Frequently Asked Questions

How does Clearstream advise a customer of a custody event?

Clearstream will send a Corporate Action notification for all events impacting positions held on a customer’s account. These notifications are issued via CreationConnect as MT564’s and MT568’s and are also available via CreationOnline.

How can I identify the type of event/notification?

Clearstream will differentiate between voluntary and mandatory events.

A “For Your Information” (FYI) notification will be sent for the mandatory events (in SWIFT, this will be expressed with the qualifier MAND). This will be used for events where no action from the customer is necessary i.e. Split, mergers, etc

Voluntary events will be created as “Your Instruction Requested” (in SWIFT, the qualifier VOLU will then be used). The events concerned are those requiring a decision or action from the holder of the securities eg distribution with rights, purchase offer etc

In addition, the qualifier CHOS for a SWIFT notification can be selected for mandatory events with choices, such as merger with choices.

Do I need to instruct for all custody events?

An instruction is only needed for the “Your Instruction Requested” notifications as well as some Certification Requests.

What instruction type should I use for custody events?

CreationOnline users can easily instruct by opening the original notification message under Custody and clicking on the respond button.

For Creation via SWIFT and CreationDirect, customers can instruct via MT565 message type.

What will Clearstream do when it receives a custody instruction?

The instruction will be validated, authorised for Straight Through Processing and the instructed position will be blocked on the customer’s account.

What happens if I instruct late or forget to send my instruction?

If you forget to send your instruction, Clearstream will apply the default action stated in the notification (default indicator).

If you instruct late, Clearstream will handle your instruction on best effort basis. If it is not possible for Clearstream to process your instruction Clearstream will apply the default action stated in the notification (default indicator).

How can I cancel a custody instruction?

Custody instructions can be cancelled by sending an MT565 Cancellation Request (linking the cancellation to the previous instruction).

In CreationOnline a customer can directly click on “Request Cancellation”.

Please note that all cancellation requests will be handled on case by case basis and the possibilities are linked to the event type.

Can I send an instruction when I have not yet received a notification?

An MT565 instruction can be sent to Clearstream regardless of whether or not a Corporate Action Notification has been previously sent. It is recommended to use the exact event type.

In CreationOnline, unsolicited instructions can be generated within the Custody module.

How can I be sure that Clearstream has received my instruction?

If you have subscribed for the receipt of SWIFT MT567 Acknowledgement messages, Clearstream will send confirmation via this instruction type. This is an optional message that is usually requested by the Customer in its account setup. If you have not subscribed for these messages and would like to do so, please contact your Customer Services Officer.

In Creationonline, the status of the instruction (Acknowledged) is automatically available by querying in the CreationOnline Custody module .

How can I identify any uninstructed events?

In the MT564 SWIFT Corporate Action Notification issued for an event, Clearstream informs customers on the details of the position.

:93B::ELIG// eligible balance
:93B::INBA// instructed balance
:93B::UNBA// uninstructed balance

This information is also available within Creation Online in the Custody Module.

Customers can also view at a glance the Custody Dashboard in CreationOnline that provides an overview of the number of uninstructed events.

How can I see if an asset is blocked due to a corporate action?

The blocked asset will be detailed in the security balance.

The Security Balance is available in CreationOnline as a query called “Securities Balances”.

It is also provided in the MT535 Statement of Holdings report:

:93B::BLOK// blocked balance (used for particular custody events such as meeting, consent)
:93B::BLCA// blocked pending corporate actions

As from November 2006, these movements are available in the MT508 Intra-Position Advice and MT538 Statement of Intra-Position Advices.

How can I verify whether the custody proceeds have been applied?

Clearstream generates MT566 Corporate Action Confirmations as soon as cash and/or securities have been credited/debited.

A CreationOnline query is available in the Custody module allowing users to search for confirmations.

Why does Clearstream send Certification of Beneficial Ownership (U.S.A.)?

Securities under TEFRA D regulations are subject to investment restrictions and cannot be kept on behalf of a US resident (as a final beneficiary) for a period of time (usually 40 days after issue date).

For these securities Clearstream must obtain a request for confirmation of any holding on behalf of a US resident.

Clearstream will send an MT564 Corporate Action Notification with an event type Certification Request (SWIFT qualifier will be SMPG/CERT) requesting the customer to inform Clearstream if there are any unqualified end beneficial owners.

Customers should respond to this request by sending an MT565 custody instruction or respond via CreationOnline.

What is the IPAR report?

The Income Pre Advice Report is an overview of the forthcoming anticipated income payments on an account (dividends, interests and redemptions).

It is sent in the form of a SWIFT MT564 Income Pre Advice report 5 days prior to the announced pay day.

Customers can also perform a CreationOnline query to search for IPAR entries .

Where can I see the calculation method used?

Details of the Method of Interest Computation (Swift qualifier MICO) are provided in the IPAR report and query.

Explanations for the different codes used are can be found in the SWIFT User Guide. In Creation Online the qualifiers are expanded into full definitions.

How can I see the details of a Corporate event if I do not have a holding?

CreationOnline enables a user to view detailed information about corporate actions for any security eligible in Clearstream, even if the customer does not hold the underlying security.

This query is available under Reference Data / Corporate Actions.

How can I obtain a copy of the prospectus or Terms and Conditions?

To obtain a copy of the Prospectus or terms and Conditions of a given event, the customer should contact his Customer Services Officer and request this information.

As from January 2007, customers are enabled via Creation Online to request the delivery of a copy of the Terms and Conditions related to financial instruments under electronic format. A copy if, available, is sent via CreationDirect.

Can I buy or sell rights through Clearstream? If so, how?

The service for the sale and purchase of rights enables customers to trade rights issued on domestic shares according to the local market rules and the respective trading period.

Further details can be found in the publication related to Sale and purchase of rights.

Who should I contact if I have any questions relating to a notification?

If you have any further questions, please call your Customer Services Officer or the Contact person stated on the notification.

If you are unsure who your Customer Services Officer is, please consult the Customer Support area of this website where you will find the contact details for our Customer Services departments worldwide.