New Zealand: Suspension of Bridge settlement for domestic debt securities
Clearstream Banking1 informs customers that effective
29 August 2022
the ICSDs have decided to temporarily suspend Bridge settlement on New Zealand domestic debt securities.
This is due to changes that Euroclear Bank will apply to the holding restrictions for New Zealand, and will allow Clearstream Banking to avoid tax discrepancies with counterparties in Euroclear Bank.
Impact on customers
- Customers should update their Bridge settlement instructions;
- Customers should contact their counterparties about the suspension of Bridge settlement, and to consider external settlement as an alternative during the suspension period. The external settlement details for CBL can be found in Procedures for domestic counterparties under Settlement Services - New Zealand;
- Customers can continue to settle New Zealand domestic debt securities via internal and external settlement.
Bridge settlement instruction processing for New Zealand domestic debt securities processing on Friday 26 August 2022
- All pending instructions with requested settlement date up to and including 26 August 2022 will be cancelled;
- All pending instructions with requested settlement date on 29 August 2022 and beyond will be cancelled.
Clearstream Banking will work closely with Euroclear Bank to re-open the Bridge as soon as possible.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
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 customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.