Market Link Guide - Thailand

07.06.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

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

 CSDCustodian
NameThe Thailand Securities Depository (TSD)Standard Chartered Bank (Thai) Public Company Limited
FATCA GIIN1FTWN9.00000.LE.764T04M9Y.00082.ME.764
LEI254900IJQ6ZM0PD20H32549300O1LQYCQ7G1IM57
Country of incorporationThailandThailand
Account typeOmnibusOmnibus
Legal account name / holder

TSD: Securities registered in name of “Thailand Securities Depository Company Limited for Depositors”. At book-closed date, the ownership of securities will be disclosed at the account holder level (that is,  Clearstream Nominees Limited).

In the books of the TSD, Standard Chartered Bank (Thai) Public Company Limited, as a TSD participant, maintains a segregated depository account in the name of Clearstream Nominees Limited.

The securities are recorded in the name of Clearstream Nominees Limited in the books of Standard Chartered Bank (Thai) Public Company Limited.

Operational arrangements

 Yes/NoRemarks
Settlement free of paymentYes 
Settlement against paymentYesEligible settlement currency: Thai Baht (THB).
Settlement against payment in central bank money account of CBL/CBL customersNoCBL holds a cash account at the custodian. Settlement against payment is conducted on the account of custodian at the local central bank.
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYesRefer to the Market Profile.
Pre-matchingYes 
Back-to-back processingYesBook-entry securities only.
AllegementsYes 
Automatic compensationNo 
Registered securitiesNo 
Multi Market SecuritiesYesRefer to the Multi Market Securites Guide.
Lending and borrowingNo 
Proxy votingYes 
Investment FundsYes ETFs.
Liquidity Hub ConnectNo 
Sale and purchase of rightsNoRights not tradeable.
Repo servicesYesCBL internal settlement.
Market restrictionsYesRefer to Investment Regulation.
FTTNo 
Daily reconciliationYes 

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 22 May 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

Confirmed

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Confirmed. For the sake of clarification, Clearstream will be recognised as the account-holder of the account held in its name at with the custodian. The laws and regulations of Thailand recognise the nominee concept but do not distinguish between legal and beneficial ownership of securities and assume that a person whose name is recorded in the register book is the owner of the relevant securities. Therefore, securities held in the account(s) in the name of Clearstream at the custodian in Thailand will at all times be vested in Clearstream unless it is recorded in the share register book that Clearstream holds the securities on behalf of its underlying customers or it can be be proved (either by contractual arrangement or otherwise) that Clearstream only holds such securities for the benefit of its underlying customers

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use of the custodian

The custodian must be liable to Clearstream for any loss or damarge arising from the use for any purpose of securities that belong to Clearstream (notwithstanding that such loss or damage is caused by force majeure, except if the custodian proves that the loss or damage would have happened anyway).

No upper-tier attachments

To the extent that Clearstream is holding any securities in the account(s), kept by the custodian, as a nominee for its clients, such securities are not liable under the laws and regulations of Thailand to be taken in execution against (i) the custodian by creditors of the custodian or (ii) Clearstream by creditors of Clearstream or creditors of Clearstream’s customers under the order or process of a court.

Insolvency of custodian with no impact on CBL's rights 

Confirmed. 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

Thai law does not have this concept as it does not exist under Thai law.

Settlement finality in case of insolvency

Thai law does not currently have a finality legislation in this regard.

Record keeping period of at least 10 yearsConfirmed