Market Link Guide - Portugal

14.12.2020

The OneClearstream service level provides customers with a single point of access to all T2S markets with comprehensive instruments coverage. This is complemented by full harmonisation of asset services and connectivity channels between CBF, CBL and LuxCSD.

CBL and LuxCSD are using CBF as single gateway into T2S markets, allowing seamless transfer between CSD and ICSD counterparties.

This Market Link Guide represents Clearstream’s efforts to streamline our custody network and improve our asset servicing and collateral management services in the new T2S environment. The service description is valid for CBF, CBL and LuxCSD customers, unless otherwise highlighted in the documentation.

Key features

CSD link as defined under CSDRa

Yes

Type of link

For CBF customers

Direct linkb to Interbolsa

For CBL customers

Direct linkb to Clearstream Banking AG, Frankfurt for holding Interbolsa/T2S eligible securities

Indirect link via BNP Paribas Securities Services (BP2S)  to Interbolsa (All non T2S-eligible assets)

For LuxCSD customers

Direct linkb to Clearstream Banking AG, Frankfurt for holding Interbolsa/T2S eligible securities

a. CSD Regulation (EU) No 909/2014 art. 2 (29)

b. Interoperable link for T2S-related aspects

 

CSD
(as CBF’s depository)

Custodian
(as CBL’s depository)

Custodian
(as LuxCSD’s depository)

Asset Service Provider for CBF, CBL and LuxCSD

Custodian in CBL

Name

Interbolsa

Clearstream Banking AG,
Frankfurt

Clearstream Banking AG,
Frankfurt

BNP Paribas Securities Services SCA (BP2S)

FATCA GIIN

Not available

N1V1GJ.00002.ME.276

N1V1GJ.00002.ME.276

1G159I.00207.ME.250

LEI

529900LG70TCAGWCXT47

5493004PP58SUE3G8M27

5493004PP58SUE3G8M27

549300WCGB70D06XZS54

Country of incorporation

Portugal

Germany

Germany

France

Account Type

Omnibus account

Omnibus account

Omnibus account

Mirror omnibus account

Legal Account name / holder

Clearstream Banking AG,
Frankfurt

Clearstream Banking Luxemburg S.A.

LuxCSD S.A.

Clearstream Banking Luxemburg S.A.

Operational arrangements

 

For CBF customers

Yes/No

For CBL customers

Yes/No

For LuxCSD customers

Yes/No

Remarks

Settlement in T2S

Yes

Yes

Yes

 

Settlement free of payment

Yes

Yes

Yes

 

Settlement against payment

Yes

Yes

Yes (EUR only)

Eligible settlement currencies (between CBF and CBL counterparties only):   AUD, CAD, CHFa, CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY, USD and ZAR.

Settlement in central bank money

Yes

Yes. Against payment takes place on the DCA of CBL

Yes

CeBM in EUR only

Settlement penalty fees

No

No

No

 

Partial settlement

Yes

Yes, but limited to receipt instructions

Yes

 

Bridge settlement

No

Yes

No

 

Hold and Release

Yes

Yes

Yes

Partial release available for CBF and LuxCSD

Allegements

Yes

Yes

Yes

 

Transaction Linking

Yes

Yes

Yes

 

Transaction Management

Yes

Yes

Yes

 

Multi Market Securities

No

Limited

No

 

Lending and borrowing

Yes

Yes

Yes

Debt securities only

Proxy voting

Yes

Yes

Yes

 

Investment Funds

Yes

Yes

Yes

Interbolsa eligible Investment Funds only

Sale and purchase of rights

No

No

No

 

Repo services

No

No

No

 

Market restrictions

Yes

Yes

Yes

According to Portuguese Decree Law 193/2005 and in order to allow the holding of Portuguese debt securities, customers must provide a Portuguese Debt Securities - One-time Declaration of Beneficial Ownership certifying that the final beneficial owners do not fall into the market-specific categories that are not entitled to exemption from Portuguese withholding tax.

Note: Law 83/2013, which removed the restrictions on holdings by or on behalf of non-exempt beneficial owners at the ICSDs, remains applicable only to securities still falling under the previous wording of Decree Law 193/2005.

FTT

No

No

No

 

Daily reconciliation

Yes

Yes

Yes

 

Link eligible for use in Eurosystem credit operations

No

No

No

 

Bilateral cancellation

Yes

Yes

Yes

 

Moment of entry

The moment of the entry into the system of settlement instructions occurs with the validation performed on the T2S platform, according to the T2S rules.

Irrevocability

The moment of the irrevocability of settlement instructions introduced in the system and properly validated occurs with the matching performed in T2S.

Settlement finality

The time of settlement finality occurs with the settlement processed in T2S.

a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CBF.

Legal arrangements

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.

For CBF customers (link to Interbolsa)

For CBL customers (link to CBF)

For LuxCSD customers (link to CBF)

Date of legal opinion

14 October 2020

9 April 2020

3 May 2020

No insolvency proceedings against the the CSD

Confirmed

Confirmed

Confirmed

Liability for negligence

Confirmed

Confirmed

Confirmed

Book-entry regime with in rem rights

Confirmed

Confirmed

Confirmed

No entitlement of the CSD  

Confirmed

Confirmed

Confirmed

Recognition as direct CSD account holder

Confirmed

Confirmed

Confirmed

Recognition of nominee concept

Portuguese law recognises the nominee concept. However, it is debatable whether such nominee concept applies in such a way to allow final investors to be regarded for all legal purposes as the owners of the relevant securities.

Portuguese law recognises the nominee concept. However, it is debatable whether such nominee concept applies in such a way to allow final investors to be regarded for all legal purposes as the owners of the relevant securities.

Portuguese law recognises the nominee concept. However, it is debatable whether such nominee concept applies in such a way to allow final investors to be regarded for all legal purposes as the owners of the relevant securities.

No right of retention for the CSD

Confirmed

Confirmed

Confirmed

Segregation of assets at the CSD

Confirmed

Confirmed

Confirmed

No right of use

Confirmed

Confirmed

Confirmed

No upper-tier attachments

Confirmed

Confirmed

Confirmed

Insolvency of CSD with no impact on rights 

Confirmed

Confirmed

Confirmed

Shortfall pro-rated among holders

Not applicable under Portuguese law in light of the Portuguese Framework. Because there are no securities held at the CSD level, any shortfall would be due to an error of registration, which will entail a correction of the relevant registry entry.

Not applicable under Portuguese law in light of the Portuguese Framework. Because there are no securities held at the CSD level, any shortfall would be due to an error of registration, which will entail a correction of the relevant registry entry.

Not applicable under Portuguese law in light of the Portuguese Framework. Because there are no securities held at the CSD level, any shortfall would be due to an error of registration, which will entail a correction of the relevant registry entry.

Record keeping of at least ten years

Confirmed

Confirmed

Confirmed

Settlement finality in case of insolvency

Confirmed

Confirmed

Confirmed