Market Link Guide - International (CBF)

09.01.2023

Key features

CSD link as defined under CSDRa

Yes

Type of link

For CBF customers with counterparty in CBL

Direct linkb to CBL

For CBF customers with counterparty in EB

Direct linkb to CBL

Interoperable link CBL to EB according to CSD Regulation (EU) No 909/2014 Article 2(33))

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

b. Interoperable link for T2S-related aspects.

 

CSD

Name

Clearstream Banking S.A.

FATCA GIIN

N1V1GJ.00000.LE.442

LEI

549300OL514RA0SXJJ44

Country of incorporation

Luxembourg

Account type

Omnibus account

Legal Account name / holder

Clearstream Banking AG

Name of the linked CSD

Euroclear Bank NV/SA

FATCA GIIN of the linked CSD

1X6QDZ.00000.LE.056

LEI of the linked CSD

549300OZ46BRLZ8Y6F65

Country of incorporation of the linked CSD

Kingdom of Belgium

Operational arrangements

Key services offered

CBF customers receiving from/delivering to counterparties in CBL

CBF customers receiving from/delivering to counterparties in EB via the Bridge

Remarks

Settlement free of payment

Yes

Yes

Settlement free of payment between a T2S customer and an OUT-CSD customer must be with matching

Settlement against payment in Non-EUR ccya

Yes

Yes

CoBM settlement in non-EUR currencies is settled via the related 6-series cash account in CBL securities settlement system using Commercial Bank

Settlement against payment in EUR

Yes

Yes

CeBM settlement takes place via the T2S Dedicated Cash Account (DCA)

Bridge settlement

No

Yes

 

Shaping facility

No

No

 

Partial settlement

No

No

 

Settlement penalty fees

No

No 

 

Pre-matching

Yes

Yes

 

Back-to-back processing

No

No

 

Allegements

Yes

Yes

 

Transaction management

Yes

Yes

Please refer to Transaction management rules

Registered securities

No

No

 

Multi Market Securities

No

No

 

Lending and borrowing

No

No

 

Proxy voting

Yes

Yes

 

Investment Funds

Yes

Yes

 

Liquidity Hub Connect

No

No

 

Sale and purchase of rights

No

No

 

Repo services

No

No

 

Market restrictions

No

No

 

Bilateral Cancellation

Yes

Yes

 

Daily reconciliation

Yes

Yes

 

Link eligible for use in Eurosystem credit operations

Yes

Yes

 

a. For eligible currencies, please consult the “Foreign currency matching tolerance amounts” document on the website.

Moment of entry of instructions

Counterparties in CBL: Internal instructions are deemed to be introduced into the CBL securities settlement system when they are successfully validated in view of the matching and the settlement processes.

Counterparties in EB: Bridge instructions from customers are deemed to be introduced into the CBL securities settlement system when they are successfully validated in view of the matching and the Bridge settlement processes.

Irrevocability of instructions

Counterparties in CBL: Internal instructions become irrevocable under the CBL securities settlement system rules as soon as they are matched. Matched internal instructions can only be bilaterally cancelled.

Counterparties in EB: Customers can request a cancellation for all Bridge securities instructions already sent to CBL.

A Bridge delivery or receipt instruction cannot be cancelled or amended in the following circumstances:

  • If provision has been debited from the account during settlement processing but confirmation or refusal of the transaction has not yet been received from the counterparty.
  • If it has been reported as settled via Xact Web Portal, CreationOnline, ClearstreamXact MT536 (Statement of Transactions), MT54x and additional MT950 (Money Statement) for against payment.

Settlement finality of instructions

Counterparties in CBL: Internal instructions that have settled in the CBL settlement system are final.

Counterparties in EB: Finality is reached for the Bridge instructions which have been reported as settled via Xact Web Portal, CreationOnline, ClearstreamXact MT536 (Statement of Transactions), MT54x and additional MT950 (Money Statement) for against payment.

Legal arrangements

The below section is based on the legal opinion obtained by CBF that was issued on 30 November 2022. 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.

Link CBF to CBL

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 CBF'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

Link CBL to EB  

The below section is based on the legal opinion obtained by CBL that was issued on 7 December 2020. 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.

Liability of CBL towards customers

Yes

As the settlement is taking place in each of the CSD securities settlement system, that is, in Clearstream Banking S.A. (CBL), as far as CBL’s customers are concerned, the liability for negligence rules is set out in CBL’s GTCs.

Book entry regime

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Recognition of in rem rights

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

No right of retention for the CSD

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

Segregation of assets at the CSD

Yes

The rules applicable to the segregation are the one defined by CBL as there is no sub-deposit with Euroclear Bank NV/SA.

Such concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

No right of use

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

No upper-tier attachments

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

Insolvency of the CSD with no impact on the other CSD's rights 

  • Insolvency of the linked CSD: No impact on CBL’s rights.
  • Insolvency of CBL: No impact on the linked CSD’s rights.

Shortfall pro-rated among holders

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Record keeping period of at least 10 years

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Validity and enforceability of the Bridge Agreement

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes