Settlement services - Czech Republic

31.12.2018

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)
All securities
Immediate Release FlagSystematic matching used, enabling use of hold and release mechanism.SD-1 pre-matching: 13:00
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

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 depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.

If no matching customer instruction is found, the allegement is reported to the customer 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.

Procedures for domestic counterparties

For all securities except T-bills - CSD Prague Settlement (Place of settlement UNIYCZPP)

Procedure for the domestic counterpartyDeadline
Receipt in CBLMarket deadline for pre-matching 16:30, SD-1a
Counterparty must instruct CSD Prague as follows:
-Deliver to: BIC CEDELULL, CDCP code 614
-For account of: CEDELULL
Delivery from CBL
Counterparty must instruct CSD Prague as follows:
-Receive from: BIC CEDELULL, CDCP code 614
-In favour of: CEDELULL

a. For overnight processing, market deadline is 16:30 SD-1; for T+0 processing, please refer to Settlement times - Czech Republic.

For T-bills only - SKD Settlement (Place of settlement CNBACZPP)

Procedure for the domestic counterpartyDeadline
Receipt in CBLMarket deadline for pre-matching 16:30, SD-1a
Counterparty must instruct SKD as follows:
-Deliver to: BIC BACXCZPP

-Buyer: CEDELULL
-For account of: 13783
Delivery from CBL
Counterparty must instruct SKD as follows:
-Receive from: BIC BACXCZPP
-Seller: CEDELULL

-For account of: 13783

a. For overnight processing, market deadline is 16:30 SD-1; for T+0 processing, please refer to Settlement times - Czech Republic.

Note: In line with market practice, domestic counterparties can pre-match settlement instructions with UniCredit Bank via telephone. The domestic counterparty should quote the CBL account with UniCredit Bank (2216070000) when pre-matching. Customers are strongly recommended to also indicate the beneficiary account in their settlement instructions.

Queries concerning unmatched transactions or the option chosen for settling a transaction should be addressed to:

UniCredit Bank Czech Republic and Slovakia, a.s.
Attn: Mr Filip Vesely
Settlements

Tel: +420 955 960 780
Fax: +420 224 829 235

Allowed countervalue difference

A maximum difference in countervalue of CZK 1,000 is allowed for the matching and settlement of against payment transactions with domestic counterparties. In the event of a discrepancy within this limit, the counterparty's amount will prevail and the exact settlement amount will be reflected in the settlement confirmation.

Specific settlement rules / settlement restrictions

Against payment transactions with domestic counterparties in all eligible securities can be effected in CZK only.

Trade date and trade price

Trade date is mandatory in all settlement instructions. Customers are recommended to indicate the trade price, where available, in order to facilitate the fully automated processing of settlement instructions in the domestic market.

Cash payments

For pre-advices of funds, customers are strongly recommended to instruct their CZK cash correspondent bank to send a SWIFT MT103 or similar credit advice to CBL's cash correspondent, Citibank Europe Plc Organizacní Složka. Failure to comply with this may lead to delays in customers' accounts being credited.

Bridge settlement

All Czech instruments are Bridge-eligible.

Management of failed instructions

CBL’s depository will automatically cancel settlement instructions that are still unmatched at the end of the 30th business day after the first attempted settlement date.

Instructions with domestic counterparties that have not settled by the requested settlement date (SD) are put back to unmatched status by CSD Prague seven business days later (SD+7).

Customers who want to cancel unsettled matched trades, or trades returned from failed to unmatched by CSD Prague after the seven-day period, must send a cancellation and the counterparties must do the same.

New issues settlement

Equities

New issues of Czech securities are accepted by CBL.

Government securities

Auctions on Czech government securities are organised by the Czech National Bank. Customers that want to participate in a primary auction should contact their local broker-dealer to place their bid.

The settlement cycle for new issues of Czech government bonds is T+2. Newly issued securities can be received in CBL against payment only. Customers that successfully bid for a new government issue must:

  • Notify their local broker-dealer of CBL’s local agent (UniCredit Bank Czech Republic and Slovakia, a.s.); and
  • Send a receipt against payment settlement instruction to CBL by 18:00 on SD-2.
    The receipt against payment instruction must include the following details:
    - Delivering agent:Czech National Bank - BIC: CNBACZPPXXX
    - Place of Settlement:CDCP - BIC: UNIYCZPPXXX
    - Settlement Processing Narrative:This must include “PRIMARY AUCTION”.
    In order to allow the provisioning before 10:05 SD-1 and to ensure timely settlement of the subscription, customers must instruct CBL using the Immediate Release (IREL) functionality (see Pre-matching service above).
    The cash countervalue of the instruction must correspond exactly to the bid amount.