Eurosystem extension of eligible denomination currencies for intraday collateral

06.11.2012

Effective

Friday 9 November 2012

the European Central Bank (“ECB”) will re-introduce the following denomination currencies for securities potentially eligible as Eurosystem collateral:

  • United States Dollar (USD)
  • Japanese Yen (JPY)
  • British Pound Sterling (GBP)

From the above date, securities issued by European Economic Area (EEA) countries in New Global Note (NGN) form or New Safekeeping Structure (NSS) and denominated in USD, JPY or GBP will be considered by the ECB as potentially eligible for intraday collateral if held in the appropriate International Central Securities Depository Common Safekeeper (ICSD CSK).

Note: Eurosystem eligibility criteria require that such securities be deposited with a financial institution that is not a commercial bank.

NGN issues denominated in USD, JPY or GBP currently held with a commercial bank CSK may, upon request from an issuer’s agent, be transferred to an ICSD CSK in order to fulfil ECB collateral conditions. The same applies for issues currently held with a common depository that meet the revised Eurosystem criteria.

Additional tranches of previously issued securities in USD, JPY or GBP will also be considered by the ECB to be potentially eligible as collateral if the original tranche is held with the appropriate ICSD CSK.

Clearstream Banking1, through its Issuance & Distribution Services teams, provides full support services to issuer agents and lead managers to facilitate the issuance of securities in NGN form or NSS, including those denominated in the above currencies for debt issuance in the Eurozone, by:

  • Assisting in the ISIN creation process;
  • Providing our new issues distribution service;
  • Providing the facility to deposit the NGN and NSS securities with Clearstream Banking as an ICSD CSK.

Further information

The ECB press release concerning this extension can be found on their website.

For specific questions and/or support, customers may contact our Issuance & Distributions Services teams, according to where the issuing and paying agent or the lead manager is based, as follows:

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).

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