Market Link Guide – Saudi Arabia
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect via The Hongkong and Shanghai Banking Corporation Limited acting through HSBC Saudi Arabia |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | Securities Depository Center Company (Edaa) | The Hongkong and Shanghai Banking Corporation Limited, acting through HSBC Saudi Arabia |
FATCA GIIN | L5QN9K.99999.SL.682 | 4RI52Y.00000.BR.392 |
LEI | Not available | 2HI3YI5320L3RW6NJ957 |
Country of incorporation | Saudi Arabia | Hong Kong via its branch in Saudi Arabia |
Account type | Omnibus account under a foreign nominee structure | Omnibus account |
Legal account name/holder | Clearstream Banking S.A. | Clearstream Banking S.A. |
Operational arrangements
Yes/No | Remarks | |
Settlement free of payment | Yes | For NCBO transfers and new issues settlement |
Settlement against payment | Yes | Eligible settlement currency: Domestic instructions: Saudi Riyal (SAR) only Internal instructions: All eligible settlement currencies |
Settlement against payment in central bank money account of CBL/CBL clients | No | Against payment settlement takes place on the cash account of HSBC Saudi Arabia. |
Bridge settlement | No | |
Shaping facility | No | |
Partial settlement | Yes | Partial settlement is possible in forced settlement and buy-in scenarios. |
Settlement penalty fees | Yes | Refer to the Market Profile - Saudi Arabia. |
Pre-matching | Yes | |
Back-to-back processing | No | |
Allegements | No | |
Automatic compensation | No | |
Registered securities | Yes | Registration takes place automatically upon settlement. |
Multi Market Securities | No | |
Lending and borrowing | No | |
Proxy voting | Yes | |
Investment Funds | Yes | Domestic/internal settlement only |
Liquidity Hub Connect | No | |
Sale and purchase of rights | No | |
Repo services | Yes | Internal Repo service (refer to CmaX Product Guide). |
Market restrictions | Yes | Clients and/or beneficial owners who are of Saudi Arabian nationality and/or residents of Saudi Arabia are not permitted as per local regulations. |
FTT | No | |
Daily reconciliation | Yes | |
Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | At the time of orders reaching the Saudi Exchange. |
Irrevocability of instructions | Trade orders sent to the Saudi Exchange are binding and irrevocable upon their execution. |
Finality of instructions | Securities transfer into buyer’s account and cash credited into the account of the Settlement Member of the seller. |
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 | Local legislation of the intermediary | |
Date of legal opinion | 31 May 2024 | 31 May 2024 |
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 ownership rights. No differences in conclusions in case of sub-accounts for Customers within the Direct CSD Account. | Substantive law of the jurisdiction will govern the nature of the rights on the Securities. Rights on the Securities are ownership rights. No differences in conclusions in case of sub-accounts for Customers within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept recognized under local law. | Nominee concept recognized under local law. |
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. | 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. | 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. | 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. | 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.). | 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. | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. Cash would be recoverable. | Securities would be recoverable in the event of insolvency of the Subcustodian. Cash would be recoverable. |
Shortfall pro-rated among holders | Shortfall in the Securities may be allocated pro rata, but counsel noted certain nuances. | Shortfall in the Securities may be allocated pro rata, but counsel noted certain nuances. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. | Transfer orders are irrevocable and finality of settlement is assured. |