Settlement services – Slovenia
Pre-matching service
The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.
The hold and release feature available in T2S will be used by CBL, CBF and LuxCSD for the pre-matching of settlement instructions in T2S.
Service offered | Method employed | Start | |
All securities | |||
CBF and LuxCSD | The T2S hold/release process allows for a released transaction to be set back to hold as long as it has not settled. Instructions that were sent on “Hold” can be released via a corresponding MT540 – MT543 “NEWM”. The status of a CBF/LuxCSD instruction can be changed via a modification (MT530) until its final settlement. In parallel to the instruction hold flag set by the CBF/LuxCSD clients (“Party hold”), T2S provides hold information from the counterparty (“counterparty hold”) itself. Hence, the following values can be reported to CBF/LuxCSD clients:
| Automated through T2S | On receipt of instructions |
CBL | CBL releases pre-matching instructions (PREA) only outside the provisioning period to CBF for matching purposes only. As soon as the start of the provisioning period is reached and provided the provisioning of cash and securities is successful, the settlement instruction (NEWM) will be released to CBF for further processing and settlement in T2S. Once the instruction is released to CBF, it cannot be set back on hold again. | Automated through T2S | On receipt of instructions |
Matching service
Matching is mandatory for all transactions settling in T2S. In addition to the mandatory matching criteria in T2S the following fields may, if present, be matching criteria.
Additional matching field
The following 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.
- Opt-out indicator;
- Cum/Ex indicator.
The Opt-out and Cum/Ex indicators are processed by KDD for matching purposes as additional matching criteria in T2S, but ignored and not considered for the detection of market and reverse market claims. We recommend not to use these qualifiers for the detection of market claims.
Optional matching field
The following optional matching fields must match when provided by both counterparties:
- Common reference;
- Client of delivering/receiving CSD participant;
- Securities account of the delivering/receiving CSD participant.
Note: Clearstream Banking recommends to agree on the usage of a common reference (:20C::COMM) and the T2S Security Account number (SAC) with the counterparty in KDD. Both fields are “optional” matching criteria in T2S and avoid cross-matching if it is populated in the Settlement instructions of both parties.
Allegements
T2S will send allegement messages depending on the information indicated in the counterparty’s instruction. The allegements will contain the additional and optional matching criteria described above. These can be used to correctly format instructions to ensure matching if it has not yet been sent to Clearstream Banking or LuxCSD.
All securities | |
CBF | If the counterparty of the CBF client instructs first, an allegement instruction will be generated by T2S. T2S will send the allegement message (sese.028) to CBF or to the DCP, without prior validation, whether the ISIN is eligible in the counterparty CSD, that in this case is CBF. Receipt domestic instructions are automatically generated if the passive matching flag is set on the receiving main account or sub-account. In addition the generation follows the rules below: For domestic transactions, if the delivering party is an ICP or DCP client and the recipient is a passive matching participant (ICP/DCP), CBF generates the receipt instruction based on the delivery instruction sent to CBF (ICP) or based on the copy of the DCP instruction (sese.023) received from T2S. For cross-border transactions where the deliverer is a foreign CSD client and the recipient is a CBF client (ICP/DCP), the receipt instruction is generated based on the allegement received from T2S. Allegements are not generated for “Already matched” instructions. |
CBL | CBL may receive counterparty instructions alleged on its account at CBF and will report them to clients provided that the client’s CBL account is present in the allegement and the allegement subscription is in place on the client account. |
LuxCSD | If a counterparty's settlement instruction does not match after the first matching attempt, the client is informed through an allegement message after a predefined period of time (T2S standard service). |
Identification of CSDs in T2S
In T2S, all CSDs will be identified by their BIC11. CBL, CBF and LuxCSD clients are required to use the following BIC11 as Place of Settlement for domestic instructions with counterparties in KDD:
CSD | BIC11 |
KDD via T2S | KDDSSI22XXX |
Identification of the counterparty in T2S
In T2S, the CSD participants are identified exclusively by the combination of their home CSD (for example, PSET DAKVDEFFXXX) and their BIC11.
Counterparty identification | |
CBF | 4517000 a counterparty CSD account in CBF) or alternatively KDDSSI22XXX (BIC11 of the counterparty CSD) b and the T2S Party BIC11 of the CSD participant. The counterparty CSD BIC is used by CBF to address the CSD where the counterparty is set up as T2S Party. This counterparty's CSD is reflected in CASCADE with a counterparty CSD account. The counterparty CSD BIC has to be used in cross-border instructions with T2S In-CSDs. |
CBL | Home CSD BIC11 and the T2S Party BIC11 of the CSD participant. If a CBL client uses a BIC8 to identify the Receiving/Delivering Agent, CBL shall be entitled to modify the BIC8 provided and the settlement instructions will be then 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. |
LuxCSD | Home CSD BIC11 and the T2S Party BIC11 of the CSD participant. |
a. The counterparty CSD account can only be used in the CBF Legacy connectivity.
b. BIC11 of other T2S IN-CSDs possible if the technical configuration in T2S is available.
Note: Cross-border settlement between CSDs in T2S is only possible, if the corresponding technical configuration in T2S for cross-border links has been established by the CSDs linked to each other.
