EUROPE - Four European institutions have launched an awareness campaign to prepare issuers and their agents for a new legal and holding structure for international debt securities, which will be launched from the end of June.

The changeover to the new structure is being driven by EU monetary policy.

The New Global Note (NGN) is a new form of global certificate for issuing new international debt securities in global bearer form. The structure will provide for the processing and safekeeping of international bearer debt securities issued from 30 June 2006. It will be mandatory for all new issues wishing to be recognised as eligible as collateral for Eurosystem monetary policy and intra-day credit operations.

To smooth the transition to this new structure, Euroclear Bank and Clearstream Banking Luxembourg have launched an information campaign in association with the International Capital Market Association (ICMA) and the International Capital Market Services Association (ICMSA).

Under the terms of the NGN, the issue outstanding amount is determined based on the records of the international central securities depositories (ICSDs).

Issuers provide a signed issuer-ICSD agreement requesting acceptance of the securities with the ICSDs. NGN securities will be serviced by two new types of service provider – the Common Service Provider and the Common Safekeeper, both appointed by the ICSDs.

NGN securities that are potentially eligible as collateral for Eurosystem monetary policy or intra-day credit operations must be deposited and kept in the custody of an ICSD, acting as Common Safekeeper.

Issuers who wish to use the new structure and ensure the potential eligibility of their new issue will have to update their legal documentation to allow for this new form of issuance.

Some operational processes linked to the issuance of new securities and reconciliation flows, as carried out by lead managers and issuing and paying agents, will also need to be adapted.

More information is available from the ICMA website at