Market Link Guide – Bulgaria
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link to Central Depository AD (CDAD) via Eurobank Bulgaria AD |
Direct Operated link to Bulgarian National Bank (BNB) via Eurobank Bulgaria AD |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian/Account operator | |
Name | Central Depository AD (CDAD) Bulgarian National Bank (BNB) | Eurobank Bulgaria AD |
FATCA GIIN | Not available | WSN3WC.00006.ME.100 |
LEI | CDAD: 74780000G07H7WL0WI31 BNB: 5299001WEKCK7E65TI48 | 549300IRGNL8Q3O8Y413 |
Country of incorporation | Bulgaria | Bulgaria |
Account type | Omnibus account | Omnibus account Mirror Omnibus account |
Legal Account name / holder | CDAD: Clearstream Banking S.A. clients account BNB: Clearstream Banking S.A. | Clearstream Banking SA clients account |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | Yes | Only for EUR-denominated securities |
| Settlement free of payment | Yes | |
| Settlement against payment | Yes | |
| Settlement against payment in central bank money account of CBL/CBL clients | No | CDAD/BNB: CBL holds a cash account at the custodian. Against payment settlement in BGN and in EUR takes place on the cash account of Eurobank Bulgaria at the Bulgarian National Bank and in TARGET2-Securities (T2S). |
| Bridge settlement | No | |
| Shaping facility | No | |
Hold and Release | No | Please see details in Settlement services |
| Partial settlement | No | |
Recycling | Yes | Please see details in Settlement services |
Bilateral cancelation | Yes | Please see details in Settlement services |
| Settlement penalty fees | Yes | Please see details in Settlement services |
| Pre-matching | Yes | Immediate release flag. |
| Back-to-back processing | No | |
| Allegements | Yes | |
| Automatic compensation | No | |
| Registered securities | Yes | Registration takes place automatically upon settlement. |
| Multi Market Securities | No | |
| Lending and borrowing | Yes | |
| Proxy voting | Yes | |
| Investment Funds | Yes | CSD-eligible funds and ETFs, whole unit quantities of Investment Funds (no decimals are allowed). |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | Yes | |
| Repo services | Yes | |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
| Moment of entry of instructions | BNB: The moment of entry of a transfer order (request) is considered to have entered in the ESROT system as soon as it has successfully passed the entry check and admitted to further processing. CDAD: The moment of receiving syntactically matched messages. T2S: The moment of successful validation in T2S. |
| Irrevocability of instructions | BNB: If there are matching requests from the two parties to the transaction, the transaction shall become irrevocable. CDAD: The moment of participants’ messages matching and the formation of a common settlement request. After that moment no one can deny or cancel the transfer. T2S: The moment when the instruction receives "matched" status in T2S. |
| Finality of instructions | BNB: The settlement of government securities transactions shall be deemed final after crediting the government securities settlement account of the acquirer. CDAD: The moment of transferring the money and the securities. T2S: 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 Bulgarian National Bank (BNB)/Intermediary | Local legislation of CDAD/Intermediary | |
Date of legal opinion | 24 October 2024 | 24 October 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 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. |
Recognition of nominee concept | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. |
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 | 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, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
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 | Laws of the jurisdiction do not contain any provision for a shortfall in the securities | Laws of the jurisdiction do not contain any provision for a shortfall in the securities |
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. |