Sweden: Changes to market rules for elective corporate action events

22.02.2021

Clearstream Banking1 would like to inform customers that effective

1 March 2021

the Swedish Securities Markets Association’s (SSMA) rules for trading and settlement of securities will be amended.

Impact on customers

The main changes affect certain elective corporate action events, as the Swedish market will implement bilateral/manual buyer protection in accordance with the European market standards for corporate actions processing (Corporate Actions Joint Working Group (CAJWG) standards).

Bilateral buyer protection

Bilateral buyer protection has been used by some market participants but has so far not been included in the SSMA’s rules. The standard template as created by the CAJWG will be used in the Swedish market.

The buyer protection deadline and guaranteed participation date will also be as per European standards:

  • The buyer protection deadline will be one business day prior to the market deadline; and
  • The guaranteed participation date will be one settlement cycle prior to the buyer protection deadline.

At this point in time, issuers and offerors are not expected to include the two dates in their event notifications and prospectuses but this may change once buyer protection becomes more widely known in the market.

Nasdaq Stockholm

In relation to this, Nasdaq Stockholm will also change its recommendation for the last day of trading interim securities (for example, subscription rights). The last day of trading is currently one settlement cycle (for instance, two business days) prior to market deadline. This will be amended to one settlement cycle plus one business day (for instance, three business days) prior to market deadline. The new recommendation applies to applicable events with record date on or after 1 March 2021.

The new version of the market rules is available on the SSMA website via the below link.

Further information

For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.

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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.