Entitlement Compensation Rules - Belgium

19.11.2014

NBB-eligible securities

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:No (with the exception of Repo transactions, for which NBB compensates automatically)
Restriction on custody events/transaction types:No restriction
Service offered by CBL:Adjustment is performed based on information received from the depository.

Securities eligible in Euroclear Belgium (EBE SA/NV)

Market compensation basis:Trade Date
Automatic Compensation Managed by Local CSD:Yes
Restriction on custody events/transaction types:No restriction

Additional information:
For entitlement, the Record Date is equal to Ex-Date +1 business day.

For compensation, the following rules apply:

  • If TD is before Ex-Date and the settlement happens after Record Date, the trade is settled cum-divident and an automatic market claim compensation is generated.
  • If TD is equal to or after Ex-Date, then the instruction is settled ex-dividend.

Shortselling of coupons is not allowed on the market. Therefore, if the depository is short of entitlement for CBL, sale transactions with a TD before Ex-Date will be compensated gross (that is, at a rate of 100%) without deducting the withholding tax.

Service offered by CBL:Adjustment performed based on information received from the depository