UniCredit Bank Czech Republic and Slovakia, a.s. (UCB CZSK) performs the management and settlement of securities (so-called custody services) through its Global Security Services (GSS) section for GSS clients on the basis of contractual documentation, which entails a “Master Agreement”, “Sub-Custody Agreement”, “Service Level Agreement”, etc.
Clients communicate with UCB CZSK primarily through SWIFT messaging; however, they can also communicate through the Business Net for Securities (BNS) banking communication channel or through another channel based on their contractual agreement.
Custody services entail in particular
- the management and settlement of domestic book-entry securities registered with Centrální depozitář cenných papírů/the Central Securities Depository (CDCP a.s.) or with Systém Krátkodobých Dluhopisů/the Short-Term Bond System (SKD – a trading and depository system for treasury bills run by the Czech National Bank) for local and foreign institutional investors alike;
- the management and settlement of foreign book-entry securities admitted to trading on the Czech regulated market organised by Burza Cenných Papírů Praha/the Prague Stock Exchange (BCPP a.s.) and also registered with Centrální depozitář cenných papírů/the Central Securities Depository (CDCP a.s.);
- the safekeeping of domestic securities in certificated form in own vault and their subsequent management and potential settlement (e.g. shares, government and corporate bonds or bills of exchange).
Management of securities entails:
- the provision for mandatory corporate actions related to a client’s holding of book-entry securities, in particular payment of interest, dividends and other yields from securities for the account of the client;
- the monitoring and notification of voluntary corporate actions relating to securities held by GSS clients (e.g. so-called squeeze-out of securities and the like);
- the representation and voting of clients at general meetings of shareholders as instructed by clients (so-called Proxy Voting);
- the management of client asset accounts in depositories and the registration and reconciliation of securities on these accounts.
Settlement of securities entails:
- non-commercial (so-called Over-The-Counter or OTC) transfers of the above-mentioned securities from and to a client’s asset account registered with the respective depository (e.g. with the CDCP a.s.), exclusively as instructed by the GSS client;
- the provision for financial clearing of these transactions with the CNB’s Clearing and, subsequently, on the client’s cash account held with UCB CZSK.
UniCredit Bank Czech Republic and Slovakia, a.s., is a full member of and participant in the CDCP a.s., the SKD and other local contractual securities depositories and provides servicing of its clients’ securities in strict accordance with regulatory and internally defined rules, always in the best interests of its clients.