Issuers issuing assets in the Euro area denominated in US Dollars, Pounds Sterling and Japanese Yen may take immediate advantage of Clearstream's New Global Note (NGN) facility to ensure that their securities can be considered as eligible as collateral for Eurosystem credit operations when complying with the ECB's criteria.
On October 15, the European Central Bank announced that the list of assets eligible as collateral will be expanded to include debt instruments denominated in the above currencies as well as EUR denominated issues. Through its Issuance & Distribution Services teams, Clearstream provides full support to issuer agents and lead managers to facilitate issuance in the New Global Note form.
Launched in 2006, the New Global Note (NGN) is a form of issuance which has been positively assessed by the Eurosystem. It replaces the Classical Global Note (CGN) which is still available but no longer eligible as collateral for Eurosystem monetary policy and intra-day credit operations. Issuing in NGN form will ensure that assets complying with the ECB's criteria are eligible as collateral in Eurosystem credit operations. Clearstream is one of the two multi-currency settlement systems in the Euro area through which such securities can be issued and become eligible for Eurosystem credit operations.
Clearstream delivers a wide range of collateral management services to the market under the name of Global Securities Financing (GSF). In addition to accessing the credit operations of the Eurosystem through Clearstream Banking Luxembourg and Clearstream Banking Frankfurt, Clearstream provides access to the tender windows of the Federal Reserve Bank of New York, the Bank of England and other Central banks.