Market Link Guide - UK debt securities

27.07.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct

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

 

CSD

Name

Euroclear UK and Ireland Ltd (EUI)

FATCA GIIN

IWVIDJ.99999.SL.826

LEI

549300M5MYAD51WHJD55

Country of incorporation

UK

Account type

Omnibus account

Legal account name/holder

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement in T2S

No

Settlement free of payment

Yes

 
Settlement against payment

Yes

Eligible settlement currency: British Pound (GBP) and Euro (EUR).

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

No

Against payment settlement in GBP and EUR takes place on the cash account of Barclays Bank at the Bank of England.

Bridge settlement

Yes

 
Shaping facility

No

 
Partial settlement

Yes

See Settlement services.
Settlement penalty fees

Yes

See Settlement services.
Pre-matching

Yes

Delivery instructions only.

Back-to-back processing

No

 
Allegements

No

 
Automatic compensation

Yes

 
Registered securities

Yes

 
Multi Market Securities

No

 
Lending and borrowing

Yes

Only UK gilts (except partly paid gilts).

Proxy voting

No

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

 
Market restrictions

No

 
FTT

No

 
Miscellaneous

Yes

Gilts physical deposits possible;

Decimals possible.

Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

The moment a transfer order enters CREST is when the CREST settlement instruction is received by the CREST system

Irrevocability of instructions

The moment when the transfer order becomes irrevocable is the point at which the CREST transaction is no longer capable of being amended or deleted by a single party to the transaction (once the CREST transaction is matched).

Finality of instructions

A transfer of securities takes place when the transferor's account is debited and the transferee's account is credited with securities (this transfer might be without payment or against a payment that occurs in the relevant CREST cash accounts of each party). At the same time transferee's account has been credited, legal title passes and can be said to be final.

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 CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed

No right of retention for the CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Not applicable, as no such restriction applies. EUI does not act as a custodian but as an operator of a CSD and such obligation on EUI would be inappropriate in light of its role.

No upper-tier attachments

As long as the substantive law applicable to the relevant securities remains English law, then an upper tier attachment should not occur but is subject to the discretion of the English court.

Insolvency of CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Shortfalls cannot arise at the level of accounts maintained in CREST.

If a shortfall arises as the result of the CSD’s negligence, wilful default or fraud and CBL suffers loss, the CSD will be liable to CBL.

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least 10 years

EUI is currently not subject to such obligation and will be under such obligation once having obtained its authorisation under CSDR.