Market Link Guide – Philippines
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect via Standard Chartered Bank Philippines Branch to:
|
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | Philippine Depository and Trust Corporation (PDTC) Bureau of the Treasury (BTr) | Standard Chartered Bank, Philippines branch |
FATCA GIIN | Not available | T04M9Y.00000.BR.608 |
LEI | PDTC: 549300UJRT4KE08RIS90 BTr: 529900RAHBALMYIJ3T08 Note: As a government agency under the Department of Finance, the BTr is utilising the LEI of the Republic of the Philippines. | RILFO74KP1CM8P6PCT96 (LEI of the parent company) |
Country of incorporation | Philippines | UK |
Account type | PDTC: Omnibus sub-account under BTr: Omnibus sub-account Standard Chartered Bank’s omnibus account. | Omnibus account |
Legal account name / holder | PDTC: Securities are registered in the name of “PCD Nominee Corporation” as legal title holder and held to the order of “SCB FAO Clearstream Banking S.A.”, which is a sub-account under “Standard Chartered Bank”. BTr: Securities are registered in the name of “SCB FAO Clearstream Banking S.A.”, which is a sub-account under “Standard Chartered Bank Securities Services”. Note: The PCD Nominee Corporation is a wholly owned subsidiary of PDTC with the sole purpose of holding legal title to (but not beneficial ownership of) all securities lodged with the PDTC. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: Philippine Peso (PHP). |
| Settlement against payment in central bank money account of CBL/CBL client | No | CBL holds a cash account at the custodian. Against payment settlement in PHP may either take place within Standard Chartered Bank when the broker maintains an account with them, or may take place on the cash account of Standard Chartered Bank, Philippines at the local central bank. |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | Yes | Refer to the Market Profile. |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | |
| Allegements | Yes | |
| Automatic compensation | No | |
| Registered securities | No | |
| Multi-market securities | No | |
| Lending and borrowing | No | |
| Proxy voting | Yes | |
| Investment funds | No | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | Rights are not tradeable in the Philippines. |
| Repo services | Yes | Bonds only (CBL Internal Settlement). |
| Market restrictions | Yes | Refer to Investment Regulations. |
| FTT | No | |
| Daily reconciliation | Yes |
Moment of entry | BTr: The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. PDTC: The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
Irrevocability | BTr: All transactions entered and approved by the participant in the National Registry of Scripless Securities (NRoSS) system are deemed final and irrevocable. PDTC: Securities transfer is irrevocable once the book-entry transfer of shares in the depository is completed. |
Settlement finality | BTr: All transactions entered and approved by the participant in the NRoSS system are deemed final and irrevocable. PDTC: Securities transfer is irrevocable once the book-entry transfer of shares in the depository is completed. Transactions delivered to the market for settlement at the Securities Clearing Corporation of the Philippines (SCCP) are considered final and irrevocable. |
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 | 16 September 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 of other nature/type (chose in action, right to provide instructions to CSD on behalf of Clients, co-ownership rights, trustee rights, sui generis rights, etc.). No differences in conclusions in case of sub-accounts for Customers 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 has a lien or similar encumbrance under local law, but such lien could be contractually excluded or waived. |
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 | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
Ability to recover client assets in the event of insolvency of CSD | Securities 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. |
Shortfall pro-rated among holders | Shortfall in the securities may be allocated pro rata, but counsel noted certain nuances. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. |