Insights

Effective October 6, 2014, Delivery Settlement Cycle of Securities Traded on Euronext Paris and Alternext Paris Will Be Shortened from Three to Two Trading Days

Effective October 6, 2014, Delivery Settlement Cycle of Securities Traded on Euronext Paris and Alternext Paris Will Be Shortened from Three to Two Trading Days

Effective October 6, 2014, the delivery settlement cycle of securities traded on French-regulated market Euronext Paris and French-organized market Alternext Paris will be shortened from three to two trading days. This move anticipates the EU Regulation on Central Securities Depositories adopted on April 15, 2014, which is to come into force, on this particular aspect, on January 1, 2015. Not all EU member states have anticipated the EU Regulation, which may result in temporary inconsistency in terms of length of delivery settlement cycle across member states until January 1, 2015.

Rules of market infrastructures (regulated market Euronext Paris SA, central counterparty LCH Clearnet SA, and settlement-delivery system ESES France) have been amended accordingly.

Under the updated Euronext Paris Rulebook, cash dividends will now be detached one trading day (as opposed to two trading days so far) before the cutoff date for the positions that, after settlement, will qualify for payment.

The reduction of the delivery settlement cycle will also result in advancing the record date, allowing shareholders to vote in shareholders' meetings, as well as advancing the deadline for complying with disclosure obligations relating to temporary transfer of securities (formerly the third business day prior to the shareholders' meeting and now the second business day prior to the shareholders' meeting).

Lawyer Contacts

For further information, please contact your principal Firm representative or one of the lawyers listed below. General email messages may be sent using our "Contact Us" form, which can be found at www.jonesday.com.

Philippe Goutay
Paris
+33.1.56.59.46.58
[email protected]

Anselme Mialon
Paris
+33.1.56.59.39.39
[email protected]

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