Clearstream Says Luxembourg’s General Authorization to Release Securities Is Impossible
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At a working meeting on December 30, Clearstream advised the National Settlement Depository (NSD) that the Luxembourg Ministry of Finance’s general authorization to release the assets is not enforceable. Alternatively, consideration will be given to the possibility of issuing licenses to individual applicants, similar to the Belgian Treasury.
“The general authorization cannot be enforced for Clearstream as an applicant because it requires the complete termination of the contractual relationship with NSD for all assets that are accounted for by NSD, which, in the opinion of Clearstream, is not possible, ”the website says. NSD.
The Office notes that, in accordance with the General Authorization, only securities issued in Luxembourg are subject to exemption. Assets of any other EU countries and any other jurisdictions require the consent of the regulators of these countries before January 7, 2023. The procedure for obtaining the consents of regulators in other jurisdictions is not defined.
“Thus, the general permit cannot be enforced,” NSD said in a statement.
The National Settlement Depository noted that it continues to work to find a solution to unlock clients’ assets.
The news is being supplemented.
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