Link Guide - Bridge
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Interoperable link according to CSD Regulation (EU) No 909/2014 Article 2(33)) |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
Important preliminary note: The interoperable link between Clearstream Banking S.A. and Euroclear Bank NV/SA is a mutual technical solution to facilitate the transfer of securities between their participants in the securities settlement systems that they separately operate in Luxembourg for Clearstream Banking S.A. and in Belgium for Euroclear Bank NV/SA. The Bridge infrastructure consists of a proprietary electronic communication platform that facilitates the efficient settlement of securities transactions between counterparties in Euroclear Bank NV/SA and in Clearstream Banking S.A.
The settlement platform of each of the two linked ICSDs is used to settle Bridge transactions.
The Bridge Link Guide takes into account the specific features of this interoperable link and displays the main information relevant for the customers and solely applicable to them regarding the Bridge-related settlement activities where from time to time one ICSD holds some securities with the other ICSD due to the Bridge activity. In this case, the latter will provide securities services in line with its operating procedures.
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
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 customer | No | |
Partial settlement | Yes | |
Partial release | Yes | Please note that the partial release service is only available when CBL is delivering securities to EB. For more details, please refer to CBL Customer Handbook |
Bilateral cancellation | Yes | |
Bridge settlement | Yes | Upon eligibility granted by the two entities |
Settlement penalty fees | Yes | As of February 2022 |
Hold and release | Yes | |
Optional settlement flag | Yes | |
Cash tolerance | Yes | |
Allegements | Yes | |
Transaction linking | Yes | |
Registered securities | Yes | Please check each specific Market Link Guide accordingly |
Transaction management | Yes | Please see Transaction management in Asset services |
Multi Market Securities | No | |
CBL lending and borrowing and collateral management service | Yes | |
Investment Funds | Yes | If Bridge eligibility is granted by the two entities |
Liquidity Hub Connect | No | |
Sale and purchase of rights | No | |
Repo services | No | |
Market restrictions | Yes | Please check each specific Market Link Guide accordingly |
FTT | Yes | |
Daily reconciliation | Yes | |
Link eligible for use in Eurosystem credit operations | Yes |
Settlement finality
As the settlement platform of each of the linked CSD is used to settle Bridge transactions, the moment of entry and irrevocability of transfer orders received by Clearstream Banking S.A. from the customers and the finality rules are available in Section 4.1 of the CBL Customer Handbook.
Moment of entry | 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 | 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:
|
| Settlement finality | Yes Finality is reached for the Bridge Instructions which have been reported as settled via Xact Web Portal, Xact via Swift 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 CBL that was issued on 7th 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, i.e. 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 |
|
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 |
|
Shortfall pro-rated among holders |
|
Record keeping period of at least 10 years |
|
Validity and enforceability of the Bridge Agreement |
|