Scope - Clearstream

Paperless instructions
• DO NOT include requirements for (or examples of) paper form instructions
in issue or event documentation, wherever possible (so avoid non-electronic
communication means for all information required from investors);
• DO highlight at issuance whether paper is required by local jurisdiction as a
non standard structure;
• DO use recommended standard wording in the T&C: ‘Securities may be
only exercised/ exchanged/converted/… in accordance with the rules and
operating procedures of Euroclear and Clearstream ’.
Units / Nominal (Annex 9)
• DO NOT mix Unitary and Nominal terminology within the same security
documentation
• DO ensure that the issuance documentation;
• Clearly indicate whether Units or Nominal is being used, by providing the
binary field ‘Trading Method’;
• Provide the relevant fields as described in the example in annex.
Non-English documentation
ISMAG recommends that all international new issues documentation submitted
to the ICSDs for the purpose of determining issuance eligibility and/or ISIN
assignment; are clearly documented in English.
Deviation from the above recommendation is subject to the discretion of
the ICSDs new issues teams and may result in the issue being assessed as
ineligible due to the inability of the ICSDs to adequately assess and understand
the content of the documentation and inherent terms and conditions.
ICMSA Recommendation on Payment Business Days (Annex 10)
For instruments in global form: DO reflect an open business day of the named
financial centre for the payment currency, e.g. Tokyo for a Yen payment;
• Additional named financial centres may need to be included in the definition
of a Payment Business Day, e.g. where transactions related to the
securities, such as currency swaps occur, or where payments due are linked
to underlying securities or collateral;
• For Euro payments: the TARGET system needs to be open.
B EST PRACTICES - MARKET PRACTICE BOOK
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