The ECB confirmed yesterday that the so-called New Global Note (NGN) arrangement for international debt securities is in compliance with the Eurosystem’s “Standards for the use of EU securities settlement systems in ESCB credit operations”, provided that the respective NGN is held for safekeeping by an institution that has been positively assessed against these standards by the Eurosystem.
The NGN arrangement, designed by Euroclear and Clearstream together with other market participants, will be offered by the ICSDs as of 30 June 2006. It can be used for issues of international debt securities in global bearer note form. Under this new structure, a securities issue will be represented by a new form of global bearer certificate: the NGN.
© Graham Bishop
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