Hague Conference on Private International Law: Securities Held With an Intermediary
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U.S. Securities and Exchange Commission

Hague Conference on Private International Law:
Draft Convention on the Law Applicable to Certain Rights in Respect of Securities Held With an Intermediary

For the past two years, a U.S. delegation lead by the State Department and the Federal Reserve Bank of New York has been negotiating a convention with the Hague Conference on Private International Law to address the disposition of indirectly held securities. The goal of the convention is to implement a framework that would provide legal certainty when determining which law will govern dispositions of securities held by an intermediary. The framework that the convention is attempting to implement is called "PRIMA" or the "place of the relevant intermediary approach." Article 4 of the draft convention sets forth the test for determining PRIMA. The latest draft of the convention can be accessed at www.hcch.net under "Work in progress," "Indirectly held securities," "Document 15 of June 2002" draft. The latest version of the convention and a set of examples applying Article 9 of the draft convention are attached below.

In order to educate interested parties, the Hague Conference has organized a series of workshops worldwide to discuss the latest draft of the convention, Document 15. A workshop has been scheduled for July 16, 2002, in New York City. The flyer advertising the workshop can be accessed at www.hcch.net/e/workprog/sec_flyer.html#rdw.

For further information contact Larry E. Bergmann, Senior Associate Director, Jeffrey S. Mooney, Senior Special Counsel, or Jennifer A. Lucier, Attorney, at (202) 942-4187, Office of Risk Management and Control, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street, Mail Stop 10-01, Washington, DC 20549.

   *   Latest Version of the Convention (in PDF format)

   *   Explanatory Note on Article 9 (in PDF format)



Modified: 07/15/2002