The recently announced combination of Credit Suisse and UBS together with the write down of Credit Suisse AT1 bonds has led to market participants not being able to settle trades that were agreed prior to issue of the write down notice.
ICMA continues to actively engage with its members during this period, as well as relevant regulators, clearing houses and exchanges.
In the interests of orderly and resilient markets, ICMA has highlighted members’ interests in resolving unsettled trades to the Depository Trust and Clearing Corporation (DTCC), the International Central Securities Depositories (ICSDs – Euroclear and Clearstream) and to SIX Swiss Exchange – some of which have allowed trades to settle for limited periods this week.
As a result of discussions with members, regulators, and other market participants, ICMA currently understands that some market participants are continuing to trade the affected bonds and seeking to settle such trades, if possible, through the usual clearing systems rather than directly with their counterparties outside the clearing systems.
We endeavour to keep you informed, so should members have further queries please contact: LegalHelpdesk@icmagroup.org
Source: ICMA
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
Rich Handler said he does not intend to sell any further shares.
-
Glasgow is one of the bank’s 23 global technology centres.
-
Zodia Markets has been successful in executing FX with crypto trades.
-
HQLAX optimises liquidity management and collateral management.
-
Sell-side veteran cites settlement risk as the number one challenge for market participants.