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The Operating Procedures of the Euroclear System (October 2020)

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The Operating Procedures of the Euroclear System (October 2020) The Operating Procedures of the Euroclear System October 2020 The Operating Procedures of the Euroclear System The Euroclear System is operated by: Euroclear Bank SA/NV 1 Boulevard du Roi Albert II B-1210 Brussels, Belgium RPM Brussels 0429875591 Tel: +32 (0)2 326 1211 my.euroclear.com 2020 Euroclear Bank SA/NV All rights reserved. Euroclear is the marketing name for the Euroclear System, Euroclear Holding SA/NV, Euroclear SA/NV and their affiliates Euroclear Bank is an undertaking organised under the laws of the Kingdom of Belgium No part of this document may be reproduced, in any forms or by any means, without permission in writing from Euroclear Bank SA/NV October 2020 The Operating Procedures of the Euroclear System Summary table of contents Part I: Introduction ................................................................................................................................ 3 1.1 Welcome to the Euroclear Bank Operating Procedures ....................................................... 5 1.3 Banking services ....................................................................................................................... 6 1.4 Regulators .................................................................................................................................. 6 1.5 Contact us .................................................................................................................................. 6 Part II: General Rules ............................................................................................................................ 7 2.1 Being a Participant .................................................................................................................... 9 2.2 Opening of Accounts .............................................................................................................. 13 2.3 Entries in Participant Accounts ............................................................................................. 15 2.4 Safekeeping and rights to securities in the Euroclear System .......................................... 16 2.5 Disclosure ................................................................................................................................ 17 2.6 Reconciliation and audit requirements ................................................................................. 19 2.7 Calculation of interest ............................................................................................................ 20 2.8 Exchange rates ........................................................................................................................ 20 2.9 Claims and compensation ...................................................................................................... 20 2.10 Value Date ................................................................................................................................ 20 2.11 Insurance information ............................................................................................................ 21 2.12 Outsourcing ............................................................................................................................. 21 2.13 Fees .......................................................................................................................................... 21 Part III: Rights and Responsibilities .................................................................................................. 23 3.1 Compliance with the law and governing documentation of issues ................................... 26 3.2 Reversals ................................................................................................................................. 29 3.3 Blocking ................................................................................................................................... 30 3.4 Settlement restrictions ........................................................................................................... 32 3.5 Statutory lien and pledge to our benefit ............................................................................... 34 3.6 Special pledged accounts ...................................................................................................... 35 3.7 Securities and cash ................................................................................................................ 35 3.8 Rules applicable to defaulted Participants ........................................................................... 36 3.9 Data protection ........................................................................................................................ 38 3.10 Use of information .................................................................................................................. 44 3.11 Confidential information ......................................................................................................... 45 3.12 Access to records ................................................................................................................... 45 3.13 Business continuity ................................................................................................................ 45 3.14 Temporary service restrictions.............................................................................................. 46 Part IV: Connectivity ........................................................................................................................... 47 4.1. To Euroclear Bank .................................................................................................................. 49 4.2. From Euroclear Bank .............................................................................................................. 59 Part V: Section 1 – Admission of securities and New Issues ......................................................... 63 October 2020 Page 1 The Operating Procedures of the Euroclear System 5.1.1 Acceptance criteria ............................................................................................................. 65 5.1.2 Acceptance process ........................................................................................................... 66 5.1.3 Acceptance channels ......................................................................................................... 68 5.1.4 New issues distribution ...................................................................................................... 69 Part V: Section 2 – Settlement Services ........................................................................................... 75 5.2.1 Processing rules ................................................................................................................. 77 5.2.2 Internal settlement .............................................................................................................. 87 5.2.3 Bridge settlement ................................................................................................................ 90 5.2.4 External settlement ............................................................................................................. 96 5.2.5 Settlement of Auto-Collateralisation Instructions ......................................................... 104 5.2.6 Suspension of Settlement ................................................................................................ 106 5.2.7 Settlement Discipline ........................................................................................................ 106 Part V: Section 3 – Custody Services ............................................................................................. 107 5.3.1 Custody – General rules ................................................................................................... 109 5.3.2 Custody – Specific custody rules ................................................................................... 119 Part V: Section 4 – Money Transfer ................................................................................................. 135 5.4.1 Acceptance of currencies ................................................................................................ 137 5.4.2 Money transfer services ................................................................................................... 137 Part V: Section 5 – Securities Lending and Borrowing Program ................................................. 145 5.5.1 Securities Lending and Borrowing Program overview ................................................. 147 5.5.2 Lending .............................................................................................................................. 150 5.5.3 Borrowing .......................................................................................................................... 152 5.5.4 Recalls ................................................................................................................................ 155 5.5.5 Corporate Actions ............................................................................................................. 156 5.5.6 The Euroclear Bank Guaranty .......................................................................................... 158 5.5.7 Billing ................................................................................................................................. 159 5.5.8 Specific features
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