Russia: Information about instructed DRs
Following Announcement A24069, Clearstream Banking1 informs clients about the status of the reconciliation of instructed DRs for cancellation into Russian underlying shares prior to 1 October 2024.
Following the conversion window, Clearstream Banking has been informed by the DR agent, Bank of New York Mellon (BNYM), that some instructions for conversion could not be settled in Russia. A majority of the unsettled DRs have been returned to clients, however there are unconverted DRs which could not be returned to Clearstream Banking due to the expiry of the OFAC General license 100A.
Following the publication of OFAC FAQ 1197, the unreturned DRs are blocked in the DTCC account of DR agent BNYM for the unforeseeable future. This has resulted in some clients no longer having the DRs, that they are entitled to, in their accounts held with Clearstream Banking.
To provide reports of the entitled positions to clients, Clearstream Banking will transmit MT599 messages detailing the ISIN, account number, the instruction reference for the conversion and the quantity instructed.
As Clearstream Banking does not have these positions in the books and these positions cannot be credited or reflected in your account, please be advised that the MT599 is only a confirmation that relates to the entitlement and does not represent a credit of the security.
The reconciliation with the DR agent BNYM is still in progress, therefore, the MT599 represents the positions that clients are entitled to on 31 December 2024. If the entitlement changes in the future, clients will receive a new MT599 showing the new entitlement.
Further information
For further information, clients 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 AG clients 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.