Market Link Guide - UK debt securities
CSD link as defined under CSDRa
Type of link
a. CSD Regulation (EU) No 909/2014 art. 2 (29).
Euroclear UK and Ireland Ltd (EUI)
Country of incorporation
Legal account name/holder
Clearstream Banking S.A.
|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.
|Partial settlement||No||See Settlement services.|
|Settlement penalty fees||Yes||See Settlement services.|
|Pre-matching||Yes||Delivery instructions only.|
|Multi Market Securities||No|
|Lending and borrowing||Yes||Only UK gilts (except partly paid gilts).|
|Liquidity Hub Connect||No|
|Sale and purchase of rights||No|
Gilts physical deposits possible;
|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.
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
Liability for negligence
Book-entry regime with in rem rights
Recognition as direct CSD account-holder
Recognition of nominee concept
No right of retention for the CSD
Segregation of assets at the CSD
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 woul 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
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
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.