1. Introduction

On 12 November 2020, the U.S. President issued an Executive Order 13959 (E.O.) prohibiting U.S. persons from engaging in any transactions in publicly traded securities issued by “Communist Chinese military companies”.

2.    Required action

Members should undertake an assessment on the impact of the Executive Order on their activities on Frankfurter Wertpapierbörse (FWB^®, the Frankfurt Stock Exchange) as part of their standard compliance, legal, and risk assessment.

3. Details of the initiative

The Management Board of FWB informs Members that effective

09:30 (Eastern Standard Time) on 11 January 2021 

by means of the United States Executive Order 13959 transactions involving the purchase by United States persons of securities issued by companies on the Non-SDN Communist Chinese Military Companies List published by the Office of Foreign Assets Control (“OFAC”), as well as securities which are derivatives of, or providing an economic exposure to, such OFAC-listed securities, will be prohibited. Divestment from such securities by U.S. persons to non-U.S. persons is, however, permitted until 23:59 (Eastern Standard Time) on11 November 2021.

Please refer to the respective announcements of Clearstream Banking Frankfurt and Clearstream Banking Luxembourg:

• www.clearstream.com/clearstream-en/products-and-services/settlement/a21002-2398404
• www.clearstream.com/clearstream-en/products-and-services/settlement/d21002-2398622

Further information in relation to these sanctions can be found here:

• home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/chinese-military-companies-sanctions 

The Management Board of FWB informs that New York Stock Exchange and London Stock Exchange already delisted affected securities. At his point in time, FWB is not required to delist these securities.
 

Further information