Greece: Activation of Transformations service by ATHEXCSD
Clearstream Banking1 informs clients that effective
2 December 2024
Hellenic Central Securities Depository S.A. (ATHEXCSD) has introduced corporate actions on flow, specifically for transformations, in compliance with the Commission Delegated Regulation (EU) 1229/2018 (Settlement Discipline Regime SDR).
Impact on clients
ATHEXCSD will identify transactions that have not settled by the Record Date (RD) or Market Deadline (MD) of a corporate action event and replace them with a new transaction. The impacted corporate action events can include the following:
- Reorganisations consisting of the replacement of an underlying security by cash (for example, a final redemption). In such an event, the Transformation will result in exchanging cash against cash. Pending matched trades where Trade Date (TD) is before or on the Record Date (RD), will be transformed into new trades following the RD, one for the original cash amount and the other one for the cash benefit of the reorganisation.
- Mandatory reorganisations when settlement in the old ISIN should be discontinued and replaced by a new ISIN (for example, a merger or reverse split). Pending matched trades where Trade Date (TD) is before or on the Record Date (RD) will be transformed into the new security in accordance with the terms and conditions of the corporate action event.
Regarding the remaining corporate actions on flow, specifically for market claims and buyer protection, ATHEXCSD advises its participants that the implementation of market claims will be announced at a later stage due to the involved complexities in determining tax treatments for counterparties with different tax rates.
An automated buyer protection process for pending OTC transactions during a corporate action event will not be introduced by ATHEXCSD. Instead, buyer protection must be carried out manually between the counterparties.
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
The Market Link Guide – Greece - ATHEXCSD will be updated in due course.
------------------------------------------
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 AG clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.