Market Link Guide – New Zealand
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | NZCSD | BNP Paribas Australia Branch |
FATCA GIIN | Not applicable | 1G159I.00207.BR.036 |
LEI | 54930066LV3G32L0HB48 | R0MUWSFPU8MPRO8K5P83 |
Country of incorporation | New Zealand | France |
Account type | Omnibus account | Omnibus account |
Account name | All NZCSD eligible securities are registered in the name of BNP Paribas Nominees Pty Ltd BNP Paribas Australia Branch as the participant in NZCSD, holds securities under the name BNP Paribas Nominees Pty Ltd with a dedicated account qualifier for CBL as follows: BNP Paribas Nominees NZ Limited Mnemonic: BPSS42 | Clearstream Banking S.A. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | Eligible settlement currency: New Zealand Dollar (NZD). |
| Settlement against payment in central bank money account of CBL/CBL client | No | Against payment settlement takes place on the cash account of BNP Paribas Australia Branch. Only CSD-member banks can have an account at the local central bank. |
| Bridge settlement | Yes | |
| Shaping facility | No | |
| Partial settlement | No | Except when the local CSD imposes the partial delivery of securities. |
| Settlement penalty fees | No | |
| Pre-matching | Yes | Subject to counterparty availability. |
| Back-to-back processing | Yes | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | Yes |
|
| Multi Market Securities | Yes | Refer to the Multi-securities Guide. |
| Lending and borrowing | Yes | Debt Securities. |
| Proxy voting | Yes | |
| Investment Funds | Yes | ETF only. |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | Internal Repo service for Bonds and Equities (refer to Cmax Product Guide). |
| Market restrictions | Yes | Holding restrictions apply. |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
| 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 | Matched instructions are irrevocable and require bilateral cancellation. |
| Finality of instructions | Settlement is considered final once cash and securities are exchanged and a confirmation is received from the CSD. It is not possible to unwind completed settlement. |
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 September 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 rights in rem. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. | Substantive law of the jurisdiction will govern the nature of the rights on the Securities. Rights on the Securities are rights in rem. 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. | 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, and it is questionable that such lien could be contractually excluded or waived. | 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, subject to specific potential exceptions. | 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, 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. | Securities 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. | 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 are irrevocable and finality of settlement is assured. | Transfer orders may be revoked in certain circumstances. |