Market Link Guide – Japan GBC - II
The issue of Global Bearer Certificates (GBCs) as “re-certification” allows non-German securities to be admitted to collective safe custody by CBF and traded on the German stock exchange.
Non-German securities that are admitted to the official market but are not kept in collective safe custody with CBF itself cannot, for legal reasons, be admitted to collective safe custody through a CSD link. CBF can however make those securities admitted to collective safe custody by taking the following steps:
- For each foreign security, CBF opens a segregated account with a supplier (depository) in its home market. The securities positions in the original non-German securities are kept in this account under the original ISIN.
- A global bearer certificate is issued by CBF for the securities positions kept by the supplier and this is deposited in collective safe custody with CBF.
- The positions are traded on the German stock exchange by transferring fractional co-ownership of the global certificate.
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link to the Japan Securities Depository Center, Inc (JASDEC) for non-German securities deposited at Sumitomo Mitsui Banking Corporation |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Depository | |
Name | Japan Securities Depository Center, Inc (JASDEC) | Sumitomo Mitsui Banking Corporation |
FATCA GIIN | HK44AT.99999.SL.392 | C2L4MJ.00000.SP.392 |
LEI | 353800FS52Z4ZWJFA734 | 5U0XI89JRFVHWIBS4F54 |
Country of incorporation | Japan | Japan |
Account type | Omnibus account | Segregated account |
Legal Account name/holder | Omnibus account at JASDEC in the name of MUFG Bank, Ltd. There is no individually segregated account for CBF at JASDEC | Clearstream Banking AG |
Operational arrangements
More information on the operational arrangements and services related to GBCs and the list of eligible securities can be found on the Global Bearer Certificates page of the Clearstream website.
Legal arrangements
The below section is valid on the date of the legal opinion obtained by CBF that was issued on 12 December 2023. 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 | Confirmed |
Recognition of nominee concept | The laws and regulations of Japan do not have a concept equivalent to the nominee concept. |
No right of retention to the custodian | Confirmed |
Segregation of assets at the custodian | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | Confirmed |
Insolvency of custodian with no impact on CBF's rights | Confirmed |
Shortfall pro-rated among holders | Confirmed |
Settlement finality in case of insolvency | There is no concept equivalent to finality under Japanese laws and regulations. |
Record keeping period of at least 10 years | Confirmed |