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STEP - Short Term European Paper NGN - New Global Note

STEP and NGN. 2. STEP Institutional Framework Market ConventionEurosystem EligibilityNew Global Note DocumentationProgramme ChangesUCITS Operational Consequences. History of STEP. Highly fragmented markets in Europe (French,Belgian,German,ECP)Differing market standards Settlement

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STEP - Short Term European Paper NGN - New Global Note

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    1. STEP - Short Term European Paper & NGN - New Global Note

    2. STEP and NGN STEP Institutional Framework Market Convention Eurosystem Eligibility New Global Note Documentation Programme Changes UCITS Operational Consequences

    3. History of STEP Highly fragmented markets in Europe (French,Belgian,German,ECP) Differing market standards Settlement systems Involvement of regulators/Central Banks Availability of information/documentation Comparison with the USCP market 3 times larger in terms of outstanding than all European market together High level of FED involvement Higher level of transparency (statistics/ information)

    4. Goal of the STEP initiative Promoting the development of the short term paper market in Europe Achieving integration through the convergence of existing markets Defining Market standards and best practices by Euribor ACI, EACT, ICMA, investors, etc. Institutional sponsors: ECB/ESCB and FBE

    5. STEP Governance scheme

    6. STEP Market Convention Transitional period (1.12.4) under the STEP Market Convention to expire on 2 April 2007 according to the press release of ECB published on http://www.ecb.int/press/pr/date.2007.html/pr070223.en.html STEP Market Convention of 9 June 2006 is available on http://www.stepmarket.org/eca3.html

    7. STEP Labelling cycle

    8. Eurosystem Eligibility Type of Asset [debt instrument ? fixed unconditional principal ? zero coupon, fixed rate, floating, inflation linked ? special criteria for asset-backed] Credit Standards [as specified in the implementation document] Place of Issue [deposited or registered in EEA (sometimes euro area)] Issuer [including supranational and international institutions]

    9. New Global Note (NGN) Holding of Global Bearer Notes [common safekeeper CSK – one of the International Central Securities Depositories ICSDs] New issuing procedure [effectuation; deadlines] Proof of (co)ownership [records of the clearing systems] Writing up/down [in the records of the clearing systems]

    10. Documentation Changes Basics [types of notes which may be issued under the EIB commercial paper programme] Changes relating to STEP [minimum issuance amounts ? maximum maturity ? denomination ? clearing systems] UCITS Directive Operational Consequences

    11. Changes related to STEP Regulatory [supranational issuer ? Euroclear, Clearstream and other eligible clearing systems ? currencies (convertible) ? minimum issuance amount of EUR 150,000 ? maximum maturity of 1 year] Contents of Info Memorandum [rating letters and annual reports to be attached ? certificate of information ? info on the STEP label ? membership in the bodies ? info on auditors] Change of the format [e.g. changed order of presentation ? two summaries ? disclaimers moved to back] Statistics [arrangements with the Agent and Dealers (not ICSDs) ? cut-off date: 02. April 2007] Responsibility for STEP label [not guaranteed to the investors ? best endeavor obligation in respect of the Dealers]

    13. Operational Consequences Issue Related [NGN/CGN election ? Eurosystem eligibility election ? STEP/ Eurosystem updates] Programme Related [Programme updates ? EPIM ISIN allocation ? Issuance deadlines ? use of proceeds ? ratios]

    14. Issue Related

    15. Programme Related

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