Market Link Guide – United Kingdom and Ireland GBC

27.02.2019

The issue of Global Bearer Certificates (GBCs) as “re-certification” allows non-German securities to be admitted to collective safe custody by CBF and traded on the German stock exchange.

Non-German securities that are admitted to the official market but are not kept in collective safe custody with CBF itself cannot, for legal reasons, be admitted to collective safe custody through a CSD link. CBF can however make those securities admitted to collective safe custody by taking the following steps:

  • For each foreign security, CBF opens a segregated account with a supplier (depository) in its home market. The securities positions in the original non-German securities are kept in this account under the original ISIN.
  • A global bearer certificate is issued by CBF for the securities positions kept by the supplier and this is deposited in collective safe custody with CBF.
  • The positions are traded on the German stock exchange by transferring fractional co-ownership of the global certificate.

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link to Euroclear UK and Ireland Ltd (EUI) for securities deposited at Citibank NA London Branch.

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


CSD

Depository

Name

Euroclear UK and Ireland Ltd (EUI)

Citibank NA 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 holds an individually segregated participant IDs for CBF in the EUI Crest system.

Securities are registerd in the name of Vidacos Nominees Limited.

Clearstream Banking AG

Operational arrangements

More information on the operational arrangements and services related to GBCs and the list of eligible securities can be found on the Global Bearer Certificates page.

Legal arrangements

The below section is valid on the date of the legal opinion obtained by CBF that was issued on 30 January 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

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

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 local law, then an upper tier attachment should not occur but is subject to the discretion of the English court.

Insolvency of custodian with no impact on CBF's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least 10 years

Local law requirements of five years.