Market Link Guide - Denmark

08.01.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct Operated

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

 

CSD

Account operator

Name

VP Securities A/S

Danske Bank A/S

FATCA GIIN

MM0S16.00000.LE.208

MQ79H2.00000.LE.208

LEI

529900HDNBQ2DD0QHJ07

MAES062Z21O4RZ2U7M96

Country of incorporation

Denmark

Denmark

Account type

Omnibus account

Mirror omnibus account

Legal account name / holder

Clearstream Banking SA

Clearstream Banking SA

Operational arrangements

T2S (Yes/No)

VP system (Yes/No)

Remarks

 

Settlement in T2S

Yes

No

 

 

Settlement free of payment

Yes

Yes

All T2S eligible securities will settle in T2S. Only non-eligible T2S securities will remain in VP system.

 

Settlement against payment

Yes

Yes

VP system - eligible settlement currency: Danish Krone (DKK).
T2S - eligible settlement currency: Euro (EUR and DKK).

 

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

No

 

CBL holds a cash account at Danske Bank. Against payment settlement takes place on Danske Bank’s account at the Central Bank of Denmark for DKK and on the DCA of Danske Bank for EUR.

 

Bridge settlement

Yes

Yes

 

 

Partial settlement

Yes

No

 

 

Settlement penalty fees

No

No

 

 

Hold and release

Yes

Yes

VP System: Pre-matching is available.

T2S: The hold and release feature available in T2S will be used by CBL for pre-matching only.

 

Transaction linking (back-to-back processing)

Yes

Yes

 

 

Allegements

Yes

Yes

VP System: Via the CSD on against payment transactions only.

 

Registered securities

Yes

Yes

 

 

Transaction management

Yes

Yes

 

 

Multi Market Securities

Yes

Yes

 

 

Lending and borrowing

Yes

Yes

 

 

Proxy voting

Yes

Yes

 

 

Investment Funds

Yes

Yes

 

 

Liquidity Hub Connect

No

No

 

 

Sale and purchase of rights

No

No

 

 

Repo services

Yes

Yes

 

 

Market restrictions

No

No

 

 

FTT

No

No

 

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

Yes

 

 

Bilateral cancellation

Yes, refer to Settlement services in T2S for further information.

Settlement finality

Settlement in T2S and VP Securities are simultaneous, final and irrevocable.

Legal Arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 16 April 2018 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 account operator or the CSD

Confirmed

Liability for negligence

Account operator: confirmed

CSD: Liability limited to direct losses of CBL (excluding any amounts that CBL might have had to pay to a third party), except in case of loss caused by the CSD's wilful act or gross negligence. Furthermore, the liability of the parties is made subject to force majeure limitations under local law of general application.

Book-entry regime with in rem rights

Confirmed

No entitlement of the account operator/CSD  

Confirmed

Recognition as direct CSD account-holder

Confirmed.

Recognition of nominee concept

Confirmed  (subject to applicable conflict of law rules, which point, from a local law perspective, to Luxembourg law).

No right of retention for the account operator/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of account operator/CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed, noting that the registrations in the relevant CSD accounts will determine the rights of the individual account holders and that the CSD will be liable if the shortfall is caused by it.

Settlement finality in case of insolvency

Confirmed