Market Link Guide - UK equities, corporate bonds and investment trusts

27.07.2020

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 UK and Ireland Ltd (EUI)

Citibank N.A., London Branch

FATCA GIIN

IWVIDJ.99999.SL.826

NXUTG8.00000.BR.826

LEI

549300M5MYAD51WHJD55

G2M96IXONJEAOBNT6B40

Country of incorporation

UK

U.S.A.

Account type

Omnibus account

Omnibus account

Legal Account name/holder

Citibank N.A, London Branch as EUI direct participant holding individually segregated participant IDs on behalf of CBL in the EUI Crest system.

Securities are registerd in the name of Vidacos Nominees Limited.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of payment

Yes

Settlement against payment

Yes

Eligible settlement currencies: British Pound (GBP), Euro (EUR) and U.S. Dollar (USD).

Settlement in T2S

No

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

No

CBL holds a cash account with the Custodian that settles against payment transactions in GBP, EUR, USD on behalf of CBL in Central Bank Money for GBP and EUR and CoBM for USD settlement.

Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

Yes

See Settlement services.
Settlement penalty fees

Yes

See Settlement services.
Pre-matching

Yes

 
Back-to-back processing

Yes

Book-entry equities only.

Allegements

No

 
Automatic compensation

Yes

Market claims are automatically created and settled by Euroclear UK and Ireland for both cash and securities disributions (including transformations). For further details see Entitlement Compensation Rules - UK.

Registered securities

Yes

 
Multi Market Securities

Yes

 
Lending and borrowing

No

 
Proxy voting

Yes

 
Investment Funds

Yes

CREST eligible closed-end funds.

Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

 
Market restrictions

No

 
FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 
Moment of entry

Settlement instruction is received by the CREST system.

Irrevocability

Matched instructions are irrevocable and require bilateral cancellation.

Settlement finality

Settlement in the EUI Crest system is final and irrevocable.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 24 March 2020. 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

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Under local laws and regulations, CBL has a beneficial proprietary interest (as tenant in common) in its pro-rata share of securities held by the Custodian for its clients in accordance with its interest in securities recorded in and represented by the Custody Account.

Recognition of nominee concept

Confirmed

No right of retention to the Custodian/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

As long as the substantive law applicable to the securities credited to the custody account remains in local law, then an upper tier attachment should not occur but is subject to the discretion of the English courts.

Insolvency of Custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Record keeping of at least 10 years

The local law does not regulate retention periods. The custodian has committed to record keeping period of at least seven (7) and 10 years in relation to records of securities held by the custodian.

Settlement finality in case of insolvency

Confirmed