X-Nico

3 unusual facts about Geneva Securities Convention


Geneva Securities Convention

In this centralised system, the title transfer of the securities does not take place at the time of the registration on the account of the investor, but within the systems managed by the DTC and/or by the Federal reserve.

Admittedly, in practice, the US legislation envisages procedures enabling the genuine investor to obtain a "mandate" ("proxy") from their respective final intermediary in order to exercise the rights to vote on behalf of the latter.

Since 1994, Article 8 of the UCC considers that the majority of the dematerialised securities that are registered on an account with intermediaries are only reflections of their respective initial issue registered by the two American central securities depositories, respectively the Depository Trust Company (DTC) for the securities issued by corporates and the Federal reserve for the securities issued by the Treasury Department.



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