Poland: New omnibus account structure improves access to the Polish market

Further to our Announcements A12025, dated 3 February 2012, and A12039, dated 23 February 2012, with the adoption of the new National Depository for Securities (NDS) regulations, effective settlement date (SD)

15 May 2012

we will offer Clearstream Banking¹ customers the benefits of a new omnibus account structure.

This improvement is made possible further to the implementation of the omnibus accounts in the local market and in response to our customers’ growing interest for the Polish market.

From the above date, all Polish assets eligible in CBL will be deposited on our new omnibus account with Bank Handlowy w Warszawie SA (Bank Handlowy), our depository in Poland.

Benefits for customers

• We will simplify the administrative process to hold Polish securities through CBL. Customers will no longer need to request the opening of segregated accounts with CBL’s depository in Poland. CBL will manage directly the transfer from segregated accounts to the new omnibus account on behalf of customers, including pending trades and corporate actions if applicable.
  
• Internal trades will be allowed between CBL customers.
  
• Customers will be able to maximise liquidity management opportunities using Polish bonds through our triparty collateral management services.
  
• Tax relief and refund procedures will be applied at final beneficial owner level.
  
• New proxy voting services will be offered.
  
• Improved settlement deadlines will be delivered (exact date to be further advised).

Note: We will publish further specific Announcements relating to Tax and Global Securities Financing services in due course.

Impact on customers

From 15 May 2012, any customer will be able to deposit Polish securities in their CBL account and benefit from the new omnibus account structure.

For customers who already hold Polish securities with CBL, in line with the specific communication they have received earlier, we will arrange the transfer from the segregated accounts to the CBL omnibus account and the subsequent closing of the segregated accounts. No further action is required from these customers.

Settlement process for customers

The instruction formats, reporting and service level will not change.

Customers are reminded that CBL can provide back-to-back processing for T-bonds.

Transfer from segregated accounts to the omnibus account

The transfer of holdings will take place on 14 May 2012 based on end-of-day positions.

All instructions with requested SD on or before 14 May 2012 will settle under the segregated account structure (including instructions in suspense until after 14 May 2012 (see below).

All instructions with requested SD on or after 15 May 2012 will settle under the omnibus account structure.

Pending transactions during migration process

As is local market practice, all pending transactions sent to Bank Handlowy on all instruments for requested SD until 14 May 2012 inclusive and pending after that date will be settled on segregated accounts: instructions will not be cancelled or modified by the CBL customer, by CBL or by Bank Handlowy.

Instructions not provisioned by CBL (through lack of securities or lack of cash) that are not sent to Bank Handlowy should also settle on the segregated account.

Bank Handlowy will monitor pending trades and take them into account for the transfer. No action is required from the CBL customer.

Settlement times

No change to settlement times is expected on 15 May 2012. However, we can already anticipate that deadline improvements will be delivered at a later stage for equities (OTC and Warsaw Stock Exchange transactions), T-bonds and T-bills.

Full details will be advised in due course.

Disclosure requirements

Revised disclosure requirements will be published in due course. According to Polish law, disclosure of beneficial owner details will be required for events such as income payments, corporate actions, proxy voting etc. or upon request from the Polish Financial Supervision Authority (PFSA).

Holding and transactions restrictions

There will be no changes to the current holding restrictions described in the Market Profile (Poland).

Tax

We will publish a separate specific Announcement detailing the new relief at source and reclaim procedures.

Impact on domestic counterparties

Customers are kindly requested to communicate the cut-over details and the new Standard Settlement Instructions to their domestic counterparties.

For all trades with requested SD on or before 14 May 2012

Counterparties will continue to deliver to the current “Bank Handlowy customer account”.

Receipt in CBL

Deliver to: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in NDS.
For account of: CBL (segregated) account number 502343.
In favour of: (name and account number of CBL customer).

Delivery from CBL

Receive from: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in NDS.
For account of: CBL (segregated) account number 502343.
By order of: (name and account number of CBL customer).

For all trades with requested SD on or after 15 May 2012

Domestic counterparties will continue to pre-match settlement instructions with Bank Handlowy.

For receipt in/delivery from CBL, the procedure will be as before with the difference that the For account of: entry will be the CBL omnibus account 0502343001.

Further information

Market Guide, Disclosure and Entitlement details for Poland will be updated for 15 May 2012.

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

1. Clearstream Banking refers to Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).