Market Link Guide - Thailand

02.06.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

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

CSDCustodian
Name

The Thailand Securities Depository (TSD)

Standard Chartered Bank (Thai) Public Company Limited

FATCA GIIN

1FTWN9.00000.LE.764

T04M9Y.00082.ME.764

LEI

254900IJQ6ZM0PD20H32

549300O1LQYCQ7G1IM57

Country of incorporation

Thailand

Thailand

Account type

Omnibus

Omnibus

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 payment

Yes

Settlement against payment

Yes

Eligible settlement currency: Thai Baht (THB).

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

No

CBL holds a cash account at the custodian. Settlement against payment is conducted on the account of custodian at the local central bank.

Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

Refer to the Market Profile.
Pre-matching

Yes

 
Back-to-back processing

Yes

Book-entry securities only.

Allegements

Yes

 
Automatic compensation

No

 
Registered securities

No

 
Multi Market Securities

Yes

Refer to the Multi Market Securites Guide.
Lending and borrowing

No

 
Proxy voting

Yes

 
Investment Funds

Yes

 ETFs.

Liquidity Hub Connect

No

 
Sale and purchase of rights

No

Rights not tradeable.

Repo services

Yes

CBL internal settlement.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliation

Yes

 

Moment of entry

CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability

Matched transactions are non-binding. Participants can de-match or cancel the transaction upon mutual agreement between both parties. After settlement day, matched transactions cannot be cancelled anymore as the settlement of securities becomes final and irrevocable.

Settlement finality

Securities settlements are final when transferred in TSD’s system.

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 years

Confirmed