Market Link Guide - Latvia

21.08.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

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


CSD

Custodian

Name

Nasdaq CSD SE

AS SEB Pank, Tallinn

FATCA GIIN

Not available

6BRL9A.00035.ME.233

LEI

485100001PLJJ09NZT59

549300ND1MQ8SNNYMJ22

Country of incorporation

Latvia

Estonia

Account type

Omnibus account

Omnibus account

Legal Account name / holder

The account is the name of Clearstream Banking Luxembourg S.A. Clients under AS SEB Pank as custodian and Nasdaq CSD SE.

Clearstream Banking S.A. Clients

Operational arrangements

 

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 CBL/CBL customersNoCBL holds a cash account at the custodian. Against payment settlement in EUR takes place on the custodian’s DCA at the local central bank.

Settlement penalty fees

Yes

In cases of delay of settlement date (SD), 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

No


Bridge settlement

No


Hold and Release

No

 

Allegements

Yes


Transaction Linking

Yes

 

Registered securities

No

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


Multi Market Securities

No


Lending and borrowing

Yes

Debt securities only.

Proxy voting

Yes


Investment Funds

No

 

Liquidity Hub Connect

No


Sale and purchase of rights

Yes

 

Repo services

Yes


Market restrictions

Yes

 

FTT

No


Daily reconciliation

Yes 

Link eligible for use in Eurosystem credit operations

No
Moment of entryValidation performed on the T2S platform, according to the T2S rules.
IrrevocabilityMatching in T2S

Settlement finality

Settlement in T2S is simultaneous, final and irrevocable.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 27 April 2017. 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 custodian

Confirmed

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Local law does not provide for shortfall rules.

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least 10 yearsConfirmed