CSD announcement on change in its method of EUR clearing (Project TARGET2)

UniCredit Bank Czech Republic and Slovakia,a.s.
Fri, 24/01/2020

UniCredit Bank Czech Republic would like to advise its clients of the recent CDCP announcement (BulletinCDCP2004 - issued on 22/1/2020) advising its participants of the upcoming change in the method of clearing EUR currency:

“Project TARGET2

We would like to inform you about the latest development of the project TARGET2. The Central Depository applied the CNB to approve an application for an extension of the license for a new method of clearing EURO transactions. Based on the latest information, the CSD expects a positive decision already at the turn of January and February 2020.

Therefore, the CSD has set a new deadline for Go-Live on 2 March 2020. After that date, it will no longer be possible to settle transactions in EUR via a current clearing framework (UniCredit bank account).

The Central Depository immediately renews the possibility of testing transfers in EUR. Further information on testing was published in Bulletin No. 1940 and information is also given below.

Primary issue of government bonds

Based on an agreement among the Ministry of Finance of the Czech Republic, CSD Prague and CSD participants government bond issues with settlement dates after March 2, 2020 will be included in the settlement cycle at 8:00 (request for settlement value = "2") instead of the current settlement cycle at 11: 00. The main reason for the change is the possibility of settlement of government bonds in all settlement cycles, also with regard to the settlement of government bonds in EUR currency in the TARGET2 payment system.

Bulletin No.: 1940

Issues registered with trading/settlement currency EUR:

CZ0003501694 ISTROKAP.CZ10,0/16

CZ0001004246 ST.DLUHOP. 0,85/18


Impact on investors: The respective change would have no direct impact on investors (relates to direct CDCP participants only).