Market Link Guide - New Zealand
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 | NZCSD | BNP Paribas Australia Branch |
FATCA GIIN | Not applicable | 1G159I.00207.BR.036 |
LEI | 54930066LV3G32L0HB48 | R0MUWSFPU8MPRO8K5P83 |
Country of incorporation | New Zealand | France |
Account type | Omnibus account | Omnibus account |
Account name | All NZCSD eligible securities are registered in the name of BNP Paribas Nominees Pty Ltd BNP Paribas Australia Branch as the participant in NZCSD, holds securities under the name BNP Paribas Nominees Pty Ltd with a dedicated account qualifier for CBL as follows: BNP Paribas Nominees NZ Limited Mnemonic: BPSS42 | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: New Zealand Dollar (NZD). |
| Settlement against payment in central bank money account of CBL/CBL customer | No | Against payment settlement takes place on the cash account of BNP Paribas Australia Branch. Only CSD-member banks can have an account at the local central bank. |
| Bridge settlement | Yes | |
| Shaping facility | No | |
| Partial settlement | No | Except when the local CSD imposes the partial delivery of securities. |
| Settlement penalty fees | No | |
| Pre-matching | Yes | Subject to counterparty availability. |
| Back-to-back processing | Yes | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | Yes |
|
| Multi Market Securities | Yes | Refer to the Multi-securities Guide. |
| Lending and borrowing | Yes | Debt Securities. |
| Proxy voting | Yes | |
| Investment Funds | Yes | ETF only. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). |
| Market restrictions | Yes | Holding restrictions apply. |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
| Moment of entry of instructions | The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
| Irrevocability of instructions | Matched instructions are irrevocable and require bilateral cancellation. |
| Finality of instructions | Settlement is considered final once cash and securities are exchanged and a confirmation is received from the CSD. It is not possible to unwind completed settlement. |
Legal arrangements
The below section is based on the legal opinion obtained by CBL that was issued on 21 September 2023. 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 | Local laws do not explicitly provide for in rem rights. Despite the lack of a local court decision, based on common law principles, CBL should have in rem rights to the securities deposited with the custodian. |
Recognition of nominee concept | Confirmed |
No right of retention to the custodian | Confirmed |
Segregation of assets at the CSD | No statutory requirement for the custodian to segregate its own assets from the assets held for its account holders. |
No right of use | Confirmed |
No upper-tier attachments | Confirmed |
Insolvency of custodian with no impact on CBL's rights | In the case of liquidation, statutory management or voluntary administration being initiated or filed against the custodian, such procedure may, depending on the factual circumstances, impact on CBL's rights on the assets. |
Shortfall pro-rated among holders | Share of shortfall on a pro rata basis is the most likely outcome. |
| Record keeping period of at least 10 years | No minimum retention period under the local laws. CBL makes it an obligation in the Agreement. |
Settlement finality in case of insolvency | Local laws do not provide for the irrevocability and unconditionality of non-provisional transfers of securities. |