Market asset servicing - Netherlands
Income collection
| Bonds and medium term notes - Interest payment | |
| Market Record date | Ex-date +1. |
| Ex-date | Determined on a case-by-case-basis. |
| Basis for entitlement | Settled position at close of business on payment date -1. |
| Standard interest calculation rule | Issued before 1 January 1999: 360/360 Issued after 1 January 1999: Actual/Actual. |
| Bonds, medium-term notes, CDs and CPs - Final and early redemption | |
| Market Record date | Ex-date +1. |
| Ex-date | Determined on a case-by-case-basis. |
| Basis for entitlement | Settled position at close of business on payment date -1. |
| Standard interest calculation rule | Not applicable. |
| Bonds - Partial redemption by drawing | |
| Market Record date | Market Drawing date. |
| Ex-date | Determined on a case-by-case-basis. |
| Basis for entitlement | Depending on the lottery processed on the drawing date, record date is based on specific redemption price. |
| Standard interest calculation rule | Not applicable. |
| Equities - Dividend | |
| Market Record date | Ex-date +1 |
| Ex-date | Determined on a case by case basis. It determines the entitlement of dividends including for stock and choice dividends. |
| Basis for entitlement | Settled position on ex-date. |
| Standard interest calculation rule | Not applicable. |
Partial redemption by drawing
Partial redemption by drawing can occur on certain bonds on a semi-annual or a yearly basis. The drawing date is the first day on which securities are traded ex drawing rights. Delivery and receipt of securities are with benefit of drawing up to and including the day prior to the drawing date.
On drawing date -1, the position on depot is blocked. On the drawing date, the drawn amount of securities is blocked up until the pay date and the redemption is discounted in the relevant positions at the redemption price and settled on the settlement date.
If a drawing takes place between trade date and settlement date, contrary to international market practice, under the rules and regulations of Euronext Amsterdam, the buyer will participate in the drawing process. In such cases, a buyer is not entitled to claim full delivery of the bonds. This is why there is a frozen period of two or three days before and after the drawing date. The results of the drawing are published on drawing date +2.
Corporate actions
Most common corporate events
The most common events in the Dutch market are Choice dividends, Subscription offers, Stock dividends or Non-Automatic Bonuses, and Conversion options on Convertible bonds.
Organisation of AGM/EGMs
Two weeks before the meeting, the sub-custodian receives the information in Dutch; this is then translated into English and sent to the global custodian. Investors can apply for a voting or entry card up until the day specified by the issuer, from which date the shares are blocked from settlement until the day of the meeting.
Generally, applications for voting or entry cards can only be cancelled up until the deadline established by the issuer (typically, meeting date -3) and the cancellation is effected upon receipt of the instruction.
Voting can only be exercised by sending a representative to attend the general meeting. The subcustodian can retain a representative to attend the meeting if this is instructed by the client. Companies may impose restrictions on investors' voting privileges or limit the number of shares each shareholder can vote regardless of the number of shares held.
Proxy voting
All proxy voting instructions must include the beneficial owner details.
If the beneficial owner is a legal person, the following information must be provided:
- Name
- Country of incorporation
- Legal Entity Identifier (LEI)
If the beneficial owner is a natural person, the following information must be provided:
- First name
- Last Name
- Country of residence
- Identification Type
- Identification number
Note: Type of national identification is dependent on the country of residence of the beneficial owner. The list of acceptable national identification types can be found here.
Other market specifics
Stock options in the Netherlands are either tradable or non-tradable:
- For tradable stock options, payment date is before the market deadline and the market deadline is 5 business days prior to the instruction deadline of the issuer or of his paying agent. Therefore, the decision whether to receive cash or stock can only be made for settled holdings. The issuer announces the cash and the exchange ratio on ex-date. After payment date, the stock option can be converted into new shares up until the market deadline.
- For non-tradable stock options, payment date is after the market deadline. There is a gap of an average of two weeks between ex-date and the market deadline and the market deadline and payment date. The issuer announces the cash dividend and the margin on ex-date. The exchange ratio remains unknown until the company deadline, at which time the holder must choose either cash or stock. The exchange ratio is determined on market deadline +1.
Transaction management
Please refer to Transaction Management in T2S and the Transaction management rules - Netherlands.