Markups and Markdowns

Our German CSD (Clearstream Banking Frankfurt) offers to hold ‘up to’ global notes in collective safe custody. These notes permit the efficient issuance of securities in tranches (markups) or the reduction of the issued amount (markdowns) as long as the total nominal amount (“up to” nominal value) is not exceeded. Issuers hereby benefit from greater flexibility as it is no longer necessary to generate or withdraw global notes each time the issued amount is changed. Customers can further automate this process with Clearstream Banking Frankfurt’s AutoDispo service. This service not only generates the necessary mark-ups but also automatically removes all unsold securities from the customer’s account at the end of the business day (markdown). This means that issuers do not need to constantly monitor their issuance account and they do not have to input mark-up and mark-down instructions manually. The automation of manual interventions and scalable volumes makes processing more efficient and results in shorter delivery times. http://www.clearstream.com/ci/dispatch/en/kir/ci_nav/1_settlement/030_new_issues/026_post_issuance/010_mark_up_down