Please be informed that on the last meeting of the Settlement and Record Keeping Committee of Central Securities Depository Prague (Centrální Depozitář Cenných Papírů - CDCP), held on 4.10. 2017, the CDCP announced, among other information, the following updates:
CSDR
- The CDCP applied for the new license under CSDR on 27.9.2017. The authorization process shall take 6 months, and it is therefore expected that the CDCP will be granted the new license in April/May 2018.
- In case the CDCP is asked to submit additional documentation, the relicensing will be postponed.
- Adoption of new CDCP rules will be set in accordance with the receipt of the new license.
- One of the new requirements will be daily reconciliation, which is already a practice at UniCredit Bank.
- Key participants were identified and automatically will become members of the newly formed User Committee of 12 members. Those include UniCredit, Komerční Banka, Česká Spořitelna, Wood, Patria, ČSOB, Citibank, Prague Stock Exchange. Other members may also request to become members of this Committee.
- The CDCP became a direct participant of CERTIS. The CERTIS account will be used in the future for settlement system purposes only. It will not be possible to use this account for the current payment system (e.g. payments of fees, etc.).
Change of foreign custodian
The CDCP has decided to change their depository for foreign securities listed on the PSE from Clearstream to Euroclear. The change is planned for 30.11.2017. The positions will be migrated automatically on this date. Clients who do not agree with the migration will have to transfer the holdings in these securities out of the CDCP before the migration date. UniCredit will not require any action from the clients.
Impact on investors: All clients who do not agree with the migration of their foreign securities (i.e. non-CZ/CS ISIN codes) from CDCPs (current provider) to Euroclear must transfer their positions prior to 30.11.2017.