Debt securities payment mechanics
Debt securities payment mechanics

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Debt securities payment mechanics
  • Payments on global securities
  • Payments on definitive bonds
  • Bearer v registered debt securities
  • The role of the paying agent
  • Credit lines
  • Calculating fixed and floating rates of interest
  • Day count fractions
  • Payments on non-business days
  • Currency transfer cut off times
  • more

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—key issues for debt capital markets transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

Debt securities markets have continually developed an infrastructure to allow for payments to be made on the securities by their issuers to their holders. This infrastructure allows for payment across different jurisdictions and time zones, in different currencies and in line with different payment conventions. The infrastructure for debt securities payments exists within conventional banking operations and also outside of it,