Market Link Guide - Denmark

11.07.2022

The OneClearstream service level provides customers with a single point of access to all T2S markets with comprehensive instruments coverage. This is complemented by full harmonisation of asset services and connectivity channels between CBF, CBL and LuxCSD.

CBL and LuxCSD are using CBF as single gateway into T2S markets, allowing seamless transfer between CSD and ICSD counterparties.

This Market Link Guide represents Clearstream’s efforts to streamline our custody network and improve our asset servicing and collateral management services in the new T2S environment. The service description is valid for CBF, CBL and LuxCSD customers, unless otherwise highlighted in the documentation.

Key features

CSD link as defined under CSDRa

Yes.

Type of link

For CBF customers

Direct linkb to Euronext Securities Copenhagen.

For CBL customers

Direct linkb to Clearstream Banking AG, Frankfurt for ES-CPH/T2S-eligible securities.

For LuxCSD customers

Direct linkb to Clearstream Banking AG, Frankfurt for ES-CPH/T2S-eligible securities.

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

b. Interoperable link for T2S-related aspects.

CSD (as CBF’s depository in Denmark)

Custodian  (as CBL’s depository)

Custodian  (as LuxCSD’s depository)

Name

VP Securities A/S

Clearstream Banking AG,
Frankfurt

Clearstream Banking AG,
Frankfurt

FATCA GIIN

MM0S16.00000.LE.208

N1V1GJ.000
02.ME.276

N1V1GJ.000
02.ME.276

LEI

529900HDNBQ2DD0QHJ07

5493004PP5
8SUE3G8M27

5493004PP5
8SUE3G8M27

Country of incorporation

Denmark

Germany

Germany

Account type

Omnibus account

Omnibus account

Omnibus account

Legal account name / holder

Clearstream Banking AG, Frankfurt

Clearstream Banking SA

LuxCSD SA

Operational arrangements

For CBF customers

(Yes/No)

For CBL customers

(Yes/No)

For LuxCSD customers

(Yes/No)

Remarks

Settlement in T2S

Yes

Yes

Yes

Settlement free of payment

Yes

Yes

Yes

Settlement against payment

Yes

Yes

Yes (EUR only)

Eligible settlement currencies (between CBF and CBL counterparties only): AUD, CAD, CHFa, CNY, CZK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY, USD and ZAR.

Settlement against payment in central bank money account

Yes

 Yes. Against payment (EUR and DKK) takes place on the DCA of CBL

Yes

CeBM in EUR only

Bridge settlement

Yes

Yes

Yes

Partial settlement

Yes

Yes

Yes

Recycling

Yes

Yes

Yes

Bilateral cancellation

Yes

Yes

Yes

Settlement penalty fees

Yes

Yes

Yes

Hold and release

Yes

Yes

Yes

T2S: The hold and release feature available in T2S will be used by CBL for pre-matching only.

Transaction linking (back-to-back processing)

Yes

Yes

Yes

Allegements

Yes

Yes

Yes

Registered securities

Yes

Yes

Yes

Transaction management

Yes

Yes

Yes

Multi Market Securities

No

No

No

Lending and borrowing

Yes

Yes

Yes

Debt securities only

Proxy voting

Yes

Yes

Yes

Investment Funds

Yes

Yes

Yes

Liquidity Hub Connect

No

No

No

Sale and purchase of rights

No

No

No

Market restrictions

No

No

No

FTT

No

No

No

Daily reconciliation

Yes

Yes

Yes

Link eligible for use in Eurosystem credit operations

Yes

Yes

Yes

Moment of entry of instructions

T2S: Whereas a transfer order for T2S settlement has been passed on to the T2S System, is deemed “entered” into at the moment at which it has been declared compliant with the technical rules of T2S by the T2S platform.

Irrevocability of instructions

T2S: When a transfer order has been given the status matched on the T2S platform, the transfer order cannot unilaterally be cancelled or revoked.

Finality of instructions


Settlement in T2S is simultaneous, final and irrevocable.

a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CBF.

Legal arrangements

The below section is valid on the date of the legal opinions that were issued and might be subject to change. 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.

For CBF customers link to VP

For CBL customers

(link through CBF)

For LuxCSD customers

(link through CBF)

Date of legal opinion

14 December 2021

30 April 2021

13 December 2021

No insolvency proceedings against the account operator or the CSD

Confirmed

Confirmed

Confirmed

Liability for negligence

The CSD has rights of remedy under the CSD Rules and the CSD Agreement. Clearstream shall not be entitled to claim compensation for any loss or expenses caused by the delay, error or defect or any compensation for any amounts that Clearstream might have had to pay to a third party. However, the CSD shall be liable for damages to Clearstream for any loss caused by the CSD’s wilful act or gross negligence, compare to the CSD Rules. Furthermore, the liability of the parties is made subject to force majeure limitations under Danish law of general application.

Confirmed

Confirmed

Book-entry regime with in rem rights

Confirmed

Confirmed

Confirmed

No entitlement of the CSD  

Confirmed

Confirmed

Confirmed

Recognition as direct CSD account-holder

Confirmed.

Confirmed

Confirmed

Recognition of nominee concept

Confirmed 

Confirmed

Confirmed

No right of retention for the CSD

Confirmed

Confirmed

Confirmed

Segregation of assets at the CSD

Confirmed

Confirmed

Confirmed

No right of use

Confirmed

Confirmed

Confirmed

No upper-tier attachments

Confirmed

Confirmed

Confirmed

Insolvency of CSD with no impact on rights 

Confirmed

Confirmed

Confirmed

Shortfall pro-rated among holders

Confirmed

Confirmed

Confirmed

Record keeping period of at least 10 years

Confirmed

Confirmed

Confirmed

Settlement finality in case of insolvency

Confirmed

Confirmed

Confirmed