Step one: The investor instructs its banker to subscribe or invest in a particular security.
Step two: The banker sends instruction to Clearstream of subscription in DVP (delivery versus payment).
Step three: Clearstream receives instruction and payment from the banker, and sends the instruction to the paying agent (of the issuer/SPV) requesting the subscription into the security under a global certificate format.
Step four: The paying agent informs the issuer and requests issue of a global certificate equivalent to the subscription which is printed and sent to Clearstream via the paying agent.
Step five: As soon as Clearstream receives the global certificate the funds are released to the paying agent who then credits the bank account of the issuer. The issuance of a global certificate to Clearstream then appears in the issuer's register.
Step six: The banker receives confirmation that the security is held by Clearstream and that the payment has been released.
Step seven: The banker confirms the subscription to the investor and the security is then booked into his security portfolio.
Step eight: Periodically, the SPV pays the yield due on the securities, this being interest, coupons or dividends, to the paying agent who then pays it to Clearstream which then credits the account of the nominee Banker. This in turn is credited to the investor's bank account.
Regulated or
Unregulated 