New issues back valuation rules

20.05.2020

Considering new regulatory requirements like the Central Securities Depositories Regulation (CSDR), enhanced settlement deadlines and increased efficiency of all market participants, Clearstream Banking1 and Euroclear Bank S.A./N.V. have decided to adapt their new issues back valuation services.

Effective

19 October 2020

guidelines applied by Clearstream Banking Luxembourg S.A. (CBL) and Euroclear Bank for the back valuation status of new issues on the closing date will be amended.

Impact on customers

Back valuation will cease to apply by default to:

  • International securities (securities which are issued through the ICSDs); and
  • New issues deposited in domestic markets other than the ones specified hereafter:
    • The Federal Reserve Bank of New York (Fedwire) and The Depository Trust Company (DTC) in the United States;
    • Clearing and Depository Services Inc. (CDS) in Canada;
    • Indeval in Mexico;
    • Caja de Valores in Argentina.

Further information

Note: The CBL Customer Handbook will be updated to reflect these changes.

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

------------------------------------------
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.