Market asset servicing - Netherlands

09.04.2018

Income collection

Bonds and medium term notes - Interest payment
Market Record dateEx-date +1.
Ex-dateDetermined on a case-by-case-basis.
Basis for entitlementSettled position at close of business on payment date -1.
Standard interest calculation ruleIssued before 1 January 1999: 360/360
Issued after 1 January 1999: Actual/Actual.
Bonds, medium-term notes, CDs and CPs - Final and early redemption
Market Record dateEx-date +1.
Ex-dateDetermined on a case-by-case-basis.
Basis for entitlementSettled position at close of business on payment date -1.
Standard interest calculation ruleNot applicable.
Bonds - Partial redemption by drawing
Market Record dateMarket Drawing date.
Ex-dateDetermined on a case-by-case-basis.
Basis for entitlementDepending on the lottery processed on the drawing date, record date is based on specific redemption price.
Standard interest calculation ruleNot applicable.
Equities - Dividend
Market Record dateEx-date +1
Ex-dateDetermined on a case by case basis. It determines the entitlement of dividends including for stock and choice dividends.
Basis for entitlementSettled position on ex-date.
Standard interest calculation ruleNot applicable.

Partial redemption by drawing

Partial redemption by drawing can occur on certain bonds on a semi-annual or a yearly basis. The drawing date is the first day on which securities are traded ex drawing rights. Delivery and receipt of securities are with benefit of drawing up to and including the day prior to the drawing date.

On drawing date -1, the position on depot is blocked. On the drawing date, the drawn amount of securities is blocked up until the pay date and the redemption is discounted in the relevant positions at the redemption price and settled on the settlement date.

If a drawing takes place between trade date and settlement date, contrary to international market practice, under the rules and regulations of Euronext Amsterdam, the buyer will participate in the drawing process. In such cases, a buyer is not entitled to claim full delivery of the bonds. This is why there is a frozen period of two or three days before and after the drawing date. The results of the drawing are published on drawing date +2.

Corporate actions

Most common corporate events

The most common events in the Dutch market are Choice dividends, Subscription offers, Stock dividends or Non-Automatic Bonuses, and Conversion options on Convertible bonds.

Organisation of AGM/EGMs

Two weeks before the meeting, the sub-custodian receives the information in Dutch; this is then translated into English and sent to the global custodian. Investors can apply for a voting or entry card up until the day specified by the issuer, from which date the shares are blocked from settlement until the day of the meeting.

Generally, applications for voting or entry cards can only be cancelled up until the deadline established by the issuer (typically, meeting date -3) and the cancellation is effected upon receipt of the instruction.

Voting can only be exercised by sending a representative to attend the general meeting. The subcustodian can retain a representative to attend the meeting if this is instructed by the client. Companies may impose restrictions on investors' voting privileges or limit the number of shares each shareholder can vote regardless of the number of shares held.

Other market specifics

Stock options in the Netherlands are either tradable or non-tradable:

  • For tradable stock options, payment date is before the market deadline and the market deadline is 5 business days prior to the instruction deadline of the issuer or of his paying agent. Therefore, the decision whether to receive cash or stock can only be made for settled holdings. The issuer announces the cash and the exchange ratio on ex-date. After payment date, the stock option can be converted into new shares up until the market deadline.
  • For non-tradable stock options, payment date is after the market deadline. There is a gap of an average of two weeks between ex-date and the market deadline and the market deadline and payment date. The issuer announces the cash dividend and the margin on ex-date. The exchange ratio remains unknown until the company deadline, at which time the holder must choose either cash or stock. The exchange ratio is determined on market deadline +1.

Transaction management

Please refer to Transaction Management in T2S  and the Transaction management rules - Netherlands.