Where can I get a DVP bank account for foreign shares?
Discussion
They almost certainly mean a brokerage account rather than a bank account (I’ve never heard of a conventional bank account having integration with Euroclear).
Just to explain what they’re asking: DVP means delivery vs payment, which is basically where the securities change hands at the some time as the money moves between accounts. In simple terms, Euroclear is one of the two main clearing houses (ICSDs) used in Europe. Clearstream is the other, more commonly used in the UK.
Suggest having a chat with your regular broker and see if they can handle this sort of international transaction by way of you transferring the money to them, them conducting the trade and then holding the securities in their Euroclear/Clearstream account. Watch for fx charges too as I’m guessing the shares are EUR denominated and your trade will be in EUR?
My experience with the ICSDs is bond based, so might not apply to equities (although I can’t see an immediate reason why it wouldn’t). Certainly in the bond market you can usually settle trades “across the bridge” with one party using EC and the other using CS, so would expect the same to be possible with other securities too, so it may not matter if your broker only has CS.
If you don’t have a broker already then someone may be able to suggest one with good European coverage. Been a long time since I held any international equities so wouldn’t want to give an out of date recommendation.
Just to explain what they’re asking: DVP means delivery vs payment, which is basically where the securities change hands at the some time as the money moves between accounts. In simple terms, Euroclear is one of the two main clearing houses (ICSDs) used in Europe. Clearstream is the other, more commonly used in the UK.
Suggest having a chat with your regular broker and see if they can handle this sort of international transaction by way of you transferring the money to them, them conducting the trade and then holding the securities in their Euroclear/Clearstream account. Watch for fx charges too as I’m guessing the shares are EUR denominated and your trade will be in EUR?
My experience with the ICSDs is bond based, so might not apply to equities (although I can’t see an immediate reason why it wouldn’t). Certainly in the bond market you can usually settle trades “across the bridge” with one party using EC and the other using CS, so would expect the same to be possible with other securities too, so it may not matter if your broker only has CS.
If you don’t have a broker already then someone may be able to suggest one with good European coverage. Been a long time since I held any international equities so wouldn’t want to give an out of date recommendation.
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