Procedures for domestic counterparties
CBL
CBL depository – CBF | |
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent | CEDELULLXXX |
SAFEa of the DEAG/REAG | Not to be instructed. If instructed, it must be the valid CBL SAC: KDD: DAKV7201118 |
Buyer/Seller | BIC11 of the CBL client |
a. Although the safekeeping account of Party 1 (REAG/DEAG) is an optional matching field in T2S, if it is present on one instruction only it will only match with instructions instructed by this account.
As CBL does not forward its own SAC to the settlement parties, if the client counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.
We encourage clients to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securities account of the delivering/receiving party).
CBF
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent | T2S Party BIC11 CBF participant |
LuxCSD
Place of settlement | LUXCLULLXXX |
Delivering/Receiving Agent | T2S Party BIC11 LuxCSD participant |
Partial settlement
In T2S, partial settlement for eligible instructions is allowed at the last night-time settlement cycle in sequence ‘X’; and within the real-time settlement period:
- At 08:00 CET, 10:00 CET, 12:00 CET, 14:00 CET and 15:30 CET.
- 30 minutes prior to the against payment cut-off time (between 15:30 CET and 16:00 CET).
Within these windows all transactions that are pending due to lack of securities and hold a positive partial settlement indicator are included in the partial settlement processing.
Whether partial settlement will be applied or not depends on the partial settlement indicator set within the instruction or on the client account setup. A settlement instruction will settle partially if both counterparties instruct with the Field :22F::PARQ.
Partial settlement applies only when full settlement is not possible due to lack of securities. T2S will perform partial settlement according to the available position after analysing the partial settlement indicator in the instruction. The settlement instructions are submitted to a full settlement attempt before being submitted to a partial settlement attempt, if permitted by instruction indicators or client account setup.
Partial settlement is applicable to domestic and cross-border instructions and is not allowed for PFoD instructions. Also, partial settlement is not applied if instructions are linked to any other settlement instruction with link type “Before”, “After”, “With” or via pool reference. Partial settlement is not applied if the transaction undergoes a process where a CoSD Hold is used. The unsettled remaining part of a partially settled settlement instruction can be cancelled.
CBF | CBF clients can define within the instruction whether partial settlement is to be applied or not by setting a partial settlement indicator. In addition, they can set a flag on account level (CBF 7-digit account number) that defines the default value to be set to those instructions where the partial settlement indicator is not filled. The flag is maintained within CBF’s static account database and defines which partial settlement indicator is to be assigned to an instruction as default value (NPAR, PART).The flag applies to delivery and receipt instructions. |
CBL | As client delivery instructions are always fully provisioned before being sent to the domestic market, no partial settlement can be performed. For receipts, the partial settlement can take place if the counterparty is short of securities and the instructions are received by T2S within the times set above. When CBL clients access T2S via CBF, the default set up will be Partial Settlement. Clients that do not wish their transactions to settle partially must provide the No Partial Settlement indicator (NPAR) in their instruction. |
LuxCSD | LuxCSD clients can define within the instruction whether partial settlement is to be applied or not by setting a partial settlement indicator. |
Allowed countervalue difference
The following T2S cash tolerances will apply to instructions (against payment instructions in EUR only):
- EUR 2 for transactions with an amount equal to or less than EUR 100,000; and
- EUR 25 for transactions with an amount greater than EUR 100,000.
In the event of a discrepancy within the limits, in principle the cash amount of the delivering party will prevail.
For non-EUR currencies, the T2S cash tolerances apply to against payment instructions in foreign currencies between CBL and CBF participants (not applicable to LuxCSD).
Bridge settlement (CBL only)
CBL clients can settle KDD T2S-eligible securities via the Bridge. This service is not available for CBF and LuxCSD clients.
Back-to-back processing (Transaction Linking)
Back-to-back processing is available for transactions in KDD T2S-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.
New issues settlement
In general, CBL clients must prepay the Lead Manager directly during the official subscription period for the countervalue of new security (equities or government bonds) to which they want to subscribe. The currency in which such payments are to be made is included in the official announcement of the subscription.
Government bonds
Clients must submit a free of payment receipt instruction, in accordance with the deadlines mentioned in Settlement times. When a bid is successful, KDD delivers the newly issued securities to CBL's account 3673204 (with KDD).
Equities
The Lead Manager holds the prepayment in escrow on behalf of investors. If bids are rejected, prepayments are refunded to the investors according to the payment instructions given to the Lead Manager. When a bid is successful, the Lead Manager delivers the allocation of newly subscribed shares to the KDD, which registers the newly issued shares on CBL's account 3673204 with KDD.
Clients must pre-advise CBL of the receipt of securities through transmission of a free of payment receipt instruction.
Settlement Discipline Regime and related domestic market settlement functionalities
Recycling of pending transactions
Unmatched instructions will be cancelled automatically after 20 business days (starting from the intended settlement date or the date of the last status change of the instruction).
Matched, but not settled instructions will be cancelled after 60 business days (starting from the date of receipt or on the day the last modification was sent for this instruction).
Bilateral cancellation
This means that matched instructions can only be cancelled if both domestic counterparties request a cancellation of their instructions.
Until the cancellation confirmation is received from the market, the instruction will remain eligible for settlement, that is, the instruction may be provisioned and proposed for settlement and may be subject to cash penalties.
Hold and release
Hold and Release is not available on this market via CBL.
Partial settlement
Partial settlement is not available on the market.
Matching information
The trade date is a mandatory matching criterion and domestic instructions will follow local market rules.
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 list.