Knowledge Base
Identify the roles and responsibilities of central securities depositories (CSDs) and international sub-custodians in financial markets
Which system is used by Euroclear France for settlement-delivery of securities?
Settlement-delivery at Euroclear France is carried out via the ESES France (Euroclear Settlement of Euronext-zone Securities) system, which operates under a type 1 delivery-versus-payment (DVP) model, ensuring the simultaneity of securities delivery and fund transfer.
Which principle structures the relationship between a Global Custodian and its sub-custodians?
Two principles structure this organization: a currency never leaves its monetary zone of origin, and a security never leaves its issuing central securities depository. These principles ensure the stability and security of cross-border transactions.
Which fundamental service of Euroclear France involves registering securities and assigning ISIN codes?
Euroclear France's notarial service is responsible for the initial registration of securities in a book-entry system and the assignment of ISIN codes, which enable the unique identification of each transferable security. This ensures that every security issued in France is identified and registered reliably from its origin.
Which body granted the authorization to Euroclear France under the CSDR regulation?
The authorization of Euroclear France as a CSD was granted by the AMF Board on April 16, 2019, following a coordinated review with the Banque de France and the opinion of the Eurosystem. This authorization is crucial for its operation as a central securities depository.
True or False: The AMF General Regulation imposes strict due diligence obligations when using sub-custodians.
The AMF General Regulation, together with Commission Delegated Regulation (EU) 2017/565, imposes strict due diligence obligations for the selection and periodic review of sub-custodians. These obligations ensure that sub-custodians are competent and comply with legal requirements.
True or False: ICSDs (International Central Securities Depositories) can offer banking services such as intraday credit facilities.
ICSDs, such as Euroclear Bank and Clearstream Banking, hold a banking license, which allows them to offer banking services such as commercial money settlement and intraday credit facilities, unlike standard CSDs which do not hold such a license.
Main function of a Global Custodian
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A Global Custodian is a specialized intermediary that offers its investor clients a single point of access to global markets. It relies on a network of local sub-custodians to ensure this geographic coverage.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Euroclear France services
ICSD services
Euroclear France offers services such as centralized securities account keeping and settlement-delivery, while ICSDs offer banking services such as commercial money settlement and intraday credit facilities.