Market Link Guide - Slovak Republic

09.11.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct Operated

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

CSD

Account operator

Name

Centrálny depozitár cenných papierov SR (CDCP)

Ceskoslovenska obchodna banka (CSOB)

FATCA GIIN

Not available

5DHUWX.00008.ME.703

LEI

097900BEFH0000000217

52990096Q5LMCH1WU462

Country of incorporation

Slovak Republic

Slovak Republic

Account type

Omnibus account

Mirror omnibus account

Legal account name / holder

Clearstream Banking S.A.

Clearstream Banking S.A.

Operational arrangements

Yes/No

Remarks

Settlement in T2S

Yes

Settlement free of payment

Yes

 

Settlement against payment

Yes

Eligible settlement currency: Euro (EUR).

Settlement against payment in central bank money account of CBL/CBL customers

No

CBL holds a cash account at the account operator. Against payment settlement in EUR takes place on the DCA of CSOB at the Slovak National Bank.

Partial settlement

No

 

Bridge settlement

Yes

 

Settlement penalty fees

Yes

There is a fee for failure of settlement on intended settlement date of EUR 0.25 paid by both buyer and seller.

Hold and Release

No

Although Hold and Release service is offered by CDCP, the local market does not support pre-matching services.

Allegements

Yes

 

Transaction Linking

Limited

Transaction linking is not possible, but the existing back-to-back service is available.

Bilateral Cancellation

Yes

 

Registered securities

No

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.

Transaction Management

No

 

Multi Market Securities

No

 

Lending and borrowing

Yes

 

Proxy voting

Yes

 

Investment Funds

No

 

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

Yes

Triparty Repo: bonds and equities.

Market restrictions

No

 

FTT

No

 

Miscellaneous

Yes

  • Customers can directly settle in their CBL accounts primary market transactions in government bonds.
  • Over the counter settlement instructions are not routed to BSSE any longer, but settle directly in T2S. Therefore BSSE fees no longer apply.
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

Yes

 

Moment of entry of instructions

The moment of successful validation and acknowledgement of instruction by T2S.

Irrevocability of instructions

The moment when the instruction is matched in T2S or matched status is assigned to the instruction in T2S.

Finality of instructions

Instructions are final and irrevocable upon settlement in T2S.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 2 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

Confirmed

Liability for negligence

Limitation of liability to gross negligence or wilful misconduct in the performance of CSD duties under the CSD Agreement and for incorrect, incomplete or delayed performance.

Book-entry regime with in rem rights

Confirmed

No entitlement of the account operator/CSD  

Confirmed in respect of rights of ownership/in rem rights.

Recognition as direct CSD account-holder

Confirmed. Liabilities/obligations as regards registration, transfer and custody of book-entry securities are only enforceable between Clearstream and the CSD.

Recognition of nominee concept

Confirmed

No right of retention to the account operator/CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Local laws do not prohibit upper tier attachments.

Insolvency of account operator/CSD with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed. Due to local law set-up, the CSD does not physically hold securities and consequently no shortfall should occur.

Record keeping period of at least 10 years

Confirmed

Settlement finality in case of insolvency

Confirmed