Market Link Guide - Bulgaria

01.08.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link to Central Depository AD (CDAD) via Eurobank Bulgaria AD

Direct Operated link to Bulgarian National Bank (BNB) via Eurobank Bulgaria AD

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


CSD

Custodian/Account operator

Name

Central Depository AD (CDAD)

Bulgarian National Bank (BNB)

Eurobank Bulgaria AD

FATCA GIIN

Not available

0T0F5N.00005.ME.101

LEI

CDAD: 74780000G07H7WL0WI31

BNB: 5299001WEKCK7E65TI48

549300IRGNL8Q3O8Y413

Country of incorporation

Bulgaria

Bulgaria

Account type

Omnibus account

Omnibus account

Mirror Omnibus account

Legal Account name / holder

CDAD: Clearstream Banking SA clients account

BNB: Clearstream Banking SA

Clearstream Banking SA clients account

Operational arrangements

 Yes/NoRemarks
Settlement in T2SNo 
Settlement free of paymentYes  
Settlement against paymentYes 
  •  Against payment settlement only for securities that settle in CDAD.
  •  Eligible settlement currency: Bulgarian Lev (BGN).
Settlement against payment in central bank money account of CBL/CBL customersNo

CDAD: CBL holds a cash account at the Custodian. Against payment settlement in BGN takes place on the cash account of Eurobank Bulgaria at the Bulgarian National Bank.

BNB: Not available
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesNo 
Pre-matchingYesImmediate release flag.
Back-to-back processingNo 
AllegementsYes 
Automatic compensationNo 
Registered securitiesYesRegistration takes place automatically upon settlement.
Multi Market SecuritiesNo 
Lending and borrowingYes 
Proxy votingYes 
Investment FundsYesCSD-eligible funds and ETFs
Liquidity Hub ConnectNo 
Sale and purchase of rightsYes 
Repo servicesYes 
Market restrictionsNo 
FTTNo 
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsNo 

Moment of entry of instructions

BNB: 'The moment of entry of a transfer order (request) is considered to have entered in the ESROT system as soon as it has successfully passed the entry check and admitted to further processing.

CDAD: The moment of receiving syntactically matched messages.

Irrevocability of instructions

BNB: In case of matching requests from the two parties to the transaction, the transaction shall become irrevocable.

CDAD: The moment of participants’ messages matching and the formation of a common settlement request. After that moment no one can deny or cancel the transfer.

Finality of instructions

BNB: The settlement of government securities transactions shall be deemed final after crediting the government securities settlement account of the acquirer.

CDAD: The moment of transferring the money and the securities.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 29 March 2019 for the direct operated link and 20 March 2019 for the indirect link. 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 Account operator/ Custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

No entitlement of the Account operator/ Custodian/ CSD

Confirmed

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed. While the nominee concept is not generally recognised under local law, CBL will be recognised as account holder of the accounts held in its name but on behalf of its underlying customers.

No right of retention to the Account operator/Custodian

Confirmed

Segregation of assets at the Custodian/CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Although upper-tier attachments are not prohibited under local law, a third party affected by an upper tier attachment has the right to file a claim to ensure that its assets are not attached by a creditor.

Insolvency of the Account operator/ Custodian/ CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Local law does not regulate specifically shortfall of securities, though a shortfall shall be borne by the account holders to whom the relevant securities have been allocated, while the Custodian/CSD shall be liable for any deficiencies.

Record keeping period of at least 10 yearsConfirmed

Settlement finality in case of insolvency

Confirmed