Market Link Guide - New Zealand


Key features

CSD link as defined under CSDRa


Type of link


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





JPMorgan Chase Bank, N.A., Sydney Branch


Not applicable





Country of incorporation

New Zealand


Account type

Omnibus account

Omnibus account

Account name

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 S.A. 

Operational arrangements

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 customerNoAgainst 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.
Bridge settlementYes

For debt securities only.

Settlement quantity must be a whole number.

Shaping facilityNo 
Partial settlementNoExcept when the local CSD imposes the partial delivery of securities.
Settlement penalty feesNo 
Pre-matchingYes Subject to counterparty availability.
Back-to-back processingYes  
Automatic compensationNo 
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 ConnectNo 
Sale and purchase of rightsNo 
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.
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsNo 
Miscellaneous Yes

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

Moment of entry of instructionsThe CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructionsMatched 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 1 April 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


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 yearsConfirmed

Settlement finality in case of insolvency

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