Market Link Guide - Denmark

14.08.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct Operated

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


CSD

Account operator

Name

VP Securities A/S

Danske Bank A/S

FATCA GIIN

MM0S16.00000.LE.208

MQ79H2.00000.LE.208

LEI

529900HDNBQ2DD0QHJ07

MAES062Z21O4RZ2U7M96

Country of incorporation

Denmark

Denmark

Account type

Omnibus account

Mirror omnibus account

Legal account name / holder

Clearstream Banking SA

Clearstream Banking SA

Operational arrangements

 

T2S (Yes/No)

VP system (Yes/No)

Remarks


Settlement in T2S

Yes

No



Settlement free of payment

Yes

Yes

All T2S eligible securities will settle in T2S. Only non-eligible T2S securities will remain in VP system.


Settlement against payment

Yes

Yes

VP system-eligible settlement currency: Danish Krone (DKK).
T2S-eligible settlement currency: EUR and DKK.


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

No


CBL holds a cash account at Danske Bank. Against payment settlement takes place on Danske Bank’s account at the Central Bank of Denmark for DKK and on the DCA of Danske Bank for EUR.


Bridge settlement

Yes

Yes



Partial settlement

Yes

No



Settlement penalty fees

No

No



Hold and release

Yes

Yes

VP System: Pre-matching is available.

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



Allegements

Yes

Yes

VP System: Via the CSD on against payment transactions only.


Registered securities

Yes

Yes



Transaction management

Yes

Yes



Multi Market Securities

Yes

Yes



Lending and borrowing

Yes

Yes



Proxy voting

Yes

Yes



Investment Funds

Yes

Yes



Liquidity Hub Connect

No

No



Sale and purchase of rights

No

No



Repo services

Yes

Yes



Market restrictions

No

No



FTT

No

No



Daily reconciliation

Yes


Link eligible for use in Eurosystem credit operations

Yes



Moment of entry of instructions

VP system: Upon receipt of the transfer order for settlement, VP will make an acknowledgement available to the instructing party and any other participants in the settlement of the transaction in question. As from that moment the transfer order is deemed "entered" into the VP Clearing and Settlement system.


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

VP system: When matching of a transfer order has occurred, the transfer order cannot be cancelled or revoked unilaterally by either the participant or a third party.


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

VP system: A transfer order for Settlement in a batch is finally settled (unconditional, irrevocable and enforceable) as from the moment when the batch in which the transfer order is settled is completed (the Moment of Settlement Finality).

 

T2S: A transfer order is finally settled (unconditional, irrevocable and enforceable) as from the account entry (credit) of the securities on the receiving settlement participant’s account on the T2S platform. The corresponding account entry will hereafter be mirrored in the VP Clearing and Settlement System.

Legal Arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 16 April 2018 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 account operator or the CSD

Confirmed

Liability for negligence

Account operator: confirmed

CSD: Liability limited to direct losses of CBL (excluding any amounts that CBL might have had to pay to a third party), except in case of loss caused by the CSD's wilful act or gross negligence. Furthermore, the liability of the parties is made subject to force majeure limitations under local law of general application.

Book-entry regime with in rem rights

Confirmed

No entitlement of the account operator/CSD  

Confirmed

Recognition as direct CSD account-holder

Confirmed.

Recognition of nominee concept

Confirmed  (subject to applicable conflict of law rules, which point, from a local law perspective, to Luxembourg law).

No right of retention for the account operator/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of account operator/CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed, noting that the registrations in the relevant CSD accounts will determine the rights of the individual account holders and that the CSD will be liable if the shortfall is caused by it.

Record keeping period of at least 10 yearsConfirmed

Settlement finality in case of insolvency

Confirmed