As announced, the following Central Securities Depositories migrate to the pan-European settlement system TARGET2-Securities in Wave 4 during the weekend between Friday, 3 February and Monday, 6 February: Clearstream Banking AG (Germany), Lux CSD (Luxembourg), KELER (Hungary), KDD (Slovenia), OeKB CSD (Austria) and CDCP (Slovak Republic).
The operations of the CSD Prague will be affected by changes to the terms and conditions for settlement of free of payment instructions of the foreign depositories listed below.
OeKB CSD Austria (through Clearstream Banking Luxembourg)
All instructions sent via Clearstream Banking Luxembourg to the Austrian market, that have been released by 15:45 CET on Friday 3 February, in matched or unmatched status, with past or future settlement dates, will be automatically migrated to the T2S platform by OeKB CSD. No action is required from the participants.
All instructions for the Austrian market sent to Clearstream on 3 February after the recommended deadline, pending in an unmatched status but not yet released to the market, will be stored by Clearstream Banking Luxembourg and released to T2S only after confirmation of the successful migration of OeKB CSD to T2S. If for any reason the instructions are rejected by Clearstream Banking Luxembourg or by OeKB CSD, the participants will have to reinstruct them.
All instructions sent to Clearstream on 3 February in incorrect format, with incomplete settlement details and after the settlement cut-off time may be delayed or rejected by Clearstream Banking Luxembourg or by OeKB CSD. If for any reason the instructions are indeed rejected, the participants will have to reinstruct them.
The settlement cut-off time of OeKB CSD has been shortened due to the migration to T2S. For this reason, Clearstream Banking Luxembourg also shortens the settlement day on 3 February to 14:55 CET for free of payment transfers. Clearstream Banking Luxembourg thus recommends to its participants to send instructions for the Austrian market on 3 February only until 14:30 CET, instructions sent between 14:30 CET and 21:30 CET may be delayed or rejected.
CDCP Slovak Republic
Due to the migration, CDCP Slovak Republic shortens the settlement day on 3 February to 14:00 CET. Consequently, CSD Prague will accept instructions for transfer of Slovak securities from/to CSD Prague on 3 February only until 13:00 CET.
In relation to the migration to the new settlement platform, CDCP Slovak Republic is changing the services related to the registration system and therefore the communication channel between the depository and its participants. The harmonisation and the standardisation of the settlement process in CDCP Slovak Republic will allow CSD Prague to provide the free of payment instructions to the Slovak depository without sending additional information by e-mail.
Impact on investors: Limitations to the free of payment settlement of Austrian and Slovak securities in CSD Prague in relation to the T2S migration in these markets.