Market Link Guide – Norway
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Direct Operated |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Account operator | |
Name | Verdipapircentralen ASA (VPS ASA) | Citibank Europe PLC |
FATCA GIIN | Not available | NXUTG8.00192.ME.372 |
LEI | 5967007LIEEXZX9IEO75 | N1FBEDJ5J41VKZLO2475 |
Country of incorporation | Norway | Ireland |
Account type | Omnibus account | Mirror omnibus account |
Legal account name/holder | Clearstream Banking SA | Clearstream Banking SA |
Operational arrangements
Yes/No | Remarks | |
Settlement free of payment | Yes | |
Settlement against payment | Yes | Eligible settlement currency: Norwegian Krone (NOK). |
Settlement against payment in central bank money account of CBL/CBL client | No | CBL holds a cash account at DNB Bank ASA. Settlement against payment is conducted on the account of DNB Bank ASA at the local central bank. |
Short selling of entitlement | No | Short selling of income or corporate actions proceeds is not authorised for settlement in CBL. Please refer to section 4.5 of the CBL Client Handbook. |
Bridge settlement | Yes | |
Shaping facility | No | |
Hold and Release | No | Postponed until further notice |
Partial settlement | Yes | |
Recycling | Yes | |
Bilateral cancellation | Yes | |
Settlement penalty fees | Yes | Starting as of 1 March 2022 |
Pre-matching | Yes | Automated through VPS. |
Back-to-back processing | Yes | B2B available for all equities and dematerialised bonds eligible in the Norwegian market. |
Allegements | Yes | |
Automatic compensation | No | |
Registered securities | Yes | |
Multi Market Securities | Yes | |
Lending and borrowing | Yes | Norwegian debt securities only, equities are not eligible. |
Proxy voting | Yes | |
Investment Funds | No | |
Liquidity Hub Connect | No | |
Sale and purchase of rights | No | |
Repo services | Yes | |
Market restrictions | Yes | No equities that are beneficially owned by Norwegian individual residents or legal entities that are incorporated in Norway can be held through CBL account. Please refer to section "Holding restrictions" in Other services - Norway for more details. |
FTT | No | |
Daily reconciliation | Yes | |
Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | A settlement instruction is considered as entered into the VPO NOK system when it has been matched. Settlement Instructions that do not require matching, that is, settlement instructions for transactions with parties other than participants in VPO NOK system, are considered as entered into the VPO NOK system at the start of the settlement |
Irrevocability of instructions | Once a settlement instruction has been matched, it cannot be recalled unless both the participants involved in the trade in question send instructions to cancel their respective settlement instructions. In such events, the cancellation instructions from both participants must be received before the start of the settlement in which the settlement instruction in question was to be processed. If a matched settlement instruction has not been settled by the close of the specified settlement date, and one of the parties has an insufficient amount of cash or financial instruments to meet its obligations in connection with the transactions, the other party is entitled to cancel the settlement instruction unilaterally. The right to cancel unilaterally shall apply for the duration of the deferral period. Settlement instructions cannot be cancelled in the period between the start of settlement and the completion thereof. The entitlement to cancel unilaterally does not apply to settlement instructions relating to transfers between a participant and a participant authorised as a Central Counterparty, or possibly between two participants authorised as Central Counterparties. Exceptions to this may apply in specific circumstances. |
Finality of instructions | Settlement involves the final transfer in the VPS securities register of ownership rights to financial instruments (securities settlement), the transfer of Norwegian kroner payment through Norges Bank between the VPO LOM accounts included in the Clearing (payment 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 (Ireland) | |
Date of legal opinion | 30 September 2024 | 30 March 2024 |
Nature of rights on securities | Substantive law of the jurisdiction will not govern the nature of the rights on the securities. Rights on the securities are nominee rights/legal ownership. Sub-accounts are not possible. | 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 Customers, 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 | 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. | 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. |