Depository Receipt measures with Russian underlying securities – Information on market rejections
Clearstream Banking1 customers who intended to instruct conversion of their positions in Depository Receipt (DR) programs have recently experienced rejections of their instructions when they re-aligned their DTC-eligible positions from Clearstream Banking AG (CBF) to Clearstream Banking S.A. (CBL). Some of these transfers were rejected by Citibank due to compliance policies around Low Prices Securities (LPS) with reference to imposed restrictions effective as of 1 August 2022 and previously announced through Announcement A22090.
In these circumstances, Clearstream Banking has no further options to support customers in the processing of their instructions. Even though Clearstream Banking has made and will continue to make all reasonable efforts to work with market participants to allow for the re-alignment of their positions for the purpose of conversion, customers wishing to convert should nonetheless consider the following procedure, which addresses conversion requests directly to DR agents (Bank of New York Mellon, Citibank, Deutsche Bank, J.P. Morgan) and without prior realignment to CBL, as an alternative:
- Instruct the DR agent directly to convert their DTC-eligible DRs
- Deliver instructed DR position to the agent in DTC
- Deliver required paperwork to the agent (cancellation/attestation forms are available on agents’ website)
- Wire DR cancellation fees to the agent
The above steps should give customers a general overview of the DR cancellation process and agents’ expectations but cannot be construed as being exhaustive or complete. Customers should contact the DR agent individually for the exact requirements.
DR agents’ contacts, cancellation/attestation forms, together with other DR program related information are available on DR agents’ website:
- For BNY Mellon please click here.
- For Citibank please click here.
- For Deutsche Bank please click here.
- For J.P. Morgan please click here.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.