Author: Daniel Silva

In order to accommodate the changes resulting from T2S Release 2.0, as well as, from the different designation of the operations of capital increase by subscription, INTERBOLSA has amended INTERBOLSA Circular 1/2016, with regard to reorganizations and to transaction management.

On February 19, 2018, INTERBOLSA became a participant of the Central Securities Depositories (CSDs) Euroclear France and Euroclear Nederland, as investor-CSD, establishing links with these CSDs, allowing its participants to hold in their securities accounts debt instruments originally registered in these CSDs (Issuer-CSD).

These links allows the transfer of securities between INTERBOLSA’s participants and the participants of the mentioned CSDs, in real time, through the pan-European platform TARGET2-Securities (T2S), as well as the corporate actions processing over the debt securities registered in the securities accounts of INTERBOLSA’s participants.

The functional description related to these links is available on INTERBOLSA’s website in “CSD Links“.

Following the establishment of investor-CSD links between INTERBOLSA – Sociedade Gestora de Sistemas Centralizados de Valores Mobiliários and Euroclear France and Euroclear Netherlands (abbreviated Euroclear), which allows the cross-border transfer of debt instruments from Euroclear participants to the participants of INTERBOLSA, the price list of Financial Intermediaries was updated.

The following changes were made to Financial Intermediaries’s Fee Books:

• Inclusion of point 2.7, defining in general the fees to be applied to the services provided by INTERBOLSA;
• Addition of a new paragraph to point 5.1, defining the rules for the application of maintenance fees for debt securities registered in Euroclear;
• Inclusion of Table 4 to point 5.1, establishing the annual percentages to be applied for the purpose of calculating the monthly maintenance fee.

The aforementioned links, implemented on February 19, 2018, are eligible for ECB monetary policy purposes.

Please find the updated Fee Book on the INTERBOLSA Portal in “CSD Links “.

INTERBOLSA informs the publication of the following documents:

• Manual Operativo, v35 (in Portuguese)
• STD – Annex A1 – Layout of the mnemonics available to Financial Intermediaries, v49
• ISO 15022 Messages, v1

In order to increase the volumes of commercial paper registered in Interbolsa, to harmonize the costs charged to the securities representing short-term debt (commercial paper and treasury bills) as well as, in order to make the settlement cost of OTC operations more competitive, INTERBOLSA updated its price lists to accommodate those objectives.

The following changes were made to INTERBOLSA’s Fee Books:

Fee Book – Issuers Entities

• Exclusion of the commercial paper from the exception set out in point 2.1 a);
• Inclusion of treasury bills in the set of financial instruments, for which the minimum commission established in point 3.1, for the purpose of the registration of issues;
• Inclusion of treasury bills in the set of financial instruments, for which the minimum commission established in point 5.6 (previous 5.5) is charged for redemption or cancellation;
• Addition of point 5.3 to include a new price list to be applied to the corporate action that generate cash distribution (interest rate) on commercial paper issues;
• Renumbering of points 5.3 to 5.8;
• Rectification in point 3.3 of the reference from 5.5 to 5.6 and 5.7;
• Rectification in point 5 of the reference from point 5.5 to point 5.7.

Fee Book – Financial Intermediaries

• Exclusion of the commercial paper from the exception set out in point 2.1 a);
• Definition of sub accounts for the application of the fee book (point 4.3);
• Reduction of the price to be charged for each instruction settled in the real time settlement system that is not included in the scope of points 6.1 to 6.4, from 0.95 to 0.90 cents.

These amendments shall enter into force on 1^st of February 2018.

Please find the new Fee Books on the INTERBOLSA Portal – in the “Information and Documentation” area.

Following the publication of Law no. 15/2017, of May 3, which prohibits the issue of bearer securities and requires the conversion into registered within a maximum period of six months after its entry into force (known as the transitional period), Decree-Law no. 123/2017 of September 25 regulates the regime for converting the bearer securities into registered ones, thereby densifying that regime.

Subsequently, we are sending the INTERBOLSA Instruction No. 1/2017 that defines the operational procedures to be observed in converting bearer securities into registered.

In order to attend to market requests regarding the procedures to be applied in relation to companies in process of liquidation or insolvency, INTERBOLSA has updated its price list in order to accommodate the new procedure to be used in the valuation of equities, issued by entities under insolvency or liquidation process, and which securities have been listed in the market and then excluded from trading for that same reason.

Therefore, the following changes were made to INTERBOLSA’s price list:

• Issuers Entities – addition of paragraph b iii) to the point 4.1 – Issues maintenance;
• Financial Intermediaries – addition of paragraph b iii) to the point 5.1 – Securities maintenance.

These amendments will become into force on 1^st of August 2017.

Please find the new Fee Books on the INTERBOLSA Portal – in the “Information and Documentation” area.

Since the migration to the TARGET2-Securities (T2S) platform in March 2016, INTERBOLSA has monitored the volumes sent to this platform, both by INTERBOLSA on behalf of the ICPs (Indirectly Connected Parties) as directly by the DCPs ( Directly Connected Parties), with the aim of evaluating:

• The activity of the affiliated financial intermediaries in the systems managed by INTERBOLSA, in the context of the integration of settlement services on the T2S platform;
• The real and effective financial impact of the application of the INTERBOLSA’ price list, both from the stand point of the revenue generated from the pricing applied to the services provided to its customers as from the costs to be incurred by INTERBOLSA, namely from the T2S price list, set by the European Central Bank, as well as the costs with SWIFT, the provider of messaging services which are essential to INTERBOLSA’s connection to the T2S platform.

In this exercise, INTERBOLSA also monitored its needs, in particular with regards to the information services provided by T2S (reports and queries) crucial to internal control and effective supervision of the activity in the settlement systems managed by INTERBOLSA , as well as how to optimize SWIFT messages in order to reduce the cost of these services.

One year after the migration to the T2S platform, INTERBOLSA understands that already holds the essential knowledge about the costs incurred by the use of the T2S platform and the behavior of its customers in this new environment, as well as the prices charged by other European CSDs.

In the light of the above mentioned, INTERBOLSA presented to the members of its General Advisory Committee , on the meeting held on 29 November 2017, the new Fee Books which will be in force as from 1 April 2017.

Please find the new Fee Books on the INTERBOLSA Portal – in the “Information and Documentation” area.

Please also be informed that the fees set out in the INTERBOLSA’s Regulation no. 6/2005 will be replaced as of April 1, 2017 by the Fee Books referred above.

STEP is an initiative aimed to foster the integration of the European markets for short-term paper through the convergence of market standards and
practices. Its main promoters are the Financial Markets Association and the European Money Markets Institute. see more