Market Best Practices for Europe: Euroclear and Clearstream Banking

Settling in Euroclear

To create an SSI on ALERT for this market, use the following recommended ALERT country/method/security combination:

• Country: EUROPE - EU
• Method: EURO_CLEAR - Euroclear Bank
• Security (one of the following):
  • EQU - Equities
  • MMT - Money Market
  • COB - Corporate Bonds (for any corporate fixed income)
  • TRY - Treasuries (for any government fixed income)

This combination enables the associated field labels and validation rules specific to the European market. When you use this combination, ALERT automatically populates the PSET field with the BIC of MGTCBEBE.

Note

For GC Direct Account maintenance, DTCC recommends maintaining a minimum of three basic security types for each market: Equity (EQU); Fixed Income (COB); and Government Bonds (TRY). To enable faster onboarding, you can align with your custodian on security types in preparation for GC Direct onboarding. Check with you custodian if other security types, such as Money Market (MMT), are supported.

Settling in Cedel

To create an SSI on ALERT for this market, use the following recommended ALERT country/method/security combination:

• Country: EUROPE - EU
• Method: CEDEL - Clearstream Banking
• Security (one of the following):
  • EQU - Equities
  • MMT - Money Market
  • COB - Corporate Bonds (for any corporate fixed income)
  • TRY - Treasuries (for any government fixed income)

This combination enables the associated field labels and validation rules specific to the European market. When you use this combination, ALERT automatically populates the PSET field with the BIC of CEDELULL.

GDRs and ADRs

When setting up settlement instructions for GDRs settling at one of the ICSDs in Europe, DTCC recommends the following:

• Instead of individual local countries, use Europe as the country.

• Use the following country/method/seucurity combinations:

  GRRs	ADRs
  Country: EUROPE - EU Method: EURO_CLEAR Security: GDR-Equity	Country: EUROPE - EU Method: EURO_CLEAR Security: ADR Although ADRs typically settle through DTC, using US-ADR-DTC, you can set up ADRs with Europe.

The next table lists the fields used to settle in Clearstream Banking or Euroclear Bank.

Fields for Settling in Euroclear or Clearstream

Field	Requirement	Definition
Depository/Clearing/Settlement Agency Data
PSET BIC	Mandatory	BIC of Euroclear Bank or Clearstream Banking.
Euroclear# or Clearstream#	Mandatory	Membership number at Euroclear Bank or Clearstream Banking. Format: must be 5 digits.
Settlement Party Data: Local Clearing Agent Data
A/C# @ Local Agent	Recommended	Account number of the global custodian at the local agent.
Local Agent BIC	Needed only if the custodian is not a direct member of the depository. If your internal system requires this field, use the Euroclear or Clearstream BIC.	BIC of global custodian or local agent who has membership at Euroclear Bank.
Settlement Party Data: Security/Cash Correspondent (Intermediary)
Correspondent Security A/C#	Recommended	Account number of the global custodian at the intermediary.
Correspondent BIC	Recommended	BIC of the intermediary.
Relationship	Conditional. Required if Correspondent Security A/C# and Correspondent BIC are populated.	On ALERT Web, select SUBAGENT when setting up three levels of clearing.
Settlement Party Data: Custodian Data
A/C# @ Global Custodian	Recommended	Account number of the fund at global custodian.
Custodian BIC	Recommended	BIC of the global custodian.