Market Link Guide – Georgia
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect via JSC Bank of Georgia to:
|
a.CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | National Bank of Georgia (NBG) Georgian Central Securities Depository (GCSC) | JSC Bank of Georgia |
FATCA GIIN | Not available | K5YGNR.00000.LE.268 |
LEI | NBG: 254900MHQHBC58M2GR84 GCSD: Not available | 549300RPLD8RXL49Z691 |
Country of incorporation | Georgia | Georgia |
Account type | NBG: Omnibus account GCSD: Omnibus account | Omnibus account |
Legal Account name / holder | Clearstream Banking S.A. nominee account via JSC Bank of Georgia Nominee account called “Bank of Georgia/Clearstream Banking S.A. nominee account” in the books of each CSD i.e. NBoG and GCSD. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | No | |
| Settlement against payment in central bank money account of CBL/CBL clients | Not available | |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | No | |
| Pre-matching | No | |
| Back-to-back processing | No | |
| Allegements | Yes | Only for Government-issued securities settled with the Central Bank of Georgia. |
| Automatic compensation | No | |
| Registered securities | Not available | There is no registration of securities in Georgia as a separate process; an automatic and simultaneous registration process instead applies upon the purchase or sale of securities under the Bank of Georgia client nominee account. |
| 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 | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | The rules of National Bank of Georgia as operator of a CSD system or the rules of Georgian Central Securities Depository do not define the moment of entry within the meaning of the Settlement Finality Directive. |
Irrevocability of instructions | Settled transactions are irrevocable. |
Settlement finality of instructions | Transfer of securities from the seller to the buyer (delivery) occurs is simultaneous and final. |
Legal arrangements
The below section is based on the legal opinion obtained by CBL that was issued on 11 October 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 |
Custodian’s liability for negligence | Confirmed |
Book-entry regime with in rem rights | Confirmed |
Recognition of nominee concept | Confirmed |
No right of retention for the custodian | Confirmed |
Segregation of assets at the custodian | Confirmed |
No right of use | Confirmed, it being noted that deviations from the client's instructions if it can be presumed that the client would have approved the deviation. |
No upper-tier attachments | There is no express prohibition under local law concerning upper-tier attachments. |
Insolvency of the custodian with no impact on CBL's rights | Confirmed (other than for cash). |
Shortfall pro-rated among holders | Local law is unclear in this respect. |
Record keeping of at least 10 years | Confirmed |
Settlement finality in case of insolvency | Confirmed |