Settlement services - Slovak Republic

31.01.2018

Pre-matching service

Only released instructions will be sent to the market.

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;
  • CUM/EX indicator

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

The Opt-out and Cum/Ex indicators are processed for matching purposes as additional matching criteria in T2S, but ignored and not considered for the detection of market claims. We recommend not to use these qualifiers for the detection of market claims.

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 CDCP 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 CDCP:

CSD

BIC11

CDCP via T2S

CSDSSKBAXXX

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 CDCP

Procedure for the domestic counterparty

Deadline

Receipt in CBL/Delivery from CBL

Deliver to/Receive from: BIC CEKOSKBXXXX

In favour of/By order of: Clearstream Banking BIC11  (CEDELULLXXX) and account number of the Clearstream customer

Market deadline

Note: 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.

Partial settlement

CDCP will not offer partial settlement and therefore it is not applicable to settlement in T2S with counterparties that access T2S via CDCP.

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

CDCP-eligible securities are Bridge-eligible.

Back-to-back processing (Transaction Linking)

Back-to-back processing is available for transactions in CDCP-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

Government securities

The settlement cycle for primary auctions of Slovak government bonds is T+2.

Auctions on Slovak government securities are organised by the Debt and Liquidity Management Agency (ARDAL) in the name of the Ministry of Finance.

Since the implementation of T2S, new rules are applicable and settlement of the primary auctions is done only via an against payment instruction in T2S, for each order. It is no longer possible to settle via free of payment instructions coupled with a separate cash payment.

Cash and securities settlement must be processed in line with the auction conditions on the settlement day. Unless otherwise agreed, the settlement date is the second business day following the auction day.

The input deadline is as shown for against payment settlement on Settlement times - Slovak Republic).

Counterparty BIC of ARDAL is APRDSKB1XXX.

  • Customers who want to participate in a primary auction should contact a primary dealer or their broker-dealer to place their bid.
  • Customers that are already primary dealers should send to Clearstream a receipt against payment instruction for each successful bid.