Settlement services - Iceland

16.10.2015

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, against payment instructions
Immediate Release Flag availableAutomatically in the CSD systemAs soon as received
All securities, free of payment instructions
Immediate Release Flag availableManual (“best efforts” basis), by telephone or email via AgentOn SD-1 through to SD
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 the CSD on against payment transactions 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

Procedure for the domestic counterpartyDeadline
All eligible instruments
Deliver to / Receive from: Nasdaq CSD Iceland (NCSD)
For the account of: LuxCSD S.A.
Participant code: LUX
Nominee account national identifier (NIN): 660215-9990
Market deadline

Allowed countervalue difference

A countervalue difference of ISK100 is allowed for against payment transactions with domestic counterparties. In case of discrepancy the delivering party’s amount will prevail.

Specific settlement rules / settlement restrictions

Settlement with Bridge counterparties is not possible; only internal and external domestic instructions are allowed.

Instructions with a settlement day in the past are not permitted and will be cancelled by CBL.

Back-to-back processing

Back-to-back processing is not available for transactions in Icelandic debt securities.

Management of failed instructions

In accordance with standard market procedures, against payment instructions settling through the NCSD TRS matching system that remain unmatched are automatically cancelled at the end of the instruction period by the NCSD, that is, after 17:00 local time on the day before the requested settlement date (SD-1). Matched transactions may also be cancelled by the NCSD after the settlement cycle on SD (at about 13:00 local time) if there is a lack of securities or funds on the account.

Free of payment unmatched or unsettled instructions settling via the off-market method will be cancelled after the system closes on 17:00 local time on SD.

New issues settlement

Transactions in new issues are settled on the day on which distribution occurs in Iceland. For confirmation times, please refer to Settlement times.