T2S Link Guide - Denmark

29.01.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Directb

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

b. Interoperable link for T2S-related aspects.

 

CSD

Name

VP Securities A/S

FATCA GIIN

MM0S16.00000.LE.208

LEI

529900HDNBQ2DD0QHJ07

Country of incorporation

Denmark

Account type

Omnibus account

Legal Account name / holder

Clearstream Banking AG

Operational arrangements

Key services

Yes/No

Remarks

Settlement in T2SYes

Settlement free of payment

Yes

 

Settlement against payment

Yes

Eligible settlement currency: Euro (EUR).

Settlement against payment in central bank money account of CBF customerYesAgainst payment in EUR only.

Partial settlement

Yes

 

Settlement penalty fees

No

 

Pre-matching

Yes

 

Hold and release

Yes

 

Linked instructions

Yes

 

Allegements

Yes

 

Automatic compensation

Yes

 

Registered securities

Yes

 

Market claims

Yes

 

Transformations

Yes

 

Lending and borrowing

No

 

Proxy voting

Yes

 

Investment Funds

No

 

Sale and Purchase of rights

No

 

Repo services

No

 

Market restrictions

No

 

FTT

No

 
Daily reconciliationYes
Link eligible for use in Eurosystem credit operationsYes

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 then be mirrored in the VP Clearing and Settlement System.

Legal Arrangements

The below section is based on the legal opinion obtained by CBF that was issued on 5 October 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 CSD

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, cf. the CSD Rules. Furthermore, the liability of the parties is made subject to force majeure limitations under Danish law of general application.

 

Book-entry regime with in rem rights

Confirmed

 

Recognition as direct CSD account-holder

Confirmed

 

Recognition of nominee concept

Confirmed

 

No right of retention for the CSD

Confirmed

 

Segregation of assets at the CSD

Confirmed

 

No right of use

Confirmed

 

No upper-tier attachments

Confirmed

 

Insolvency of CSD with no impact on CBF's rights 

Confirmed

 

Shortfall pro-rated among holders

The registrations in the relevant CSD accounts will determine the rights of the individual account holders. There is no loss sharing agreement or similar documentation or terms in place between account holders.

 

Settlement finality in case of insolvency

Confirmed

 

Record keeping period of at least 10 years

Confirmed

CBF-eligible security types

  • Government bonds;
  • Corporate bonds;
  • Mortgage bonds;
  • Money market instruments (Treasury bills and Treasury notes);
  • Equities.

Depository

VP SECURITIES A/S
Weidekampsgade 14
DK-2300 Copenhagen
Denmark

Cash correspondent details

Currency:

Euro (EUR) via TARGET2

CCB name:

Bundesbank

CBF account:

RTGS account of a direct TARGET2 participant

Cash settlement in EUR will take place in T2S on DCAs which are maintained by Bundesbank or any other National Central Bank participating in T2S. Funding of these DCAs is done from the customers’ TARGET2 RTGS accounts.  In T2S, a DCA must be linked to one RTGS account in TARGET2 to which the remaining cash balances on the DCA is swept out at the End of Day (EoD). DCAs must have a zero balance at EoD. The link is only necessary for this purpose and various DCAs can be linked to one RTGS account.