Settlement services - Greece - BOGS

02.06.2017

Against payment transactions

Against payment transactions are allowed by BOGS provided that they refer to transfers between different counterparties and do not constitute portfolio transfers. Customers are responsible to ensure compliance with this requirement.

Free of payment receipts in CBL

Free of payment deliveries to foreign BOGS participants (that is, receipts in CBL) are allowed under the following conditions:

  • The free of payment transfer aims to cover an onward delivery that has already been concluded abroad;
  • The sale proceeds of the onward delivery must be returned to a cash account maintained in the Greek banking system as specified n the Ministerial Decision of 31.7.2015/Article 1-par 5.

The responsibility to provide evidence of the above conditions are met lies with the deliverer of the securities.

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.

All securities

Service offeredMethod employedStart (local time)
Release of pre-matching instruction (limited to outside the provisioning period) followed by a settlement instructionAutomated through T2SOn receipt of instructions

The hold and release feature available in T2S will be used by CBL for pre-matching only. Therefore, once the customer’s instruction is provisioned and released to the market, it will no longer be possible to place the instruction on hold.

Local pre-matching, which is market practice for instructions starts, subject to counterparty availability, on receipt of instructions and continues until Settlement Date (SD).

In accordance with BOGS rules, matched instructions that are not settled at the latest by the seventh business day after the intended SD will be subject to a forced tender initiated by the BOG. The forced tender is conducted by the BOG through a buy/sell back trade in HDAT. Should the forced tender be unsuccessful, the BOG initiates a buy-in.
Customers are requested to ensure timely provisioning and release of their instructions (for example, instructions with status "on hold"). Any costs and charges incurred by CBL as a result of the forced tender and buy/sell back trade or buy-in will be charged to the impacted customer.

Matching service

Matching is mandatory for all transactions settling in T2S. In addition to the mandatory matching criteria in T2S the following fields may, if present, be matching criteria.

Additional matching field

The following 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.

  • Opt-out indicator (mandatory in CCBM transactions in BOGS);
  • CUM/EX indicator (not available in BOGS and must not be used by customers with counterparties that are ICPs and access T2S via BOGS).

In their instructions to CBL, customers may use the following fields:

Type and purpose of the additional matching field

Xact via SWIFT and Xact File Transfer

CreationOnline

Opt out indicator

Customer wishes to opt out from market claims or transformations

:22F::STCO//NOMC

Opt-out indicator

Cum indicator

Customer wishes to indicate its transaction as cum coupon

:22F::TTCO//CCPN

CUM/EX indicator

Ex indicator

Customer wishes to indicate its transaction as ex coupon

:22F::TTCO//XCPN

CUM/EX indicator

Optional matching field

The following optional matching fields must match when provided by both counterparties:

  • Common reference;
  • Client of delivering/receiving CSD participant;
  • Securities account of the delivering/receiving CSD participant.

Type and purpose of the optional matching field

Xact via SWIFT and Xact File Transfer

CreationOnline

Common reference

Customer wishes to indicate a reference agreed with the counterparty

:20C::COMM

Common Trade Reference

Client of delivering CSD participant

Customer wishes to specify the BIC11 or local code of the counterparty’s underlying client

:95a::SELL

Client of delivering CSD participant

Client of receiving CSD participant

Customer wishes to specify the BIC11 or local code of the counterparty’s underlying client

:95a::BUYR

Client of receiving CSD participant

Securities account of the delivering party

Customer wishes to specify the counterparty’s account

:97A::SAFE with:95a::DEAG

Securities account of the delivering party

Securities account of the receiving party

Customer wishes to specify the counterparty’s account

:97A::SAFE with:95a::REAG

Securities account of the receiving party

Allegements

CBL may receive counterparty instructions alleged on its account at BOGS and will report them to customers provided that the customer’s CBL account is present in the allegement and the allegement subscription is in place on the customer account.
The allegements will contain the additional and optional matching criteria described above. These can be used to correctly format instructions to ensure matching if it has not yet been sent to CBL.

