|
 WHAT
IS IT ?
Since 1992, Belgium has authorized the stripping of some of its linear bonds,
along similar lines to the American and French systems.
Under the "Separate Trading of Registered Interest and Principal of Securities"
(the "STRIPS"), both capital and interest can exist as autonomous dematerialized
zero bonds. It is, of course, possible to reconstitute the original bond at any
time.
|
 ROLE
OF THE PRIMARY AND RECOGNIZED DEALERS
-
The Primary
Dealers have to ensure the liquidity on this market. They can ask the
National Bank of Belgium - the only institution authorized to fulfill this
task - to strip or to reconstitute the bonds. They also have to quote the
most active stripped parts of the bonds on a permanent basis.
-
Recognized
Dealers may as well ask for bonds being stripped and reconstituted.
-
Reform of the STRIPS market
from 28th of June 2011 :
BE strips and fungibility  .
|
Outstanding
Stripping
Reconstitution
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