Market Link Guide - Australia

18.06.2021

 Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link via BNP Paribas Securities Services (Sydney Branch), to:

  • ASX Settlement and CHESS (Clearing House Electronic Subregister System), Sydney
  • Austraclear, Sydney (unlisted corporate bonds, sovereign bonds)

Physical or book-entry settlement at registrar (for unlisted equities only).

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

CSD

Custodian

Name

ASX Settlement / CHESS as subregister

Austraclear

BNP Paribas Securities Services. (Sydney branch)

FATCA GIIN

CHESS: Not available

Austraclear: IPRD0Z.99999.SL.036

1G159I.00207.BR.036

LEI

CHESS: Not available

Austraclear: 549300SW1A0SWG24LO05

549300WCGB70D06XZS54

Country of incorporation

Australia

France

Account type

Omnibus account

Omnibus account

Legal Account name/ holder


All CHESS eligible securities are registered in the name of BNP Paribas Nominees Pty Ltd

All Austraclear eligible securities are registered in the name of Austraclear Limited.

BNP Paribas Securities Services (Sydney branch) as the participant in CHESS and Austraclear, holds securities under the name BNP Paribas Nominees Pty Ltd with a dedicated account qualifier for CBL as follows:

CHESS: BNP Paribas Nominees Pty Ltd ACF Clearstream

Austraclear: BNP Paribas Securities Services Australia Branch
Mnemonic: BPSS21

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of paymentYes 
Settlement against paymentYes Eligible settlement currency: Australian Dollar (AUD).
No internal settlement or transfer restrictions within CBL.
Settlement against payment in central bank money account of CBL/CBL customers

No

CBL holds a cash account at the custodian. Against payment settlement takes place on BNP’s single account in CHESS and a single account in Austraclear. 
Bridge settlement

Yes

Only for Australian debt securities that fulfil Australia's Public Offer test and hence qualify for withholding tax exemption.

Shaping facility

No

 
Partial settlement

No

Except when the local CSD imposes the partial delivery of securities.

Settlement penalty fees

No

 
Pre-matchingYes 

Subject to counterparty availability.

Back-to-back processingYes  
Allegements

No

 
Automatic compensationYes 

For equities only (CSD automatic compensation for on market transactions only).

Registered securitiesYes 
  • For dematerialised securities, registration takes place automatically upon settlement.
  • For physical securities, manual intervention will be required and registration is not automatic.
Multi Market SecuritiesYes Refer to the Multi-securities Guide.
Lending and borrowingYes 

Internal. Debt securities only.

Proxy votingYes  
Investment FundsYes 

ETF and Listed Managed Funds only.

Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo servicesYes Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). 
Market restrictions

No

 
FTT

No

 
Daily reconciliation

Yes

 
Moment of entry of instructions

The CHESS or Austraclear rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

Matched instructions are irrevocable and require bilateral cancellation.

Finality of instructions

Settlement is considered final once cash and securities are exchanged and a confirmation is received from the CSD.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 1 May 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

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Book-entry regime is not provided by local laws but would be recognised if contractually agreed.

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed, except when the custodian has liabilities over CBL for acting as its trustee.

Segregation of assets at the custodian

Confirmed, though the custodian could be dispensed from segregating assets in the case where it would be inappropriate for reasons of increased costs to account holders without materially increasing any risk. However, if the custodial property is not held separately, the custodian has a number of obligations including, among other things, having a written policy setting out reasons why that policy is appropriate and reviewing such policy, maintaining records, and performing reconciliation procedures.

No right of use

Local law does not prohibit the use of securities without consent.

No upper-tier attachments

Confirmed, though upper tier attachment is allowed only in limited circumstances (for example where the lower tier intermediary refuses, fails or is unable to initiate proceedings against the upper tier intermediary in respect of securities in which the account holder has a beneficial interest).

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

Confirmed

Shortfall pro-rated among holders

Confirmed

Record keeping period of at least 10 years

Confirmed

Settlement finality in case of insolvency

Local law does not prescribe circumstances in which non-provisional transfers will be irrevocable and unconditional.