Market Link Guide – Canada
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link through Royal Bank of Canada to:
|
Indirect link through RBC Investor Services via CDS to:
|
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | CDS | Royal Bank of Canada |
FATCA GIIN | Not available | G6CADL.00003.ME.124 |
LEI | CDS: 549300BMUBP6YOC66N50 | ES7IP3U3RHIGC71XBU11 |
Country of incorporation | Canada | Canada |
Account type | Omnibus account | Omnibus account |
Legal Account name / holder | Royal Bank of Canada (RBC) In the book of the CSD, securities are registered in the name of CDS & Co. RBC as the participant in CDS does not hold an individually segregated account for CBL at the CDS. | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency:
|
| Settlement against payment in central bank money account of CBL/CBL clients | No | CAD: The central bank, Bank of Canada, does not hold accounts for deliveries against payment settlement for individual clients. The clearing and settlement system for debt and equities in Canada (CDSX) nets payment obligations between CDS and participants such as RBC that are then settled at the end of the day with payments made through the Large Value Transfer System (LVTS) to the CDS settlement account at the Bank of Canada. CBL holds a cash account at the custodian. USD: Settlement against payment in USD is facilitated through RBC’s custodian, Bank of New York Mellon. |
| Bridge settlement | Yes | |
| Shaping facility | No | |
| Partial settlement | No | |
| Settlement penalty fees | Yes | |
| Pre-matching | No | |
| Back-to-back processing | Yes | |
| Allegements | Yes | |
| Automatic compensation | Yes | |
| Registered securities | Yes | |
| Multi-Market Securities | Yes | |
| Lending and borrowing | Yes | Debt securities only. |
| Proxy voting | Yes | |
| Investment Funds | Yes | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | No | |
| Market restrictions | Yes | Residents and non-residents in Canada can hold Canadian securities eligible in CBL however the total holding held must remain under certain conditions (refer to Holding restrictions). |
| FTT | No | |
| Daily reconciliation | Yes |
| Moment of entry of instructions | The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive. |
| Irrevocability of instructions | Entries made in the ledgers by the CDS are irrevocable. |
| Finality of instructions | CDS makes entries in the ledgers maintained for participants and for CDS to record transactions involving two Participants or CDS and a Participant. Such entries, and settlement of a payment obligation between CDS and a Participant, are final and irrevocable when made, and cannot be deleted, adjusted, reversed, repaid or set aside. |
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 | 31 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 securities entitlements or contractual rights. 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.). |
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, subject to specific potential exceptions. |
No right of use without prior consent | Use not restricted under local law, but contractual restriction would be enforceable. |
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. |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. Cash 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. 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. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. |