Market Link Guide - Norway
CSD link as defined under CSDRa
Type of link
a. CSD Regulation (EU) No 909/2014, Article 2(29).
Verdipapircentralen ASA (VPS ASA)
Danske Bank A/S
Country of incorporation
Mirror omnibus account
Legal account name/holder
Clearstream Banking SA
Clearstream Banking SA
Settlement free of payment
Settlement against payment
Eligible settlement currency: Norwegian Krone (NOK).
Settlement against payment in central bank money account of CBL/CBL customer
CBL holds a cash account at Danske Bank A/S. Settlement against payment is conducted on the account of Danske Bank A/S at the local central bank.
Short selling of entitlement
Short selling of income or corporate actions proceeds is not authorised for settlement in CBL. Please refer to section 4.5 of the CBL Customer Handbook.
Settlement penalty fees
Automated through VPS.
B2B available for all equities and dematerialised bonds eligible in the Norwegian market.
Multi Market Securities
Lending and borrowing
Norwegian debt securities only, equities are not eligible.
Liquidity Hub Connect
Sale and purchase of rights
No equities that are beneficially owned by Norwegian individual residents can be held through CBL account.
Link eligible for use in Eurosystem credit operations
Moment of entry of instructions
A settlement instruction is considered as entered into the VPO NOK system when it has been matched.
Settlement Instructions that do not require matching, that is, settlement instructions for transactions with parties other than participants in VPO NOK system, are considered as entered into the VPO NOK system at the start of the settlement
Irrevocability of instructions
Once a settlement instruction has been matched, it cannot be recalled unless both the participants involved in the trade in question send instructions to cancel their respective settlement instructions. In such events, the cancellation instructions from both participants must be received before the start of the settlement in which the settlement instruction in question was to be processed.
If a matched settlement instruction has not been settled by the close of the specified settlement date, and one of the parties has an insufficient amount of cash or financial instruments to meet its obligations in connection with the transactions, the other party is entitled to cancel the settlement instruction unilaterally.
The right to cancel unilaterally shall apply for the duration of the deferral period. Settlement instructions cannot be cancelled in the period between the start of settlement and the completion thereof.
The entitlement to cancel unilaterally does not apply to settlement instructions relating to transfers between a participant and a participant authorised as a Central Counterparty, or possibly between two participants authorised as Central Counterparties. Exceptions to this may apply in specific circumstances.
Finality of instructions
Settlement involves the final transfer in the VPS securities register of ownership rights to financial instruments (securities settlement), the transfer of Norwegian kroner payment through Norges Bank between the VPO LOM accounts included in the Clearing (payment settlement).
The below section is based on the legal opinion obtained by CBL that was issued on 20 November 2020. 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 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
Recognition of nominee concept
No right of retention to the account operator/CSD
Segregation of assets at the CSD
No right of use
No upper-tier attachments
Insolvency of account operator/CSD with no impact on CBL's rights
Shortfall pro-rated among holders
|Record keeping period of at least 10 years|
Settlement finality in case of insolvency