Market Link Guide - Sweden

17.01.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

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


CSD

Custodian

Name

Euroclear Sweden AB

Skandinaviska Enskilda Banken (SEB), Stockholm

FATCA GIIN

6XWELL.00000.LE.752

6BRL9A.00000.LE.752

LEI

5493006WLDSUHWHCT321

F3JS33DEI6XQ4ZBPTN86

Country of incorporation

Sweden

Sweden

Account type

Fixed income (PM system):
Omnibus

Equities (AM system):
Omnibus

Omnibus account

Legal Account name / holder

Fixed income (PM system):
Individually segregated account of SEB on behalf of Clearstream Banking SA.

Equities (AM system):
Individually segregated account of SEB on behalf of Clearstream Banking SA.

Clearstream Banking SA

Operational arrangements

 Yes/NoRemarks
Settlement in T2SNo 
Settlement free of paymentYes 
Settlement against paymentYes

Eligible settlement currency: Swedish Krona (SEK).

Securities quoted and registered in EUR settle in EUR.

Settlement against payment in central bank money account of CBL/CBL customersNoCBL holds a cash account at the custodian. Against payment settlement takes place on the cash account of SEB at the Swedish central bank for SEK and at Euroclear Sweden’s TARGET2 account with the Central Bank of Finland for EUR.
Bridge settlementYes 
Shaping facilityNo 
Partial settlementNoPartial settlement is not market practice in Sweden.
Settlement penalty feesYes

Refer to Settlement process - Sweden.

Pre-matchingYes 
Back-to-back processingNo 
AllegementsYes 
Automatic compensationYes 
Registered securitiesYes

Book-entry securities owned by Clearstream (as foreign investor).

In Euroclear Sweden, equities are registered in the name of Skandinaviska Enskilda Banken as nominee. Fixed income instruments are registered nominee account in the name of SEB for Clearstream. 

Multi Market SecuritiesYes 
Lending and borrowingYes

All Swedish debt securities eligible in CBL qualify for CBL's securities lending and borrowing programme.

Equities and warrants are not eligible for CBL's securities lending and borrowing programme.

Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsYes 
Repo servicesYes 
Market restrictionsYes

Refer to Other services - Sweden.

FTTNo 
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsNo 

Bilateral cancellation

Matched over-the-counter (OTC) equity instructions can be cancelled unilaterally if the cancellation instruction is received by 16:00 CET SD-1. After this deadline cancellations must be bilateral and can only be cancelled when the instruction’s status is pending settlement.

Fixed income and equity instructions matched in the CSD’s settlement system must be bilaterally cancelled at all times.

Settlement finality

Settlement in Euroclear Sweden is simultaneous, final and irrevocable.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 15 August 2019. 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

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Note: For CBL underlying customers in rem rights are determined on a case-by-case basis, mainly depending on the register chosen to record customer names and their location.

Recognition of nominee concept

Confirmed

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

Note: A written consent for the right of use might not be required in certain circumstances.

No upper-tier attachments

Local law does not regulate ‘upper tier attachment’ on securities and there is no Swedish case law in this respect. The position in Swedish doctrine is that local law would not allow upper tier attachment on securities credited to a securities account.

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

Confirmed

Shortfall pro-rated among holders

Confirmed

Note: No case law exists in this respect.

Settlement finality in case of insolvency

Confirmed