Identification of CSDs in T2S

In T2S all CSDs will be identified by their BIC11. Customers are required to use the following BIC11 as Place of Settlement for domestic instructions in BOGS:

CSDBIC11
Bank of Greece SystemBNGRGRAASSS

For cross-border transactions on BOGS eligible securities with counterparties in other CSDs that have migrated to T2S, the Place of Settlement must contain the BIC11 of the counterparty’s CSD.

If a customer uses a BIC8 to identify the Place of Settlement, Clearstream Banking shall be entitled to modify the BIC8 provided and the settlement instructions will be then processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules.

Identification of the counterparty in T2S

In T2S, the CSD participants are identified exclusively by the combination of their home CSD (SWIFT: PSET or CreationOnline: Place of settlement), i.e. the PSET shall be the BIC of the CSD the counterparty uses to access T2S, and their BIC11 (SWIFT: REAG/DEAG or CreationOnline: Receiving/Delivering Agent).

If a customer uses a BIC8 to identify the Receiving/Delivering Agent, CBL shall be entitled to modify the BIC8 provided and the settlement instructions will be then processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules. Accordingly, such customers remain liable for any settlement fails that the use of the BIC8 may cause and the customers furthermore agree to indemnify CBL against losses, liabilities, damages, penalties, expenses and all other costs on any kind suffered by CBL as a result of the customer not complying with the above requirement.

Procedures for domestic counterparties

Securities eligible in Bank of Greece

Procedure for the domestic counterpartyDeadline
Receipt in CBL / Delivery from CBL
Deliver to / Receive from: BIC CEDELULLXXX (T2S SAC number BNGR1008930211226)b
For the account of : Participant code 9302
In favour of: BIC11 and account number of the CBL customer a
Market deadline

a. T2S does not report the account field with second party level in the allegement messages and we therefore recommend customers to request their counterparties to include the CBL customer account number in field :70C::PACO instead of :97A::SAFE.
b. The securities account number (SAC) is an optional matching criteria in T2S.

Partial settlement

When counterparties access T2S as an ICP via BOGS the default set up will be No Partial Settlement (NPAR) but counterparties can still instruct partial settlement instructions (PART) and BOGS will send them to T2S.

A settlement Instruction will settle partially based on the quantity threshold defined in the T2S static data, if both Counterparties instruct with the Field 22F PARQ.

Partial settlement will also apply to settlement instructions with counterparties and when the delivering party does not have the full amount of securities or the receiving party does not have sufficient cash on the dedicated cash account (DCA) for settlement.

NPAR is mandatory for CCBM transactions in BOGS.

In T2S partial settlement for eligible instructions is allowed at the last night-time settlement cycle in sequence ‘X’; and within the real-time settlement period:
- At 08:00 CET, 10:00 CET, 12:00 CET, 14:00 CET and 15:45 CET.
Customers’ delivery and receipt instructions will continue to be provisioned for the full quantity and/or cash value before being released for settlement. Consequently, customer’s delivery and receipt instructions may only settle partially if their counterparty is short of securities or cash and the instructions are received by T2S within the times set above.
Customers that do not wish their transactions to settle partially must provide the following field in their instruction:

Connectivitiy mediumValueField(s) to be used
CreationOnlineNoPartial Settlement
Xact via SWIFT and Xact File TransferNPAR:22F::STCO//

Allowed countervalue difference

The following T2S cash tolerances will apply to instructions (against payment instructions in EUR only):

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

In the event of a discrepancy within the limits, in principle the cash amount of the delivering party will prevail.

Bridge settlement

BOGS-eligible securities are Bridge-eligible.

Back-to-back processing (Linking)

Back-to-back processing is not available for transactions in BOGS-eligible securities.

Cancellation

  • Unmatched instructions can be cancelled unilaterally, at any time, by the party who placed the instruction or until cancelled by T2S.
  • Matched instructions must be cancelled bilaterally by both counterparties.

Recycling rules

  • 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).

New issues settlement

New issues of BOGS eligible securities can be received in CBL either free of payment or against payment.