Market Link Guide - Germany

11.05.2018

The OneClearstream service level provides customers with a single point of access to all T2S markets with comprehensive instruments coverage. This is complemented by full harmonisation of asset services and connectivity channels between CBF, CBL and LuxCSD.
CBL and LuxCSD are using CBF as single gateway into T2S markets, allowing seamless transfer between CSD and ICSD counterparties.
This Market Link Guide represents Clearstream’s efforts to streamline our custody network and improve our asset servicing and collateral management services in the new T2S environment. The service description is valid for CBF, CBL and LuxCSD customers, unless otherwise highlighted in the documentation.

Note: For German customers, the services listed in this guide are not considered as a CSD link, but represent a description of the German domestic business for which CBF acts as the issuer CSD.

Key features

CSD link as defined under CSDRa

Yes

Type of link

For CBF customers

Clearstream Banking AG, Frankfurt as issuer CSD

For CBL customers

Direct link to Clearstream Banking AG, Frankfurt

For LuxCSD customers

Direct link to Clearstream Banking AG, Frankfurt

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

CSD (as CBF customer depository)

CSD (as CBL’s depository)

CSD (as LuxCSD’s depository)

Name

Clearstream Banking AG, Frankfurt

Clearstream Banking AG, Frankfurt

Clearstream Banking AG, Frankfurt

FATCA GIIN

N1V1GJ.00002.ME.276

N1V1GJ.00002.ME.276

N1V1GJ.00002.ME.276

LEI

5493004PP58SUE3G8M27

5493004PP58SUE3G8M27

5493004PP58SUE3G8M27

Country of incorporation

Germany

Germany

Germany

Account type


Omnibus account

Omnibus account

Legal account name/holder


Clearstream Banking S.A.

LuxCSD

Operational arrangements

For CBF customers

For CBL customers

For LuxCSD
customers

Yes/No

Yes/No

Yes/No

Remarks

Settlement in T2S

Yes

Yes

Yes

Settlement free of payment

Yes

Yes

Yes

 

Settlement against payment

Yes

Yes

Yes (EUR only)

Eligible settlement currencies (CBF and CBL only):   AUD, CAD, CHF, CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY, USD and ZAR.

Settlement against payment in central bank money account

Yes (EUR)

Yes (EUR)

Yes (EUR)

For CBL customers against payment settlement in EUR takes place on the DCA of CBL at the Central Bank of Luxembourg.

Partial settlement

Yes

Yes

Yes

 

Bridge settlement

No

Yes

No

 

Settlement penalty fees

No

No

No

 

Hold and Release

Yes

Yes

Yes

 

Allegements

Yes

Yes

Yes

Transaction linking

Yes

Yes

Yes

Bilateral cancellation

Yes

Yes

Yes

Registered securities

Yes

Yes

Yes

In CASCADE RS, shareholder's positions are transferred from unregistered positions into allocated positions. After the data has been entered in the issuer's share register, positions are transferred into registered positions.
If the issuer rejects registration, the positions are transferred back into unregistered positions.

Transaction management

Yes

Yes

Yes

 

Multi Market Securities

No

Limited

No

Limited to transfers to and from T2S Out CSDs if the home market is in T2S.

Lending and borrowing

Yes

Yes

No

 

Proxy voting

Yes

Yes

Yes

 

Investment Funds

Yes

Yes

Yes

 

Liquidity Hub Connect

No

No

No

 

Sale and purchase of rights

Yes

Yes

Yes

 

Repo services

Yes

Yes

Yes

 

Market restrictions

Yes

Yes

Yes

Corporations that have issued registered shares may, in the Articles of Association, insist that company approval - from the board of managing directors or the supervisory board - or shareholder approval (at AGMs or EGMs) is required before shares can be transferred.

FTT

No

No

No

 

Daily reconciliation

Yes

Yes

Yes


Link eligible for use in Eurosystem credit operations


Yes

Yes


Settlement finality

Settlement in T2S is simultaneous, final and irrevocable.

Legal arrangements

The below section is based on the legal opinion that was issued to CBL on
11 August 2017 and to LuxCSD on 28 July 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.


For CBL customer

For LuxCSD customer

No insolvency proceedings against the CSD

Confirmed

Confirmed

Liability for negligence

Confirmed

Confirmed

Book-entry regime with in rem rights

Confirmed

Confirmed

Recognition as direct CSD account-holder

Confirmed

Confirmed

Recognition of nominee concept

Confirmed

Confirmed

No right of retention to the CSD

Confirmed

Confirmed

Segregation of assets at the CSD

Confirmed

Confirmed

No right of use

Confirmed

Confirmed

No upper-tier attachments

Confirmed

Confirmed

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

Confirmed

Confirmed

Shortfall pro-rated among holders

Confirmed

Confirmed

Settlement finality in case of insolvency

Confirmed

Confirmed