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

01.08.2019

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 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 paymentYes 
Settlement against paymentYesEligible settlement currencies: British Pound (GBP), Euro (EUR) and U.S. Dollar (USD).
Settlement in T2SNo 
Settlement against payment in central bank money account of CBL/CBL customersNo

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 settlementNo 
Shaping facilityNo 
Partial settlementYesSee Settlement services.
Settlement penalty feesYesSee Settlement services.
Pre-matchingYes 
Back-to-back processingYesBook-entry equities only.
AllegementsNo 
Automatic compensationYes 
Registered securitiesYes 
Multi Market SecuritiesYes 
Lending and borrowingNo 
Proxy votingYes 
Investment FundsYesCREST eligible closed-end funds.
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesYes 
Market restrictionsNo 
FTTNo 
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsn/a 

Moment of entrySettlement instruction is received by the CREST system.
IrrevocabilityMatched 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 30 May 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

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 ten years The local law does not regulate retention periods. The custodian has committed to record keeping period of at least 7 years.

Settlement finality in case of insolvency

Confirmed