| Market: | All |
| Products: | Cash |
| Date: | 15 December 2006 |
Introduction of the record date for mandatory distributions in the Dutch market
Introduction of the record date in the Dutch market on the 26th March 2007.
LCH.Clearnet SA is pleased to inform members that the Dutch market, under the advice of the DACSI (Cf.. the circular of the Dutch Bankers Association Netherlands dated 31 October 2006), has decided to introduce the Record Date and the new order of date as the standard date for the capture of positions for all mandatory cash and securities distributions.
The launch of the new management on the key dates order for the Dutch market is on 26 March 2007.
Securities impacted
This record date will be applied on:
- Euronext multiple listed securities for which, Euroclear Netherlands is the primary CSD,
- Securities available in the LSE Dutch Trading Service for which Euroclear Netherlands is the primary CSD,
- Securities settled in Euroclear Bank for which Euroclear Netherlands is the primary CSD.
Relevant dates for new corporate action processing
- Ex date: this is the date as from which trading occurs on the underlying security without the benefit. The trade in the security begins without the proceeds of the announced corporate event.
- Record date: this is the date at which positions are struck at the end of the business day to know which account holders are entitled to the proceeds of the corporate event,
- Payment date: is the date on which the proceeds of the corporate event are credited to the entitled account holders.
New order of key dates with standard settlement life cycle (T+3)
- Record date = comes after the Ex-date
- Record date = Ex-date + standard delay of settlement life cycle – 1 business day
= Ex-date + 2 - Payment date = closer to the Record date (ideally the day after)
The CCP will detect and process market claims regardless the order of dates and the delay of settlement life cycle.
All mandatory distributions with the Ex-date = Monday 26 March 2007, will be processed following the new order of dates as described.
Impacts on reporting provided to Clearing Members
- No modification in terms of reporting.
- Current files PR3, CESF, SIF dedicated to the cash activity will not be amended, the format, fields and data remain unchanged.
Note:
The new order of dates for the Dutch market, implies that:
- The CESF file will be empty for this market segment except for Non Dutch securities.
- Market claims will be applies on fails position only.
Testing
No mandatory test is required, nevertheless Clearing members could process some test from 15 January 2007 to 19 January 2007. Test guidelines will be provided by beginning of January.
Specifications
The document attached describes with more details the changes from LCH.Clearnet perspective.
For any questions, please contact
Your LCH.Clearnet product implementation manager:
Joëlle Devars: +33 1 70 37 65 85, joelle.devars@lchclearnet.com
Or
Your local relationship manager.
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