Market Link Guide – Estonia, Latvia and Lithuania (Nasdaq CSD)

01.04.2020

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
(as CBF’s depository in Estonia)

CSD
(as CBF’s depository in Latvia)

CSD
(as CBF’s depository in Lithuania)

Custodian
(as CBL’s depository)

Custodian
(as LuxCSD’s depository)

Name

Nasdaq CSD SE (Estonian branch)

Nasdaq CSD
SE (Latvia branch)

Nasdaq CSD
SE (Lithuania branch)

Clearstream Banking AG,
Frankfurt

Clearstream Banking AG,
Frankfurt

FATCA GIIN

Not available

Not available

Not available

N1V1GJ.000
02.ME.276

N1V1GJ.000
02.ME.276

LEI

485100001P
LJJ09NZT59

485100001PLJ
J09NZT59

485100001PLJJ
09NZT59

5493004PP5
8SUE3G8M27

5493004PP58
SUE3G8M27

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,
Frankfurt

Clearstream Banking AG,
Frankfurt

Clearstream Banking AG,
Frankfurt

Clearstream Banking S.A.

LuxCSD S.A.

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, 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

22 October 2019

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.
In Lithuania, the ownership title and the right in rem to the securities credited with the custodian belong to the underlying customers of the custodian, such as CBL, unless such underlying customers are not disclosed / known to the custodian. The relationship between the custodian and its underlying customers is to be construed as a trust, while the custodian benefits from a right in rem as a trustee.

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