Settlement services - International (LuxCSD)
Matching service
Matching is attempted directly and the results are reported to customers as “pre-settlement information”.
Free of payment instructions are required to be matched. This applies both to receipt and delivery instructions.
To ensure matching, LuxCSD customers are recommended to inform their CBL/EB counterparties to instruct with the BIC11 of the LuxCSD counterparty in the second matching field.
Note: LuxCSD recommends to agree on the usage of a common reference (:20C::COMM) with the counterparty in CBL/EB to avoid cross-matching if it is populated in the settlement instructions of both parties.
Procedures for Creation (CBL) counterparties
Procedure for the CBL counterparty
Place of settlement | CEDELULLXXX |
Delivering/Receiving Agent | CEDE/18757 |
DECU/RECU | LUXCLULLXXX |
Buyer/Seller | BIC 11 of counterparty in LuxCSD |
Procedure for the EB counterparty
Place of settlement | CEDELULLXXX |
Delivering/Receiving Agent | CEDE/18757 |
Buyer/Seller | BIC 11 of counterparty in LuxCSD |
SAFE of the Buyer/Seller | LUXC48XXX (account of the counterparty in LuxCSD) |
Use of :20C::COMM//11111 is not mandatory but recommended to avoid cross matching.
Back-to-back processing (Transaction Linking)
Back-to-back processing is available for transactions in LuxCSD-eligible securities.
Cancellation
Unmatched instructions can be cancelled unilaterally, at any time, by the party who placed the instruction or until cancelled by T2S.
Matched instructions must be cancelled bilaterally by both counterparties.
Recycling rules
Unmatched instructions will be recycled for 20 business days (starting from the initial settlement date), after which they will be cancelled.
Unmatched cancellation requests will be recycled for 20 business days (starting from the date of receipt).
Matched, but not settled instructions will be cancelled by T2S after 60 business days (starting from the date of receipt or on the day the last modification was sent for the instruction).
Settlement Discipline Regime cash penalties
Penalties will be calculated and applied on matched settlement instructions that fail to settle, in full or in part, on and after their intended settlement date (ISD), if both the settlement instruction and the relevant financial instrument are subject to cash penalties.
Instruments subject to cash penalties
Any financial instrument listed in the Financial Instruments Reference Data System (FIRDS) database maintained by ESMA will be subject to cash penalties. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption listed in the Short Selling Regulation (SSR) exemption list.