Iceland: Closure of the Bridge for Icelandic XS Securities
On 22 May 2016 the Icelandic Minister of Finance and Economic Affairs passed a Bill of Legislation into law (Bill of Legislation on the treatment of Króna-denominated assets subject to special restrictions (submitted to the 145th Legislative Session of Parliament 2015–2016)) which aimed at defining the offshore Króna and set forth the key principles of the upcoming auctions.
Following the above mentioned Legislation and in light of the additional steps taken by Iceland to segregate offshore Icelandic krona (ISK) assets, Clearstream Banking1, jointly with Euroclear Bank SA/NV, have decided that effective
3 October 2016
the Bridge will be closed, and therefore, Clearstream Banking will not execute any instructions with Euroclear Bank SA/NV counterparties for the following securities:
| ISIN | Security Name/Description |
| XS0349858984 | ISK FL.R ARION BANK HF. (REGS/4) 08-2045 |
| XS0249806851 | ISK FL.R ARION BANK HF. (1) 06-2033 |
| XS0249806935 | ISK FL.R ARION BANK HF. (2) 06-2048 |
| XS0195066575 | ISK FL.R HOUSING FINCG.FND (1-32) 04-2034 |
| XS0195066146 | ISK 3,75 HFF (REPUBLIC OF ICELAND) (1-19) 04-2024 |
| XS0195066658 | ISK 3,75 HFF (REPUBLIC OF ICELAND) (1-49) 04-2044 |
| XS0300735254 | ISK 7,75 KFW 07-2017 |
| XS0329577737 | ISK 0,00 LBI HF 07-2999 |
| XS0337005390 | ISK FL.R LBI HF (195) 07-2999 |
| XS0336927149 | ISK 0,00 LEHMAN BROS.TREAS (1-2) 07-2009 |
| XS0354616988 | ISK FL.R LBI HF (202) 08-2009 |
This change will remain in effect until further notice.
Impact on customers
Customers of Clearstream Banking should note that any deliver/receipt instructions, to or from a Euroclear Bank counterparty, for the above mentioned securities will be rejected from the overnight batch process dated 3 October 2016.
All pending instructions on Friday 30 September 2016 will be cancelled.
All instruction types between Clearstream Banking’s customers are still allowed.
Further information
We continue to monitor the situation in the Icelandic market. As soon as the situation permits, the ICSDs will do their utmost to open the Bridge without undue delay.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.