Summary of CDS’s International Linkages

ACSDA Senior Summit – December 6, 2013

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CDS has established a number of international linkages over its history

DTCC1980, 1984, 1997

JASDEC1985

Euroclear France1988

Skandinaviska Enskilda Banken AB (SEB) 2001

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Settlement Linkages with DTCC

• DTC Direct Link (DDL) was established in 1980, the New York Link (NYL) service was established in 1984

• CDS is a member of NSCC as well as DTC and subscribers to the services are provided with CDS sponsored accounts at DTC and NSCC (NYL) or DTC (DDL)

• The service provides subscribers with access to the products/services offered by NSCC, DTC and OMGEO that are available to their domestic U.S. members and allows subscribers to interact directly with NSCC/DTC members

• Over 40 participants currently subscribe to these services and some have multiple CDS sponsored accounts at NSCC and DTC to separate lines of business

• Approximately 150,000 trades per day are conducted by the subscribers to the New York Link Service (i.e. cleared/settled by NSCC/DTC)

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CDS/DTC Cross-border movement service• The CDS/DTC Cross-border movement service was

established in concert with the implementation of the DTC Direct Link service

• Initially this bilateral link (omnibus accounts at CDS and DTC) allowed for the movement of security positions as well as funds (USD) between CDS and DTC but the movement of funds was discontinued in 2007 due to risk related concerns, the cost of mitigating those risks and to a low volume of activity

• Facilitates deliveries of security positions to or from accounts at DTC and CDS (U.S. and Canadian securities that are eligible at both DTC and CDS)

• Delivery instructions are exchanged between CDS and DTC using SWIFT-like messages over a dedicated network

• Used for inventory movements and to facilitate the settlement of trades

• The service is available to all CDS and DTC participants• On a daily basis approximately 3,000 security positions are

moved between CDS and DTC

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Other international linkages• Euroclear-France Link Service implemented in 1988 (Sicovam)

– Facilitates deliveries of eligible French securities between CDS and Euroclear-France

• Skandinaviska Enskilda Banken AB (SEB) Link implemented in 2001 – Allowed a widely held security to continue to be eligible at CDS when

the company was taken over by Swedish company and since then other Swedish securities have been made eligible for this link

– Facilitates deliveries of eligible Swedish securities between CDS and SEB

• JASDEC Link implemented in 1985– Implemented with JSCC to support dually-listed Canadian securities– Facilitates deliveries of eligible Canadian securities between CDS and

JASDEC

• Low volume of activity in these linkages• Instructions/Information are/is exchanged between CDS and other

linked organizations via SWIFT messages over the SWIFT network• Unilateral custody links

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