Link Guide - Bridge

16.06.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Interoperable link according to CSD Regulation (EU) No 909/2014 Article 2(33))

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

Important preliminary note: The interoperable link between Clearstream Banking S.A. and Euroclear Bank NV/SA is a mutual technical solution to facilitate the transfer of securities between their participants in the securities settlement systems that they separately operate in Luxembourg for Clearstream Banking S.A. and in Belgium for Euroclear Bank NV/SA. The Bridge infrastructure consists of a proprietary electronic communication platform that facilitates the efficient settlement of securities transactions between counterparties in Euroclear Bank NV/SA and in Clearstream Banking S.A.

The settlement platform of each of the two linked ICSDs is used to settle Bridge transactions.

The Bridge Link Guide takes into account the specific features of this interoperable link and displays the main information relevant for the customers and solely applicable to them regarding the Bridge-related settlement activities where from time to time one ICSD holds some securities with the other ICSD due to the Bridge activity. In this case, the latter will provide securities services in line with its operating procedures.

Name of the linked CSD

Euroclear Bank NV/SA

FATCA GIIN of the linked CSD

1X6QDZ.00000.LE.056

LEI of the linked CSD

549300OZ46BRLZ8Y6F65

Country of incorporation of the linked CSD

Kingdom of Belgium

Operational arrangements

Yes/No

Remarks

Settlement in T2S

No

Settlement free of payment

Yes

 

Settlement against payment

Yes

 

Settlement against payment in central bank money account of CBL/CBL customer

No

 

Partial settlement

No

 

Bridge settlement

Yes

Upon eligibility granted by the two entities

Settlement penalty fees

No

 

Hold and release

Yes

 

Allegements

Yes

 

Transaction linking

Yes

 

Registered securities

Yes

Please check each specific Market Link Guide accordingly

Transaction management

Yes

Please see Transaction management in Asset services

Multi Market Securities

No

 

CBL lending and borrowing and collateral management service

Yes

 

Investment Funds

Yes

If Bridge eligibility is granted by the two entities

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

No

 

Market restrictions

Yes

Please check each specific Market Link Guide accordingly

FTT

Yes

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

Yes

 

Settlement finality

As the settlement platform of each of the linked CSD is used to settle Bridge transactions, the moment of entry and irrevocability of transfer orders received by Clearstream Banking S.A. from the customers and the finality rules are available in Section 4.1 of the CBL Customer Handbook.

Moment of entry

Bridge instructions from customers are deemed to be introduced into the CBL securities settlement system when they are successfully validated, in view of the matching and the Bridge settlement processes.

Irrevocability

Customers can request a cancellation for all Bridge securities instructions already sent to CBL.

A Bridge delivery or receipt instruction cannot be cancelled or amended in the following circumstances:

  • If provision has been debited from the account during the Settlement processing but confirmation or refusal of the transaction has not yet been received from the Counterparty.
  • If it has been reported as settled via Xact Web Portal, CreationOnline, ClearstreamXact MT536 (Statement of Transactions), MT54x and additional MT950 (Money Statement) for against payment.
Settlement finality

Yes 

Finality is reached for the Bridge Instructions which have been reported as settled via Xact Web Portal, CreationOnline, ClearstreamXact MT536 (Statement of Transactions), MT54x and additional MT950 (Money Statement) for against payment.

Legal arrangements

Liability of CBL towards customers

Yes.

As the settlement is taking place in each of the CSD securities settlement system, i.e. in Clearstream Banking S.A. (CBL), as far as CBL’s customers are concerned, the liability for negligence rules is set out in CBL’s GTCs.

Book entry regime

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Recognition of in rem rights

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

No right of retention for the CSD

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

Segregation of assets at the CSD

Yes

The rules applicable to the segregation are the one defined by CBL as there is no sub-deposit with Euroclear Bank NV/SA.

Such concept is nevertheless recognised in the linked CSD jurisdiction and in the  jurisdiction of CBL.

No right of use

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

No upper-tier attachments

Yes

There is no sub-deposit with Euroclear Bank NV/SA. Such legal concept is nevertheless recognised in the linked CSD jurisdiction and in the jurisdiction of CBL.

Insolvency of the CSD with no impact on the other CSD's rights 

  • Insolvency of the linked CSD: no impact on CBL’s rights
  • Insolvency of CBL: no impact on the linked CSD’s rights

Shortfall pro-rated among holders

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Record keeping period of at least 10 years

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes

Validity and enforceability of the Bridge Agreement

  • In the jurisdiction of the linked CSD: Yes
  • In the jurisdiction of CBL: Yes