CFCL General information – France
Reference
CFCL eligible fund types
Register market
French investment funds that are created pursuant to the UCITS directive / AIFMD are eligible in Clearstream Fund Centre, namely:
- Undertaking for Collective Investment in Transferable Securities (UCITS), (Organismes de Placement Collectif en Valeurs Mobilières (OPCVM))
- Alternative Investment Funds (AIF), (Fonds d’Investissement Alternatifs (FIA))
In France, the financial securities (titres financiers) are dematerialised in accordance with the law no. 81-1160 of 30 December 1981 (as codified under Articles L. 211-3 of the Monetary and Financial Code, the “Code”). Consequently, investment fund units and shares are evidenced by book-entries in the securities accounts.
These financial securities can be issued in either bearer form (au porteur) or registered form (forme nominative). Pursuant to Sapin 2 Law and Article D. 211-9-1 of the Code, Clearstream Fund Centre will act as the Registered Intermediary (intermédiaire inscrits) for French investment funds.
CSD link
Please refer to the General information – France for more information about funds available via the CSD link.
Eligible funds
Investment funds that are CSD-eligible, T2S eligible and ETFS can be made eligible in CFCL.
Exchange Traded Funds (ETFs)
Listed ETFs have the same settlement process as listed equities.
CSD-eligible funds, T2S-eligible funds
French investment funds that are eligible in Euroclear France or T2S can be made eligible in Clearstream Fund Centre.
Custody chain and depository
France is a T2S market.
The OneClearstream service level provides clients with a single point of access to all T2S markets with comprehensive instruments coverage. This is complemented by full harmonization of asset services and connectivity channels between CFCL, CBL, and CEU.
The service description is valid for CFCL clients, unless otherwise highlighted in the documentation. CFCL utilises the T2S infrastructure platform to access France’ CSD (Euroclear France) through the intermediaries of CBL and CEU. Indeed, CFCL uses CBL as a global custodian across all markets.
CSD | Custodian | CBL (as CFCL’s depository) | Asset Service Provider for CBL, Account Operator/custodia n for CBL2 | |
Name | Euroclear France, Paris | Clearstream Europe AG | Clearstream Banking S.A. | BNP Paribas S.A, Paris |
FATCA GIIN | 1X6QDZ.00003.ME.250 | N1V1GJ.00002.ME.276 | N1V1GJ.00000.LE.442 | 1G159I.00269.BR.5 28 |
LEI | 54930060MY6S68NEUP16 | 549300298FD7AS4PPU 70 | 549300OL514RA0SXJJ44 | R0MUWSFPU8MPR O8K5P83 |
Country of incorporation | France | Germany | Luxembourg | France |
Account type | Omnibus | Omnibus | Segregated | Mirror omnibus / omnibus |
Legal Account name/holder | Clearstream Banking S.A. Clearstream Europe AG | Clearstream Fund Centre S.A. | Clearstream Fund Centre S.A. | Clearstream Banking S.A. |
Depository
Depository | CSD/Local custodian/Agent |
CBL | All T2S-eligible assets Custodian/Depository for all non-T2S eligible assets (1F) Account operator/Depository 93500 Pantin |
a. BNP Paribas S.A continues to be CBL’s depository for all non-T2S eligible securities and CBL's account operator.
Operational arrangements
This section describes the operational arrangements of the French market:
Domestic Market | Register Market | Remarks | ||
For CFCL clients (link to CEU through CBL) | For CFCL clients (link to Euroclear France/BNP Paribas S.A) | |||
Settlement in T2S | Yes | Yes/No | N/A | Securities held in custody with BNP Paribas S.A. are non-T2S eligible. |
Settlement free of payment | Yes | Yes | Yes | |
Settlement against payment | Yes | Yes (EUR only) | Yes | Eligible settlement currencies (between CEU, CBL and CFCL counterparties only): AUD, CAD, CHFb , CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, SEK, SGD, TRY, USD and ZAR. |
Settlement against payment in central bank money | 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 | N/A | |
Short selling of entitlement | No | No | N/A | Short selling of income or corporate actions proceeds is not authorised for settlement in CFCL. Please refer to CFCL Client Handbook. |
Settlement penalty fees | Yes | Yes | N/A | 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 clients if and when applicable. CSDR SDR Cash penalties apply. |
Partial settlement | Yes | Yes | N/A | |
Recycling | Yes | Yes | N/A | |
Settlement with Euroclear | No | Yes | N/A | |
Hold and Release | Yes | Yes | N/A | |
Allegements | Yes | Yes | N/A | |
Transaction Linking | Yes | Yes | N/A | |
Bilateral Cancellation | Yes | Yes | N/A | |
Registered securities | Yes | Yes | N/A | |
Transaction Management | Yes | Yes | N/A | |
Proxy voting | Yes | Yes | N/A | |
Liquidity Hub Connect | No | No | N/A | |
Sale and purchase of rights | No | No | N/A | |
Repo services | No | No | N/A | |
Market restrictions | Yes | Yes | N/A | |
FTT | Yes | Yes | N/A | |
Daily reconciliation | Yes | Yes | N/A | |
Link eligible for use in Eurosystem credit operations | Yes | No | N/A | |
Moment of entry of instructions | The moment of entry of a transfer order 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 | |||
b. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CEU.
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.
As CBL is our sub-custodian, please refer to the Market Link Guide – France for the complete information about Legal arrangements.
Cash correspondent details
Currency: | Euro (EUR) via T2 RTGS |
CCB name: | Banque centrale du Luxembourg |
CBL account: | |
Swift address: | TRGTXEPMRTG |