Market Link Guide – Iceland

15.11.2024

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct link to LuxCSD for holding Nasdaq CSD SE, SSS Iceland eligible securities.

a. CSD Regulation (EU) No 909/2014, Article 2(29).

CSD (as LuxCSD’s depository)

Custodian (as CBL’s depository)

Name

Nasdaq CSD SE (Nasdaq CSD)

LuxCSD

FATCA GIIN

Not available

N1V1GJ.00001.ME.442

LEI

485100001PLJJ09NZT59

222100T6ICDIY8V4VX70

Country of incorporation

Nasdaq CSD SE is incorporated in Latvia and operates the Icelandic Settlement System through Icelandic branch, which is governed by the Icelandic law.

Luxembourg

Account type

Omnibus account

Omnibus account

Legal account name/holder

LuxCSD S.A.

Clearstream Banking S.A.

Operational arrangements

(CBL link to LuxCSD – for details on LuxCSD link to Nasdaq CSD Iceland, please refer to the LuxCSD website)

Yes/No

Remarks

Settlement in T2S

No

Settlement free of payment

Yes

 

Settlement against payment

Yes

 

Settlement against payment in central bank money account of  CBL/CBL client

Yes

 

Bridge settlement

No

 

Shaping facility

No

 

Partial settlement

No

 

Settlement penalty fees

Yes

Please see details in Settlement services

Hold and Release

Yes

Please see details in Settlement services

Recycling

Yes

Please see details in Settlement services

Bilateral cancellation

Yes

Please see details in Settlement services

Pre-matching

Yes

 Immediate release flag.

Back-to-back processing

No

 

Allegements

Yes

Via the CSD on against payment transactions only.

Automatic compensation

No

 

Registered securities

No

 

Multi Market Securities

No

 

Lending and borrowing

Yes

 

Proxy voting

No

 

Investment Funds

No

 

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

Yes

 

Market restrictions

Yes

Foreign investment is not allowed in any company involved in “fish operations” or the primary fish processing industry.

Only Icelandic citizens and other Icelandic entities, as well as individuals and legal entities domiciled in another member state of the EEA, are permitted to own energy exploitation rights for non-domestic use of waterfalls and geothermal energy. The same applies to enterprises that produce or distribute energy.

Positions held in Icelandic securities by Clearstream Banking clients, may only be held by the following:

  • Non-resident beneficial owners; and
  • Icelandic banks complying with Article 3.2 of Act no. 94/1996, holding non-taxable or taxable bonds or equities, via their account in LuxCSD or CBL, either:
    • For their own assets (and therefore being themselves the final beneficial owner); or
    • On behalf of underlying beneficial owners that are Icelandic tax residents (and therefore acting as intermediary bank).

FTT

No

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

A transfer order is considered to have entered the system of Nasdaq CSD Iceland when the matched transfer orders have been transferred to the securities settlement system.

Irrevocability of instructions

Matched transfer orders irrevocable and cannot be unilaterally cancelled by the parties.

Settlement finality

The full and final settlement of matched orders at Nasdaq CSD Iceland.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 31 March 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.

CBL link to LuxCSD (for details on LuxCSD link to Nasdaq CSD Iceland, please refer to the LuxCSD website)

No insolvency proceedings against the CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition as direct CSD account holder

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Record keeping period of at least 10 years

Confirmed

Settlement finality in case of insolvency

Confirmed