Market Link Guide - Croatia

13.01.2021

Key features

CSD link as defined under CSDRa

Yes

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)

 

CSD

Custodian

Name

Central Depository & Clearing Company Inc. (CDCC)

Custodian: Erste Group Bank AG Vienna

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

FATCA GIIN

Not available

Custodian: L99T2F.00000.LE.040

Sub-custodian: L99T2F.00032.ME.191

LEI

747800V0CCQGC89GOW91

Custodian: PQOH26KWDF7CG10L6792

Sub-custodian: 549300A2F46GR0UOM390

Country of incorporation

Croatia

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

Yes/NoRemarks
Settlement in T2S

No

Settlement free of payment

Yes

 
Settlement against payment

No

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

Not available

 
Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

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-matching

Yes

Manual by telephone or email

Back-to-back processing

No

 
Allegements

No

 
Automatic compensation

No

 
Registered securities

No

 
Multi Market Securities

No

 
Lending and borrowing

No

 
Proxy voting

No

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

In Croatia the market practice of right trading does not exist.

Repo services

No

 
Market restrictions

No

 
FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 

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 18 November 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

Confirmed

Liability for negligence of the custodian

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Confirmed

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use for the custodian

Confirmed

No upper-tier attachments

Confirmed

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

Confirmed

Record keeping for a period of at least 10 years

Confirmed

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.