Market Link Guide - Saudi Arabia

15.06.2021

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect via The Hongkong and Shanghai Banking Corporation Limited acting through HSBC Saudi Arabia

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

 

CSD

Custodian

Name

Securities Depository Center Company (Edaa)

The Hongkong and Shanghai Banking Corporation Limited, acting through HSBC Saudi Arabia

FATCA GIIN

L5QN9K.99999.SL.682

4RI52Y.00000.BR.392

LEI

Not available

2HI3YI5320L3RW6NJ957

Country of incorporation

Saudi Arabia

Hong Kong via its branch in Saudi Arabia

Account type

Omnibus account under a foreign nominee structure

Omnibus account

Legal account name/holder

Clearstream Banking S.A.

Clearstream Banking S.A.

Operational arrangements

 

Yes/No

Remarks

Settlement free of payment

Yes

For NCBO transfers and new issues settlement

Settlement against payment

Yes

Eligible settlement currency:

Domestic instructions: Saudi Riyal (SAR) only

Internal instructions: All eligible settlement currencies

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

No

Against payment settlement takes place on the cash account of HSBC Saudi Arabia.

Bridge settlement

No

 

Shaping facility

No

 

Partial settlement

Yes

Partial settlement is possible in forced settlement and buy-in scenarios.

Settlement penalty fees

Yes

Refer to the Market Profile - Saudi Arabia.

Pre-matching

Yes

 

Back-to-back processing

No

 

Allegements

No

 

Automatic compensation

No

 

Registered securities

Yes

Registration takes place automatically upon settlement.

Multi Market Securities

No

 

Lending and borrowing

No

 

Proxy voting

Yes

 

Investment Funds

Yes

 Domestic/internal settlement only

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

Yes

Internal Repo service (refer to CmaX Product Guide).

Market restrictions

Yes

Customers and/or beneficial owners who are of Saudi Arabian nationality and/or residents of Saudi Arabia are not permitted as per local regulations.

FTT

No

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

At the time of orders reaching the Saudi Exchange.

Irrevocability of instructions

Trade orders sent to the Saudi Exchange are binding and irrevocable upon their execution.

Finality of instructions

Securities transfer into buyer’s account and cash credited into the account of the Settlement Member of the seller.

Legal arrangements

The below section is based on the legal opinions obtained by CBL that were issued on 29 April 2021. 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 at the custodian

Local law does not provide for a book-entry regime but does not prohibit it.

Recognition of nominee concept at the custodian

Confirmed

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use at the custodian

Confirmed

No upper-tier attachment at the custodian

Confirmed

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

Confirmed

Shortfall pro-rated among holders at the custodian

Shortfall shall be borne by the custodian

Record keeping of at least 10 years

The custodian has committed to record keeping period of at least seven years in accordance with the statutory law requirement in Hong Kong.

There is no general requirement under local law for the custodian to maintain records of its services or activities with respect to its custody business for a period of at least 10 years. The contractual obligation to retain records for seven years as provided in the Agreement would be recognised by a Saudi court.

Settlement finality if for insolvency at the custodian

Confirmed