Market Link Guide – U.S.A.
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link via Citibank N.A., New York to:
|
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | DTC Fedwire Securities Services | Citibank N.A., New York |
FATCA GIIN | No GIIN required for a U.S. entity. | No GIIN required for a U.S. entity. |
LEI | DTC: 549300HBJLRO8YFMI370 FED: Not available | E57ODZWZ7FF32TWEFA76 |
Country of incorporation | The U.S.A. | The U.S.A. |
Account type | Omnibus account | Omnibus account |
Legal Account name / holder | Account holder: Citibank, N.A. Citibank N.A. New York, as the participant in DTC and Fedwire Securities Services, does not hold an individually segregated account for CBL at either CSD. DTC: Registered in the name CEDE & Co (DTC's nominee company). FED: Recorded in the name of Citibank (for clients in the books of the Federal Rerserve Bank of New York). | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: U.S. Dollars (USD). |
| Settlement against payment in central bank money account of CBL/CBL clients | No | CBL holds a cash account at the custodian. Against payment settlement takes place on Citibank NA’s cash account at the local central bank. |
| Bridge settlement | Yes | See "Settlement restrictions applying to US clients" in "specific settlement rules/settlement restrictions" under Settlement services. |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | No | |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | |
| Allegements | Yes | |
| Automatic compensation | Yes | For against payment transactions only. |
| Registered securities | Yes | |
| Multi-market securities | Yes | |
| Lending and borrowing | Yes | Debt securities only. |
| Proxy voting | Yes | |
| Investment funds | Yes | Certain open-end mutual funds, and DTC-eligible closed-end mutual funds |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | Yes | See under Bridge settlement. |
| FTT | No | |
| Daily reconciliation | Yes | |
| Miscellaneous | Yes | Safekeeping of US restricted securities - Securities Payment Order (SPOs). |
Moment of entry | FED: The FED rules do not define the moment of entry within the meaning of the Settlement Finality Directive. DTC: The DTC rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
Irrevocability | FED: Settled transactions are irrevocable, subject to exceptions as described below under settlement finality. DTC: Settled transactions are irrevocable, subject to exceptions as described below under settlement finality. For information on the matching services at the DTC, please refer to the Settlement Services section of the Market Profile. |
| Settlement finality | FED: Delivery of securities or cash settling via FED may be reversed by the buyer/recipient. There is no limitation on the reversal timeframe, nonetheless, most securities reversals occur on the same day that the delivery was made. DTC: Free of payment settlements via DTC (excluding money market instruments) may be reversed by the buyer/recipient. There is no limitation on the reversal timeframe, nonetheless, most securities reversals occur on the same day that the delivery was made. Settlement is final for all non-DTC ID and DTC ID against payment deliveries and all Money Market Instrument deliveries settling via DTC. For information on the receiving party’s right to reverse (referred to as the "Don't Know" - DK procedure), please refer to the Settlement Services section of the Market Profile. |
Local legislation
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. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD/Intermediary | |
Date of legal opinion | 21 June 2024 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the securities. Rights on the securities are securities entitlements or contractual rights. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept recognised under local law. |
No right of retention to the CSD under local law | CSD does not have a lien or similar encumbrances on the securities under local law. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Laws of the jurisdiction restrict CSD from using securities without Clearstream’s prior consent. |
Segregation of assets at the CSD | Segregation obligation not expressly required under local law. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law. |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. Cash would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. Claim to cash as a general creditor in case of insolvency of the Subcustodian. |
Shortfall pro-rated among holders | Shortfall in the securities would be allocated among the holders of the applicable securities pro rata to their respective ownership percentages. |
Settlement finality in case of insolvency | Transfer orders may be revoked in certain circumstances. |