A letter from the ICMSA to the Directorate-General for Financial Stability, Financial Services and Capital Markets Union at the European Commission.
ICMSA Bulletin 180305/42: Guidelines for securities subject to US Tax Section 871(m)
This bulletin has been produced by the ICMSA Global Tax Sub-Committee to provide guidance relating to the 871(m) regulation.
The U.S. Internal Revenue Service (IRS) issued Final and Temporary Regulations on Dividend Equivalent Payments from U.S. sources on 19 January 2017. The purpose of the document is to provide guidance for:
- The acceptance of section 871(m) securities issued and held through the ICSDs.
- The reporting of section 871(m) DEPs (dividend equivalent payments) for the Form 1042-S reporting.
- The reporting of inventory of unsold positions deemed non-reportable by the issuer for the purposes of Form 1042-S reporting.
Implementation of risk free rates and transition away from LIBOR
A letter to the Financial Stability Board from trade associations representing different product areas across the global financial markets.
New eligibility criteria for securities where Clearstream Banking S.A. and/or Euroclear Bank NV/SA are the issuer CSD
The ICSDs will require a valid LEI for issuers of securities for which the ICSDs act as an issuer CSD as from Tuesday 2 January 2018.
Please refer to following links for more detailed information:
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ICMSA Bulletin 170803/41: Recommendation for the paperless processing of put options
This recommendation proposes a move to electronic instructions only in relation to put option events for notes held in global form and deposited in the ICSDs.
It has come to our members’ attention that there are many instances where put options are being requested and processed in paper form, when this is unnecessary.
ICMSA Bulletin 170727/40: Recommendations for the completion of the Conditions Precedent to Closing Mechanisms
There is a change on page one of the bulletin (providing information on large new issue transactions denominated in less liquid or ‘exotic’ currencies) to update BULLETIN – 140808/30 – recommendations for the completion of the Conditions Precedent to Closing as early as possible in the international primary market
In response to concerns raised around late closings and consequential delayed payments to issuers (causing liquidity problems), the ICMSA seeks to inform all participants in the international primary market of the ICMSA recommendations for the completion of the Conditions Precedent to Closing (CPs) as early as possible on the specified legal closing date.
These recommendations are applicable to syndicated closings through a Common Depositary taking place in European time zones and in relation to same day currencies.