Market Link Guide - Norway

01.08.2019

Key features

CSD link as defined under CSDR a

Yes

Type of link

Direct Operated

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


CSD

Account operator

Name

Verdipapircentralen ASA (VPS ASA)

Danske Bank A/S

FATCA GIIN

Not available

MQ79H2.00000.LE.208

LEI

5967007LIEEXZX9IEO75

MAES062Z21O4RZ2U7M96

Country of incorporation

Norway

Denmark

Account type

Omnibus account

Mirror omnibus account

Legal account name/holder

Clearstream Banking SA

Clearstream Banking SA

Operational arrangements

 

Yes/No

Remarks

Settlement free of payment

Yes


Settlement against payment

Yes

Eligible settlement currency: Norwegian Krone (NOK).

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

No

CBL holds a cash account at Danske Bank A/S. Settlement against payment is conducted on the account of Danske Bank A/S at the local central bank.

Bridge settlement

Yes


Shaping facility

No


Partial settlement

No


Settlement penalty fees

No


Pre-matching

Yes

Automated through VPS.

Back-to-back processing

Yes

B2B available for all equities and dematerialised bonds eligible in the Norwegian market.

Allegements

Yes


Automatic compensation

No


Registered securities

Yes


Multi Market Securities

Yes


Lending and borrowing

Yes

Norwegian debt securities only, equities are not eligible.

Proxy voting

Yes


Investment Funds

No


Liquidity Hub Connect

No


Sale and purchase of rights

No


Repo services

Yes


Market restrictions

Yes

No equities that are beneficially owned by Norwegian individual residents can be held through CBL account. 

FTT

No


Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

A settlement instruction is considered as entered into the VPO NOK system when it has been matched.

Settlement Instructions that do not require matching, that is, settlement instructions for transactions with parties other than participants in VPO NOK system, are considered as entered into the VPO NOK system at the start of the settlement

Irrevocability of instructions

Once a settlement instruction has been matched, it cannot be recalled unless both the participants involved in the trade in question send instructions to cancel their respective settlement instructions. In such events, the cancellation instructions from both participants must be received before the start of the settlement in which the settlement instruction in question was to be processed.

If a matched settlement instruction has not been settled by the close of the specified settlement date, and one of the parties has an insufficient amount of cash or financial instruments to meet its obligations in connection with the transactions, the other party is entitled to cancel the settlement instruction unilaterally. 

The right to cancel unilaterally shall apply for the duration of the deferral period. Settlement instructions cannot be cancelled in the period between the start of settlement and the completion thereof. 

The entitlement to cancel unilaterally does not apply to settlement instructions relating to transfers between a participant and a participant authorised as a Central Counterparty, or possibly between two participants authorised as Central Counterparties. Exceptions to this may apply in specific circumstances. 

Finality of instructions

Settlement involves the final transfer in the VPS securities register of ownership rights to financial instruments (securities settlement), the transfer of Norwegian kroner payment through Norges Bank between the VPO LOM accounts included in the Clearing (payment settlement).

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 19 December 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 account operator or the CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

No entitlement of the account operator/CSD  

Confirmed

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the account operator/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of account operator/CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed


Record keeping period of at least 10 years

Confirmed

Settlement finality in case of insolvency

Confirmed