Market Link Guide - Italy

27.11.2018

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. Clearstream refers to CBF, CBL and LuxCSD unless otherwise stated.

Key features

CSD link as defined under CSDRa

Yes

Type of link

For CBF customers

Direct linkb to Monte Titoli

For CBL customers

Direct linkb via Clearstream Banking AG, Frankfurt for holding Monte Titoli T2S-eligible securities.

Direct operated link via Intesa Sanpaolo for holding Monte Titoli non T2S-eligible securities.

For LuxCSD customers

Direct linkb to Clearstream Banking AG, Frankfurt for holding Monte Titoli T2S eligible securities.

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

b. Interoperable link for T2S-related aspects

CSD (as CBF’s and CBL’s depository)

Custodian (as CBL’s depository)

Custodian (as LuxCSD’s depository)

Asset Service Provider for CBF, CBL and LuxCSD

Account operator for CBL

Name

Monte Titoli, Milan

Clearstream Banking AG, Frankfurt

Clearstream Banking AG, Frankfurt

Intesa Sanpaolo, Milan

FATCA GIIN

4FK4AX.00008.ME.380

N1V1GJ.00002.ME.276

N1V1GJ.00002.ME.276

D9I1IN.00000.LE.380

LEI

8156009CEEE1B8C7C646

5493004PP58SUE3G8M27

5493004PP58SUE3G8M27

2W8N8UU78PMDQKZENC08

Country of incorporation

Italy

Germany

Germany

Italy

Account type

Omnibus account

Omnibus account

Omnibus account

Mirror omnibus account

Legal Account name / holder

Clearstream Banking AG

Clearstream Banking SA

Clearstream Banking SA

LuxCSD

Mirror omnibus account

Operational arrangements

For CBF customers

 

For CBL customers

(link to CBF)

 

For CBL customers

(link to Monte Titoli)

For LuxCSD customers

(link to CBF)

Yes/No

Yes/No

Yes/No

Yes/No

Remarks

Settlement in T2S

Yes

Yes

Yes

Yes

Settlement free of payment

Yes

Yes

Yes

Yes

 

Settlement against payment

Yes

Yes

Yes (EUR only)

Yes (EUR only)

Eligible settlement currencies (between CBF and CBL counterparties only): AUD, CAD, CHFa, 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

Yes

Yes

No.

The account operator settles on its DCA and uses the DCA to collect cash proceeds from asset servicing.

Yes

CeBM in EUR only

 

 

Settlement penalty fees

No

No

No

No

Currently suspended

Partial settlement

Yes

Yes

Yes

Yes

 

Bridge settlement

No

Yes

Yes

No

 

Hold and Release

Yes

Yes

Yes

Yes

Allegements

Yes

Yes

Yes

Yes

 

Transaction Linking

Yes

Yes

Yes

Yes

Registered securities

Yes

Yes

Yes

Yes

Transaction Management

Yes

Yes

Yes

Yes

 

Multi Market Securities

No

Limited

Limited

No

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

Lending and borrowing

No

No

No

No

 

Proxy voting

Yes

Yes

Yes

Yes

 

Investment Funds

No

No

No

No

 

Liquidity Hub Connect

No

No

No

No

 

Sale and purchase of rights

No

No

No

No

 

Repo services

No

No

No

No

 

Market restrictions

No

No

No

No

 

FTT

Yes

Yes

Yes

Yes

CBF, CBL and LuxCSD assume no role in the collection of FTT in Italy.

Miscellaneous

No

No

No

No

 

Daily reconciliation

Yes

Yes

Yes

Yes

 

Link eligible for use in Eurosystem credit operations

Yes

Yes

No

Yes

 

Bilateral CancellationYesYesYesYes
Moment of entry of instructionsThe moment of the entry into the system of settlement instructions occurs with the validation performed on the T2S platform, according to the T2S rules.
Irrevocability of instructionsThe moment of the irrevocability of settlement instructions introduced in the system and properly validated occurs with the matching performed in T2S.

Settlement finality

The time of settlement finality occurs with the settlement processed in T2S.

a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CBF.

Legal arrangements

The below section is valid on the date of the legal opinions that were issued and might be subject to change. 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 CBF customers

 

For CBL customers (link to CBF)

For CBL customers

(link to Monte Titoli)

 

For LuxCSD customers

(link to CBF)

 

Date of legal opinion

22 March 2018

11 August 2017

21 April 2017

11 August 2017

No insolvency proceedings against the account operator or the CSD

Confirmed

Confirmed

Confirmed

Confirmed

Liability for negligence

Confirmed for losses that are the immediate and a direct consequence of the CSD’s wilful misconduct or gross negligence and subject to the relevant customer having informed of the loss-producing event within 10 calendar days.

Confirmed

Confirmed for losses that are the immediate and a direct consequence of the CSD’s wilful misconduct or gross negligence and subject to the relevant customer having informed of the loss-producing event within 10 calendar days.

Confirmed

Book-entry regime with in rem rights

Confirmed

Confirmed

Confirmed

Confirmed

No entitlement of the account operator/CSD  

n/a

n/a

Confirmed.

n/a

Recognition as direct CSD account-holder

Confirmed.
Note: The liabilities and obligations in regard to the registration, transfer and custody of securities are only enforceable between CBF and the CSD.

 

Confirmed

Confirmed.
Note: The liabilities and obligations in regard to the registration, transfer and custody of securities are only enforceable between CBL and the CSD.

 

Confirmed

Recognition of nominee concept

Confirmed

Confirmed

Confirmed

Confirmed

No right of retention to the account operator/CSD

Confirmed

Confirmed

Confirmed

Confirmed

Segregation of assets at the CSD

Confirmed

Confirmed

Confirmed

Confirmed

No right of use

Confirmed

Confirmed

Confirmed

Confirmed

No upper-tier attachments

Confirmed

Confirmed

Confirmed

Confirmed

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

Confirmed

Confirmed

Confirmed

Confirmed

Shortfall pro-rated among holders

Confirmed for the case of an insolvency of the CSD, provided the CSD respected the asset separation requirements.

Confirmed

Confirmed for the case of an insolvency of the CSD, provided the CSD respected the asset separation requirements.

Confirmed

Settlement finality in case of insolvency

Confirmed

Confirmed

Confirmed

Confirmed

Record keeping period of at least 10 yearsStatutory law requires the CSD to maintain records for a period of 5 years, only.ConfirmedConfirmedConfirmed