CASCADE Link Guide – U.S.A.
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Direct CSD link to DTC |
a. CSD Regulation (EU) No 909/2014 art. 2 (29)
CSD | |
Name | DTC |
FATCA GIIN | No GIIN required for a U.S. entity. |
LEI | 549300HBJLRO8YFMI370 |
Country of incorporation | The U.S.A. |
Account type | Omnibus account |
Legal Account name / holder | Clearstream Europe AG |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | Yes | CEU’s US Participants are not permitted to settle U.S. securities. |
| Settlement in DTC free of payment | Yes | CEU's US Participants are not permitted to settle U.S. securities. |
| Settlement in DTC against payment | No | |
| Settlement against payment in central bank money account of CEU customer | n/a | |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | Yes | |
| Pre-matching | No | |
| Back-to-back processing | No | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | Yes | All securities are registered in the name of DTC's nominee (CEDE & Co). |
| Multi Market Securities | Yes | The DTC/CDS link allows eligibility of certain Canadian securities. |
| Lending and borrowing | No | |
| Proxy voting | No | |
| Investment Funds | No | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | No | |
| Daily reconciliation | Yes |
Moment of entry of instructions | The DTC rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
Irrevocability of instructions | Once securities and funds settlement have been completed, settlement is final under the DTC Rules, and no reversals or revocations are possible. For information on the matching services at the DTC, please refer to the Settlement Services section of the Market Profile. |
Finality of instructions | A transfer free of payment is effective when the transferred securities have been debited from the account of the delivering participant and credited to the account of the receiving participant. Free transfers may occur at any time during the settlement day and, accordingly, may settle intraday. For against payment transactions, settlement of a delivery or pledge versus payment is final, at the latest, when end-of-day system-wide net settlement has occurred. No reversals of transfers or payments are permitted after the end-of-day completion of settlement. For information on the receiving party’s right to reverse (DK (don’t know) 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 | |
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 | n/a |
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. |
CEU-eligible security types
- U.S. securities:
- Selected debt instruments;
- Selected equities and equity-linked securities.
Note: Eligible securities are securities that have been accepted bilaterally for cross-border transfer by both CEU and the relevant CSD. The eligibility of a given security, as well as the relevant CSD, can be checked by using the WSIS/CS function of CASCADE.
Depository
The Depository Trust Company (DTC)
55 Water Street
New York
NY 10041
Passive matching service
Receipt instruction is generated automatically for free of payment transactions in non-German securities in CASCADE. This is valid for accounts that are configured for passive matching as well as for accounts that are configured for active matching.
Receipt instruction is required for German securities. Passive matching service is available.
Settlement times
The deadline by which CEU must receive valid free of payment delivery instructions for same-day settlement with domestic counterparties is 18:00 CET (12:00 EST) on SD.
Timely settlement in CASCADE is dependent on the timely receipt of the settlement confirmation from the local CSD.
Domestic counterparties should note that their deliveries to CASCADE for booking on SD should be instructed in DTC before 17:00 CET (11:00 EST).
Important Note: As part of CEU's internal compliance procedures, all incoming customer instructions will be automatically scanned before entering transaction processing. Instructions that are internally flagged as requiring further manual investigation are set to status pending, with such status immediately reported to the Customer via their chosen media channel(s), until either being manually released for processing or rejected. In order to ensure that instructions being investigated do not miss the applicable deadlines, Customers are advised to input instructions at least 15 minutes before the associated deadline.
Procedures for domestic counterparties
| Procedure for the domestic counterparty | Deadline | |||
| Receipt in CEU | ||||
Domestic counterparties delivering securities free of payment in favour of a CEU customer must indicate the following information in their instruction to the DTC: | Market deadline | |||
Deliver to: | Account 2000 for U.S. securities Account 6200 for German securities | |||
In favour of: | Beneficiary's 4-digit account number in CASCADE (to be entered as Third Party (TRAG)) | |||
| Delivery from CEU | ||||
Domestic counterparties receiving securities free of payment from a CEU customer must indicate the following information in their settlement confirmation of DTC: | Market deadline | |||
Receive from: | Account 2000 (non-German securities) Account 6200 (German securities) | |||
In favour of: | Beneficiary's account number at the DTC | |||
Allowed countervalue difference
Allowed countervalue difference is not applicable as the link is for free of payment transactions only.