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July 17, 2014 5:25 pm

The Cyprus Stock Exchange (CSE) announced that effective Monday 6 October 2014 the settlement cycle of the transactions executed on listed securities that are traded on its markets will be shortened from T+3 (completion of settlement within three working days after the execution of a transaction) to T+2 (completion within two working days). This change is in accordance with the Central Securities Depository Regulation (CSDR), which among others aims to harmonise the securities settlement cycles in the European Union.

The CSE provided the following information regarding the change:

§ Migration to the T+2 settlement cycle, will take place on Monday 6 October 2014.

§ Trades executed until Friday 3 October 2014 will be settled following a T+3 settlement cycle, which means three days after the execution of the transaction.

§ Trades executed as of Monday 6 October 2014, will be settled following a T+2 settlement cycle, which means two days after the execution of the transaction.

Please note that the change to the settlement cycle from T+3 to T+2 will also apply in the cases of Over the Counter (OTC) trades which will be executed on the Central Registry/ Depository of the CSE.

Arrangements for the transition to T+2:

The settlement days for the transitional period are defined as follows:

Trade Day Settlement Day
Thursday, 2 October 2014 Tuesday, 7 October 2014
Friday, 3 October 2014 Wednesday, 8 October 2014
Monday, 6 October 2014 Wednesday, 8 October 2014
Tuesday, 7 October 2014 Thursday, 9 October 2014

Consequently, trades executed on Friday 3 October 2014 and on Monday 6 October 2014 will be settled on Wednesday 8 October 2014.

Particularly for the settlement of the trades with trade date Friday 3 October 2014, a different parameter value will be used within the Dematerialised Securities System for the Securities Settlement System. Specifically:

Normal parameter
for the
Securities Settlement System Provisional parameter for the
Securities Settlement System
100 101
120 121
130 131

Impact for Corporate Actions:

For the corporate actions that will be executed with record date from Wednesday 8 October 2014 and onwards the following will apply:

§ The ex-date for corporate actions e.g. cash distribution etc., will move from 2 business days before the record date, to 1 business day before the record date.

Ex Date = Record Date -1 (previously Ex Date = Record Date -2)

§ The last day of trading which applies to conversions of shares from one category to another, e.g. the reverse split etc., will be set to 2 business days preceding the record date.

Last Trading Date = Record Date -2 (previously Last Trading Date = Record Date -3)

Schedule:
§ July 2014 – Implementation of the required changes in the test environment of the Dematerialised Securities System and execution of migration tests.
§ September 2014 – Implementation of the required changes to the Regulatory Framework.
§ October 2014 – Migration in the production environment of the Dematerialised Securities System.

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June 20, 2013 5:24 pm

Eurivex Ltd., a Cyprus Investment Firm regulated by Cyprus Securities & Exchange Commission (CySEC) is acting as Paying Agent for corporate bond listings on the Vienna Stock Exchange when the registry is held with the Oesterreichische Kontrollbank Aktiengesellschaft (OeKB).

Oesterreichische Kontrollbank AG (OeKB) is a specialised institution providing central infrastructure for the Austrian capital market. OeKB is Austria’s central securities depository (CSD). It provides centralised custody and administration for nearly all Austrian securities. Also, the CSD is closely interlinked with the CSDs of other countries.

OeKB manages central data pools on Austrian securities, generates analytical data and is the national agency for assigning International Securities Identification Numbers (ISIN). It also acts as the notification office for the purposes of the Capital Markets Act and is responsible for the organisation and running of the automated auction system for government bond issues.

Eurivex, which is a specialized regulated EU investment firm advising corporations from any jurisdiction with their bond listings on the MTF Market of the Vienna Stock Exchange, acts as the Listing Agent preparing the Investment Memorandum and the Terms and Conditions, as well as acting as the Paying Agent for the custody of the bonds through its securities account held and maintained with the OeKB.

When Eurivex is entrusted with the task of acting as Paying Agent, it can deliver the dematerialized bonds to the custodian accounts of the bond purchasers to any custodian account held and maintained with Clearstream and or Euroclear via its link with the OeKB.

Corporations from many jurisdictions are increasingly choosing to list their corporate bonds on the MTF Market of the Vienna Stock Exchange, with clearing and custody held with the OeKB which allows a direct link with Clearstream Luxembourg bank and Euroclear and other international clearing agencies for direct settlement and transfer of securities.

MTF Market

The Multilateral Trading Facilities (MTF) are a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Market of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange.

In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

MAIN ADVANTAGES

The biggest advantages for listing in MTF Markets are:

  • There is no need to submit prospectus. Listing is done through simplified method.
  • A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU27.
  • Issuer secures Austrian (AT) International Securities Identification Number (ISIN).
  • All kinds of denominations possible.
  • There is no minimum or maximum ownership rule.
  • The concept of using nominees is legally allowed.
  • There is no minimum volume rule. This means even if for the whole year there is no volume traded on the financial instruments, this is acceptable.
  • Startups without prior history can list their financial instruments.
  • Listing is secured on average in 2 weeks.
  • All applications submitted by e-mail.
  • Listing costs are significantly lower.
  • The level of reporting after listing is negligible.
  • Trading in the financial instruments is done via brokers.

 

TYPES OF BONDS

The Vienna Stock Exchange allows for most types of bond listings including:

–          Traditional bonds with fixed coupon

–          Floating rates

–          Zero coupon bonds

–          Performance linked bonds*, whose value is tied to the performance of the underlying asset.

*Performance Linked Bonds are increasingly becoming attractive since they spread the risk of performance on the investors.

Such Performance Linked Bonds may also be used for trading in capital markets in derivative products such as trading in shares, bonds and forex. When the trading performance is positive, the NAV will increase, whereas if there are trading losses, the NAV will decline.

AT-ISIN

The Vienna Stock Exchange prefers for Issuers to conduct their private placement of bonds and then list on the Exchange. An Issuer can apply for a larger amount of listing, but list the bonds in tranches of minimum EUR 200.000 lots over several years.

Eurivex will secure an Austrian AT-ISIN for the corporate bonds when it is appointed as Listing and Paying Agent.

Eurivex Contact details

 

Head Office Address:     2 Armenias Street, Office 101, Nicosia 2003, Cyprus

 

Telephone                                          +357 22 02 88 31                            Fax +357 22 25 53 18

 

Web site:                                             www.eurivex.com                         Enquiries: [email protected]

 

Eurivex is regulated by Cyprus Securities & Exchange Commission CySEC, license 114/10.  © Eurivex Ltd. 2012. All rights reserved. No part of this document may be reproduced, stored or transmitted in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Eurivex Ltd. The material in this document is for informational purposes only and does not constitute legal or professional advice. No responsibility or liability is accepted by Eurivex Ltd in connection with the use of information contained in this document.

 

 

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Disclaimer & Regulatory information
Eurivex Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 114/10. Company Reg. HE 255430. Headquartered and based in Cyprus, member of EU.

Risk warning: Investing in financial instruments and other derivatives involves a high degree of risk and may not be suitable to all investors. Trading in such financial instruments can result in both an increase and decrease in capital. If you invest through Eurivex Ltd, the value of investments may go down and your capital will be at risk. Eurivex Ltd operates a secondary market but there is no guarantee that all buy/sell orders will be completed at the desired prices and there is a risk that an order may not be completed in the Eurivex secondary market if there is no matching order. There is no guarantee that you will be able to exit early by selling your investment. Eurivex Ltd does not provide investment, tax or legal advice. If you are unsure about the suitability of an investment, you should speak to a financial adviser. Please refer to our Risk Warning available on our web site for further information.