Market Link Guide – UK equities, corporate bonds and investment trusts
Reference
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | Euroclear UK and International Ltd (EUI) | Citibank N.A., London Branch |
FATCA GIIN | IWVIDJ.99999.SL.826 | NXUTG8.00000.BR.826 |
LEI | 549300M5MYAD51WHJD55 | E57ODZWZ7FF32TWEFA76 |
Country of incorporation | UK | U.S.A. |
Account type | Omnibus account | Omnibus account |
Legal Account name/holder | Citibank N.A, London Branch as EUI direct participant holding individually segregated participant IDs on behalf of CBL in the EUI Crest system. Securities are registerd in the name of Vidacos Nominees Limited. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currencies: British Pound (GBP), Euro (EUR) and U.S. Dollar (USD). |
| Settlement in T2S | No | |
| Settlement against payment in central bank money account of CBL/CBL customers | No | CBL holds a cash account with the Custodian that settles against payment transactions in GBP, EUR, USD on behalf of CBL in Central Bank Money for GBP and EUR and CoBM for USD settlement. |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | Yes | See Settlement services. |
| Settlement penalty fees | Yes | See Settlement services. |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | Book-entry equities only. |
| Allegements | No | |
| Automatic compensation | Yes | Market claims are automatically created and settled by Euroclear UK and International for both cash and securities disributions (including transformations). For further details see Entitlement Compensation Rules - UK. |
| Registered securities | Yes | |
| Multi Market Securities | Yes | |
| Lending and borrowing | No | |
| Proxy voting | Yes | |
| Investment Funds | Yes | CREST eligible closed-end funds. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
| Moment of entry | Settlement instruction is received by the CREST system. |
| Irrevocability | Matched instructions are irrevocable and require bilateral cancellation. |
Settlement finality | Settlement in the EUI Crest system is final and irrevocable. |
Legal arrangements
The below section is based on the legal opinion obtained by CBL that was issued on 30 March 2024. 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 |
Liability for negligence | Confirmed |
Book-entry regime with in rem rights | Under local laws and regulations, CBL has a beneficial proprietary interest (as tenant in common) in its pro-rata share of securities held by the Custodian for its clients in accordance with its interest in securities recorded in and represented by the Custody Account. |
Recognition of nominee concept | Confirmed |
No right of retention to the Custodian/CSD | Confirmed |
Segregation of assets at the CSD | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | As long as the substantive law applicable to the securities credited to the custody account remains in local law, then an upper tier attachment should not occur but is subject to the discretion of the English courts. |
Insolvency of Custodian with no impact on CBL's rights | Confirmed |
Shortfall pro-rated among holders | Confirmed |
| Record keeping of at least 10 years | The local law does not regulate retention periods. The custodian has committed to record keeping period of at least seven (7) and 10 years in relation to records of securities held by the custodian. |
Settlement finality in case of insolvency | Confirmed |
