iShares to settle through EuroClear instead of Crest leaving UK shareholders with CDIs

2unlimited91

EdGasketTheSecond said:

I would not want CDIs if I could have shares with another provider.

That's your choice. But is there any reason behind it?

EdGasketTheSecond

As previously stated, one broker has told me the CDIs might be thinly traded, might incur FX, cannot deal live. They may be wrong in the case of iShares, that remains to be seen. However besides that aspect, where I have a choice, I would rather own a share outright than a certificate that says I have an interest in a share.

2unlimited91

EdGasketTheSecond said:

However besides that aspect, where I have a choice, I would rather own a share outright than a certificate that says I have an interest in a share.

Well, in both cases, you do have beneficial ownership, but not legal ownership, of the shares (because the shares, or the CDIs, are held in a nominee account).

There is one extra degree of separation in the case of CDIs. I.e. instead of your broker's nominee company being the legal owner of the shares, the nominee company is the owner of the CDIs which give it indirect ownership rights over the shares.

It's certainly a difference, but it's quite subtle.

EdGasketTheSecond

Heard back from broker 2. They say live prices will be available on iShares, only settlement is affected. They then clouded the issue by saying prices were 15 minutes delayed which doesn't make sense as they aren't going to let you buy at historic prices, even by 15 minutes. Maybe they just meant the portfolio valuation prices were 15 minutes delayed.  So the two brokers disagree on how these CDIs will be traded; I suspect broker 2 is correct but it remains to be seen.

masonic

EdGasketTheSecond said:

Heard back from broker 2. They say live prices will be available on iShares, only settlement is affected. They then clouded the issue by saying prices were 15 minutes delayed which doesn't make sense as they aren't going to let you buy at historic prices, even by 15 minutes. Maybe they just meant the portfolio valuation prices were 15 minutes delayed.  So the two brokers disagree on how these CDIs will be traded; I suspect broker 2 is correct but it remains to be seen.

Based on my experience of a Vanguard CDI, broker 2 is correct. Unless different brokers will have differing abilities to trade CDIs.

Mr.Saver

EdGasketTheSecond said:

Heard back from broker 2. They say live prices will be available on iShares, only settlement is affected. They then clouded the issue by saying prices were 15 minutes delayed which doesn't make sense as they aren't going to let you buy at historic prices, even by 15 minutes. Maybe they just meant the portfolio valuation prices were 15 minutes delayed.  So the two brokers disagree on how these CDIs will be traded; I suspect broker 2 is correct but it remains to be seen.

The 15 minutes delay is only affecting the quotes, it won't affect the price for transactions. You can get a live quotes from other sources which doesn't add the 15 minutes delay (yes, add, they intentionally added it), but you may have to pay for accessing the live quote instead of the delayed quote.

bargainhunter888

so basically, if i want to by SWDA, can i do so on HL as per current process and see the live prices stream and i get the instant quote? assume that the monthly reinvestments etc also not affected.

EdGasketTheSecond

bargainhunter888 said:

so basically, if i want to by SWDA, can i do so on HL as per current process and see the live prices stream and i get the instant quote? assume that the monthly reinvestments etc also not affected.

If you have had no notification about it then I assume so. Only some iShares funds are affected. To be 100% certain, ask HL.

masonic

EdGasketTheSecond said:

bargainhunter888 said:

so basically, if i want to by SWDA, can i do so on HL as per current process and see the live prices stream and i get the instant quote? assume that the monthly reinvestments etc also not affected.

If you have had no notification about it then I assume so. Only some iShares funds are affected. To be 100% certain, ask HL.

I've received no notification about the Irish domiciled iShares ETF I hold (and I hold some at two different brokers). Are you sure this is something a broker would be required to notify customers about?

EdGasketTheSecond

I had a 'corporate action' notification 'requiring my immediate attention' but only from broker 2 so far who seem a bit more on the ball with it than broker 1. As I said only some funds are affected, i was only notified about the 'metal' funds as that is all I hold. As the deadline for ETFs is not until March next year maybe they are doing them in a phased manner.

Some general information here:

https://www.euroclear.com/about/en/regulatorylandscape/Brexit/Irish-corporate-securities-migration-update.html