ICMSA Bulletin 220922/62 – Guide to the Treatment of Financial Instrument Fungibility and Related Conditions (where the ICSDs act as the Issuer CSD)

The purpose of this document is to provide guidance to market participants on fungibility scenarios that can be supported by Euroclear Bank and Clearstream Banking Luxembourg (respectively the “ICSDs”) in respect of requests to treat and handle fungibility between separate tranches of a financial instrument. This has been triggered by scenarios presented to the ICSDs that could not be supported due to the operational complexities that were associated with handling the requests.

LIBOR – ICMSA response to FCA’s consultation (CP22/11) regarding winding down ‘synthetic’ sterling LIBOR and US dollar LIBOR

ICMSA has responded on behalf of its members to the FCA’s consultation CP22/11 regarding winding down ‘synthetic’ sterling LIBOR and US dollar LIBOR. The ICMSA response suggests that the FCA should consider carefully the timing and practical impact of any decision to wind down LIBOR on existing legacy transactions which reference sterling and US dollar LIBOR, in order to avoid market disruption and facilitate a smooth transition towards risk free rates.

A&O paves the way for a new market standard in the administration of withholding tax by Czech Eurobond issuers

Allen & Overy announced today that, in partnership with Clearstream and Euroclear, it has led a pioneering advisory work that has resulted in the introduction of bondholder tax certification procedures.

ICMSA were delighted to work with Allen & Overy as this supports our purpose of fostering standards and facilitating the efficient functioning of the Capital Market and our members are well positioned to effect these standards with immediate effect.

See full press release

ICMSA Bulletin 220208/60 – ICMSA Bulletin with respect to publication of the updated pro forma set of Standard Provisions for Meetings of holders of Bonds/Notes to provide for virtual and hybrid meetings

During the Covid-19 pandemic, the readiness with which issuers and other market participants have adapted to holding bondholder meetings virtually (rather than in person) signals the potential for greater use of virtual (or hybrid) meeting technology beyond the pandemic.

As we emerge from the pandemic and move into a more digitised era, the ICMSA Trustee Sub-Committee has reviewed and revised its pro forma set of Standard Provisions for Meetings of holders of bonds/notes to provide expressly for the holding of virtual or hybrid meetings (as an alternative to physical in person meetings). The ICMSA believes these revisions will benefit its members and market participants by standardising electronic and hybrid meeting procedures which aim to provide clarity and flexibility for issuers and/or trustees to choose which approach is most practicable in the circumstances.

The ICMSA has published Bulletin 220208/60 in relation to the publication of the updated pro forma set of Standard Provisions for Meetings of holders Bonds/Notes to provide for virtual and hybrid meetings.

Download updated pro forma set of Standard Provisions

ICMSA Bulletin 220119/59 – Synthetic LIBOR, Type 1 fallbacks and dealer poll mechanisms

Following the discontinuation of certain GBP and JPY LIBOR settings and the publication of synthetic LIBOR, this bulletin considers whether Type 1 fallbacks and in particular, the dealer poll mechanism which is central to their operation, remain appropriate and suitable in a post-LIBOR environment. The bulletin highlights statements made on this topic in December 2021 in a speech by the FCA’s Edwin Schooling Latter and concludes that the use of dealer poll mechanisms to obtain quotes for LIBOR-based rates is not appropriate or practicable in circumstances where the relevant LIBOR settings are no longer published.