1. Short Title

These Rules may be cited as the Sovereign Bonds Safekeeping and Settlement Rules.

2. Commencement

These Rules come into force on 29 January 2019.

3. Application and Scope

(1) These Rules apply within the jurisdiction of the AIFC.

• (a) These Rules apply to Sovereign Bonds which are registered on the books of the Registrar; and
• (b) included on the Official List of Securities of an Authorised Investment Exchange.

(2) These Rules specify certain matters in respect of the safekeeping and settlement of Sovereign Bonds which shall be governed by the Governing Law of the CSD to which the Sovereign Bonds have been admitted for such purposes. The Governing Law of the CSD shall additionally apply in relation to any other aspects of the safekeeping and settlement of Sovereign Bonds that would normally be governed by such law and which are not covered by these Rules.

(3) To the extent that any other AIFC Act of the same or lower level in the hierarchy of the Acting Law of the AIFC as these Rules is inconsistent with the provisions of these Rules, these Rules shall prevail to the extent relevant for the issuance, placement or trading of the Sovereign Bonds.

4. Interpretation

(1) Schedule 1 contains definitions used in these Rules and other interpretative provisions.

(2) Sovereign Bonds are not Investments specifically for purposes of the AIFC Personal Property Regulations 2017 (PPR) and the AIFC Dematerialised Investments Rules 2017 (DIR), with the effect that PPR and DIR do not apply in respect of Sovereign Bonds.