Other services - Canada

23.05.2018

Securities lending and borrowing

All Canadian debt securities eligible in CBL qualify for CBL’s securities lending and borrowing programme.

Equities and warrants are not eligible for CBL's securities lending and borrowing programme.

Multi-Market securities service

Canadian domestic securities can be listed on foreign exchanges. These multi-market equities are traded on more than one stock exchange and are eligible for deposit and settlement in more than one CSD.

For further information, please refer to the Multi-Market Securities Guide.

Disclosure requirements

Please refer to the Clearstream Banking Disclosure Requirements - Canada.

Holding restrictions

Customers should refrain from holding securities on behalf of beneficial owner(s) that are resident for tax purposes in Canada or on their own behalf, if they are acting as beneficial owner of the securities, as defined by the relevant Canadian laws and regulations. These holding restrictions are applicable to any Canadian securities, regardless of any place of settlement or recorded safekeeping (for example, DTC, Switzerland, etc.).

In order to confirm the residency status of the final beneficial owner, customers must include “non-Canadian resident” in the Settlement Processing Narrative field of their instructions (70E::SPRO//NON CANADIAN RESIDENT).

It is the customer’s responsibility to put in place all necessary arrangements with respect to investment restrictions and the customer shall be liable for non-compliance.

The customer shall indemnify and hold harmless CBL, its directors, officers, agents, employees or affiliates (the “Indemnified Persons”) for any loss, expense, liability, damage or claims incurred by any of the Indemnified Persons as a result of the non-compliance with such holding restriction.

Please also refer to Investment regulation in the Market Profile - Canada.

Securities Payment Order (SPO)

Note: In Canada, the SPO service is available only for transactions in multi-listed securities settling against USD in the DTC.

An SPO is a DTC product that enables two parties to adjust the payment in an against payment settlement transaction in the books of DTC without transferring the associated securities.

SPO transactions are used as follows:

  • To settle pair-off trades1 between parties; or
  • To settle the difference between current and previous market values in an open securities contract.

The SPO authorises DTC to credit the payee participant’s settlement account with the specified amount and to debit the payor participant’s settlement account for the same amount.

Types of SPO

The following SPO types can be processed in CBL:

One-sided (also called “Single Money”):

For incoming funds (Receive SPO), the SPO instruction triggers a debit of the counterparty’s account at DTC based on corresponding credit request received from the CBL customer. Once settled, funds are transferred from the counterparty’s account in DTC to the DTC account of Clearstream's depository. Such funds are then credited to the customer account in CBL.

For outgoing funds (Single-Sided Deliver SPO), a request from a counterparty in DTC is received in order to debit CBL. Before processing the counterparty’s debit request, a corresponding SPO instruction from the CBL customer must be sent and the customer’s account will be debited before the transfer of funds to the counterparty can be executed via DTC.

Note: In the event of settlement failure, the original debit will be reversed on the CBL customer’s account. In the event of a late settlement, the CBL customer’s original debit will be adjusted in accordance to the actual settlement date.

Two-sided (also called “Pair-off” or “Full Money Swap”):

In a full pair-off transaction, each against payment receipt/delivery instruction linked as part of the pair-off sequence is settled for the full settlement amount at the DTC with a separate SPO.

The cross-settlement amounts of all relevant transactions are processed via the customer’s CBL account. To ensure correct processing, the purchase instruction is settled and the respective sale instruction is cancelled and manually processed on the CBL customer’s account.

Instructions for SPOs

SPOs must be instructed via SWIFT MT599 or CreationOnline free-format message and must include details as follows:

One-sided SPO

  • “Attn: OAA”;
  • “Type of SPO: one-sided”;
  • Customer instruction including cash amount (mandatory), as follows:
    • For a debit: “Please accept SPO charge of USD <amount> from broker <account in DTC> and debit our account <5-digit CBL account number>“;
    • For a credit: “Please send SPO charge of USD <amount> from broker <account in DTC> and credit our account <5-digit CBL account number>“;
  • Reference of the trades (buy/sell) that net out to the amount that is to settle via SPO;
  • Nominal amount of shares;
  • ISIN;
  • Cash settlement amount;
  • Counterparty/Broker details (including contact name, telephone number and relevant account number at counterparty level);
  • Settlement date.

Two-sided SPO

  • “Attn: OAA”;
  • “Type of SPO: two-sided”;
  • Counterparty details including contact name, telephone number and relevant account number at counterparty level;
  • Relevant receipt and delivery instruction references.

Applicable fees

Please refer to the CBL Fee Schedule.

Tax services

Please refer to the Clearstream Banking Canada Tax area.