Market Link Guide - Canada


Key features

CSD link as defined under CSDRa


Type of link

Indirect link through Royal Bank of Canada to:

  • The Canadian Depository for Securities Limited (CDS), Toronto
  • Depository Trust Company (DTC) for against payment instructions in USD for securities eligible in both DTC and CDS.

Indirect link through RBC Investor Services via CDS to:

  • DTC for free of payment instructions for securities eligible in both DTC and CDS

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





Royal Bank of Canada


Not available



CDS: 549300BMUBP6YOC66N50


Country of incorporation



Account type

Omnibus account

Omnibus account

Legal Account name / holder

Royal Bank of Canada (RBC)

In the book of the CSD, securities are registered in the name of CDS & Co.

RBC as the participant in CDS does not hold an individually segregated account for CBL at the CDS.

Clearstream Banking S.A.

Operational arrangements

Settlement free of paymentYes 
Settlement against paymentYes

Eligible settlement currency:

  • Canadian Dollars (CAD) and U.S. Dollars (USD) with Canadian counterparties in CDS;
  • USD with US counterparties in the DTC.
Settlement against payment in central bank money account of CBL/CBL customersNo

CAD: The central bank, Bank of Canada, does not hold accounts for deliveries against payment settlement for individual customers. The clearing and settlement system for debt and equities in Canada (CDSX) nets payment obligations between CDS and participants such as RBC that are then settled at the end of the day with payments made through the Large Value Transfer System (LVTS) to the CDS settlement account at the Bank of Canada. CBL holds a cash account at the custodian.

USD: Settlement against payment in USD is facilitated through RBC’s custodian, Bank of New York Mellon.
Bridge settlementYes 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYes 
Back-to-back processingYes 
Automatic compensationYes 
Registered securitiesYes 
Multi Market SecuritiesYes 
Lending and borrowingYesDebt securities only.
Proxy votingYes 
Investment FundsYes 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsYesCustomers resident in Canada for tax purposes should refrain holding Canadian securities under certain conditions (Refer to Holding restrictions).
Daily reconciliationYes 
Moment of entry of instructionsThe CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructionsEntries made in the ledgers by the CDS are irrevocable.
Finality of instructionsCDS makes entries in the ledgers maintained for participants and for CDS to record transactions involving two Participants or CDS and a Participant. Such entries, and settlement of a payment obligation between CDS and a Participant, are final and irrevocable when made, and cannot be deleted, adjusted, reversed, repaid or set aside.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 30 March 2020. 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


Liability for negligence


Book-entry regime with in rem rights

Confirmed. Under local law, a right equivalent to a right in rem is understood to be a security entitlement.

Recognition of nominee concept

Confirmed. Under local law, beneficial ownership of securities kept with the custodian will at all times be vested to CBL's underlying customers.

No right of retention to the custodian


Segregation of assets at the custodian

No, the custodian is not required to segregate securities or other financial assets that it holds for its own account from the financial assets that it holds for entitlement holders. However, under local law no segregation of securities is recommended or typically required because financial assets that the custodian holds for entitlement holders are generally not subject to the claims of general unsecured creditors of the custodian.

No right of use

Confirmed, except in rare cases where the custodian does not have a sufficient quantity of securities to satisfy all of its entitlement holders.

No upper-tier attachments

Confirmed, local laws generally do not allow upper-tier attachment though it could conflict with the laws applicable to a security that allow an upper tier attachment.

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


Shortfall pro-rated among holders


Record keeping period of at least 10 years

There is no general requirement under local law for Custodian to maintain records of services or activities with respect to its custody business for a period of at least 10 years.

Settlement finality in case of insolvency

Confirmed. In the event of fraudulent conveyances tied to a transferer's insolvency, certain transfers may be challenged.