Structured product issuers and their issuer agents – requested information related to U.S. sanctions against Russia
Concerning the Russia-related Designations and the Issuance of General Licenses 12 and 13 of the United States Department of the Treasury of 6 April 2018, Clearstream Banking1 addresses the below request to those customers who regularly issue Structured Products themselves or act as issuer agent for third party issuers.
Clearstream Banking asks customers to provide, by 4 May 2018, a list of structured products, issued by themselves or for which they act as issuing agent, which their institution has deposited with Clearstream Banking and in which underlying investments exceeding 10% of the assets of the structure have been made in entities designated by the United States Department of the Treasury, or in entities which are 50% or more controlled, directly or indirectly, by persons or entities designated by the United States Department of the Treasury. Should none of the structured products which the customer’s institution has issued and/or subsequently deposited with Clearstream Banking include such underlying investments, Clearstream Banking should be grateful if customers would confirm it to us by 4 May 2018. Customer are asked to provide their feedback by email addressed to Client Services.
Clearstream Banking further advises customers that Clearstream Banking will not make eligible or accept any structured product that includes or that is intended to include underlying investments exceeding 10% of the assets of the structure in entities designated by the United States Department of the Treasury, or in entities which are 50% or more controlled, directly or indirectly, by persons or entities designated by the United States Department of the Treasury. Furthermore, redemptions into shares of entities designated by the U.S. Treasury will not be permissible, unless the entities are exempted on General License 13 and the recipients include no U.S. Persons and where the date of settlement of the redemption proceeds is before 7 May 2018.
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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.