Ireland: Opening of a direct link to Euroclear Bank and OneClearstream service activation - Update

29.08.2024

Note: This announcement, originally published on 6 August 2024, has been updated to add information on the scope of securities eligible for the OneClearstream service. Changes have been highlighted.

Clearstream Banking¹ informs clients that effective

21 October 2024

activation of a new Clearstream Banking S.A. (CBL) direct link to Euroclear Bank (EB), the issuer CSD of the Irish securities, will take place.

With the new direct link, the OneClearstream service will be activated for Irish securities issued by Euroclear Bank and therefore those securities will be eligible in Clearstream Banking AG (CBF). Irish ISINs issued by Euroclear Bank will become eligible for settlement in CBF-T2S with the Non-Collective Safe Custody (NCSC-T) status.

Important note: There are some Irish securities that are issued in the CREST system of Euroclear UK and International, that did not migrate to Euroclear Bank. Those ISINs are not part of the migration and will remain on the existing indirect link via Citibank N.A., London Branch. The list of the impacted ISINs will be published in due time.

For the avoidance of doubt, direct settlement with domestic counterparties in Euroclear Bank will not be possible for CBF and LuxCSD. Clients will need to transfer the securities from CBF to CBL and vice versa. The Irish Realignment Guide will be updated with the migration.

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

Irish ISINs issued by Euroclear Bank will be migrated to OneClearstream. A list of the impacted ISINs is attached below. Clients should note that the list is subject to potential changes. In the event of any amendments, the definitive list of ISINs will be published on Wednesday, 16 October 2024.

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.

Impact on clients

New Depository Code: IB

BIC: MGTCBEBEXXX

Impact on domestic counterparties

Clients should inform their counterparties about the revised information to be indicated in their settlement instructions regarding CBL's direct account with EB as follows:

Procedure for the domestic counterparty	Deadline
Domestic counterparties delivering/receiving securities free of payment/against payment in favour of/from a CBL client must indicate in their instructions:	Market deadline
For receipt and delivery transactions free of/against payment: Deliver to/Receive from: Clearstream Banking S.A. participant account in Euroclear Bank 49693a For/from: Clearstream Banking S.A.
In favour of: Account number of CBL client

a. Clients who have certified for Irish QI relief should inform their counterparties about the change of Clearstream Banking S.A. participant account to 59233.

Nationality Declaration

Some Irish equities are subject to Nationality Declaration on transfer in the domestic market.

For holdings of Irish securities subject to Nationality Declaration, the registrar must be informed of the nationality of the beneficial owner. This process allows issuing companies to monitor the level of ownership by foreigners.

Currently, only Ryanair Holding PLC (ISIN: IE00BYTBXV33) requires such declaration.

Clients wishing to transfer a security that requires a Nationality Declaration in a domestic market, must include the ISO 3166 country code of the buying or selling investor in their receipt or delivery instructions, as indicated below:

Swift ISO15022	Xact Web Portal
Nationality of the investor	Sequence: F - OTHRPRTY Field: :95C::INVE// the ISO 3166 country code that specifies the investor's nationality	Other business parties: Other business party type - Investor Format - Country Code Identifier - the ISO 3166 country code that specifies the investor's nationality

Note: Domestic instruction without the nationality declaration or with invalid country code will be rejected.

CBL will accept no responsibility with regard to any problems resulting from the registration process applicable to securities subject to Nationality Declaration.

Settlement timing

Settlement deadlines for equities and other non-Bridge eligible securities will be improved for the instructions that are eligible for straight-through-processing:

• By 60 minutes for free of payment receipts and deliveries (from 18:25 CET to 19:25 CET);
• By 30 minutes for against payment receipts and deliveries (from 15:25 CET to 15:55 CET).

Other deadlines remain unchanged.

Corporate actions on flows (market claims, transformations and buyer protection)

For Clearstream Banking AG (CBF) and LuxCSD 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).

For general information about the OneClearstream service, clients should refer to the OneClearstream Client Handbook.

Note: This is the current situation based on the latest information, should there be any changes or additional information, Clearstream Banking 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 non-collective safe custody settled via T2S (NCSC-T) on Thursday, 17 October 2024, 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 NCSC-T by Friday, 18 October 2024, in the morning. Clients must transfer the required provisioning from CBL to CBF for instructions with intended settlement date Tuesday, 22 October 2024.

Migration schedule

Announcement will be updated with the migration schedule at a later stage.

Further information

For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to 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, and Clearstream Banking AG, registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.

Attachments

• Ireland - List of impacted ISINs( 17 kb, vnd.openxmlformats-officedocument.spreadsheetml.sheet )