CSD Global Bearer Certificates conversion
Global Bearer Certificates (used mainly for ETFs) allow non-German securities (issued under IE, GB, JP ISINs) to be traded on the German stock exchange under German ISINs since the original securities are kept in a segregated nominee account at the Clearstream Banking Frankfurt’s (CBF) custodian in the home market.
In order to exchange such non-German original securities for co-ownership fractions of a German global bearer certificate, the CBF customer enters an instruction for exchange by manual input in CASCADE under the German ISIN of the co-ownership certificate. CBF forwards the customer's instructions to its custodian in the home market. The counterparty must enter corresponding instructions in the domestic market. Matching takes place against the instruction of the counterparty. Settlement in the home market causes a credit entry in CBF’s trustee account with the custodian, and a debit entry in the account of the non-German counterparty in respect of the original securities. After the custodian has sent confirmation, CBF credits the co-ownership fractions in the customer's account.
A re-conversion is also possible using the ‘re-exchange’ instruction in CASCADE.