The services provided in accordance with Decision No 7 of the Board of Directors, concern the registration in the DSS of the collateral that the debtor must provide to the lender for taking out a loan. The pledge is formed either by ATHEXCSD or by a Participant.
Specifically, the following actions are required for the Pledge Formation by ATHEXCSD services to Lenders:
Transfer of the securities to be pledged to an Investor Participant Account under the management of the Participant who will keep the pledge.
For the Financial Collateral in Rem formation (Law 3301/2004) in a Legal Persons portfolio, the service is provided in accordance with Decision No 7 of the Board of Directors and the following shall apply:
It is formed by Hellenic Central Securities Depository SA, in the same context and under the same procedure as pledge formation or
It is formed by a Participant who shall keep the security.
The pledge realization procedure is carried out in accordance with Decision No 37 of the Stock Markets Steering Committee of ATHEX.
The process of realization or acquisition of ownership of securities on which a financial collateral in rem is formed (Law 3301/2004), is carried out by the Participant who has formed the security in rem upon the Collateral Taker order. If the financial collateral in rem is formed by ATHEXCSD, the realization or acquisition of ownership is performed by ATHEXCSD upon an order of the Collateral Taker, under the following terms:
The realization or acquisition of ownership of the securitised/pledged quantities of securities, is clearly stated in the letter of the party seeking enforcement.
The letter of the party seeking enforcement clearly states all relevant information of the financial collateral, on which the realization is about to be executed.
The letter of the party seeking enforcement mentions also Law 3301/2004 and the specific Agreement provision the same is described.
It references securities quantity, date and destination Operator.