WisdomTree Multi Asset Issuer PLC Transition To Icsd Settlement Model
03 November 2020 - 6:03PM
UK Regulatory
TIDM3LOI
WisdomTree Multi Asset Issuer PLC
LEI: 2138003QW2ZAYZODBU23
03 November 2020
WisdomTree Multi Asset Issuer PLC
(the "Issuer")
Transition to ICSD Settlement Model
Dear Shareholder
Background
As you may be aware, the Issuer currently settles trades in all
securities issued by the Issuer (the Securities) using the central
securities depositaries (CSD) settlement model. The securities of the
Issuer (the) are issued on multiple local CSDs and, in the UK,
settlement is through Euroclear UK & Ireland Limited (the CREST system).
The Issuer will lose the ability to use the CREST system as an issuing
CSD from 29 March 2021, when the extended period of equivalency
currently agreed to by the UK and European Union will end.
In order to continue to issue Securities, it is proposed to transfer the
settlement of trading in the Securities to the International Central
Securities Depositary structure (the ICSD Settlement Model) (the
Transition) on or around 11 December 2020 (the Transition Date). In
doing so, this will bring the Issuer in line with the broader European
ETP market, which is increasingly migrating to the ICSD Settlement
Model. The advantages of the ICSD Settlement Model are set out further
below under the heading What are the operational advantages of the
Transition? and within the FAQ guidance document on the WisdomTree
website at:
https://www.wisdomtree.eu/en-gb/-/media/eu-media-files/other-documents/faq/wisdomtree_wtma_q&a.pdf.
The Transition will apply to all of the Securities, which are listed in
Appendix I.
1. Key Implications of the Changes
2. The Transition will allow the Securities to continue to trade on European
exchanges after 29 March 2021.
3. You will continue to hold the same Securities following the Transition,
and your rights will not be affected.
4. The price and the Irish ISINs of the Securities will remain the same
following the implementation of the Transition.
5. Investors who currently hold their Securities through a nominee or broker
account will not be impacted by the Transition and will continue to hold
a beneficial entitlement to the Securities in the same way that they hold
their entitlement under the current CSD settlement model.
6. As part of the Transition, where DE ISINs for German investors have been
issued, these will merge into the Irish ISINs on the Transition Date.
Further information can be found in the FAQ guidance document on the
WisdomTree website at
https://www.wisdomtree.eu/en-gb/-/media/eu-media-files/other-documents/faq/wisdomtree_wtma_q&a.pdf.
7. You will continue to hold, or have a beneficial entitlement to, the same
Securities following the Transition; there is no exchange of Securities
or sale of Securities as part of the Transition. As a result the
Transition are not expected to be chargeable events for tax purposes,
however investors are advised to liaise with their tax advisors in
relation to the tax implications in individual circumstances.
2. Proposed Transition to the ICSD Settlement Model
What are the operational advantages of the Transition?
The key advantage of the Transition is that it will ensure that trading
in the Securities can continue across multiple European exchanges when
the extended period of equivalency currently agreed to by the UK and
European Union ends on 29 March 2021. Euroclear Bank S.A./N.V.
(Euroclear) and Clearstream Banking S.A., Luxembourg (Clearstream and,
together with Euroclear, the ICSDs) provide centralised settlement
mechanism for Securities traded across multiple stock exchanges in
Europe. The ICSD Settlement Model also offers the following benefits:
1. improved secondary market tradability for investors by creating a more
efficient settlement infrastructure;
2. improved settlement process efficiency through longer operating hours of
the ICSDs, increasing the time in which trades can match and settle,
thereby minimising operational complexity;
3. reduction in inventory requirements and lower capital charges and
overheads for market makers and broker dealers;
4. enhanced liquidity for investors in the Securities with less
fragmentation across multiple settlement systems;
5. the ability to pool inventory, reducing failed settlement and settlement
delays;
6. streamlined dividend record date methodologies across Europe; and
7. improved foreign exchange functionality on dividend payments.
What is the difference between the ICSD Settlement Model and the Current
Settlement Model from a legal perspective?
The main difference between the Current Settlement Model and the ICSD
Settlement Model relates to the securityholders of record registered on
the Issuer's register of securityholders (the Register of Members).
Under the Current Settlement Model, only investors with accounts in the
CREST system operated by Euroclear UK & Ireland Limited and certain CSDs
(e.g., Clearstream Banking AG) or their nominees are registered on the
Register of Members.
Under the ICSD Settlement Model, the aggregate holdings of all investors
will be evidenced by a global share certificate and the sole registered
holder of all Securities will be Citivic Nominees Limited (the Common
Depositary's Nominee), the nominee of the common depositary, Citibank
Europe plc.
What are the roles and obligations of the Common Depositary's Nominee
and the ICSDs?
On the Transition Date, the Common Depositary's Nominee and the ICSDs
will have contractual obligations to pass the beneficial interest and
all associated rights of the Common Depositary's Nominee (as the
registered securityholder) in all Securities to the underlying investors
in the Securities.
For example, if the Common Depositary's Nominee receives any redemption
proceeds from the Issuer or its authorised agent in respect of a
Security, the Common Depositary's Nominee will arrange for such payments
to be passed on to the ICSD, who will in turn pay these to the
underlying investors.
How do I trade and settle Securities under the ICSD Settlement Model?
Under the ICSD Settlement Model, investors who are not participants in
the ICSD Settlement Model will need to use a broker, nominee, custodian
bank or other intermediary which is a participant in the ICSD Settlement
Model to trade and settle Securities, similar to the way investors under
the Current Settlement Model use a broker or other intermediary which is
a participant in the CSD for the market in which the investor intends to
trade and settle. The chain of beneficial ownership in the ICSD
Settlement Model will therefore be similar to existing nominee
arrangements under the Current Settlement Model.
