Market Link Guide - France
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 | Yesb | |
Type of link | For CBF customers | Direct linkc to Euroclear France for holding Euroclear France/T2S eligible securities, LBS. Direct linkc to LuxCSD for holding selected registered shares (VEN). |
For CBL customers | Direct linkc to Clearstream Banking AG, Frankfurt for holding Euroclear France/T2S eligible securities, except categories below. Direct operated link via BNP Paribas S.A. to Euroclear France for holding loyalty bonus shares and ODMs. Link to BNP Paribas S.A as custodian for holding securities that are not eligible in T2S and in Euroclear France. | |
For LuxCSD customers | Direct linkc to Clearstream Banking AG, Frankfurt for holding Euroclear France/T2S eligible securities, except VEN and LBS. |
a. BNP Paribas S.A. continues to be CBL’s custodian for all T2S-non eligible securities and CBL’s account operator for some T2S-eligible securities.
CSD (as CBF’s and CBL’s depository) | Custodian (as CBL’s depository) | Custodian (as LuxCSD’s depository) | Asset Service Provider for CBF, CBL and LuxCSD Account Operator and Custodian for CBL | |
Name | Euroclear France, Paris | Clearstream Banking AG, Frankfurt | Clearstream Banking AG, Frankfurt | BNP Paribas S.A., Paris |
FATCA GIIN | 1X6QDZ.00003.ME.250 | N1V1GJ.00002.ME.276 | N1V1GJ.00002.ME.276 | 1G159I.00269.BR.528 |
LEI | 54930060MY6S68NEUP16 | 549300298FD7AS4PPU70 | 549300298FD7AS4PPU70 | R0MUWSFPU8MPRO8K5P83 |
Country of incorporation | France | Germany | Germany | France |
Account type | Omnibus account | Omnibus account | Omnibus account | Mirror omnibus account / omnibus account |
Legal Account name / holder | Clearstream Banking AG Clearstream Banking S.A. | Clearstream Banking S.A. | LuxCSD | Clearstream Banking AG Clearstream Banking S.A. |
Operational arrangements
For CBF and LuxCSD customers | For CBL customers | For CBL customers | For LuxCSD customers | ||
Yes/No | Yes/No | Yes/No | Yes/No | Remarks | |
Settlement in T2S | Yes | Yes | Yes/No | Yes | Securities held in custody with BNP Paribas S.A. are non-T2S eligible. |
Settlement free of payment | Yes | Yes | Yes | Yes | |
Settlement against payment | Yes | Yes | Yes (EUR only) | Yes (EUR only) | Eligible settlement currencies (between CBF and CBL counterparties only): |
Settlement against payment in central bank money | Yes | Yes. | No. CBL holds a cash account at BNP Paribas S.A. who uses its account at Banque de France for settlement and asset servicing | Yes | CeBM in EUR only. |
Settlement penalty fees | Yes | Yes | Yes | Yes | As part of the French market discipline regime, some penalty fees can be charged by Euroclear France to its participants failing to deliver securities. In addition, for orders related to Investment funds, the application of penalties for late settlement is market practice (“Charte des bonnes pratiques AFTI”). Such fees will be passed on to customers if and when applicable. CSDR SDR Cash penalties apply |
Partial settlement | Yes | Yes | Yes | Yes | |
Recycling | Yes | Yes | Yes | Yes | |
Bridge settlement | No | Yes | Yes | No | |
Hold and Release | Yes | Yes | Yes | Yes | Partial release available for CBF and LuxCSD |
Allegements | Yes | Yes | Yes | Yes | |
Transaction Linking | Yes | Yes | Yes | Yes | |
Bilateral Cancellation | Yes | Yes | Yes | Yes | |
Registered securities | Yes (VEN/VON) | Yes | Yes | No | The French market is mainly a bearer market. The only securities that require re-registration are:
|
Transaction Management | Yes | Yes | Yes | Yes | |
Multi Market Securities | No | Limited | Limited | No | Limited to transfers to and from T2S Out CSDs if the home market is in T2S. |
Lending and borrowing | Yes | Yes | Yes | Yes | Debt securities only. |
Proxy voting | Yes | Yes | Yes | Yes | |
Investment Funds | Yes | Yes | Yes | Yes | CSD-eligible investment funds only. |
Liquidity Hub Connect | No | No | No | No | |
Sale and purchase of rights | No | No | No | No | |
Repo services | Yes | Yes | Yes | Yes | |
Market restrictions | Yes | Yes | Yes | Yes | Foreign non-resident investors can freely invest in the French securities market but there are specific sectors (defence, safety, public order) which require a prior declaration and subsequent authorisation from the French Ministry of Finance. Non-resident holding may not exceed 5% without prior authorisation from the company concerned and the AMF. |
FTT | Yes | Yes | Yes | No | |
Daily reconciliation | Yes | Yes | Yes | Yes | |
Link eligible for use in Eurosystem credit operations | Yes No – LuxCSD link to Euroclear France | Yes | No | Yes | |
Moment of entry of instructions | The moment of entry of a transfer order in the CSD System is when the instruction has successfully passed the business validation of T2S. | ||||
Irrevocability of instructions | The securities leg of an instruction shall be considered as irrevocable and thus may no longer be unilaterally amended or cancelled as from the moment such instruction is reported "matched" on T2S. | ||||
Finality of instructions | 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 and LuxCSD customers | For CBL customers | For CBL customers | For LuxCSD customers | |
Date of legal opinion | CBF: 20 July 2022 | 13 December 2021 | 10 November 2022 | 6 December 2021 |
No insolvency proceedings against the account operator or the CSD | Confirmed | Confirmed | Confirmed | Confirmed |
Liability for negligence | Confirmed | Confirmed | Confirmed | Confirmed |
Book-entry regime with in rem rights | Confirmed | Confirmed | Confirmed | Confirmed |
No entitlement of the account operator/CSD | Confirmed | Confirmed | Confirmed | Confirmed |
Recognition as direct CSD account-holder | Confirmed | Confirmed | Confirmed | Confirmed |
Recognition of nominee concept | Confirmed | Confirmed | Confirmed | Confirmed |
No right of retention to the account operator/CSD | Confirmed | Confirmed | Confirmed | Confirmed |
Segregation of assets at the CSD | Confirmed | Confirmed | Confirmed | Confirmed |
No right of use | Confirmed | Confirmed | Confirmed | Confirmed |
No upper-tier attachments | Confirmed | Confirmed | Confirmed | Confirmed |
Insolvency of account operator with no impact on rights | Confirmed | Confirmed | Confirmed | Confirmed |
Shortfall pro-rated among holders | Confirmed | Confirmed | Confirmed | Confirmed |
Ten years record keeping | Confirmed | Confirmed | Confirmed | Confirmed |
Settlement finality in case of insolvency | Confirmed | Confirmed | Confirmed | Confirmed |