Market Link Guide - Portugal

04.03.2019

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

Interbolsa - Sociedade Gestora de Sistemas de Liquidação e de Sistemas Centralizados de Valores Mobiliários, S.A (Interbolsa)

BNP Paribas Securities Services SCA (BP2S)

FATCA GIIN

Not available

1G159I.00207.ME.250

LEI

529900LG70TCAGWCXT47

549300WCGB70D06XZS54

Country of incorporation

Portugal

France

Account type

Omnibus account

Omnibus account

Legal account name/holder

BNP Paribas Securities Services as participant of Interbolsa holds an individually segregated account for Clearstream Banking SA

Clearstream Banking SA

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 customers

No

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

Settlement penalty fees

No

 

Shaping Facility

No

 

Partial settlement

Yes

 

Bridge settlement

Yes

 

Hold and Release

Yes

 

Back-to-back processing

Yes

 

Allegements

Yes

 

Automatic compensation

No

 

Registered securities

No

 

Transaction Management

Yes

 

Multi Market Securities

Yes

 

Lending and borrowing

Yes

Debt securities only.

Proxy voting

Yes

 

Investment Funds

Yes

CSD-eligible investment funds only.

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

No

 

Market restrictions

Yes

According to Portuguese Decree Law 193/2005 and in order to allow the holding of Portuguese debt securities, customers must provide a Portuguese Debt Securities - One-time Declaration of Beneficial Ownership certifying that the final beneficial owners do not fall into the market-specific categories that are not entitled to exemption from Portuguese withholding tax.

Note: Law 83/2013, which removed the restrictions on holdings by or on behalf of non-exempt beneficial owners at the ICSDs, remains applicable only to securities still falling under the previous wording of Decree Law 193/2005.

FTT

No

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 

 

Moment of entry of instructions

The moment of the entry into the system of settlement instructions occurs with the validation performed on the T2S platform, according to the T2S rules.

Irrevocability of instructions

The moment of the irrevocability of settlement instructions introduced in the system and properly validated occurs with the matching performed in T2S.

Finality of instructions

The time of settlement finality occurs with the settlement processed in T2S.

Legal arrangements

The below section is based on the legal opinions obtained by CBL that were issued on 14 November 2018 (French law) and 16 November 2018 (Portuguese law)  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

Liability for negligence of the custodian

Confirmed

Book-entry regime with in rem rights

Confirmed under French law

Under Portuguese law, the right in rem remains with the holder of the account opened with the relevant Affiliate of the CSD, irrespective of any sub-custody arrangements.

Recognition of nominee concept

Confirmed under French law

Portuguese law recognises the nominee concept. However, it is debatable whether such nominee concept applies in such a way to allow final investors to be regarded for all legal purposes as the owners of the relevant securities.

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use for the custodian

Confirmed

No upper-tier attachments

The laws and regulations of France and Portugal do not allow for an upper tier attachement of the securities recorded at the level of the CSD account(s).

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

Confirmed

Shortfall pro-rated among holders

Confirmed under French law

Not applicable under Portuguese law in light of the Portuguese Framework. Because there are no securities held at the CSD level, any shortfall would be due to an error of registration, which will entail a correction of the relevant registry entry.

Settlement finality in case of insolvency

Confirmed

Record keeping of at least 10 years

Confirmed