Finland: OneClearstream service activation for Euroclear Finland – Update
Note: This Announcement, originally published on 11 July 2023, has been further updated to provide additional information. Changes have been highlighted.
LuxCSD1 informs clients that effective
27 November 2023
the OneClearstream service will be activated for securities issued by Euroclear Finland (EFi) and therefore make all Finnish securities eligible in Clearstream Banking AG (CBF) and LuxCSD. All Finnish ISINs will receive Collective Safe Custody (CSC) status.
Clearstream Banking will continue to access the Finnish market via the Clearstream Banking S.A. (CBL) direct link to Euroclear Finland operated by Citibank Europe plc.
For the avoidance of doubt, direct settlement with domestic counterparties in Euroclear Finland will not be possible for CBF and LuxCSD, as described in the Market Link Guide - Finland. For guidance on transferring securities from CBL to CBF and vice versa, clients are invited to consult the Realignment Guide.
Clients are reminded that the description of the future OneClearstream Investor-CSD service can be found on the OneClearstream page published on the website.
Scope of securities eligible for the OneClearstream service
Impacted ISINs
All Finnish ISINs will be migrated to OneClearstream. The finalised list of the impacted ISINs is enclosed with this announcement.
Clients are reminded that all OneClearstream asset servicing bookings in T2S-eligible proceeds and the related reporting will be done at the clients’ sub-account level.
Ahead of the OneClearstream activation, clients are requested to make sure that each sub-account has an appropriate account setup and is subscribed to the relevant reporting.
To ensure a smooth OneClearstream activation, clients’ sub-accounts without the appropriate reporting subscription will be subject to a default reporting setup by Clearstream Banking as described in Announcement C18014: Automatic subscription to OneClearstream Asset Servicing reports.
Corporate actions on flows (market claims, transformations and buyer protection)
For LuxCSD and Clearstream Banking AG (CBF) clients, using the OneClearstream service, corporate actions on flows will be subject to OneClearstream service level as described in the OneClearstream Client Handbook (for example, payment of all market claims proceeds in T2S, asset servicing reporting in OneClearstream standards).
Impact on clients
For general information about the OneClearstream service, please refer to the OneClearstream Client Handbook.
For information about specific client migration impacts for LuxCSD clients, please refer to L23027, the dedicated announcement for the tax services.
Note: This is the current situation based on latest information, should there be any changes or additional information LuxCSD will inform clients accordingly.
Impact on stock exchange transactions
Clearstream Banking will change the custody type (Verwahrart) for the impacted securities from non-collective safe custody (NCSC/AKV) to collective safe custody (CSC/GS) on Thursday, 23 November 2023, after close of business. These changes will be reflected in the master data file (Gattungsdatei, GAT) distributed by Wertpapier-Mitteilungen (German gazette with securities announcements) on Thursday evening. As a consequence, the entire community including trading venues and clients shall be aligned on the new custody type CSC/GS by Friday, 24 November 2023, in the morning. Clients must transfer the required provisioning from CBL to CBF for instructions with intended settlement date Tuesday, 28 November 2023.
Further information
The Market Link Guide – Finland is now also available on the LuxCSD website.
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.