Market Link Guide - Czech Republic
CSD link as defined under CSDR*
Type of link
Indirect link to Czech National Bank (CNB) operated by UniCredit Bank Czech Republic and Slovakia, a.s.
Direct link to CSD Prague operated by UniCredit Bank Czech Republic and Slovakia, a.s.
a. CSD Regulation (EU) No 909/2014, Article 2(29).
Czech National Bank (CNB)
UniCredit Bank Czech Republic and Slovakia, a.s.
CSD Prague: n/a
CSD Prague: 315700LK78Z7C0WMIL03
Country of incorporation
CNB: Custodian account of the agent for CBL.
CSD Prague: Segregated owner account of CBL used as omnibus account.
CNB: Customer account linked to a custodian’s client account at SKD.
CSD Prague: Mirror owner’s account.
Legal account name/holder
CNB: UniCredit Bank Czech Republic and Slovakia, a.s.
UniCredit Bank Czech Republic and Slovakia, a.s. as the participant at SKD system of CNB hold an individually segregated account for CBL.
CSD Prague: Clearstream Banking S.A.
Clearstream Banking S.A.
|Settlement in T2S|
|Settlement free of payment|
|Settlement against payment|
|Eligible settlement currency: Czech Koruna (CZK)|
|Settlement against payment in central bank money account of CBL/CBL customers|
CBL holds a cash account at the custodian/account operator. Against payment in CZK takes place on the cash account of UniCredit Bank Czech Republic and Slovakia, a.s. at the Czech National Bank.
|Except equities, exchange traded funds and|
CSD-eligible open-ended funds.
|Settlement penalty fees||No|
Only applicable if foreign issues are listed on the Prague Stock Exchange and registered at CSD Prague.
Equities are mostly bearer. But there could be some registered equities when the issuers may decide to re-materialise the shares through a corporate action. Customers will be notified accordingly.
|Multi Market Securities|
Multilisted securities exist in the market; these are held by the local CSD on their account with Euroclear.
|Lending and borrowing|
|Exchange traded funds and |
CSD-eligible open-ended funds.
|Liquidity Hub Connect||No|
|Sale and purchase of rights||No|
|Link eligible for use in Eurosystem credit operations|
Moment of entry
CNB: If transactions are not settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which the securities in the asset account are blocked for the purposes of a transfer.
If transactions are settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which an instruction for payment is created and despatched to the CERTIS (payment) system.
CSD Prague: The order for settlement is considered accepted in the settlement system the moment the Central Depository commences settlement by earmarking dematerialised securities intended for the settlement on asset accounts (validation).
CNB: A settlement instruction cannot be revoked from the moment of acceptance of such instruction.
CSD Prague: The participant or the third party must not unilaterally recall the order once it is admitted into the settlement system.
CNB: Settled transfers in the SKD system are final.
CSD Prague: The settlement is terminated by clearing the transfers of dematerialised securities from the transferors’ asset accounts to the transferees’ asset accounts in compliance with the time schedule.
The below section is based on the legal opinions obtained by CBL that were issued on 21 July 2020 (direct operated link) and 4 August 2020 (indirect link). 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/ account operator or the CSD
Liability for negligence
Book-entry regime with in rem rights
No entitlement of the account operator/CSD
Recognition as direct CSD account-holder
CSD Prague: Confirmed
CNB: The custodian account is currently used.
Recognition of nominee concept
Although the laws and regulations of the Czech Republic recognise the nominee concept and provide for the two-tier structure, CBL would very likely be treated as a legal and beneficial owner of the book-entry securities and the rights of CBL's underlying customers or as the case may be, the final investors will not be recognised under Czech law as property titles but merely as contractual rights under the relevant foreign law that governs the relationship between CBL and its customers or, as the case may be, the end-investors.
No right of retention to the cutodian/account operator/CSD
Segregation of assets at the CSD
No right of use
No upper-tier attachments
Local laws do not prohibit some forms of upper tier attachments.
Insolvency of custodian/account operator/CSD with no impact on CBL's rights
Shortfall pro-rated among holders
CSD Prague: There is no relevant and specific "shortfall" rule as per the proportionate fixing under the local law. However, there is a specific procedure under CSD Rules.
Settlement finality in case of insolvency