Market Link Guide - Croatia


Key features

CSD link as defined under CSDRa


Type of link

Indirect via Erste Group Bank Vienna and sub-deposited at Erste & Steiermärkische d.d. Zagreb

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




Central Depository & Clearing Company Inc. (CDCC)

Custodian: Erste Group Bank AG Vienna

Sub-custodian: Erste & Steiermärkische d.d. Zagreb


Not available

Custodian: L99T2F.00000.LE.040

Sub-custodian: L99T2F.00032.ME.191



Custodian: PQOH26KWDF7CG10L6792

Sub-custodian: 549300A2F46GR0UOM390

Country of incorporation


Custodian: Austria

Sub-custodian: Croatia

Account type

Omnibus account

Custodian: Omnibus account

Sub-custodian: Omnibus account

Legal Account name / holder

Erste & Steiermärkische d.d. Zagreb holds individually segregated account at the CSD for Clearstream Banking SA

Custodian: Clearstream Banking SA

Sub-custodian: Erste Group Bank for Clearstream Banking SA

Operational arrangements

Settlement in T2SNo 
Settlement free of paymentYes 
Settlement against paymentNo 
Settlement against payment in central bank money account of CBL/CBL customers

Not available

Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYes

Failing to meet cash obligations to the CDCC (SELL OUT): Not available.

Failing to meet the obligation to deliver securities to the CDCC (BUY IN):

  • If the member fails to deliver securities by the beginning of first batch of contractual settlement daily cycle  on the intended settlement date (08:30 CET on SD),  the CDCC will initiate buy-in procedure. Every day the CDCC will automatically charge a penalty fee.
  • If the member fails to deliver securities before the initiation of the first batch of contractual settlement daily cycle on the third working day following the intended settlement date (08:30 CET on S+3), the CDCC will suspend the member and buy-in the securities.
Pre-matchingYesManual by telephone or email
Back-to-back processingNo 
Automatic compensationNo 
Registered securitiesNo 
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingNo 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNoIn Croatia the market practice of right trading does not exist.
Repo servicesNo 
Market restrictionsNo 
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsNo 

Moment of entry of instructions

Settlement instructions that are directly entered into the CDCC system by the participants are considered to have been accepted in the system at the time of approval.

Irrevocability of instructions

The moment of irrevocability of settlement instruction (transfer order) to be settled in the CDCC system will be at “matching” of those transfer orders. Participant members are allowed to cancel settlement instructions unilaterally prior to matching. After this moment, CDCC shall allow only bilateral cancellations for matched instructions

Finality of instructions

The moment of finality of settlement instruction will be the moment of the processing of the settlement. Against payment settlement instructions are settled in the CDCC system at the time of transfer of securities to the securities account and the creation of a payment order on the relevant cash account. Settlement instructions free of payment are settled at the time of transfer of securities to the securities account.

Legal Arrangements

The below section is based on the legal opinion obtained by CBL that were issued on 28 September 2018  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 of the custodian


Book-entry regime with in rem rights


Recognition of nominee concept


No right of retention for the custodian


Segregation of assets at the custodian


No right of use for the custodian


No upper-tier attachments


Insolvency of the CSD with no impact on custodian's rights 


Record keeping for a period of at least 10 yearsConfirmed

Shortfall pro-rated among holders

Confirmed under the laws of Austria

There are no clear provisions regulating shortfall under Croatian law. It is however expected that the shortfall would be pro-rated among holders.