Market Link Guide - Czech Republic
Key features
CSD link as defined under CSDR* | Yes |
Type of link | Indirect link to Czech National Bank (CNB) operated by UniCredit Bank Czech Republic and Slovakia, a.s. Direct link to CSD Prague operated by UniCredit Bank Czech Republic and Slovakia, a.s. |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian/Account operator | |
Name | Czech National Bank (CNB) CSD Prague | UniCredit Bank Czech Republic and Slovakia, a.s. |
FATCA GIIN | CNB: n/a CSD Prague: n/a | 938A8A.00069.ME.203 |
LEI | CNB: 549300DS86PEHLIYB473 CSD Prague: 315700LK78Z7C0WMIL03 | KR6LSKV3BTSJRD41IF75 |
Country of incorporation | Czech Republic | Czech Republic |
Account type | CNB: Custodian account of the agent for CBL. CSD Prague: Segregated owner account of CBL used as omnibus account. | CNB: Customer account linked to a custodian’s client account at SKD. CSD Prague: Mirror owner’s account. |
Legal account name/holder | CNB: UniCredit Bank Czech Republic and Slovakia, a.s. UniCredit Bank Czech Republic and Slovakia, a.s. as the participant at SKD system of CNB hold an individually segregated account for CBL. CSD Prague: Clearstream Banking S.A. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | No | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: Czech Koruna (CZK) and Euro (EUR) for T-Bills and T-Bonds (government bonds). |
| Settlement against payment in central bank money account of CBL/CBL customers | No | CBL holds a cash account at the custodian/account operator. Against payment in CZK takes place on the cash account of UniCredit Bank Czech Republic and Slovakia, a.s. at the Czech National Bank. |
| Bridge settlement | Yes | Except equities, exchange traded funds and CSD-eligible open-ended funds. |
| Shaping facility | No | |
| Partial settlement | Yes | Please see details in Settlement services |
Hold and release | No | |
Recycling | Yes | Please see details in Settlement services |
Bilateral cancellation | Yes | Please see details in Settlement services |
| Settlement penalty fees | Yes | Please see details in Settlement services |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | |
| Allegements | Yes | |
| Automatic compensation | No | Only applicable if foreign issues are listed on the Prague Stock Exchange and registered at CSD Prague. |
| Registered securities | No | Equities are mostly bearer. But there could be some registered equities when the issuers may decide to re-materialise the shares through a corporate action. Customers will be notified accordingly. |
| Multi Market Securities | Yes | Multilisted securities exist in the market; these are held by the local CSD on their account with Euroclear. |
| Lending and borrowing | Yes | |
| Proxy voting | Yes | |
| Investment Funds | Yes | Exchange traded funds and CSD-eligible open-ended funds. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No | |
Moment of entry | CNB: If transactions are not settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which the securities in the asset account are blocked for the purposes of a transfer. If transactions are settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which an instruction for payment is created and despatched to the CERTIS (payment) system. CSD Prague: The order for settlement is considered accepted in the settlement system the moment the Central Depository commences settlement by earmarking dematerialised securities intended for the settlement on asset accounts (validation). | |
| Irrevocability | CNB: A settlement instruction cannot be revoked from the moment of acceptance of such instruction. CSD Prague: The participant or the third party must not unilaterally recall the order once it is admitted into the settlement system. |
Settlement finality | CNB: Settled transfers in the SKD system are final. CSD Prague: The settlement is terminated by clearing the transfers of dematerialised securities from the transferors’ asset accounts to the transferees’ asset accounts in compliance with the time schedule. |
Legal arrangements
The below section is based on the legal opinions obtained by CBL that were issued on 27 June 2023 (direct operated link) and 27 June 2023 (indirect link). 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/ account operator or the CSD | Confirmed |
Liability for negligence | Confirmed |
Book-entry regime with in rem rights | Confirmed |
No entitlement of the account operator/CSD | Confirmed |
Recognition as direct CSD account-holder | CSD Prague: Confirmed CNB: The custodian account is currently used. |
Recognition of nominee concept | Although the laws and regulations of the Czech Republic recognise the nominee concept and provide for the two-tier structure, CBL would very likely be treated as a legal and beneficial owner of the book-entry securities and the rights of CBL's underlying customers or as the case may be, the final investors will not be recognised under Czech law as property titles but merely as contractual rights under the relevant foreign law that governs the relationship between CBL and its customers or, as the case may be, the end-investors. |
No right of retention to the cutodian/account operator/CSD | Confirmed |
Segregation of assets at the CSD | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | Local laws do not prohibit some forms of upper tier attachments. |
Insolvency of custodian/account operator/CSD with no impact on CBL's rights | Confirmed |
Shortfall pro-rated among holders | CNB: Confirmed CSD Prague: There is no relevant and specific "shortfall" rule as per the proportionate fixing under the local law. However, there is a specific procedure under CSD Rules. |
Settlement finality in case of insolvency | Confirmed |