Market Link Guide - Australia
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link via BNP Paribas Australia Branch, to:
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 Australia branch |
FATCA GIIN | CHESS: Not available Austraclear: IPRD0Z.99999.SL.036 | 1G159I.00207.BR.036 |
LEI | CHESS: Not available Austraclear: 549300SW1A0SWG24LO05 | R0MUWSFPU8MPRO8K5P83 |
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 (Australia 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 | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | 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-matching | Yes | Subject to counterparty availability. |
| Back-to-back processing | Yes | |
| Allegements | No | |
| Automatic compensation | Yes | For equities only (CSD automatic compensation for on market transactions only). |
| Registered securities | Yes |
|
| Multi Market Securities | Yes | Refer to the Multi-securities Guide. |
| Lending and borrowing | Yes | Internal. Debt securities only. |
| Proxy voting | Yes | |
| Investment Funds | Yes | ETF and Listed Managed Funds only. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). External Repo service for Bonds (refer to Repo Trades in Austraclear under Settlement Services - Australia). |
| 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 8 December 2022. 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. |