Market Best Practices for Europe: Euroclear and Clearstream Banking
This topic provides best practices for populating and interpreting settlement instructions for Europe when using the ALERT country code EUROPE - EU.
Most countries have one depository per security type, which is at the national level. Euroclear and Clearstream are international depositories, which allow settlement of securities from many different countries. For that reason, ALERT allows you to use EUROPE as a country.
When setting up instructionswith EURO_CLEAR or CEDEL as the method, use EUROPE as the country instead of the individual underlying countries.
Use the CASH-CASH method for the Euro currency. Using the EURO_CLEAR method with COB - Corporate Fixed Income relates to securities settling in Euroclear. It does not relate to a specific set of currencies/countries, as many security types from various countries around the world settle in Euroclear and Cedel. It is an international depository and supports any country that is eligible to settle in Euroclear and Cedel.
Investment Managers
Use the Market Best Practices for Investment Managers to view the latest applicable country/security/method (CSM) combinations and best practices.
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.
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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.
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. |
The next figure illustrates Euroclear instructions on ALERT Web.
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The next figure illustrates Clearstream instructions on ALERT Web.
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