Market Link Guide - New Zealand
CSD link as defined under CSDRa
Type of link
a. CSD Regulation (EU) No 909/2014 art. 2 (29)
JPMorgan Chase Bank, N.A., Sydney Branch
Country of incorporation
All NZCSD eligible securities are registered in the name of JPMorgan Chase Bank N.A. New Zealand Branch – Segregated Client Account.
JPMorgan Chase Bank N.A. (New Zealand branch) as the participant in NZCSD does not hold an individually segregated account for CBL at NCSD.
Clearstream Banking SA
|Settlement free of payment||Yes|
|Settlement against payment||Yes||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 JPMorgan Chase Bank, N.A., New Zealand Branch. Only CSD-member banks can have an account at the local central bank.|
For debt securities only.
Settlement quantity must be a whole number.
|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.|
|Multi Market Securities||Yes||Refer to the Multi-securities Guide.|
|Lending and borrowing||Yes||Debt Securities.|
|Investment Funds||Yes||ETF 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).|
|Market restrictions||Yes||CBL restricts beneficial owners who are New Zealand residents for tax purposes.|
|Link eligible for use in Eurosystem credit operations||No|
CBL's holding restrictions:
|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.
The below section is based on the legal opinion obtained by CBL that was issued on 21 February 2019. 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
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
No right of retention to the custodian
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
No upper-tier attachments
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 years||Confirmed|
Settlement finality in case of insolvency
Local laws do not provide for the irrevocability and unconditionality of non-provisional transfers of securities.