Securities trading - Belgium

10.12.2020

Key market-tradable securities

Securities eligible in Euroclear Belgium (CIK SA/NV):

Denomination currency	Maturity profile	Interest rate	Interest/Dividend payment frequency	Place of settlement	Form
Corporate bonds
EUR	Varies	Fixed or variable	Annual	CIK SA/NV	Dematerialised
Derivatives
Not applicable	Not applicable	Not applicable	Not applicable	Listed on the Derivatives Market organised by Euronext Brussels (Belgian derivatives).
Equities
Not applicable	Not applicable	Not applicable	Annual (mainly)	CIK SA/NV	Dematerialised
Foreign Belgian certificates (IDRs)
Not applicable	Not applicable	Not applicable	Annual (mainly)	CIK SA/NV (mainly)	IDR
Investment funds (SICAVs and SICAFs)^a
Not applicable	Not applicable	Not applicable	Annual (mainly)	Not listed^b	Dematerialised
Warrants/Trackers
Not applicable	Not applicable	Not applicable	Not applicable	Traded on the cash market via Euronext Brussels

a. Société d'Investissement à Capital Variable (SICAV) and Fixe (SICAF).
b. Subscribed and traded mainly via repurchase by the fund.

NBB-eligible securities: Issued by the Belgian state:

Denomination currency	Maturity profile	Interest rate	Interest/Dividend payment frequency	Place of settlement	Form
Belgian Treasury Bills (BTB) in OECD currencies
OECD currencies	3 to 12 months	Fixed or discount to yield	Not applicable	NBB	Dematerialised
Classical/Traditional government bonds
EUR	7 to 10 years	Fixed	Annual or capitalised	NBB	Dematerialised
Linear bonds (OLO), and OLO strips
EUR	2 to 15 years	Fixed (mainly)	Annual	NBB	Dematerialised
Staatsbons/Bons d'Etat (State bonds - taxable)
EUR	5 to 8 years	Fixed or discount to yield	Not applicable	NBB	Dematerialised
Treasury certificates
EUR	3 to 12 months	-	-	NBB	Dematerialised
Certificates of Deposit and Commercial Paper
EUR/OECD currencies	0 to 1 years or more	Fixed, variable or discount to yield	Not applicable	NBB	Dematerialised

Details of the specific Belgian instruments

SICAVs and SICAFs

SICAVs and SICAFs are the most important mutual investment funds available in the market. SICAV shares represent a part ownership in an open ended investment company with a variable capital, whereas the SICAF shares relate to fixed capital investment companies. Both types of shares can be issued as capitalisation and distribution shares

Derivatives

Derivatives products traded on Euronext Brussels include the following financial instruments:

Options and futures on indexes:
- Options BEL 20 (BXO);
- Futures BEL 20 (BXF).
Options on stocks: See BEL 20 stock composition.

Linear Bonds (OLO)

The Treasury issues long-term traditional loans and linear government bonds (OLOs) drawn up in EUR with a fixed date of interest, a foreseen maturity and a fixed redemption price. OLOs are issued by two-monthly tenders, which are centralised by Primary Dealers (that is, banks and brokers appointed by the Minister of Finance). They may also be issued by means of syndication. Primary Dealers and Recognised Dealers must ensure liquidity on the secondary market by quoting prices.

OLOs are standardised by “lines” that can be “opened” in order to increase the amount outstanding. All bonds related to a specific line have an identical nominal rate of interest and the same maturity date. They are tax-exempt instruments for non-Belgian resident investors. The introduction of several benchmark linear bond lines on the EuroMTS platform since 1999 and the establishment in 2000 of MTS Belgium, the electronic trading system for the Belgian government debt, add to market liquidity. OLOs can also be traded on Euronext Brussels.

Classical/Traditional Government Bonds

Government bond instruments are mainly to be found in the portfolios of private investors and are traded on Euronext Brussels. These bonds are also admitted to the X-N account clearing system of the NBB.

Bons d'Etat/Staatsbons (State bonds)

Since 1996, the Belgian government has issued State bonds as long-term loans intended in principle for individuals and non-profit organisations and have some similarities with cash bonds (Bons de Caisse). These government bonds are issued four times a year and are currently of the following types:

With maturity set to five years;
With maturity set to five or seven years;
Floating rate notes with a guaranteed minimum and maturity set to three, five or seven years;
With maturity set to eight years.
Treasury Certificates (TC)

TCs constitute, quantitatively, the most important instruments in the money market in Belgium. The Treasury issues its certificates during weekly tenders open to any investor. These TCs are dematerialised and settle book-entry via the NBB. Their maturity dates have been standardised to 3, 6 and 12 months. The same tax exemption rules apply as for OLOs.

Belgian Treasury Bills (BTB)

In July 1996, the Treasury launched a multi-currency Belgian Treasury Bill (BTB) programme. In contrast with Treasury Certificates, BTBs can be denominated in currencies of other member states of the OECD; they are issued on tap and placed among a panel of banks (“dealers”). BTBs have exactly the same tax status as Treasury Certificates.

Commercial Paper (CP)

Since the law of 1991, Commercial Paper has been issued in the form of Treasury Notes, which may be dematerialised and cleared via the NBB.

Bons de Caisse (Cash bonds)

Cash bonds are issued for a short or medium term by financial institutions. They are traded on the public auction market on which non-listed bonds can be traded once a week. Cash bonds are non-eligible in Clearstream.

Bearer securities

Following the Dematerialisation Law of 14 December 2005, all Belgian bearer securities had to be converted to either dematerialised or registered securities by 31 December 2013.

Trading platforms

The technical platform for the cash market is Nouveau Système de Cotation (NSC). NSC is used for the cash and equity trading platform. Since 1 February 2003, Euronext has designated Clearnet, renamed LCH, as the sole clearing house and central counterparty for markets operated by Euronext.

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