Scope - Clearstream

A NNEXES - MARKET PRACTICE BOOK
Operational Eligibility Criteria Non-standard structure examples
Decimals
Processing features
Decimals are not accepted
within the ICSDs with the
exception where securities
have been redenominated into
Eurocents
The securities have to be
operationally manageable to
ensure the timely and adequate
servicing of the securities (e.g.
income payments, CA events,
etc.)
Securities that have been redenominated
from the national currency into the Euro
may have chosen commercial rounding,
requiring the security nominal amount to be
represented in Eurocents
Examples
• First coupon payment date on closing date
• Non fixed or unknown coupon payment
dates
• Payments outside the clearing systems
(which should not be the case)
• Scenario where events (such as
extendible notes) take place with no
notice prior to the event (e.g. extension
of maturity)
• Corporate events for which
movement/monitoring of securities/cash
is to be processed and monitored by the
ICSDs but which are not documented in
the event documentation
• Request to give an option to change
securities structure (such as
currency/interest rate for coupon
payments) to one particular holder
instead of all holders
• Extremely short notice periods for
options e.g. 1 day notice for put option
• Programme subject to 2 different
governing laws with a different issuing
agent per governing law
• Monitoring of the composition of
underlying baskets, etc.
• Requirement to send paper notices to
ICSDs for warrants exercise, conversion
instructions, etc. (Paper notices are
discouraged in the ICSDs, except where
physical paper forms are required by local
jurisdiction)
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