German Foreign Treasury Association

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The German Foreign Banks Association AG (AKV) was an institution founded by the German securities depository banks for the fiduciary administration of the securities assets held by German customers abroad.

The German Foreign Treasury Association was merged in 1996 with the German Treasury Association , which was renamed into Deutsche Börse Clearing AG in 1997. This in turn merged in 2000 with Cedel International in the Deutsche Börse subsidiary Clearstream , which today offers the services of the former German Foreign Treasury Association.

Principle of the foreign treasury

The AKV was founded in 1970 to simplify the processing of securities transactions carried out by German customers on foreign stock exchanges. Normally, the papers acquired abroad would have to be physically transported to Germany, which would result in high costs and be time-consuming.

Instead, the Foreign Treasury kept the securities acquired abroad in a custody account in its name on the foreign stock exchange. As a result, the AKV became de facto owner of the papers. The actual buyer in Germany then only had a contractual right to the delivery of the securities. His right to it was evidenced in a collective giro certificate deposited in Germany ( securities invoice ). All other rights from the securities, for example dividend entitlements or voting rights, were passed on to the buyer by the GAB.

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