Market Link Guide - New Zealand

02.06.2022

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

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

CSD

Custodian

Name

NZCSD

BNP Paribas Securities Services. (Sydney branch)

FATCA GIIN

Not applicable

1G159I.00207.BR.036

LEI

54930066LV3G32L0HB48

549300WCGB70D06XZS54

Country of incorporation

New Zealand

France

Account type

Omnibus account

Omnibus account

Account name

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

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

BNP Paribas Nominees NZ Limited Mnemonic: BPSS42

Clearstream Banking S.A. 

Operational arrangements

Yes/NoRemarks
Settlement free of paymentYes 
Settlement against paymentYes 

Eligible settlement currency: New Zealand Dollar (NZD).

Settlement against payment in central bank money account of CBL/CBL customer

No

Against payment settlement takes place on the cash account of BNP Paribas Securities Services Sydney Branch. Only CSD-member banks can have an account at the local central bank.

Bridge settlement

Yes

For debt securities only.

Settlement quantity must be a whole number.

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 compensation

No

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

Debt Securities.

Proxy votingYes  
Investment FundsYes 

ETF 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 restrictionsYes 

CBL restricts beneficial owners who are New Zealand residents for tax purposes.

FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 
Miscellaneous 

Yes

CBL's holding restrictions:
Beneficial owners who are New Zealand residents, due to tax purposes.

Moment of entry of instructions

The CSD 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. It is not possible to unwind completed settlement.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 9 September 2021. 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

Local laws do not explicitly provide for in rem rights. Despite the lack of a local court decision, based on common law principles, CBL should have in rem rights to the securities deposited with the custodian.

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the CSD

No statutory requirement for the custodian to segregate its own assets from the assets held for its account holders.

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of custodian with no impact on CBL's rights 

In the case of liquidation, statutory management or voluntary administration being initiated or filed against the custodian, such procedure may, depending on the factual circumstances, impact on CBL's rights on the assets.

Shortfall pro-rated among holders

Share of shortfall on a pro rata basis is the most likely outcome.

Record keeping period of at least 10 yearsNo minimum retention period under the local laws. CBL makes it an obligation in the Agreement.

Settlement finality in case of insolvency

Local laws do not provide for the irrevocability and unconditionality of non-provisional transfers of securities.