Changes in SEB Bank’s Securities account terms and conditions
On September 18th, 2017, amendments to the provisions of the SEB Bank Securities Account Agreement will take effect. The changes include, inter alia, the fact that from September 15th, 2017, the central depositories of Estonia, Latvia and Lithuania will be merged into a single Central Securities Depository (NASDAQ CSD SE, reg. No. 40003242879), which, in turn, will provide the Central Securities Depositary connection to the single European Settlement platform - TARGET2 – Securities (T2S), which is a technical solution for securities settlements. The main objective of T2S is to provide efficient and harmonized securities settlements in central bank currency in Europe, as well as to bridge the gap between domestic and cross-border securities settlements between European Central depositories.
Due to the fact that the merger of the depositaries and the Central Securities Depository migration to the TARGET2 - Securities (T2S) system have not yet occurred on the date of submission of this notice in the event of unforeseen circumstances ( example, if the Central Securities Depository does not join TARGET2 - Securities (T2S) on due date), the Bank reserves the rights to postpone the date of entry into force of the amendment to the provisions of the Securities Account Agreement by notifying www.seb.lv.
The most significant changes in terms and conditions:
- Definition of Central Securities Depository.
- Opening a securities account– In the future it will be possible to choose to open not only intra-bank securities account, but also an account with Central Securities depository. This will ensure that securities are kept in Central Securities depository on the account opened in the name of the client.
- For securities transactions that are executed through Central Securities depository in addition to the amount of the transaction the bank shall reserve financial means according to market tolerance level (EUR 2 for transactions with settlement values up to and including EUR 100 000 and EUR 25 for transactions with values over the EUR 100 000. Settlement amount, indicated by the seller of the securities, is used.).
- Securities transactions executed in a stock exchange system and settled through the Central Securities Depository are subject to automatic Central Depository processes, i.e. if securities event has resulted in a change in the characteristics of securities, the order submitted by the client may be cancelled or replaced in accordance with the terms of securities event. If the income of the securities event is received (dividends, coupons), then proceeds will be re-allocated to the party that is contractually entitled to receive them.
- Securities transactions executed outside stock exchange system and settled through the Central Securities Depository in the case if deal’s counterparty’s have not agreed otherwise, are subject to automatic Central Depository processes. This means that if securities event has resulted in a change in the characteristics of securities, the order submitted by the client may be cancelled or replaced in accordance with the terms of securities event. If the income of the securities event is received (dividends, coupons), then proceeds will be re-allocated to the party that is contractually entitled to receive them.
