Customer Handbook For customers of Clearstream Banking AG Document number: F-CI05 April 2021 The information contained in this document is subject to change without notice and does not constitute a commitment on the part of Clearstream Banking AG, Frankfurt (hereinafter referred to as Clearstream Banking Frankfurt or CBF) or any other company belonging to Clearstream Holding AG. This document may not be reproduced or transmitted in whole or in part in any form including photocopying and recording for any purpose whatsoever without the prior written approval of Clearstream Banking Frankfurt. Unless otherwise stated, all times are given in Central European Time (CET). © Copyright Clearstream Banking AG, Frankfurt (2021). All rights reserved. Foreword The descriptions and information provided in this Customer Handbook are Technical Rules according to clause I of the General Terms and Conditions of Clearstream Banking AG. The information contained in this Customer Handbook applies in conjunction with other CBF publications (CASCADE Online Handbook, CASCADE-PC User Manual, Xemac® User Manual and Connectivity Handbook), CBF's announcements and other user manuals on connectivity, which contain further details concerning the use of CBF's services. The applicable version is always the current version published on the Clearstream website www.clearstream.com. CBF reserves the right to revise and update this Handbook from time to time in order to document the availability of new products and other improved services. Customers who have specific questions about the information contained in this Handbook are asked to contact their Client Services Officer or Relationship Manager. Clearstream Banking Frankfurt April 2021 Customer Handbook Foreword - i Customer Handbook This page has intentionally been left blank. April 2021 Clearstream Banking Frankfurt Foreword - ii Customer Handbook Contents Foreword . i 1. Introduction 1.1 Organisational structure of the Clearstream Banking Group and the legal status of Clearstream Banking Frankfurt ........................................................................1-1 1.2 CBF’s role in Germany and in international securities markets.......................................... 1-2 1.3 Credit rating........................................................................................................................... 1-4 1.4 Types of custody .................................................................................................................... 1-5 1.5 Services for collective safe custody (T2S settlement).......................................................... 1-7 1.6 Third-party services for individual safe custody................................................................. 1-17 1.7 Services for non-collective safe custody (“Non T2S”) ........................................................ 1-19 1.8 Links to international securities markets........................................................................... 1-21 1.9 Legal documentation........................................................................................................... 1-23 1.10 Sources of information........................................................................................................ 1-24 1.11 Client Services..................................................................................................................... 1-27 2. Customer accounts 2.1 Cash and securities accounts per transaction type.............................................................. 2-1 2.2 Account types......................................................................................................................... 2-3 2.3 Opening accounts .................................................................................................................. 2-8 3. Securities settlement 3.1 Settlement via T2S................................................................................................................. 3-1 3.2 Stock exchange trades .......................................................................................................... 3-3 3.3 OTC transactions ................................................................................................................. 3-12 4. Cash settlement 4.1 Cash settlement through T2S ............................................................................................... 4-2 4.2 Cash settlement in EUR through TARGET2 .......................................................................... 4-4 4.3 Cash settlement of non-EUR currency ................................................................................. 4-5 4.4 Cash settlement through the Swiss National Bank.............................................................. 4-8 5. Custody 5.1 New issues............................................................................................................................. 5-1 5.2 Safekeeping ........................................................................................................................... 5-7 6. Administration/custody 6.1 Collective safe custody .......................................................................................................... 6-1 6.2 Individual safe custody ........................................................................................................ 6-19 6.3 Non-collective safe custody ................................................................................................ 6-20 7. Special Services 7.1 Registered shares in CASCADE-RS ...................................................................................... 7-1 7.2 French registered securities................................................................................................. 7-7 7.3 Settlement of TEFRA D securities......................................................................................... 7-8 7.4 Global Securities Financing Services.................................................................................. 7-10 7.5 Investment Fund Services ................................................................................................... 7-15 7.6 T2S Auto-Collateralisation .................................................................................................. 7-22 7.7 Financing: Availability of funds ........................................................................................... 7-24 7.8 Collateral valuation ............................................................................................................. 7-30 7.9 Interest calculations and reporting .................................................................................... 7-36 7.10 Third-party services for individual safe custody................................................................. 7-37 Clearstream Banking Frankfurt April 2021 Customer Handbook iii Customer Handbook 7.11 Taxbox (German flat rate withholding tax).......................................................................... 7-39 7.12 Risk Management Service for settlement agents............................................................... 7-40 7.13 Shareholder identification under Shareholder Rights Directive II (SRD II)........................ 7-41 8. Communication 8.1 Collective safe custody .......................................................................................................... 8-1 8.2 Non-collective safe custody .................................................................................................. 8-8 8.3 Communications contingency ............................................................................................... 8-9 9. Reporting 9.1 Reconciliation ........................................................................................................................ 9-1 9.2 Collective safe custody .......................................................................................................... 9-1 9.3 Non-collective safe custody .................................................................................................. 9-4 9.4 Domestic Markets Monitoring Report................................................................................... 9-5 9.5 Registrar Monitoring Report ................................................................................................. 9-6 9.6 T2S Dedicated Cash Account Statement (MT940)................................................................. 9-7 9.7 Shareholder identification..................................................................................................... 9-8 10. Annex 10.1 Reference documents ......................................................................................................... 10-1 Glossary . G-i Index . I-i April 2021 Clearstream Banking Frankfurt iv Customer Handbook 1. Introduction 1.1 Organisational structure of the Clearstream Banking Group and the legal status of Clearstream Banking Frankfurt Clearstream Banking Aktiengesellschaft, Frankfurt (CBF) is a stock corporation (Aktiengesellschaft) under German law (registered in the commercial register under number HRB 7500). Its Legal Entity Identifier (LEI) is 549300298FD7AS4PPU70. Further details on the group's structure with respect to CBF are illustrated on the Clearstream website under Shareholding structure. CBF is authorised under Article 16 of CSDR (core and non-banking-type ancillary services). Furthermore, CBF is authorised and regulated as a credit institution under the German