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 customers | 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 | Customers 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. |
Legal arrangements
The below section is based on the legal opinions obtained by CBL that were issued on 26 March 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 at the custodian | Local law does not provide for a book-entry regime but does not prohibit it. |
Recognition of nominee concept at the custodian | Confirmed |
No right of retention for the custodian | Confirmed |
Segregation of assets at the custodian | Confirmed |
No right of use at the custodian | Confirmed |
No upper-tier attachment at the custodian | Confirmed |
Insolvency of the custodian with no impact on CBL's rights | Confirmed |
Shortfall pro-rated among holders at the custodian | Shortfall shall be borne by the custodian |
Record keeping of at least 10 years | The custodian has committed to record keeping period of at least seven years in accordance with the statutory law requirement in Hong Kong. There is no general requirement under local law for the custodian to maintain records of its services or activities with respect to its custody business for a period of at least 10 years. The contractual obligation to retain records for seven years as provided in the Agreement would be recognised by a Saudi court. |
Settlement finality if for insolvency at the custodian | Confirmed |