Effective October 6, 2014, the delivery settlement cycle of
securities traded on French-regulated market Euronext Paris and
French-organized market Alternext Paris will be shortened from
three to two trading days. This move anticipates the EU Regulation
on Central Securities Depositories adopted on April 15, 2014, which
is to come into force, on this particular aspect, on January 1,
2015. Not all EU member states have anticipated the EU Regulation,
which may result in temporary inconsistency in terms of length of
delivery settlement cycle across member states until January 1,
2015.
Rules of market infrastructures (regulated market Euronext Paris
SA, central counterparty LCH Clearnet SA, and settlement-delivery
system ESES France) have been amended accordingly.
Under the updated Euronext Paris Rulebook, cash dividends will now
be detached one trading day (as opposed to two trading days so far)
before the cutoff date for the positions that, after settlement,
will qualify for payment.
The reduction of the delivery settlement cycle will also result in
advancing the record date, allowing shareholders to vote in
shareholders' meetings, as well as advancing the deadline for
complying with disclosure obligations relating to temporary
transfer of securities (formerly the third business day prior to
the shareholders' meeting and now the second business day prior
to the shareholders' meeting).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
