Market Link Guide – Estonia, Latvia and Lithuania (Nasdaq CSD)
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 Nasdaq CSD. |
For CBL customers | Direct linkb to Clearstream Banking AG, Frankfurt for holding Nasdaq CSD/T2S eligible securities. | |
For LuxCSD customers | Direct linkb to Clearstream Banking AG, Frankfurt for holding Nasdaq CSD/T2S eligible securities. | |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
b. Interoperable link for T2S-related aspects.
CSD | CSD | CSD | Custodian | Custodian | ||
Name | Nasdaq CSD SE (Estonian branch) | Nasdaq CSD | Nasdaq CSD | Clearstream Banking AG, | Clearstream Banking AG, | |
FATCA GIIN | Not available | Not available | Not available | N1V1GJ.000 | N1V1GJ.000 | |
LEI | 485100001P | 485100001PLJ | 485100001PLJJ | 5493004PP5 | 5493004PP58 | |
Country of incorporation | Nasdaq CSD SE is incorporated in Latvia and operates the Estonian Settlement System through Estonian branch, which is governed by the Estonian law. | Latvia | Nasdaq CSD SE is incorporated in Latvia and operates the Lithuanian Settlement System through the Lithuanian branch, which is governed by Lithuanian Law. | Germany | Germany | |
Account Type | Omnibus account | Omnibus account | Omnibus account | Omnibus account | Omnibus account | |
Legal Account name/holder | Clearstream Banking AG, | Clearstream Banking AG, | Clearstream Banking AG, | Clearstream Banking S.A. | LuxCSD S.A. | |
Operational arrangements
For CBF customers | For CBL customers | For LuxCSD customers | 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, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY, USD and ZAR. |
Settlement in central bank money | Yes | Yes. Against payment takes place on the DCA of CBL | Yes | CeBM in EUR only. |
Settlement penalty fees | Yes | Yes | Yes | If settlement date (SD) is delayed, a service fee is applied at Nasdaq Baltic exchange. The service fee for the postponement of the SD due to the default of the transaction consists of a fixed proceeding fee (EUR 70) and an added percentage (0.1%) of the transaction value for each trading (business) day with a maximum up to EUR 500. The proceeding fee is a one-off fee but the added percentage is applicable for each trading day by which the actual SD of the transaction differs from the initial SD (= Value Date) of the transaction. Any related service fees applied on any customer late transactions will be debited to the impacted customer as out of pocket fees. |
Partial settlement | Yes | Yes | Yes | |
Bridge settlement | No | No | No | |
Hold and Release | Yes | Yes | Yes | Partial release available for CBF and LuxCSD. |
Allegements | Yes | Yes | Yes | |
Transaction Linking | Yes | Yes | Yes | |
Registered securities | Yes | Yes | Yes | There is no register in Latvia. The proof of title of ownership is an entry in the securities account that the owner has opened with a custodian; except for nominee accounts. in such cases the ownership is registered by the nominee account holder. Securities and ownership transfer is an integrated process, that could not be separated. Transfer entry means that the ownership is passed to the buyer. |
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 | Nasdaq CSD-eligible investment funds only (not applicable for Latvia). |
Liquidity Hub Connect | No | No | No | |
Sale and purchase of rights | Yes | Yes | Yes | |
Market restrictions | Yes | Yes | Yes | |
FTT | No | No | No | |
Daily reconciliation | Yes | Yes | Yes | |
Link eligible for use in Eurosystem credit operations | Yes | Yes | Yes | |
Moment of entry | Validation performed on the T2S platform, according to the T2S rules. | |||
Irrevocability | Transfer orders become irrevocable upon matching. | |||
Settlement finality | 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 Nasdaq CSD) | For CBL customers (link to CBF) | For LuxCSD customers (link to CBF) | |
Date of legal opinion | 12 November 2019 | 9 April 2020 | 5 March 2020 |
No insolvency proceedings against the CSD | Confirmed | Confirmed | Confirmed |
Liability for negligence | Confirmed | Confirmed | Confirmed |
Book-entry regime with in rem rights | Confirmed for Estonia, Latvia. | 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 | Local law (Estonia, Latvia does not provide for shortfall rules (Confirmed for Lithuania) | Confirmed | Confirmed |
Record keeping of at least ten years | Confirmed | Confirmed | Confirmed |
Settlement finality in case of insolvency | Confirmed | Confirmed | Confirmed |