Settlement services - New Zealand

04.09.2018

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.

Service offeredMethod employedStart
(local time)
NZCSD/NZClear-eligible debt securities
Immediate Release Flag availableAutomated electronic NZClear matching. Follow up on unmatched trades via email/phone.SD-1 (or on receipt of instructions)
NZCSD/NZClear-eligible equities
Immediate Release Flag availableAutomated electronic NZClear matching. Follow up on unmatched trades via email/phone. SD-1 (or on receipt of instructions)
Connectivity mediumInstruction format
CreationOnline and Xact Web PortalTick to enable the “Immediate Release” option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Procedures for domestic counterparties

Procedure for the domestic counterpartyDeadline
Receipt in CBL
Deliver to: JPMorgan Chase Bank, N.A. (New Zealand Branch) -
NZClear mnemonic: CHAM24
In favour of: CEDELULL, A/C 1783-0001-11-05
Market deadline
Delivery from CBL
Receive from: JPMorgan Chase Bank, N.A. (New Zealand Branch) -
NZClear mnemonic: CHAM24
By order of: CEDELULL, A/C 1783-0001-11-05
Market deadline

Allowed countervalue difference

No difference in countervalue is allowed in transactions with domestic counterparties.

Back-to-back processing

Back-to-back processing is available for transactions in all dematerialised securities eligible in this market. If both the customer 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, customers must ensure that their back-to-back instructions contain details in the correct format for the connectivity medium used, as follows:

Connectivity mediumPool ID formatField(s) to be used
CreationOnline16xa
and
Turnaround
Pool Reference

Type of Settlement Transaction
Xact via SWIFT and Xact File Transfer:POOL//16xa
and
:SETR//TURN
Field :20C: sequence A1

Field :22F: sequence E

a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.

Management of failed instructions

Instructions for receipts from domestic counterparties that have not settled by the tenth attempted settlement day will be cancelled.

Instructions for deliveries to domestic counterparties that have not settled by the fifth attempted settlement day will be cancelled and the securities re-credited to the customer’s account on that day (first attempted SD+5).

New issues settlement

Customers who successfully tender for a new equity or debt issue must instruct their agent to deliver the securities to CBL's account with JPMC NZ. No special information is required other than the normal settlement receipt instruction; regular instruction deadlines apply.