Amendment to corporate action services - update

20.03.2018

Note: This announcement, originally published on 5 December 2017 has been updated to add Italy to List A.  The Sale and Purchase of Rights and Odd Lots will be suspended in Italy effective 26 March 2018

Effective

29 December 20171

Clearstream Banking2 will suspend indefinitely the provision of specific services that are currently associated with the provision of corporate actions in certain markets (see List A below). The following services are concerned:

  • Sale and Purchase of Rights                DVOP, EXRI, EXWA, EXOF      
  • Sale and Purchase of Odd Lots           ODLT

Therefore, for all ongoing events carrying BUYA and SLLE options or for all ODLT events, Clearstream Banking will apply a deadline of 29 December 2017, beyond which any instructions received will not be processed for the markets listed in List A (see below).

Impact on customers

Changes to the Sale and Purchase of Rights service  

The existing and newly created rights distribution events will continue to be announced and credited to customer accounts in the usual manner and using the usual connectivity channels.

For the existing exercise of rights events, any BUYA/SLLE instructions received from customers for execution prior to 29 December 2017 will be processed in the usual manner.

For new exercise of rights events created as from 29 December 2017, the event notification of Clearstream Banking will no longer display the buy (BUYA) and/or sell (SLLE) options for tradable rights, warrants and any other financial instrument if no such options were notified to Clearstream Banking by its agents or depositories.

Update on Italy: BUYA and SLLE options already announced will remain available to customers until the expiration of the trading period of the corresponding ongoing events. As from 26 March 2018 no newly announced events will contain such options.

Clearstream Banking shall continue to notify customers that a buy and sell option exists on a "best efforts" basis and only where our agents or depositories offer to continue sending notifications. As the Sale and Purchase of Rights service for the countries in List A (see below)will no longer be supported by Clearstream Banking, customers wishing to buy or sell rights will be required to arrange the trading through their broker.

Changes to the Sale and Purchase of Odd Lots  

The BUYA/SLLE instructions on existing events received from customers for execution prior to 29 December 2017 will be processed in the usual manner.

As of 29 December 2017, new Odd Lots events will no longer be announced since buy and sell options under this event can no longer be offered for the markets in List A (see below).

Therefore, customers wishing to buy or sell odd lots will be required to arrange the trading through their broker.

Background

Under the scope of its current services, Clearstream Banking uses its agent or depositories to handle instructions received from participants and Clearstream has received notice that those used for the markets below will cease to offer such services

List A:

  • Belgium
  • Denmark
  • France
  • Greece
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Portugal
  • United Kingdom

For the following markets, our agents and depositories have indicated that they are conducting a review of the current service level for Clearstream Banking possibly with additional documentary requirements that Clearstream Banking will need to assess. Clearstream Banking is investigating with the agents and depositories any further requirements that may need to be fulfilled in order to continue offering the services.

List B:

  • Bulgaria
  • Finland
  • Germany
  • Spain
  • Sweden

A complete list of markets for which Clearstream Banking currently provides this service for can be found on the Sales and Purchase of Rights web page.

Based on the recent developments as stated above, Clearstream Banking is reviewing its ability to provide these services in general and with regards to the markets listed above in particular.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. The ESES markets (Belgium, Netherlands, France) and Portugal are subject to earlier deadlines: for events created before 1 December 2017, the SLLE/BUYA options will be supported prior to 15 December 2017 only. For events created as of 1 December 2017, the SLLE/BUYA options will no longer be offered. This means that indicated options will no longer be included in the event notifications for rights and the events for odd lots will no longer be announced.

2. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.