T2S Link Guide - Denmark
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 T2S | Yes | |
Settlement free of payment | Yes | |
Settlement against payment | Yes | Eligible settlement currency: Euro (EUR). |
| Settlement against payment in central bank money account of CBF customer | Yes | Against 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 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 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 |
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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. |
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Book-entry regime with in rem rights | Confirmed |
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Recognition as direct CSD account-holder | Confirmed |
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Recognition of nominee concept | Confirmed |
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No right of retention for the CSD | Confirmed |
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Segregation of assets at the CSD | Confirmed |
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No right of use | Confirmed |
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No upper-tier attachments | Confirmed |
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Insolvency of CSD with no impact on CBF's rights | Confirmed |
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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. |
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Settlement finality in case of insolvency | Confirmed |
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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.