Market Link Guide - Russia

19.04.2021

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct Operated

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

CSD

Custodian/Account operator

Name

National Settlement Depository (NSD)

Sberbank of Russia

FATCA GIIN

XNBBND.00000.LE.643

JPCJ0H.00028.ME.643

LEI

253400M18U5TB02TW421

549300WE6TAF5EEWQS81

Country of incorporation

Russia

Russia

Account type

Nominee account (Foreign Nominee Holder)

Not available

Account name

Clearstream Banking SA

Not available

Operational arrangements

Yes/NoRemarks
Settlement in T2S

No

Settlement free of payment

Yes

Internal settlement and over-the-counter (OTC) domestic settlement.

Settlement against payment

Yes

Eligible settlement currencies: Russian Ruble (RUB); U.S. Dollar (USD).

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

No

CBL holds a cash account at the account operator. Against payment settlement in RUB is conducted on the account of the account operator agent at the local  central securities depository.

Against payment settlement in USD is conducted on CBL’s account at JP Morgan.
Bridge settlement

Yes

Russian government bonds (OFZs) and Regional government debt securities (Municipal bonds).

Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

No

 
Pre-matching

No

 
Back-to-back processing

Yes

CBL internal settlement.

Allegements

No

 
Automatic compensation

No

 
Registered securities

No

 
Multi Market Securities

No

 
Lending and borrowing

Yes

CBL internal settlement.

Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

CBL Internal Settlement.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliations

Yes

 
Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

When the settlement instruction is received by the CSD.

Irrevocability of instructions

An instruction may be cancelled before the commencement of its execution or before the moment when its cancellation by the CSD becomes impossible. Matched instructions may only be cancelled based on matching cancelling instructions and before the commencement of execution of the relevant transaction (before commencement of the trade settlement).

The CSD may cancel a pending instruction on the basis of a CSD’s internal instruction, by giving prior notice provided that the terms and conditions for execution of the instruction have not been met within 90 days.

Finality of instructions

The following transactions are final and irrevocable:

  • Transactions on the books of the registrar (including transactions in the nominee account of CSD with registrars);
  • Transaction on the books of CSD;
  • Transactions on the book of custodians.

Settlement finality is ensured by daily reconciliation between registrars and the CSD and custodians:

  • The CSD must reconcile with registrars after each transaction in its nominee account with a registrar or once per day if no transactions were held;
  • Custodians must reconcile with registrars on a daily basis.

Additional measures to ensure finality of transactions in the nominee account of CSD with registrars:

  • Discrepancies discovered during CSD-registrar reconciliation can not be rectified without the CSD’s consent;
  • If no CSD-registrar reconciliation was held, or discrepancies were not rectified following an unsuccessful reconciliation, all transactions on a nominee account of CSD with registrars are deemed invalid;
  • Transaction settlement between CSD and a counter party on the books of a registrar is subject to receipt by the registrar of matching instructions from both sides.

Legal Arrangements

The below section is valid on the date of the legal opinion that was issued on 5 March 2021 and might be subject to change.

No insolvency proceedings against the Agent or the CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights 

CBL is only conferred to a contractual right (as opposed to a right in rem) to the securities credited to the direct CSD account. A person with a contractual right shall be entitled to claim from the debtor the discharge of its obligation by performing a certain action or by refraining from performing a certain action.

No entitlement of the Agent/CSD   

Confirmed

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the Agent/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of agent with no impact on CBL's rights

Confirmed

Shortfall pro-rated among holders

Neither the CSD Rules nor local law provide for specific shortfall allocation arrangements.

Record keeping for a period of ten years

The account operator has committed to record keeping period of at least 10 years. Under the laws and regulations of Russia, the CSD has the obligation to maintain records for at least five (5) years.

Settlement finality in case of insolvency

Confirmed