Market Link Guide – Ireland – Equities and corporate bonds – Euroclear Bank

01.02.2024

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link to Euroclear Banka

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

 

CSD

Custodian

Name

Euroclear Bank

Citibank N.A., London Branch

FATCA GIIN

1X6QDZ.00000.LE.056

NXUTG8.00000.BR.826

LEI

549300OZ46BRLZ8Y6F65

E57ODZWZ7FF32TWEFA76

Country of incorporation

Belgium

The U.S.A.

Account type

Omnibus account

Omnibus account

Legal Account name/holder

Citibank N.A, London Branch as Euroclear Bank direct participant hold individually segregated accounts for CBL.

Clearstream Banking S.A.

Operational arrangements

Yes/No

Remarks

Settlement in T2S

No

Settlement free of payment

Yes

 

Settlement against payment

Yes

Eligible settlement currencies: British Pounds (GBP), Euro (EUR) and U.S. Dollars (USD).

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

No

CBL holds a cash account with the custodian that settles against payment transactions on behalf of CBL in Commercial Bank Money at Euroclear Bank.

Bridge settlement

No

Selected corporate bonds are Bridge eligible. Irish equities are not Bridge eligible.

Shaping facility

No

 

Partial settlement

Yes

Please see details in Settlement services.

Hold and Release

No

Please see details in Settlement services.

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

 Only available for Bridge transactions (not currently available on the indirect link via Citibank)

Allegements

No

 

Automatic compensation

Yes

See Entitlement Compensation Rules - Ireland for further details.

Registered securities

Yes

Legal title to Irish corporate securities held in Euroclear Bank is recorded by the registrars in the name of Euroclear Bank’s Nominee.

Multi-market securities

No

 

Lending and borrowing

Yes

Debt securities only. Internal securities lending and borrowing services (refer to Clearstream website).

Proxy voting

Yes 

Investment funds

Yes

For Irish investment funds please refer to Investment Fund Market Guide – Ireland

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

Yes

Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). 

Market restrictions

No

 

FTT

No

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 
The Bridge has been assessed by the Eurosystem as eligible link.

Moment of entry

An instruction shall be deemed to be entered into the Euroclear System when it is deemed to be received by Euroclear Bank.

Irrevocability


Unmatched Instructions become irrevocable at the input deadline provided that no cancellation instruction has been received by Euroclear Bank.

Instructions subject to matching become irrevocable once they are matched or (if not yet matched) at the input deadline, whichever is the earliest. Matched instructions require bilateral cancellation.

Settlement finality


Overnight Securities Settlement Process - upon completion of the processing as a result of which the Instruction is successfully executed

Real-time processing – at the moment of successful execution and the simultaneous credit/debit of accounts

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 2 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

The custodian is not established under local law, but under U.S. law. Under U.S. law, it is not customary to give an opinion on insolvency, as there is no central register of bankruptcies or similar procedures.

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

CBL has a beneficial proprietary interest (as tenant in common) in its pro rata share of securities held by the custodian for its clients in accordance with its interest in securities recorded in and represented by the omnibus account.

Recognition of nominee concept

Confirmed

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 the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Record keeping of at least ten years

The local law does not regulate retention periods. The custodian has committed to a record keeping period of at least 7 years and 10 years in relation to records of securities held by the custodian.

Settlement finality in case of insolvency

Confirmed