Market Link Guide – Thailand
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
| CSD | Custodian | |
| Name | The Thailand Securities Depository (TSD) | Standard Chartered Bank (Thai) Public Company Limited |
| FATCA GIIN | 1FTWN9.00000.LE.764 | T04M9Y.00082.ME.764 |
| LEI | 254900IJQ6ZM0PD20H32 | 549300O1LQYCQ7G1IM57 |
| Country of incorporation | Thailand | Thailand |
| Account type | Omnibus | Omnibus |
| Legal account name / holder | TSD: Securities registered in name of “Thailand Securities Depository Company Limited for Depositors”. At book-closed date, the ownership of securities will be disclosed at the account holder level (that is, Clearstream Nominees Limited). In the books of the TSD, Standard Chartered Bank (Thai) Public Company Limited, as a TSD participant, maintains a segregated depository account in the name of Clearstream Nominees Limited. In the case of local shares, pending foreign share conversion, the ownership of such shares will be disclosed at the CSD level (that is, Thailand Securities Depository Company Limited for Depositors) at book-closed date. In the case of Non-Voting Depository Receipts (NVDRs), the ownership of such securities will be disclosed at the Thai NVDR company level (that is, Thai NVDR Company Limited) at book-closed date. | The securities are recorded in the name of Clearstream Nominees Limited in the books of Standard Chartered Bank (Thai) Public Company Limited. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: Thai Baht (THB). |
| Settlement against payment in central bank money account of CBL/CBL clients | No | CBL holds a cash account at the custodian. Settlement against payment is conducted on the account of custodian at the local central bank. |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | Yes | Refer to the Market Profile. |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | Book-entry securities only. |
| Allegements | Yes | |
| Automatic compensation | No | |
| Registered securities | No | |
| Multi Market Securities | Yes | Refer to the Multi Market Securites Guide. |
| Lending and borrowing | No | |
| Proxy voting | Yes | |
| Investment Funds | Yes | ETFs. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | Rights not tradeable. |
| Repo services | Yes | CBL internal settlement. |
| Market restrictions | Yes | Refer to Investment Regulation. |
| FTT | No | |
| Daily reconciliation | Yes |
Moment of entry | CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
Irrevocability | Matched transactions are non-binding. Participants can de-match or cancel the transaction upon mutual agreement between both parties. After settlement day, matched transactions cannot be cancelled anymore as the settlement of securities becomes final and irrevocable. |
Settlement finality | Securities settlements are final when transferred in TSD’s system. |
Legal arrangements
The below section is based on the legal opinion obtained by CBL that was issued on 21 November 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 |
Custodian’s liability for negligence | Confirmed |
Book-entry regime with in rem rights | Confirmed |
Recognition of nominee concept | Confirmed. For the sake of clarification, Clearstream will be recognised as the account-holder of the account held in its name at with the custodian. The laws and regulations of Thailand recognise the nominee concept but do not distinguish between legal and beneficial ownership of securities and assume that a person whose name is recorded in the register book is the owner of the relevant securities. Therefore, securities held in the account(s) in the name of Clearstream at the custodian in Thailand will at all times be vested in Clearstream unless it is recorded in the share register book that Clearstream holds the securities on behalf of its underlying clients or it can be be proved (either by contractual arrangement or otherwise) that Clearstream only holds such securities for the benefit of its underlying clients |
No right of retention to the custodian | Confirmed |
Segregation of assets at the custodian | Confirmed |
No right of use of the custodian | The custodian must be liable to Clearstream for any loss or damarge arising from the use for any purpose of securities that belong to Clearstream (notwithstanding that such loss or damage is caused by force majeure, except if the custodian proves that the loss or damage would have happened anyway). |
No upper-tier attachments | To the extent that Clearstream is holding any securities in the account(s), kept by the custodian, as a nominee for its clients, such securities are not liable under the laws and regulations of Thailand to be taken in execution against (i) the custodian by creditors of the custodian or (ii) Clearstream by creditors of Clearstream or creditors of Clearstream’s clients under the order or process of a court. |
Insolvency of custodian with no impact on CBL's rights | Confirmed. Cash held by the custodian will only give rise to an unsecured claim against the estate of the custodian on insolvency. |
Shortfall pro-rated among holders | Thai law does not have this concept as it does not exist under Thai law. |
Settlement finality in case of insolvency | Thai law does not currently have a finality legislation in this regard. |
| Record keeping period of at least 10 years | Confirmed |