Market Link Guide – Iceland

13.11.2023

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct link to to Nasdaq CSD SE, SSS Iceland eligible securities

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

CSD

Name

Nasdaq CSD SE

FATCA GIIN

Not available

LEI

485100001PLJJ09NZT59

Country of incorporation

Nasdaq CSD SE is incorporated in Latvia and operates the Icelandic Settlement System through Icelandic branch, which is governed by the Icelandic law

Account type

Omnibus account

Legal Account name/holder

LuxCSD 

Operational arrangements

Yes/No

Remarks

Settlement in T2S

No

Settlement free of payment

Yes

 

Settlement against payment

Yes

LuxCSD facilitates against payments transactions for its customers to the local Icelandic CSD and on the necessary condition that customers of LuxCSD maintain a cash account at the Icelandic Central Bank for settlement against payment purposes.

Settlement against payment in central bank money account of LuxCSD customer

Yes

LuxCSD facilitates against payments transactions for its customers to the local Icelandic CSD and on the necessary condition that customers of LuxCSD maintain a cash account at the Icelandic Central Bank for settlement against payment purposes.

Bridge settlement

No

 

Shaping facility

No

 

Partial settlement

No

Please see details in Settlement services

Settlement penalty fees

Yes

Please see details in Settlement services

Hold and Release

Yes

Please see details in Settlement services

Recycling

Yes

Please see details in Settlement services

Bilateral cancellation

Yes

Please see details in Settlement services

Pre-matching

Yes

 Immediate release flag

Back-to-back processing

No 

 

Allegements

Yes

Via the CSD on against payment transactions only

Automatic compensation

No

 

Registered securities

No

 

Multi Market Securities

No

 

Lending and borrowing

Yes

 

Proxy voting

No

 

Investment Funds

No

 

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

Yes

 

Market restrictions

Yes

Foreign investment is not allowed in any company involved in “fish operations” or the primary fish processing industry.

Only Icelandic citizens and other Icelandic entities, as well as individuals and legal entities domiciled in another member state of the EEA, are permitted to own energy exploitation rights for non-domestic use of waterfalls and geothermal energy. The same applies to enterprises that produce or distribute energy.

Positions held in Icelandic non-taxable debt securities by LuxCSD customers, may only be held by the following:

  • Non-resident beneficial owners; and
  • Icelandic banks complying with Article 3.2 of Act no. 94/1996, holding non-taxable or taxable bonds or equities, via their account in LuxCSD or CBL, either:
    • For their own assets (and therefore being themselves the final beneficial owner); or
    • On behalf of underlying beneficial owners that are Icelandic tax residents (and therefore acting as intermediary bank).

FTT

No

 

Daily reconciliation

Yes

 

Link eligible for use in Eurosystem credit operations

No

 

Moment of entry of instructions

A transfer order is considered to have entered the system of Nasdaq CSD Iceland when the matched transfer orders have been transferred to the securities settlement system.

Irrevocability of instructions

Matched transfer orders irrevocable and cannot be unilaterally cancelled by the parties

Finality of instructions

The full and final settlement of matched orders at Nasdaq CSD Iceland.

Legal arrangements

The below section is based on the legal opinion obtained by LuxCSD that was issued on 12 July 2023. 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 CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Icelandic book-entry regime does not confer to LuxCSD in rem rights.

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed, LuxCSD will be recognised as account-operator on behalf of its underlying customers.

No right of retention to the CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Confirmed

No upper-tier attachments

Icelandic law allows attachment of securities credited to the account at the CSD.

Insolvency of CSD with no impact on LuxCSD’s rights 

Confirmed

Shortfall pro-rated among holders

Confirmed

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least 10 years    

Confirmed