25 February 2017
visit dh.com

Euroclear Nederland consigns paper certificates to history

17 January 2013  |  4428 views  |  0 power leads

Euroclear Nederland has called time on a 400-year tradition of paper securities certificates as it closes its vaults in Amsterdam and moves all share ownership documentation to an electronic register.

The Dutch central securities depository recently completed the full-scale dematerialisation process of all Dutch securities classes (bonds, equities and depository receipts) for the Dutch capital market.

The final securities certificate to be entered into the CSD's electronic registration system marks the end of an era in the use of physical certificates to connote investment ownership.

Valerie Urbain, chief executive officer of Euroclear Nederland, states: "Today, we have consigned the last listed paper certificate in the Dutch giro system to history. The Netherlands has always had a strong affinity with stock certificates. We can trace the world's oldest share certificate to that of the Verenigde Oost-Indische Compagnie's issue of 1606, the first public share offering anywhere."

The dematerialisation process was started by Necigef in the 1990s following a market-wide call to modernise and make the Dutch capital market safer and more efficient.

Subsequent changes to Dutch securities law in 2000 enabled Euroclear Nederland to use a single global certificate to represent an entire issue, instead of printing an individual piece of paper for each certificate. Changes to laws which took effect on 1 January 2011, meant that as of 31 December 2012, all securities held in custody with the CSD have been converted into either electronic book-entries or a global note.

At its height in the early 1990s, Euroclear Nederland's vaults in Amsterdam held over eight million pieces of paper representing client assets worth EUR800 billion.
KeywordsDEPOSITORIES

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

DTCC starts sorting though Sandy-flooded securities vault

DTCC starts sorting though Sandy-flooded securities vault

15 November 2012  |  5838 views  |  0 comments | 4 tweets | 1 linkedin
DTCC outlines plan to eliminate paper stocks

DTCC outlines plan to eliminate paper stocks

09 July 2012  |  5060 views  |  0 comments
ESF lobbies to scrap paper share certificates in the UK

ESF lobbies to scrap paper share certificates in the UK

13 January 2005  |  929 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.com visit dh.com

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
12440 views comments | 52 tweets | 72 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8493 views comments | 40 tweets | 34 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6737 views comments | 18 tweets | 13 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6599 views comments | 7 tweets | 4 linkedin
Visa opens London innovation centreVisa opens London innovation centre
6004 views comments | 20 tweets | 19 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job