Market Link Guide – Luxembourg – LuxCSD
Reference
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 harmonisation of asset services and connectivity channels between CEU, CBL and LuxCSD.
This Market Link Guide represents Clearstream’s efforts to streamline our custody network and improve our asset servicing and collateral management services in the new T2S environment. The service description is valid for CEU and CBL clients, unless otherwise highlighted in the documentation.
Key features
CSD link as defined under CSDRa | Yes | |
Type of link | For CEU clients | Direct link to LuxCSD |
For CBL clients | Direct link to LuxCSD | |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD (as CEU’s depository) | CSD (as CBL’s depository) | |
Name | LuxCSD S.A. | LuxCSD S.A. |
FATCA GIIN | N1V1GJ.00001.ME.442 | N1V1GJ.00001.ME.442 |
LEI | 222100T6ICDIY8V4VX70 | 222100T6ICDIY8V4VX70 |
Country of incorporation | Luxembourg | Luxembourg |
Account type | Omnibus account | Omnibus account |
Legal account name/holder | Clearstream Europe AG | Clearstream Banking S.A. |
Operational arrangements
For CEU clients | For CBL clients | ||
Yes/No | Yes/No | Remarks | |
Settlement in T2S | Yes | Yes | |
Settlement free of payment | Yes | Yes | |
Settlement against payment | Yes | Yes | Eligible settlement currency: Euro (EUR) |
Settlement against payment in central bank money account | Yes | Yes | For CBL clients against payment settlement in EUR takes place on the DCA of CBL at the Central Bank of Luxembourg. |
Short selling of entitlement | No | No | Short selling of income or corporate actions proceeds is not authorised for settlement in CBL. Please refer to section 4.5 of the CBL Client Handbook. |
Partial settlement | Yes | Yes | |
Recycling | Yes | Yes | |
Bridge settlement | No | Yes | |
Settlement penalty fees | Yes | Yes | |
Hold and Release | Yes | Yes | Partial release available |
Allegements | Yes | Yes | |
Transaction linking | Yes | Yes | |
Bilateral cancellation | Yes | Yes | |
Registered securities | No | No | |
Transaction management | Yes | Yes | |
Multi-Market Securities | No | No | |
Lending and borrowing | Yes | Yes | |
Proxy voting | Yes | Yes | |
Investment Funds | Yes | Yes | |
Liquidity Hub Connect | No | No | |
Sale and purchase of rights | No | No | |
Repo services | No | No | |
Market restrictions | Yes | Yes | Please refer to the Investment regulation section of the Market Profile for more details. |
FTT | No | No | |
Daily reconciliation | Yes | Yes | |
Link eligible for use in Eurosystem credit operations | Yes | Yes |
Moment of entry of instructions | Transfer orders to be settled on the T2S Platform that are subject to matching shall be deemed entered into the system at the moment at which such transfer orders have been declared compliant with the technical rules of T2S by the T2S platform. |
Irrevocability of instructions | Transfer orders become irrevocable at the moment they have been given a matched status on the T2S platform. |
Finality of instructions | Settlement in T2S is simultaneous, final and irrevocable. |
Local legislation
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. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD | |
Date of legal opinion | 31 March 2025 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the Securities. Rights on the securities are rights in rem. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. |
No right of retention to the CSD under local law | CSD does not have a lien or similar encumbrances on the Securities under local law. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Laws of the jurisdiction restrict CSD from using securities without Clearstream’s prior consent. |
Segregation of assets at the CSD | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Cash would be recoverable |
Shortfall pro-rated among holders | Shortfall in the securities would be allocated among the holders of the applicable Securities pro rata to their respective ownership percentages. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. |
