Creation Link Guide - France

16.05.2017

Key features

Yes/NoRemarks
Settlement in T2SYes
Settlement free of paymentYes 
Settlement against paymentYesEligible settlement currency: Euro (EUR).
Bridge settlementYes 
Partial settlementYes 
Settlement penalty feesNo 
Hold and releaseYesHold and release service
AllegementsYes 
Transaction linkingYes
Bilateral cancellationYes 
Registered securitiesYes

The French market is mainly a bearer market. The only securities that require re-registration are:

  • Occasionally registered shares;
  • Compulsorily registered shares;
  • Loyalty Bonus shares.
Transaction managementYes
Multi Market SecuritiesYesLimited to transfers to and from T2S Out CSDs
Lending and borrowingYes 
Proxy votingYes 
Investment FundsYesCSD-eligible investment funds only
Liquidity Hub ConnectYes 
Sale and purchase of rightsYes 
Repo servicesNo 
Market restrictionsYesForeign non-resident investors can freely invest in the French securities market but there are specific sectors (defence, safety, public order) which require a prior declaration and subsequent authorisation from the French Ministry of Finance.
Non-resident holding may not exceed 5% without prior authorisation from the company concerned and the AMF.
FTTYes 
FATCA GIINYes1G159I.00207.ME.250
MiscellaneousNo 
Type of linkCSD or settlement method
Direct link at Euroclear France (EF) operated by BNP Paribas Securities Services (BP2S)For all EF-eligible securities.
Indirect link via BP2SOrdres de Mouvement (ODM) and other non-EF eligible securities.

French Financial Transaction Tax document

The French Financial Transaction Tax document, which can be found below (is to be considered as part of the Creation Link Guide), sets out the reporting and payment obligations in relation to the FTT Law (as defined therein) for Clearstream Banking S.A., Luxembourg (CBL) and its customers.