Clearing system meaning

For further details on the documents outlined below, please refer to Practice Note: Issuing debt securities—key documentation. Appointment of the arranger The issuer (Issuer) designates an arranger (Arranger) to set up the programme. The Arranger may additionally serve as a dealer or manager for later note issues under the programme. Responsibility —Issuer and Arranger. Appointment of the dealers The dealer(s) (Dealers) will enter into a dealer agreement with the Issuer and the Arranger. For a syndicated issue, the Dealers and the Issuer may also sign a subscription agreement. New dealers may be added to the programme after launch via a dealer accession letter. Responsibility —Dealers, Arranger and the Issuer. Appointment of the agents The Issuer will appoint agents to act on its behalf for the programme. These may include a fiscal agent (Fiscal Agent) or a trustee (appointed by the Issuer to represent the interests of the noteholders),...

Introduction Guidance on establishing a medium term note (MTN) programme is set out in Practice Note: Setting up an MTN Programme—timeline of process. This Practice Note concentrates on the steps for an issuance of notes (a drawdown) carried out under an MTN programme (the programme) once that programme has been put in place. Type of drawdown A programme will ordinarily provide for two forms of drawdown: a drawdown agreed between the issuer and a dealer (a dealer drawdown); and a drawdown agreed between the issuer and a group, or syndicate, of dealers (a syndicated drawdown). In addition, the programme will usually permit further dealers to accede to the programme, either as permanent members of the dealer panel or for the purposes of a single drawdown. Notification to dealer(s) The issuer then notifies the dealer(s) of its intention to draw down under the programme—this can be done by means of a term sheet or by way of an Initial...

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In this issue: Commercial Corporate Data protection and cybersecurity Financial services Energy Environment Insurance and reinsurance IP Life sciences TMT International trade Daily and weekly news alerts Trackers Commercial Commissioner McGrath briefs MEPs on future consumer protection initiatives On 8 April 2025, European Commissioner for Democracy, Justice, the Rule of the Law and Consumer Protection, McGrath, briefed MEPs on forthcoming consumer protection initiatives. See: LNB News 08/04/2025 41... Corporate European Parliament votes to postpone corporate sustainability and due diligence rules Following the Commission’s omnibus package of 26 February 2025, the European Parliament approved a delay to applying the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) for certain companies. On 3 April 2025, the vote was 531 in favour, 69 against, and 17 abstentions. For the largest companies, CS3D will be deferred by one year. Member States have until 26 July 2027...

In this issue: Commercial Competition and state aid Data protection and cybersecurity Financial services Environment Insurance and reinsurance IP Life sciences Regulatory Restructuring and insolvency TMT International Trade Daily and weekly news alerts New and updated content Commercial Temu’s practices found to breach EU consumer laws The European Commission has informed Temu that a number of its practices breach EU consumer law and has instructed the platform to bring them into line. A co-ordinated investigation by the Consumer Protection Cooperation (CPC) Network, the Commission and national authorities concluded that Temu misled shoppers with bogus discounts, pushed customers into purchases by falsely claiming limited stock and looming deadlines, and provided incomplete or inaccurate details about consumers’ rights on returns and refunds. Investigators also reported that users were forced to play a ‘spin the fortune wheel’ game to access the marketplace, that fake reviews were used, and that contact information was...

In commercial finance, shares are often pledged as security for a loan. Practice Note: Taking security over shares sets out the general approach to securing interests over shares. This Practice Note concentrates on issues specific to security over shares held in CREST, the UK’s clearing and settlement system. It explains: the characteristics of registered shares and the distinction between certificated and uncertificated shares what CREST is and the ways shares can be held within CREST methods of taking security over shares held in CREST specific issues arising when securing shares in CREST and key points for documenting that security perfection and priority considerations for CREST share security how to enforce security over CREST-held shares Where a settlement bank takes security over CREST-held shares, different considerations apply; these fall outside the scope of this Practice Note. For more information, see commentary: CREST payments: Tolley’s Company Law Service [C8041]. Types of shares Registered shares With bearer shares abolished,...

EU Emissions Trading System (EU ETS) From the end of the Brexit transition (IP completion day) on 31 December 2020, the UK no longer takes part in the EU ETS. The EU ETS restricts the total volume of specified greenhouse gases emitted by power stations, factories and other installations via a cap-and-trade allowance market. It began with Phase I in 2005 and is founded on Directive 2003/87/EC, subsequently amended by Directive 2009/29/EC. Phase III started in January 2013 and concluded in 2020, while Phase IV runs from 2021 to 2030. For more on the EU ETS and carbon trading, see Practice Notes: EU ETS Phase IV—Directive 2003/87/EC EU emissions trading system—overview EU ETS for aviation EU ETS for maritime transport EU ETS II for buildings, road transport and additional sectors Carbon markets—core principles and future developments Carbon markets—carbon trading agreements Carbon markets—the price of carbon Carbon markets—international emissions trading schemes When is a greenhouse gas permit...

Introduction On 7 October 2024, the Payment Systems Regulator (PSR) and the Bank of England unveiled a compulsory reimbursement regime for payment services providers (PSPs) when customers fall victim to Authorised Push Payment (APP) fraud. As the PSR describes it, APP fraud arises where a criminal deceives someone (often a consumer) into sending funds to an account they do not control. The principal scam types include: ‘malicious payee’—for example, a fraudster induces a person to pay for goods that do not exist or are never delivered; ‘malicious redirection’—for instance, a criminal impersonates a member of bank staff to persuade someone to move money from their bank account into the fraudster’s account. In-scope payment firms The APP fraud reimbursement duty applies to these categories of payment firms: all payment firms participating in the Faster Payments Scheme (FPS) that provide relevant accounts; and all payment firms participating in the Clearing House Automated Payment System (CHAPS) that provide relevant accounts....