Settlement services - Finland

22.05.2018

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 Flag availableAutomated through EFIAs from SD-2, upon 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

Hold and Release

Customers instructions remain on hold in CBL until provisioned and released to the market.

Matching service

Matching is mandatory for all trades settling

In Infinity the T2S matching rules apply. As a consequence, the following fields may, if present, be matching criteria:

Additional matching field

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.

CBL does not populate the additional matching fields and customers may leave them blank as well.

Optional matching field

Optional matching fields are not mandatory and may be omitted by the counterparties. However if a value is provided by both counterparties, they must match.
The optional matching fields such as the Common Trade Reference will not be supported for instructions sent to CBL account in Infinity.

Customers who shall include this optional matching in their instructions to CBL should note that it will not be forwarded to Infinity. If the counterparty fills in the field the transaction will still match.

Other mandatory fields in Infinity

In Infinity the field Client of receiving CSD participant (:95a::BUYR) / Client of delivering CSD participant (:95a::SELL) is required as a mandatory field. The value in the field will however not be used for matching purposes.

Securities account of the delivering party (:97A::SAFE with :95A::DEAG) / securities account of the receiving party (:97A::SAFE with :95a::REAG) in the customers’ instructions will not be forwarded to Infinity.

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 agent 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

Domestic counterparties receiving or delivering securities from or to customers through EFI must instruct the respective clearing systems, as follows:

Procedure for the domestic counterpartyDeadline
Securities in Infinity a b

Deliver to / Receive from: Clearstream Banking Luxembourg CEDELULL

For the account of: BIC of CBL customer

Market deadline

a. In Infinity, additional matching fields are initially not mandatory unless one of the counterparties provides a value for them in its instruction. Therefore, if either counterparty populates the additional matching field, it becomes a matching criteria and the other counterparty must instruct with the same matching indicator.
b. CBL does not populate the additional matching fields.

c. When instructing against CBL customers with unpublished accounts or accounts without BIC, the domestic counterparty must use the BIC of CBL (CEDELULL) in both "Deliver to / Receive from" and "For the account of".

Allowed countervalue difference

The following cash tolerances are applicable in Infinity:

  • EUR 2 for transactions with an amount less than or equal to EUR 100,000; and
  • EUR 25 for transactions with an amount greater than EUR 100,000.

In the case of a discrepancy, the cash amount of the delivering party will prevail.

Specific settlement rules / settlement restrictions

In Infinity against payment settlement in EUR is not allowed on instruments not denominated in EUR; customers may only instruct free of payment settlement.

Back-to-back processing

Back-to-back processing is available for transactions in all equities and dematerialised bonds eligible in the OM system of EFI. 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 are formatted as follows, according to the connectivity medium used:

Connectivity mediumPool ID formatField(s) to be used
CreationOnline16x a
and
Turnaround
Pool Reference

Type of Settlement Transaction
Xact via SWIFT and Xact File Transfer:POOL//16x a
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

Infinity

In accordance with domestic procedures, unsettled instructions are automatically cancelled as follows:

  • 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 instructions will have no cancellation limit and will be recycled until a business rule is violated (for example, security reaches maturity); bilateral cancellation continues to be required for matched instructions.

However, CBL reserves the right to cancel receipt instructions with domestic counterparties that have not settled or been re-confirmed by the customer by the fifth domestic business day after the requested settlement date.

Delivery against payment instructions that have not settled at the latest two business days after the requested settlement date (SD+2) may be cancelled and the securities re-credited to customers' accounts on that day.

New issues settlement

Transactions in new issues are settled 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.