Market Link Guide - France

09.04.2019

The OneClearstream service level provides customers with a single point of access to all T2S markets with comprehensive instruments coverage. This is complemented by full harmonisation of asset services and connectivity channels between CBF, CBL and LuxCSD.

CBL and LuxCSD are using CBF as single gateway into T2S markets, allowing seamless transfer between CSD and ICSD counterparties.
This Market Link Guide represents Clearstream’s efforts to streamline our custody network and improve our asset servicing and collateral management services in the new T2S environment. The service description is valid for CBF, CBL and LuxCSD customers, unless otherwise highlighted in the documentation.

Key features

CSD link as defined under CSDRa

Yesb


Type of link

For CBF customers

Direct linkc to Euroclear France for holding Euroclear France/T2S eligible securities, LBS.

Direct linkc to LuxCSD for holding selected registered shares (VEN).

For CBL customers

Direct linkc to Clearstream Banking AG, Frankfurt  for holding Euroclear France/T2S eligible securities, except categories below.

Direct operated link via BNP Paribas Securities Services to Euroclear France for holding loyalty bonus shares and ODMs.

Link to BNP Paribas Securities Services as custodian for holding securities that are not eligible in T2S and in Euroclear France.

For LuxCSD customers

Direct linkc to Clearstream Banking AG, Frankfurt  for holding Euroclear France/T2S eligible securities, except VEN and LBS

a. BNP Paribas Securities Service continues to be CBL’s custodian for all T2S-non eligible securities and CBL’s account operator for some T2S-eligible securities.

 

CSD (as CBF’s and CBL’s depository)

Custodian (as CBL’s depository)

Custodian (as LuxCSD’s depository)

Asset Service Provider for CBF, CBL and LuxCSD

Account Operator and Custodian for CBL


Name

Euroclear France, Paris

Clearstream Banking AG, Frankfurt

Clearstream Banking AG, Frankfurt

BNP Paribas Securities Services, Paris

FATCA GIIN

1X6QDZ.00003.ME.250

N1V1GJ.00002.ME.276

N1V1GJ.00002.ME.276

1G159I.00207.ME.250

LEI

54930060MY6S68NEUP16

549300298FD7AS4PPU70

549300298FD7AS4PPU70

549300WCGB70D06XZS54

Country of incorporation

France

Germany

Germany

France

Account type

Omnibus account

Omnibus account

Omnibus account

Mirror omnibus account / omnibus account

Legal Account name / holder

Clearstream Banking AG

Clearstream Banking SA

Clearstream Banking SA

LuxCSD

Clearstream Banking AG

Clearstream Banking SA

Operational arrangements

 

For CBF and LuxCSD customers
(link to Euroclear France)

For CBL customers
(link to CBF)

For CBL customers
(link to Euroclear France / BNP Paribas Security Services)

For LuxCSD customers
(link to CBF)

 

Yes/No

Yes/No

Yes/No

Yes/No

Remarks

Settlement in T2S

Yes

Yes

Yes/No

Yes

Securities held in custody with BNP Paribas Security Services are non-T2S eligible

Settlement free of payment

Yes

Yes

Yes

Yes


Settlement against payment

Yes

Yes

Yes (EUR only)

Yes (EUR only)

Eligible settlement currencies (between CBF and CBL counterparties only): 
AUD, CAD, CHFa, CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY, USD and ZAR.

Settlement against payment in central bank money

Yes

Yes.

No. CBL holds a cash account at BNP Paribas Securities Services who uses its account at Banque de France for settlement and asset servicing

Yes

CeBM in EUR only


Settlement penalty fees

Yes

Yes

Yes

Yes

As part of the French market discipline regime, some penalty fees can be charged by Euroclear France to its participants failing to deliver securities. In addition, for orders related to Investment funds, the application of penalties for late settlement is market practice (“Charte des bonnes pratiques AFTI”). Such fees will be passed on to customers if and when applicable.

Partial settlement

Yes

Yes

Yes

Yes


Bridge settlement

No

Yes

Yes

No


Hold and Release

Yes

Yes

Yes

Yes

 

Allegements

Yes

Yes

Yes

Yes


Transaction Linking

Yes

Yes

Yes

Yes

 

Bilateral Cancellation

Yes

Yes

Yes

Yes

 

Registered securities

Yes (VEN/VON)

Yes

Yes

No

The French market is mainly a bearer market. The only securities that require re-registration are:

  • Occasionally registered shares;
  • Compulsorily registered shares;
  • Loyalty Bonus shares.

Transaction Management

Yes

Yes

Yes

Yes


Multi Market Securities

No

Limited

Limited

No

Limited to transfers to and from T2S Out CSDs if the home market is in T2S.

Lending and borrowing

Yes

Yes

Yes

Yes

Debt securities only

Proxy voting

Yes

Yes

Yes

Yes


Investment Funds

Yes

Yes

Yes

Yes

CSD-eligible investment funds only

Liquidity Hub Connect

No

No

No

No


Sale and purchase of rights

No

No

No

No


Repo services

Yes

Yes

Yes

Yes


Market restrictions

Yes

Yes

Yes

Yes

Foreign non-resident investors can freely invest in the French securities market but there are specific sectors (defence, safety, public order) which require a prior declaration and subsequent authorisation from the French Ministry of Finance.
Non-resident holding may not exceed 5% without prior authorisation from the company concerned and the AMF.

FTT

Yes

Yes

Yes

Yes

 

Daily reconciliation

Yes

Yes

Yes

Yes


Link eligible for use in Eurosystem credit operations

Yes

No – LuxCSD link to Euroclear France

Yes

No

Yes


Moment of entry of instructions

The moment of entry of a transfer order in the CSD System is when the instruction has successfully passed the business validation of T2S.

Irrevocability of instructions

The securities leg of an instruction shall be considered as irrevocable and thus may no longer be unilaterally amended or cancelled as from the moment such instruction is reported "matched" on T2S.

Finality of instructions

Settlement in T2S is simultaneous, final and irrevocable.

a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CBF.

Legal arrangements

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.


For CBF and LuxCSD customers
(link to Euroclear France)

For CBL customers
(link to CBF)

For CBL customers
(link to Euroclear France)

For LuxCSD customers
(link to CBF)

Date of legal opinion

CBF: 9 April 2018
LuxCSD: 27 November 2018

11 August 2017

4 March 2019

11 August 2017

No insolvency proceedings against the account operator or the CSD

Confirmed

Confirmed

Confirmed

Confirmed

Liability for negligence

Confirmed

Confirmed

Confirmed

Confirmed

Book-entry regime with in rem rights

Confirmed

Confirmed

Confirmed

Confirmed

No entitlement of the account operator/CSD  

Confirmed

Confirmed

Confirmed

Confirmed

Recognition as direct CSD account-holder

Confirmed

Confirmed

Confirmed

Confirmed

Recognition of nominee concept

Confirmed

Confirmed

Confirmed

Confirmed

No right of retention to the account operator/CSD

Confirmed

Confirmed

Confirmed

Confirmed

Segregation of assets at the CSD

Confirmed

Confirmed

Confirmed

Confirmed

No right of use

Confirmed

Confirmed

Confirmed

Confirmed

No upper-tier attachments

Confirmed

Confirmed

Confirmed

Confirmed

Insolvency of account operator with no impact on rights 

Confirmed

Confirmed

Confirmed

Confirmed

Shortfall pro-rated among holders

Confirmed

Confirmed

Confirmed

Confirmed

Ten years record keeping

Confirmed

Confirmed

Confirmed

Confirmed

Settlement finality in case of insolvency

Confirmed

Confirmed

Confirmed

Confirmed