In September 2014, the new CSD Regulation (CSDR) went into force. This regulation defines which services can be offered by a CSD. In Austria, the CSD function is currently provided by a department of Oesterreichische Kontrollbank AG (OeKB) which operates under the name CSD.Austria. Since OeKB offers services that are not allowed for CSDs according to CSDR, the CSD function has to be outsourced into a separate legal entity that will be run as a 100% subsidiary of OeKB. The new entity will be called OeKB CSD GmbH and will have a banking licence which is limited to the giro and safekeeping business. This enables the company to act as Central Depository in the Austrian market. OeKB CSD GmbH will be officially registered after close of business on 11 September 2015 and will start its activity on 14 September 2015.
According to our current information the following changes will occur, though these may still be subject to changes:
- OeKB CSD GmbH will be the legal successor of OeKB AG with regards to the CSD services, especially for the maintenance of safekeeping accounts. Thus, all of the accounts, account data and numbers as well as the positions will be transferred to the new entity without any changes. Also, any laws and duties as mentioned in the current terms and conditions of CSD.Austria will be accepted by the new CSD entity.
- Since cash accounts held with OeKB CSD GmbH have to be limited to support custody business, existing cash accounts cannot be transferred. Instead, new cash accounts for all CSD members will have to be opened. Relevant documentation will be rolled out to the CSD participants in July 2015. The new cash accounts will have to be funded via T2S starting from 14 September 2015 by the member banks. No overdraft will be permitted for these cash accounts nor will any credit lines be granted according to regulatory requirements. The facility for disposition lines offered by OeKB AG based on pledging of securities will remain in place and can be used for funding the cash accounts with OeKB CSD GmbH if so requested by a participant. Keeping of cash balances on the cash accounts with OeKB CSD GmbH overnight will not be possible.
- Starting with 14 September 2015 the new BIC OCSDATWWXXX for OeKB CSD GmbH will become operational and all SWIFT communication with the CSD will be conducted via the new BIC from that moment on. This means that PSET for the Austrian market will change from OEKOATWWXXX to OCSDATWWXXX as of 14 September 2015.
The access to all of the online facilities operated by the CSD (DS.A, CSD.A Online, CUNO) remains in place without any changes. Additionally, the Service Account Information tool will be offered for checking the cash accounts held with OeKB CSD GmbH.
Impact on investors: According to our current assessment of the future changes, the outsourcing of the CSD function from OeKB AG will not have any direct impact on our clients. Usage of the new PSET OCSDATWWXXX as of 14 September 2015 is recommended, however, UniCredit Bank Austria AG will setup internal cross references to enable STP processing even if the PSET is not stated correctly in the settlement instructions.
We will closely monitor the future developments and notifications for this project and will inform our clients accordingly regarding any potential impacts that might occur at a later stage.