Market Link Guide - Uruguay
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link through Banco Itaú Uruguay S.A. to: Central Bank of Uruguay as Central Depository for government debt. |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | Central Bank of Uruguay, “CBU” | Banco Itaú Uruguay S.A. |
FATCA GIIN | Not available | DI5KU3.00040.ME.858 |
LEI | Not available | 549300M5MYAD51WHJD55 |
Country of incorporation | Uruguay | Uruguay |
Account type | Omnibus account | Omnibus account |
Legal account name/holder | Banco Itaú Uruguay S.A. Account opened for third parties and known as “Non Resident” assets. Banco Itaú as the participant in the Central Bank of Uruguay does not hold an individually segregated account for CBL. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | |
| Settlement against payment in central bank money account of CBL/CBL customers | No | CBL holds a cash account at the custodian. Against payment settlement takes place on the custodian’s account at at the local central bank. |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | No | |
| Pre-matching | Yes | |
| Back-to-back processing | No | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | Yes | |
| Multi Market Securities | No | |
| Lending and borrowing | Yes | For debt securities only. |
| Proxy voting | No | |
| Investment Funds | No | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes |
Moment of entry | Moment of entry is determined when the transaction has been accepted into the system. |
| Irrevocability | Instructions can be cancelled unilaterally. Settled instructions are irrevocable. |
Settlement finality | Settlement in the Central Bank of Uruguay system is final and irrevocable. |
Legal arrangements
The below section is based on the legal opinion that was issued on 31 March 2024. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the Custodian | Confirmed. |
Liability for negligence | Confirmed. |
Book-entry regime with in rem rights | CBL has a contractual right against the custodian regarding the securities held in custody by the custodian on behalf of CBL. A contractual right is not similar to a right in rem. On the contrary, the right in rem confers a direct right over the securities while the contractual right confers a "personal" or "contractual" right that, in this case, will be against the custodian. |
Recognition of nominee concept | Confirmed. CBL will be recognised as account holder of the account(s) held in its name but on behalf of its underlying customers. However, precision that under local law does not recognise the nominee concept, as beneficial owners do not have a direct claim over the securities. Beneficial owners only have a contractual right against the nominal owner (the custodian in this case) to recover their securities deposited with the custodian or to receive the proceeds thereof. |
No right of retention to the custodian | Confirmed. |
Segregation of assets at the Custodian | Confirmed. |
No right of use | Confirmed. |
No upper-tier attachments | Local law does not address the upper tier attachment of securities involving entities such as the custodian. Upper tier attachment does not exist in Uruguay. |
Insolvency of the custodian with no impact on CBL's rights | Confirmed. |
Shortfall pro-rated among holders | Shortfall is not regulated under local law. |
Record keeping period of at least 10 years | Confirmed |
Settlement finality in case of insolvency | The Insolvency Act does not provide for the irrevocability and unconditionality of non-provisional transfers and that in certain scenarios a transfer of securities could be challenged in the context of a bankruptcy. However, Law 18573 provides some protective wording as regards to irrevocability of instructions in case of insolvency only to instructions made within the scope of a compensation and liquidation system of payment and securities. Said protection can only be analysed on a case-by-case basis. |