Market Link Guide – Finland
The OneClearstream service level provides clients 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 Clearstream Banking AG (CBF), Clearstream Banking S.A. (CBL) and LuxCSD S.A.
This Market Link Guide represents Clearstream Banking’s and LuxCSD’s joint efforts to streamline their custody network and improve asset servicing and collateral management services in the T2S environment. The service description is valid for CBF, CBL and LuxCSD clients, unless otherwise highlighted.
Key features
CSD link as defined under CSDRa | Yes | |
Type of link | For CBL clients | Direct operated link to Euroclear Finland |
For CBF clients | Direct link to Clearstream Banking S.A., Luxembourg, for holding Finnish T2S-eligible securities | |
For LuxCSD clients | Direct link to Clearstream Banking AG, Frankfurt, for holding Finnish T2S-eligible securities | |
a. CSD Regulation (EU) No 909/2014 Article 2(29).
CSD (as CBL's depository) | Custodian (as CBF's depository) | Custodian (as LuxCSD's depository) | Account operator for CBL | |
Name | Euroclear Finland (EFI) | Clearstream Banking S.A., Luxembourg | Clearstream Banking AG, | Citibank Europe PLC |
FATCA GIIN | G7IYVV.99999.SL.246 | N1V1GJ.00000.LE.442 | N1V1GJ.00002.ME.276 | NXUTG8.00192.ME.372 |
LEI | 74370020ZOTVC5EOAA37 | 549300OL514RA0SXJJ44 | 549300298FD7AS4PPU70 | N1FBEDJ5J41VKZLO2475 |
Country of incorporation | Finland | Luxembourg | Germany | Ireland |
Account type | Custodial nominee account | Omnibus account | Omnibus account | Mirror omnibus account |
Legal account name/holder | Clearstream Banking S.A. | Clearstream Banking AG | LuxCSD S.A. |
Operational arrangements
| For CBL clients | For CBF clients | For LuxCSD clients | Remarks | |
Yes/No | Yes/No | Yes/No | ||
Settlement in T2S | Yes | Yes | Yes | For CBF and LuxCSD clients, the cross-CSD settlement with Euroclear is not possible. |
| Settlement free of payment | Yes | Yes | Yes | |
| Settlement against payment | Yes | Yes | Yes | Eligible settlement currency: Euro (EUR). |
| Settlement against payment in central bank money | No | Yes | Yes | CBL holds a cash account at the account operator. Against payment settlement in EUR takes place on the Citibank Europe PLC Dedicated Cash Account (DCA). For CBF and LuxCSD clients, the cross-CSD settlement with Euroclear is not possible. |
| Bridge settlement | Yes | Yes | Yes | |
Hold and release | Yes | Yes | Yes | |
| Partial settlement | Yes | Yes | Yes | Limited only to receipt instructions. |
Recycling | Yes | Yes | Yes | |
Bilateral cancellation | Yes | Yes | Yes | |
| Settlement penalty fees | Yes | No | No | |
| Pre-matching | Yes | Yes | Yes | Immediate release flag. |
| Transaction linking | Yes | No | No | |
| Allegements | No | No | No | |
| Registered securities | Yes | Yes | Yes | Registration takes place automatically upon settlement. |
| Multi-market securities | Yes | No | No | |
| Lending and borrowing | Yes | No | No | |
| Proxy voting | Yes | Yes | Yes | |
| Investment funds | No | No | No | |
| Liquidity Hub Connect | No | No | No | |
| Sale and purchase of rights | No | No | No | |
| Repo services | Yes | No | No | |
| Market restrictions | Yes | Yes | Yes | Securities that are beneficially owned by Finnish nationals or Finnish tax residents cannot be held in Clearstream Banking and LuxCSD. |
| FTT | No | No | No | |
| Daily reconciliation | Yes | Yes | Yes | |
| Link eligible for use in Eurosystem credit operations | Yes | Yes | Yes |
| Moment of entry of instructions | The moment of successful validation in T2S. |
| Irrevocability of instructions | The moment when the instruction receives “matched” status in T2S. |
| Finality of instructions | The moment when the instruction receives “settled” status in T2S. |
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 | Local legislation of the intermediary | |
Date of legal opinion | 30 September 2024 | 30 March 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 nominee rights/legal ownership. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD account. | Substantive law of the jurisdiction will not 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 Clients within the Direct CSD account. |
Recognition of nominee concept | Nominee concept recognised under local law. | 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. | 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. | Securities would not be subject to attachment. |
No right of use without prior consent | Use not restricted under local law, but contractual restriction would be enforceable. | 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, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). | 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. | n/a |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the agent. | Securities would be recoverable in the event of insolvency of the agent. |
Shortfall pro-rated among holders | Shortfall in the Securities may be allocated pro rata, but counsel noted certain nuances. | n/a |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. | Transfer orders are irrevocable and finality of settlement is assured. |