Settlement services - Croatia
Pre-matching service
The table below summarises CBL’s, CBF's and LuxCSD's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details on CBF's and LuxCSD's pre-matching services, see Pre-matching services for external settlement instructions.
The "hold and release" feature available in TARGET2-Securities (T2S) will be used by CBL for the pre-matching of settlement instructions in T2S.
Service offered | Method employed | Start (local time) |
All securities | ||
Immediate Release Flag available | Automated through Central Depository and Clearing Company, Joint Stock Company (CDCC)) | As from SD-2, upon receipt of instructions |
Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the “Immediate Release” option. |
Xact via Swift and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Hold and release
The hold and release functionality is not yet implemented in the SKDD.
Partial settlement
Partial settlement is not yet possible in the Croatian market
Matching service
Matching is mandatory for all transactions settling in T2S. In addition to the mandatory matching criteria in T2S the following field types may, if present, be filled with supplementing matching criteria:
Additional matching fields
Additional matching fields are initially not mandatory but, when one of the counterparties provides a value for them in its instruction, matching values must be provided by the other counterparty.
CBL does not populate the additional matching fields and clients may leave them blank as well.
Optional matching fields
The following optional matching fields must match when provided by both counterparties:
- Common reference;
- Client of delivering/receiving CSD participant; and
- Securities account of the delivering/receiving CSD participant.
Domestic allegement matching service
Complementary to the pre-matching services offered as described above and where no pre-matching instruction has been sent to the market, CBL accepts allegements via its agent from domestic market counterparties. It will then use these allegement messages to search for the best matching client instruction.
If no matching client instruction is found, the allegement is reported to the client provided that its Clearstream Banking account number is present.
For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.
Identification of CSDs in T2S
In T2S all CSDs will be identified by their BIC11. Clients are required to use the following BIC11 as Place of Settlement for domestic instructions in EFi:
CSD | BIC11 |
CDCC via T2S | CCPHHR22XXX |
Identification of the counterparty in T2S
In T2S, the CSD participants are identified exclusively by the combination of their home CSD (Swift: PSET), that is, the PSET shall be the BIC of the CSD the counterparty uses to access T2S, and their BIC11 (Swift: REAG/DEAG).
If a client uses a BIC8 to identify the Receiving/Delivering Agent, CBL shall be entitled to modify the BIC8 provided and the settlement instructions will then be processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules.
Accordingly, such clients remain liable for any settlement fails that the use of the BIC8 may cause and the clients furthermore agree to indemnify CBL against losses, liabilities, damages, penalties, expenses and all other costs on any kind suffered by CBL as a result of the client not complying with the above requirement.
Procedures for domestic counterparties
Procedure for the domestic counterparty | Deadline |
Domestic counterparties delivering/receiving securities free of and against payment in favour of/from a CBL client must indicate in their instructions: For receipt and delivery transactions free of/against payment: Deliver to/Receive from: Clearstream Banking S.A. (BIC: CEDELULL) For/from: Clearstream Banking S.A. (BIC: CEDELULL) In favour of: name and account number of CBL client. | Market deadline |
Allowed countervalue difference
The following cash tolerances are applicable in T2S:
- EUR 2 for transactions with an amount less than or equal to EUR 100,000; and
- EUR 25 for transactions with an amount greater than EUR 100,000.
In the case of a discrepancy, the cash amount of the delivering party will prevail.
Back-to-back processing
Back-to-back processing is available for transactions in the T2S system. If both the client and the domestic counterparty meet their settlement obligations and fulfil the market's back-to-back requirements within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value. To benefit from this functionality, clients must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:
Connectivity medium | Pool ID format | Field(s) to be used |
Xact via Swift and Xact File Transfer | :POOL//16xa | Field :20C: sequence A1 |
a. The reference (16x) must neither start nor end with a single slash "/" nor must it contain two consecutive slashes "//".
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.
Specific settlement rules / settlement restrictions
Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the "Immediate Release" option |
Xact via Swift and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Settlement with Bridge counterparties is not possible; only internal and domestic instructions are allowed.
According to a Croatian Central Bank Resolution, Croatian Banking shares must be held at the Croatian CSD in a custody account in the name of the beneficial owner.
CBL does not offer the safekeeping of Croatian Banking shares.