Market Link Guide – Czech Republic
Key features
CSD link as defined under CSDR* | Yes |
Type of link | Indirect link to Czech National Bank (CNB) operated by UniCredit Bank Czech Republic and Slovakia, a.s. Direct link to CSD Prague operated by UniCredit Bank Czech Republic and Slovakia, a.s. |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian/Account operator | |
Name | Czech National Bank (CNB) CSD Prague | UniCredit Bank Czech Republic and Slovakia, a.s. |
FATCA GIIN | CNB: n/a CSD Prague: n/a | 938A8A.00069.ME.203 |
LEI | CNB: 549300DS86PEHLIYB473 CSD Prague: 315700LK78Z7C0WMIL03 | KR6LSKV3BTSJRD41IF75 |
Country of incorporation | Czech Republic | Czech Republic |
Account type | CNB: Custodian account of the agent for CBL. CSD Prague: Segregated owner account of CBL used as omnibus account. | CNB: Client account linked to a custodian’s client account at SKD. CSD Prague: Mirror owner’s account. |
Legal account name/holder | CNB: UniCredit Bank Czech Republic and Slovakia, a.s. UniCredit Bank Czech Republic and Slovakia, a.s. as the participant at SKD system of CNB hold an individually segregated account for CBL. CSD Prague: Clearstream Banking S.A. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | No | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: Czech Koruna (CZK) and Euro (EUR) for T-Bills and T-Bonds (government bonds). |
| Settlement against payment in central bank money account of CBL/CBL clients | No | CBL holds a cash account at the custodian/account operator. Against payment in CZK takes place on the cash account of UniCredit Bank Czech Republic and Slovakia, a.s. at the Czech National Bank. |
| Bridge settlement | Yes | Except equities, exchange traded funds and CSD-eligible open-ended funds. |
| Shaping facility | No | |
| Partial settlement | Yes | Please see details in Settlement services |
Hold and release | No | |
Recycling | Yes | Please see details in Settlement services |
Bilateral cancellation | Yes | Please see details in Settlement services |
| Settlement penalty fees | Yes | Please see details in Settlement services |
| Pre-matching | Yes | |
| Back-to-back processing | Yes | |
| Allegements | Yes | |
| Automatic compensation | No | Only applicable if foreign issues are listed on the Prague Stock Exchange and registered at CSD Prague. |
| 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. Clients will be notified accordingly. |
| Multi Market Securities | Yes | Multilisted securities exist in the market; these are held by the local CSD on their account with Euroclear. |
| Lending and borrowing | Yes | |
| Proxy voting | Yes | |
| Investment Funds | Yes | Exchange traded funds and CSD-eligible open-ended funds. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No | |
Moment of entry | CNB: If transactions are not settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which the securities in the asset account are blocked for the purposes of a transfer. If transactions are settled on the DvP principle, then the moment of acceptance of an instruction for settlement means the moment at which an instruction for payment is created and despatched to the CERTIS (payment) system. CSD Prague: The order for settlement is considered accepted in the settlement system the moment the Central Depository commences settlement by earmarking dematerialised securities intended for the settlement on asset accounts (validation). | |
| Irrevocability | CNB: A settlement instruction cannot be revoked from the moment of acceptance of such instruction. CSD Prague: The participant or the third party must not unilaterally recall the order once it is admitted into the settlement system. |
Settlement finality | CNB: Settled transfers in the SKD system are final. CSD Prague: The settlement is terminated by clearing the transfers of dematerialised securities from the transferors’ asset accounts to the transferees’ asset accounts in compliance with the time schedule. |
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 CD CP Prague/Intermediary | Local legislation of the Czech National Bank/Intermediary | |
Date of legal opinion | 30 June 2024 | 30 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 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.). Sub-accounts are not possible. | 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.). Sub-accounts are not possible. |
Recognition of nominee concept | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. |
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. | 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. | 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. | 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. | 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. | 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. | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | For direct operated link: Conclusions in the opinion generally apply to the direct link operated by agent model. Securities would be recoverable in the event of insolvency of the agent. | For indirect link: Conclusions in the opinion generally apply to the indirect link model, subject to certain exceptions noted by counsel. 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. | 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. | Transfer orders may be revoked in certain circumstances. |