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Multi-listed
with multiple settlement countries
(Global Shares) |
DaimlerChrysler
AG
Ticker DCX
WPK 710000
ISIN DE0007100000
SEDOL 5529027
(GR) SEDOL 2307389
(US) SEDOL 5766857
(NA) SEDOL 2310967
(CN) SEDOL 4611196
(ES) SEDOL 6135111
(JP) CCD 009022180 CUSIP 118991-87-6
SICOVAM 012703 |
DaimlerChrysler
shares are listed in Frankfurt, EASDAQ, Tokyo, Paris, Toronto, Zurich, New York,
London and Amsterdam and also settle in these countries. DTC have introduced a
link between Clearstream and DTC (DTC 2000 |
- The Settlement
Clearing Agent needs to be identified upon trade booking by Trader
-
The
use of market specific Clearing Agent codes may create multiple positions in Trading
Systems.
- A
number of markets (London, Hong Kong, Zurich) still levy a settlement tax or Stamp
Duty. Where securities are settling outside of these markets this tax may not
be payable or maybe at a different rate.
- Dividends
are often paid in different currencies. For example Daimler Chrysler pays EUR
in Germany and USD in the US.
- At
times different countries have different dividend effective dates (Ex and Record)
for the same security. In order to determine entitlement, the place of trade therefore
needs to be accounted for.
- In
some countries foreign ownership of companies is limited by law and products are
traded as foreign and local shares, with only one ISIN.
Creation
of multiple / duplicate products representing each settlement country, using the
unique identifier (ISIN, CCD) only on one product may result in
- Repair of instructions
(missing ISIN) by agent banks
- Lower
STP rates
- Pricing/valuation
issues
- Position
reconciliation issues
- Multiple
positions for Traders
- Inefficient
use of inventory (financing cost)
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