The French custody services industry is fairly stable and has not experienced any major changes over the last couple of years.

In relation to T2S, 2015 will see the first wave markets going live in June. The Harmonisation of Distribution Dates (H2D) and the Harmonisation of Reorganisation Dates (HDR) are two projects that follow recommendations from Giovannini Group (barrier 3) and the European standards from CAJWG (Corporate Action Join Working Group).

The next step is due in March 2015, when the custodians will upgrade their IT systems for mandatory events. This development is driven by an ESES platform delivery under the supervision of the French market implementation group chaired by SGSS.

One of the unique attributes of subcustody provision in the country relates BRN (Bordereau de Référence Nominative) management, explains Guillaume Heraud, global head of business development financial institutions and brokers at Societe Generale Securities Services (SGSS).

“The registration process in the name of the nominee and/or beneficial owner includes the management of dedicated registration form (BRN) that needs to be sent to Euroclear France before TD+1, 7pm CET at the latest. Otherwise a letter of formal notice is sent to the custodian and can lead to penalties.”