Creation Link Guide - Australia

11.05.2018

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link via JPMorgan Chase Bank, N.A. (Sydney Branch), to:

  • ASX Settlement and CHESS (Clearing House Electronic Subregister System), Sydney
  • Austraclear, Sydney (unlisted corporate bonds, sovereign bonds)
  • DTC (Depository Trust Company), New York (AUD-denominated global bonds only)

Physical or book-entry settlement at registrar (for unlisted equities only).

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

 

CSD

Custodian

Name

ASX Settlement / CHESS as subregister

Austraclear

JPMorgan Chase Bank N.A. (Sydney branch)

FATCA GIIN

CHESS: Not available

Austraclear: IPRD0Z.99999.SL.036

H8JE86.00413.ME.036

LEI

 CHESS: Not available

Austraclear: 549300SW1A0SWG24LO05

7H6GLXDRUGQFU57RNE97

Country of incorporation

Australia

USA

Account type

Omnibus account

Omnibus account

Legal Account name/ holder

 

All CHESS eligible securities are registered in the name of JPMorgan Nominees Australia Limited.

All Austraclear eligible securities are registered in the name of Austraclear Limited.

JPMorgan Chase Bank N.A. (Sydney branch) as the participant in CHESS and Austraclear does not hold an individually segregated account for CBL.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of paymentYes  
Settlement against paymentYes Eligible settlement currency: Australian Dollar (AUD).
No internal settlement or transfer restrictions within CBL.
Settlement against payment in central bank money account of CBL/CBL customersNoCBL holds a cash account at the custodian. Against payment settlement takes place on J.P. Morgan’s single account in CHESS and a single account in Austraclear. 
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 
Daily reconciliationYes

Bilateral cancellation

Yes, bilateral cancellation required for matched instructions.

Settlement finality

Settlement is considered final once cash and securities are exchanged and a confirmation is received from the CSD.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 28 April 2017. 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

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Book-entry regime is not provided by local laws but would be recognised if contractually agreed.

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed, except when the custodian has liabilities over CBL for acting as its trustee.

Segregation of assets at the custodian

Confirmed, though the custodian could be dispensed from segregating assets in the case where it would be inappropriate for reasons of increased costs to account holders without materially increasing any risk. However, if the custodial property is not held separately, the custodian has a number of obligations including, amongst other things, having a written policy setting out reasons why that policy is appropriate and reviewing such policy, maintaining records, and performing reconciliation procedures.

No right of use

Local law does not prohibit the use of securities without consent.

No upper-tier attachments

Confirmed, though upper tier attachment is allowed only in limited circumstances (for example where the lower tier intermediary refuses, fails or is unable to initiate proceedings against the upper tier intermediary in respect of securities in which the account holder has a beneficial interest).

Insolvency of the Custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Settlement finality in case of insolvency

Local law does not prescribe circumstances in which non-provisional transfers will be irrevocable and unconditional.