Creation Link Guide - Australia

05.07.2017

Key features

Yes/NoRemarks
Settlement free of paymentYes  
Settlement against paymentYes Eligible settlement currency: Australian Dollar (AUD).
No internal settlement or transfer restrictions within CBL.
Bridge settlementNoAustralian debt securities that do not comply with Section 128F of the Australian Income Tax Assessment Act 1936 (that is, do not fulfil Australia's Public Offer test), Australian equities and equity products are not Bridge-eligible; there are no Bridge settlement or transfer restrictions on other Australian securities (subject to the Euroclear eligibility of any particular security).
Shaping facilityNo 
Partial settlementNoExcept when the local CSD imposes the partial delivery of securities.
Settlement penalty feesNo 
Pre-matchingYes Subject to counterparty availability.
Back-to-back processingYes  
AllegementsNo 
Automatic compensationYes For equities only (CSD automatic Compensation for on market transactions only).
Registered securitiesYes 
  • For dematerialised securities, registration takes place automatically upon settlement.
  • For physical securities and issuer sponsored security, manual intervention will be required and not automatically.
Multi Market SecuritiesYes Refer to the Multi-securities Guide.
Lending and borrowingYes Internal. Debt securities only.
Proxy votingYes  
Investment FundsYes ETF and Listed Managed Funds only.
Liquidity Hub ConnectNo 
Sale and purchase of rightsYes  
Repo servicesYes Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). 
Market restrictionsNo 
FTTNo 
FATCA GIINYes H8JE86.00413.ME.036
Miscellaneous Yes
  • No restrictions on AUD cash and foreign exchange instructions;
  • No internal settlement or transfer restrictions within CBL;
  • Australian debt securities that do not comply with Section 128F of the Australian Income Tax Assessment Act 1936 (that is, do not fulfil Australia's Public Offer test), Australian equities and equity products are not Bridge-eligible; there are no Bridge settlement or transfer restrictions on other Australian securities (subject to the Euroclear eligibility of any particular security).
Type of Link CSD or Settlement method
Indirect link via JPMC AU a

ASX Settlement

CHESS (Clearing House Electronic Subregister System), Sydney

 All CHESS positions held in CBL are registered in the name of JPMorgan Nominees Australia Limited.
Austraclear, Sydney Austraclear positions held in CBL are registered in the name of Austraclear Limited.
DTC (Depository Trust Company), New York AUD-denominated global bonds only.
Link via JPMC AU
Physical or book-entry settlement at registrar Unlisted equities only.

a. JPMorgan Chase Bank, N.A. (Sydney Branch), operated by JPMorgan Nominees Australia Limited, is hereinafter referred to as JPMC AU.