Market Link Guide - Russia
Reference
Key features
Further to Announcements A22018 and A22021, Clearstream reminds clients that some services on Russian link are impacted until further notice.
CSD link as defined under CSDRa | Yes |
Type of link | Direct |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | |
Name | National Settlement Depository (NSD) |
FATCA GIIN | XNBBND.00000.LE.643 |
| LEI | 253400M18U5TB02TW421 |
Country of incorporation | Russia |
Account type | Nominee account (Foreign Nominee Holder) |
Account name | Clearstream Banking SA |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | No | |
| Settlement free of payment | No | |
| Settlement against payment | No | |
| Settlement against payment in central bank money account of CBL/CBL client | No | |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | No | |
| Pre-matching | No | |
| Back-to-back processing | No | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | No | |
| Multi Market Securities | No | |
| Lending and borrowing | No | |
| Proxy voting | No | |
| Investment Funds | No | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | Yes | As communicated in Announcements A22018, A22021 and A22028, domestic Russian securities held on Clearstream depository 5R are not eligible for settlement until further notice. Russian Presidential Decree N°95 issued on 5 March 2022 and the Central Bank of Russian Federation (CBRF) Prescription No. 018-34-4/1468 dated 6 March 2022 suspend the execution of all operations involving the transfer of securities issued by Russian entities from accounts opened by foreign legal entities and individuals, including Foreign Nominee Holder account holders such as Clearstream, to foreign legal entities and individuals. The National Settlement Depository has, in consequence, placed the securities deposits of Foreign Nominee Holders onto a blocked Type-C (sometimes known as a Type S) account in its books. |
| FTT | No | |
| Daily reconciliations | No | |
| Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | Instructions are not currently permitted under Presidential Decree 95. |
Irrevocability of instructions | Instructions are not currently permitted under Presidential Decree 95. |
Finality of instructions | Instructions are not currently permitted under Presidential Decree 95. |
Legal arrangements
On 3 June 2022, the National Settlement Depository was subject to asset freezing measures by the European Union. Clearstream has taken appropriate steps to ensure compliance with the measures. As a consequence, network management due diligence arrangements will not be carried out on Depository 5R until further notice.
As communicated in Announcements A22018, A22021 and A22028, domestic Russian securities held on Clearstream depository 5R are not eligible for settlement until further notice.
Russian Presidential Decree N°95 issued on 5 March 2022 and the Central Bank of Russian Federation (CBRF) Prescription No. 018-34-4/1468 dated 6 March 2022 suspend the execution of all operations involving the transfer of securities issued by Russian entities from accounts opened by foreign legal entities and individuals, including Foreign Nominee Holder account holders such as Clearstream, to foreign legal entities and individuals. The National Settlement Depository has, in consequence, placed the securities deposits of Foreign Nominee Holders onto a blocked Type-C (sometimes known as a Type S) account in its books.
As per the information notice at the beginning of the page, the below details on legal arrangements are suspended and not applicable until further notice.
| No insolvency proceedings against the Agent or the CSD | Confirmed |
| Liability for negligence | Confirmed |
| Book-entry regime with in rem rights | CBL is conferred only a contractual right (as opposed to a right in rem) to the securities credited to the direct CSD account. A person with a contractual right shall be entitled to claim from the debtor the discharge of its obligation by performing a certain action or by refraining from performing a certain action. |
| No entitlement of the Agent/CSD | Confirmed |
| Recognition as direct CSD account-holder | Confirmed |
| Recognition of nominee concept | Confirmed |
| No right of retention to the Agent/CSD | Confirmed |
| Segregation of assets at the CSD | Confirmed |
| No right of use | Confirmed |
| No upper-tier attachments | Confirmed |
| Insolvency of agent with no impact on CBL's rights | Confirmed |
| Shortfall pro-rated among holders | Neither the CSD Rules nor local law provide for specific shortfall allocation arrangements. |
| Record keeping for a period of ten years | Under the laws and regulations of Russia, the CSD has the obligation to maintain records for at least five (5) years. |
| Settlement finality in case of insolvency | Instructions are not currently permitted under Presidential Decree 95. |
