IRC Section 871(m) guidelines - CBL issued securities


Clearstream Banking has adopted ICMSA guidelines for the acceptance and reporting of securities subject to U.S. Tax Section 871(m). These guidelines address the specific treatment of inventory or “unsold position”   following numerous discussions with issuers and their agents (see attachment below).

Uncertainties still remain about the 871(m) regulations and their market implementation, the ICMSA guidelines are however intended to provide a working framework, to allow Clearstream Banking to be able to accept and handle 871(m) securities.

To ensure the acceptance of 871(m) securities, issuers are strongly recommended to follow these guidelines, which will be communicated to them via the relevant channels.