Other services - Germany
Strippable government bonds
Some German government bonds are strippable, meaning that holders can request that the coupons be detached (detached coupons are known as “coupon strips”) from the original bond (the “bond cum coupon”). If coupons are detached, the bond cum coupon becomes a “bond ex coupon”, also known as the “principal strip”. All three parts (that is, either the sole original bond or the coupon strip and the principal strip) can then be traded separately.
Each coupon strip is allocated a WKN (a securities identification number) and, just like the principal strip, is considered a zero coupon security. Coupon strips from strippable government bonds that have the same maturity date (4 January or 4 July) will be grouped together and allocated the same WKN.
The original bond can also be reconstructed by reattaching the coupon strips to the principal strip.
Coupon stripping and reattachment
Customers who want to strip the coupons from the original bond or to reattach the coupon strips and the principal strip must send an instruction in an authenticated SWIFT MT599 or CreationOnline free-format message) to CBL’s Custody Department, specifying:
- The kind of operation:
- Stripping of coupons from the original bond; or
- Reattachment of the coupon strips to the principal strip;
- The security code:
- When stripping coupons, the security code of the original bond must be indicated;
- When reattaching the stripped bonds, the security code of the principal strip must be indicated;
- The requested value date (VD) (if not provided, CBL performs the coupon stripping/reattachment with best possible value);
- The nominal amount on which the stripping is to be performed.
The deadlines for receipt of these instructions are as follows:
- VD-1 15:00 (for booking in STD/MAS)
- VD-1 Close of Business (for booking in T2S RTS)
Multi-Market securities service (CBL only)
German domestic securities can be listed on foreign exchanges. These multi-market equities are traded on more than one stock exchange and are eligible for deposit and settlement in more than one CSD. This service is not available for CBF customers.
As there are an additional number of intermediaries in the settlement chain, cross-border transfers and realignments may take several days to settle. Consequently, Clearstream Banking cannot guarantee timely settlement of cross-border instructions which means that CSDR SDR cash penalties might occur if there is late or failed settlement.
Customers are therefore strongly recommended to send their cross-border settlement instructions to Clearstream Banking as early as possible to avoid settlement delays.
For further information, see the Multi-Market Securities Guide.
Securities lending and borrowing
All German debt securities qualify for Clearstream's securities lending and borrowing programme.
Equities and warrants are not eligible for Clearstream's securities lending and borrowing programme.
Please refer to the Clearstream Banking Disclosure Requirements - Germany. (CBL only)
Corporations that have issued registered shares may, in the Articles of Association, insist that company approval - from the board of managing directors or the supervisory board - or shareholder approval (at AGMs or EGMs) is required before shares can be transferred.
Please refer to Market Taxation Guide - Germany.