Market Link Guide - Japan - Equities, ETFs and REITs
CSD link as defined under CSDRa
Type of link
Indirect via Hongkong and Shanghai Banking Corporation Limited (Tokyo Branch) to Japan Securities Depository Center, Inc (JASDEC)
a. CSD Regulation (EU) No 909/2014 art. 2 (29)
Japan Securities Depository Center, Inc (JASDEC)
Hongkong and Shanghai Banking Corporation Limited (HSBC), Tokyo branch
Country of incorporation
Hong Kong via its branch in Tokyo
|Dedicated omnibus account for CBL’s assets held at JASDEC, under HSBC’s direct participant status|
Omnibus and segregated
Legal Account name / holder
For equities (incl. convertible bonds):
The Hongkong and Shanghai Banking Corporation Limited - 00411-81
For corporate bonds:
The Hongkong and Shanghai Banking Corporation Limited - 00411-91
Clearstream Banking SA
|Settlement free of payment|
|Settlement against payment|
Eligible settlement currency: Japanese Yen (JPY).
|Settlement against payment in central bank money account of CBL/CBL customers|
CBL holds a cash account at the custodian. Against payment settlement in JPY takes place on the cash account of the custodian at the Bank of Japan.
|Settlement penalty fees|
|Refer to the Market Profile.|
Book entry equities only.
|Multi Market Securities|
|Refer to the Multi Market Securities Guide.|
|Lending and borrowing|
No physical attendance for AGM/EGM.
ETF only (CBL Internal Settlement).
|Liquidity Hub Connect|
|Sale and purchase of rights|
CBL internal settlement.
|Refer to Investment Regulation.|
Moment of entry of instructions
The rules of JASDEC do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructions
FOP settlements may be cancelled prior to the transfer at the request of the
deliverer. However, in DVP settlement, after matching and during the period until the transfer, the settlement may be cancelled prior to the transfer only by request from both the deliverer and the receiver.
Finality of instructions
Book-entry transfers become instantly final. In the case of transfer requests from the previous days where the book-entry transfers are performed in batches at night, the transfers become final at 8:00 p.m. (local time) on the business day preceding the date of settlement.
The below section is based on the legal opinions obtained by CBL that were issued on 9 March 2021 (Hong Kong) and 26 October 2021 (Japan). 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
Recognition of nominee concept
The laws and regulations of Japan do not have a concept equivalent to the nominee concept
No right of retention for the custodian
Segregation of assets at the custodian
No right of use
No upper-tier attachments
Insolvency of the custodian with no impact on CBL's rights
Cash held by the custodian will only give rise to an unsecured claim against the estate of the custodian on insolvency.
Shortfall pro-rated among holders
Settlement finality in case of insolvency
There is no concept equivalent to finality under Japanese laws and regulations.
Record keeping of at least 10 years
The custodian has committed to record keeping period of at least 7 years in accordance with the statutory law requirement in Hong-Kong. Under the laws and regulations of Japan, custodians have the obligation to maintain records for at least 10 years.