Update January 2010: With the introduction of the New Safekeeping Structure (NSS) for registered notes, the ICSDs have revised certain of their NGN forms, which will in due course be common to the NGN and NSS structures – see further New Safekeeping Structure (registered notes).

June 2006 saw the introduction of a new legal and holding structure for international debt securities issued in global bearer form through Euroclear Bank and Clearstream Banking (Luxembourg).

This new structure (the New Global Note or NGN) will be mandatory for newly issued international debt securities to be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations. It co-exists with the Classical Global Note (CGN) structure serviced by Common Depositaries.
 

Involved parties

The NGN structure is the result of a market initiative led by the following organisations:

•

Euroclear Bank
 

•

Clearstream Banking (Luxembourg)
 

•

the International Capital Market Services Association (ICMSA)
 

•

the International Capital Market Association (ICMA)
 

•

leading issuers and lead managers active in the international capital market
 

Standard Market Protocol

The design of the NGN structure presented the opportunity to review the operational flows underlying the servicing of international debt securities issued both in CGN and NGN form. The outcome of this review will be incorporated in a Standard Market Protocol (SMP) document, to be published by the ICMSA and ICMA, with the objective of providing guidance on best market practice.

 

Impacted parties

This new holding structure has a limited impact on investors.

The impact on issuers, their agents and lead managers is described in the NGN brochure and Frequently Asked Questions.

Issuers and their agents should also consult the Documents in the legal framework section to find the new required documents for issuing securities in NGN form.
 

Questions or comments? Contact us via e-mail at NGN@icmagroup.org or telephone Euroclear Bank on + 32 2 224 4527 or Clearstream Banking on + 352 243 32119

Additional information:

General information on the NGN structure
Legal framework
Related information