What are the ownership implications for investors?
For investors who are registered on the Register of Members immediately
before the Transition Date (e.g. a CSD or its nominee), their ownership
of Securities will change from legal ownership of the relevant
Securities to ownership of a beneficial entitlement in those Securities
through the Common Depositary's Nominee.
Existing investors with Securities held in the CREST system will
automatically continue to hold the beneficial entitlement to these
Securities by means of a CREST depositary interest (Euroclear UK and
Ireland Limited).
3. Costs
The costs associated with the implementation of the Transition will be
borne by WisdomTree Multi Asset Management Limited.
Should you have any questions in relation to the above, please do not
hesitate to contact WisdomTree UK Limited at infoeu@wisdomtree.com.
Appendix I
Listing Name ISIN DE ISIN London Borsa Deutsche
Stock Italiana Boerse
Exchange
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B88D2999 n/a Yes No No
100 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B7VB3908 n/a Yes No No
100 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree EURO IE00B7SD4R47 DE000A1VFZ69 Yes Yes Yes
STOXX 50(R) 3x Daily
Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree EURO IE00B8JF9153 DE000A1VFZ51 Yes Yes Yes
STOXX 50(R) 3x Daily
Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree DAX 30 IE00B878KX55 DE000A1VFZ44 Yes Yes Yes
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree DAX 30 IE00B8GKPP93 DE000A1VFZ36 Yes Yes Yes
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree S&P 500 IE00B7Y34M31 DE000A133ZS8 Yes Yes Yes
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree S&P 500 IE00B8K7KM88 DE000A133ZX8 Yes Yes Yes
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree NASDAQ IE00B8W5C578 DE000A133ZY6 Yes Yes Yes
100 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree NASDAQ IE00B8VZVH32 DE000A133ZR0 Yes Yes Yes
100 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Gold IE00B8HGT870 DE000A1ZLCQ2 Yes Yes Yes
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Gold IE00B6X4BP29 DE000A1ZLCP4 Yes Yes Yes
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Copper IE00B8JVMZ80 n/a Yes Yes No
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Copper IE00B8KD3F05 n/a Yes Yes No
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Natural IE00B8VC8061 DE000A133ZU4 Yes Yes Yes
Gas 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Natural IE00B76BRD76 DE000A133ZW0 Yes Yes Yes
Gas 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Silver IE00B7XD2195 DE000A1ZK3W9 Yes Yes Yes
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Silver IE00B8JG1787 DE000A1ZK3V1 Yes Yes Yes
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B94QKF15 n/a Yes No No
100 2x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B94QKG22 n/a Yes No No
100 1x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B94QKC83 n/a Yes No No
100 2x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00BBGBF313 n/a Yes No No
250 1x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B94QKJ52 n/a Yes No No
250 2x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Palladium IE00B94QLR02 n/a Yes Yes No
1x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Palladium IE00B94QLN63 n/a Yes Yes No
2x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B873CW36 n/a No Yes No
MIB 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00B8NB3063 n/a No Yes No
MIB 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree BTP 10Y IE00BKT09149 n/a No Yes No
3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree BTP 10Y IE00BKS8QM96 n/a No Yes No
3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Bund IE00BKT09255 n/a No Yes No
10Y 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Bund IE00BKS8QN04 DE000A1ZLZB5 No Yes Yes
10Y 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Gilts IE00BKT09479 n/a Yes No No
10Y 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Gilts IE00BKS8QQ35 n/a Yes No No
10Y 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree US Treasuries IE00BKT09032 n/a Yes Yes No
10Y 3x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree US Treasuries IE00BKS8QT65 DE000A1ZLZC3 Yes Yes Yes
10Y 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree EURO IE00BLS09N40 DE000A18HC82 Yes Yes Yes
STOXX Banks 3x Daily
Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree EURO IE00BLS09P63 DE000A18HC90 Yes Yes Yes
STOXX Banks 3x Daily
Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree WTI Crude IE00BVFZGC04 DE000A18HC25 Yes Yes Yes
Oil Pre-roll
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Brent IE00BVFZGD11 DE000A18HC33 Yes Yes Yes
Crude Oil Pre-roll
------------------------ ------------ ------------ --------- -------- --------
WisdomTree BTP 10Y IE00BYNXNS22 n/a No Yes No
5x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Bund IE00BYNXPH56 n/a No Yes No
10Y 5x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree US Treasuries IE00BYNXPJ70 n/a No Yes No
10Y 5x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Emerging IE00BYTYHN28 DE000A2BGQ21 Yes Yes Yes
Markets 3x Daily
Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Emerging IE00BYTYHM11 DE000A2BGQ39 Yes Yes Yes
Markets 3x Daily
Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree S&P 500 IE00BYTYHQ58 DE000A2BGQ13 Yes Yes Yes
VIX Short-Term Futures
2.25x Daily Leveraged
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Brent IE00BYTYHR65 DE000A2BGQ05 Yes Yes Yes
Crude Oil 3x Daily
Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree FTSE IE00BYMB4Q22 n/a No Yes No
MIB Banks
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Bund IE00BF4TW453 DE000A2F4V47 No Yes Yes
30Y 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Gilts IE00BF4TW560 n/a Yes No No
10Y 1x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree US Treasuries IE00BF4TW784 n/a Yes Yes No
30Y 3x Daily Short
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Industrial IE00BF4TWC33 DE000A2GCWM6 Yes Yes Yes
Metals Enhanced
------------------------ ------------ ------------ --------- -------- --------
WisdomTree Energy IE00BF4TWF63 DE000A2GCWN4 Yes Yes Yes
Enhanced
------------------------ ------------ ------------ --------- -------- --------
(END) Dow Jones Newswires
November 03, 2020 12:03 ET (17:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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