On 5 July 2006, in The Hague, the Convention on the Law Applicable to Certain Rights in Respect of Securities held with an Intermediary (Hague Securities Convention) is adopted — the HCCH instrument clarifying the lex situs for securities in accounts.

The Convention provides that the applicable law is primarily the law of the state of the relevant intermediary (PRIMA), reducing uncertainty in cross-border dealings in dematerialised securities.

Opened for signature on 5 July 2006, it aims to support capital markets and financial collateral amid globalised indirect holding of securities.

Entry into force depends on ratifications; the instrument remains a reference standard for conflict of laws in securities.

For financial-markets law, 5 July 2006 marks adoption of the HCCH rules on securities held with an intermediary.

The official text is on the Hague Conference (HCCH) site.

The Hague Convention of 5 July 2006 remains the reference for the law applicable to intermediated securities.

Image: The Hague / markets; Wikimedia Commons. Cropped to 16:9.

Source consulted: Hague Securities Convention. Treaty text: Hague Securities Convention (HCCH).