Clearstream Banking to stop handling cannabis-related securities
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Clearstream Banking to stop handling cannabis-related securities 25 June 2018Luxembourg Reporter: Maddie Saghir
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Clearstream Banking has informed customers that it will no longer be possible to settle and safe keep securities at the bank where the main business is connected directly or indirectly to cannabis and other narcotics products, effective 28 September.
This follows the announcement that Clearstream Banking AG’s custodian, Clearstream Banking can no longer service these securities due to legal reasons.
Clearstream Banking has identified the number of securities that would meet the criteria but the list of impact securities is not yet thorough.
If Clearstream Banking identified other securities meeting the criteria it would inform customers accordingly with the respective data of termination services.
Meanwhile, Clearstream Banking will only offer processing of receipt free of payment and against payment instructions from the local market until close of business on settlement date 29 June 2018, when the Bridge closes.
Until close of business on settlement date 28 September 2018, Clearstream Banking will offer services for over the counter and stock change transactions.
The services include, processing of free payment and against payment internal instructions (within Clearstream Banking).
Additionally, processing of free payment and against payment delivery instructions towards the local market will also be offered as a service.
Customers of Clearstream have been asked to use the transition period to move their positions in the respective securities out of Clearstream Banking before the September deadline.
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