information about processing, reporting and connectivity for asset servicing.
This section covers the following business processes:
- Event announcement and entitlement forecast;
- Decision management;
- Payment management;
- Transaction management;
- Proxy voting services.
Event announcement and entitlement forecast
Event announcements for Interbolsa issued securities are created based on the information received from the asset servicing provider for this market (BNP Paribas S.A.).
Clearstream informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.
For deposit purposes: The FIA code must be populated under the BENODET field whenever instructions are sent for a centralised EXRI or any other event on which this requirement is necessary.
Event announcements are generated with the Clearstream corporate action reference. The Corporate Action Official Reference (COAF) is available and starts with “PT”.
Decision management
Instructions for predictable events
Customers may instruct Clearstream to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, bond conversions and exercises of warrants.
Instructions for unpredictable events
Clearstream collects and processes customer instructions for voluntary events, such as conversion, repurchase offer, put redemption, consent, exchange offer, tender offer, etc.
Payment management
For Portuguese securities, Market claims are processed on gross basis without tax adjustment (Interest).
Transaction management
Please refer to Transaction Management in T2S.
Market claims and reverse market claims
For the Interbolsa market rules for market claims and reverse market claims, please refer to Transaction management rules – Portugal.
Clearstream detects and process the market claims and reverse market claims on against payment and free of payment instructions of its customers as of status matched, as follows:
Market claims and reverse market claims on CBL customer transactions
Internal | Bridge | Domestic | |
Detection | Yes | Yes | Yes |
Compensation | Yes | No | Yes |
Market claims and reverse market claims on CBF OneClearstream customer transactions
Intra-CSDa (CBF-CBF, CBF-CBL) | Cross-CSD (CBF – LuxCSD) | Cross-CSD (CBF – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Compensation | Yesb | Yesb | Yesc |
a. Including Eurex Clearing and LION related trades (subject to specific rules).
b. Market claims and reverse market claims in non-T2S eligible currencies and securities are processed on the corresponding CBF-i or CBL account of the CBF customers.
c. Excluding non-T2S eligible currencies and securities.
Market claims and reverse market claims on LuxCSD customer transactions
Intra-CSD (LuxCSD - LuxCSD, LuxCSD - CBL) | Cross-CSD (LuxCSD – CBF) | Cross-CSD (LuxCSD – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Compensation | Yesa | Yesa | Yesb |
a. Market claims and reverse market claims in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.
b. Excluding non-T2S eligible currencies and securities.
Both market claims instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows:
ICP customers MT54x | DCP customers sese.023/sese.025 | |
Market claim and reverse market claim instruction | :22F::SETR//CLAI | Transaction code: CLAI |
Detected market claims are reported to customers in the Custody Market Claims report and via MT564 Claim and Reversal Advice.
Debits/credits resulting from market claims and reverse market claims compensations are reported in the Custody Market Claims report and via MT564 Claim and Reversal Advice.
The market claims and reverse market claims are visible in Xact Web Portal.
For further information on the processing and reporting, please refer to the relevant Customer Handbook.
Transformations
For the Interbolsa market rules for transformations, please refer to Transaction management rules – Portugal.
Clearstream detects and process the transformations on pending matched against payment and free of payment instructions of its customers, as follows:
Transformations on CBL customer transactions
Internal | Bridge | Domestic | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yes | No | Yes |
Transformations on CBF OneClearstream customer transactions
Intra-CSDa (CBF-CBF, CBF-CBL) | Cross-CSD (CBF – LuxCSD) | Cross-CSD (CBF – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yesb | Yesb | Yesc |
a. Including LION related trades (subject to specific rules).
b. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBF-i/CBL accounts of the CBF customers.
c. Re-instructions in non-T2S eligible currency/securities.
Transformations on LuxCSD customer transactions
Intra-CSD (LuxCSD - LuxCSD, LuxCSD - CBL) | Cross-CSD (LuxCSD – CBF) | Cross-CSD (LuxCSD – T2S counterparty) | |
Detection | Yes | Yes | Yes |
Cancellation | Yes | Yes | Yes |
Re-instruction | Yesa | Yesa | Yesb |
a. Re-instructions in non-T2S eligible currency/securities are processed on the corresponding CBL accounts of the LuxCSD customers.
b. Re-instructions in non-T2S eligible currency/securities.
Both re-instructions, in cash and in securities, are processed via matching settlement instructions generated on behalf of customer accounts, flagged as follows.
| ICP customers MT54x | DCP customers sese.023/sese.025 |
Re-instructions in securities | :22F::SETR//as in the underlying instruction | Transaction code: as in the underlying instruction Transaction condition: TRAN |
Re-instructions in cash | :22F::SETR//CORP
| Transaction code: CORP Transaction condition: TRAN |
Transformations are subject to settlement reporting.
For further information on the processing and reporting, please refer to the relevant Customer Handbook.
Buyer protection
For the Portuguese market rules for buyer protection, please refer to Transaction management rules – Portugal (Interbolsa).
Clearstream does not introduce an automated buyer protection infrastructure. Instead buyer protection will be handled bilaterally between the counterparties, that is, outside the CSD environment.
In order to comply with the Corporate Actions standards on manual buyer protection, customers must use the Corporate Actions Joint Working Group (CAJWG) Buyer protection invocation template for corporate actions if the requested option is not the default option, referencing the corporate action, the chosen option(s), the quantity of securities and the underlying transaction in the template. The template must be sent electronically (via fax or email) to the seller.
When provided on the market, the below key buyer protection dates will be included in Clearstream MT564 Corporate Action Notifications:
- Election to counterparty deadline in :98a::ECPD and
- Guaranteed participation date in :98a::GUPA.
For further information on the processing and reporting, please refer to the relevant Customer Handbook.
Proxy Voting procedures
Proxy Voting services are available in Clearstream for this market.
CBF, CBL and LuxCSD customers must provide an Interbolsa specific FIA code in the Proxy Voting instructions, otherwise the instructions will be rejected by Interbolsa.
For CBF customers, the FIA code consists of five zeros followed by the 7-digit KUSTA account (customer 4 digit CASCADE main account + sub account) number and should be populated in the field OWND (beneficial owner details Sequence C) in the MT565 message (the same field where BO details are indicated).
All CBL customers need to provide the CBL account number at CBF (000007201112) in the sequence of the MT565 above and LuxCSD customers account number 000007454000 accordingly.
All proxy voting instructions must include the beneficial owner details.
If the beneficial owner is a legal person, the following information must be provided:
- Name
- Country of incorporation
- Legal Entity Identifier (LEI)
If the beneficial owner is a natural person, the following information must be provided:
- First name
- Last Name
- Country of residence
- Identification Type
- Identification number
Note: Type of national identification is dependent on the country of residence of the beneficial owner. The list of acceptable national identification types can be found here.
CBF Customers are advised that they need to provide an email address with their instruction so that Clearstream can send related necessary documents. If no email address is provided, the instruction will be rejected.
For details about the Proxy Voting services offered by Clearstream, please refer to the relevant Customer Handbook and, for the market specific practices, please refer to the Market Profile - Portugal.