CBF Link Guide - Finland

06.02.2017

Key features

Yes/NoRemarks
Settlement free of paymentYes  Settlement with counterparties in Creation (Clearstream Internal Settlement) only.
Settlement against paymentLimitedSettlement with counterparties in Creation (Clearstream Internal Settlement) only.
Eligible settlement currency: Euro (EUR).
Settlement Cycle CBFLimitedSTD, Continuous settlement (Cont-SDS FoP).
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesNo 
Pre-matchingNo 
Back-to-back processingNo 
AllegementsYesAvailable only with counterparties in Creation (Clearstream internal settlement).
Automatic compensationYesAdjustments (trade date after ex date but settlement after record date) for trades with counterparties in Finland with the settlement cycle of T+2 and above.
Registered securitiesYes 
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsYesSecurities that are beneficially owned by Finnish nationals cannot be held in CBF.
FTTNo 
FATCA GIINYesEuroclear Finland: G7IYVV.99999.SL.246
Nordea Bank Finland Plc: NATWSC.00025.ME.246
CBL: N1V1GJ.00000.LE.442
MiscellaneousNo
Type of linkCSD or settlement method
Relayed linkClearstream Banking S.A. (CBL) with direct link to Euroclear Finland Ltd (the link operated by Nordea Bank Finland Plc).

The CBF to Euroclear Finland link via CBL as T2S Out-CSD is not supported any more. CBF clients can still acquire Finnish securities via the following two steps:

  • Acquire Finnish securities from Euroclear Finland to 6-Series accounts in CBL, and then
  • Realign the Finnish securities from 6-Series accounts in CBL to CBF (link between CBF and CBL as T2S Out-CSD)

For details on receipts from/deliveries to Finnish counterparties, the Creation Link Guide Finland is fully applicable.

CBF-eligible security types

  • Finnish securities:
    • Debt instruments;
    • Equities and equity-linked securities;
    • Finnish Depository Receipts (FDR). 
  • Non-Finnish securities:
    • Selected EUREX-eligible securities.

Depository

CLEARSTREAM BANKING S.A.
42 avenue John F. Kennedy
L-1855 Luxembourg

Cash correspondent details

Currency:Euro (EUR) via TARGET2
CCB name:Bundesbank
CBF account:RTGS account of a direct TARGET2 participant

Pre-matching service

No pre-matching is performed by CBF on this link.

Settlement times

The deadlines shown below are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in CBF, in CBL and in the local market. Customers must also ensure that any necessary provision is available. If one or more of these criteria are not met, CBF cannot guarantee timely settlement.

Important Note: As part of CBF’s internal compliance procedures, all incoming customer instructions will be automatically scanned before entering transaction processing. Instructions that are internally flagged as requiring further manual investigation are set to status pending, with such status immediately reported to the Customer via their chosen media channel(s), until either being manually released for processing or rejected. In order to ensure that instructions being investigated do not miss the applicable deadlines, Customers are advised to input instructions at least 15 minutes before the associated deadline.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Creation Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

InstructionProvisioningDeadline for receipt of valid instruction aExpected settlement results
startendfromtovalue
AP=Against payment FOP=Free of payment SD=Settlement date
ReceiptsFOP19:30
SD-1 b
18:00
SD d
17:45
SD
20:20
SD-1
18:00
SD
AP07:00
SD c
16:00
SD e
16:00
SD f
07:00
SD
16:00
SD
SD
DeliveriesFOP19:30
SD-1 b
18:00
SD d
17:45
SD
20:20
SD-1
18:00
SD
AP19:30
SD-1 b
16:00
SD e
16:00
SD f
07:00
SD
16:00
SD
SD

a. All deadlines refer to online placement in CASCADE and depend on timely CBL matching and sufficient cover.
b. Start of securities reservation in the CASCADE STD processing for SD.
c. Start of cash processing in TARGET2 for SD.
d. End of securities reservation for SD. Securities reservation will continue until the instruction is settled or cancelled by the customer or expires in the market.
e. End of cash processing in TARGET2 for SD. Cash processing will continue until the instruction is settled or cancelled by the customer or expires in the market. The standard cash deadline of 16:00 applies to allow settlement against payment in the optional period in exceptional cases. For settlement in the optional period, customers need to contact CBF in time.
f. Instructions for the same value date must be entered and matched in CASCADE by the counterparties before the deadline of 16:00 in order to be settled on the same day. Securities can still be reserved after 16:00 (using sub-account /995), but with settlement on the next business day.

Procedures for domestic counterparties

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Creation Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

Procedure for the CBL counterparty
Delivery in CBF/ Receipt from CBF
-Deliver to / Receive from: CBF account number in CBL 18757
-For the account of / By order of: 4-digit account number of CBF customer in CASCADE

Allegement services

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Creation Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

For instructions against counterparties in CBL, allegements are forwarded to the CBF customer provided that the Creation counterparty includes the CBF customer's CASCADE account in their instruction. CBF customers are recommended to inform their CBL counterparty to include the CBF customer account.

Matching

Matching is required for all instructions for domestic and internal settlement. Matching of instructions for domestic settlement on the CBL link to Finland  follows the matching process of EFI. Please refer to the Creation Link Guide Finland for further information.

Exceptional case

Blocked receipt instructions are not forwarded to CBL and are rejected immediately. CBF customers are informed with REJT for blocked receipt instructions.

Deliver instructions that fail the provisioning are not forwarded to CBL and CBF customers are informed with NMAT//NMAS. As soon as the instruction is successfully provisioned, CBF will forward it to CBL. CBF customers are informed of the matching with MTCH//MACH.

Cancellation of unmatched instructions

CBF recommends cancelling reserved instructions via SWIFT with CANC message. For the online cancellation the reservation needs to be removed before the cancellation.

Instructions with counterparties in Creation are immediately forwarded to CBL for matching. Once they are provisioned, CBF will release them in Creation.

Passive Matching Service

The generation of receipt instructions for customers that are set up as passive matchers in CASCADE depends on the availability of the CBF customers account number in the allegement for CBF.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Creation Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

For receipt instructions with allegements containing the CBF account number, passive matching is executed. If the delivering counterparty in Creation does not include the CBF account number, the CBF customer must send an MT540.

Allowed countervalue difference

A maximum difference in countervalue of EUR 25 is allowed for against payment Clearstream internal settlement instructions (counterparty in Creation).

Back-to-back processing

Please refer to the Creation Link Guide Finland for further information.

Management of failed instructions

Matched instructions require bilateral cancellation. Automated forwarding of "request for cancellation notification" of the cancellation by the counterparty will be implemented by CBF in a later release. Until then CBF customers are requested to advise their counterparty that when they cancel a matched instruction first, the counterparty must inform the CBF customer and request that the CBF customer also cancels their instruction.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Creation Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

In accordance with procedures in CBL, unsettled instructions (matched or unmatched) are deleted 60 business days after the intended settlement date.

New issues settlement

Transactions in new issues are settled on the day on which distribution occurs in Helsinki or in the night-time processing of the next day with back-valuation to the previous day.