Market Link Guide - Sweden

02.07.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

a. CSD Regulation (EU) No 909/2014, Article 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 S.A.

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

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement in T2S

No

Settlement free of payment

Yes

 
Settlement against payment

Yes

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 customers

No

CBL 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.

Short selling of entitlement

No

Short selling of income or corporate actions proceeds is not authorised for settlement in CBL. Please refer to section 4.5 of the CBL Customer Handbook.

Bridge settlement

Yes

 
Shaping facility

No

 
Partial settlement

No

Partial settlement is not market practice in Sweden.

Settlement penalty fees

Yes

Refer to Settlement process - Sweden.

Pre-matching

Yes

 
Back-to-back processing

No

 
Allegements

Yes

 
Automatic compensation

Yes

 
Registered securities

Yes

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 Securities

Yes

 
Lending and borrowing

Yes

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 voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

Yes

 
Repo services

Yes

 
Market restrictions

Yes

Refer to Other services - Sweden.

FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 

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