Settlement services - Slovenia

08.11.2017

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
PREA instructions are not supported.On the local Slovenian market pre-matching is done between settlement counterparties via email.On receipt of instructions

Note: The domestic counterparty and the domestic safekeeping account on the counterparty’s side must be stated for matching purposes.

Procedures for domestic counterparties

To arrange pre-matching of instructions, customers should request their domestic counterparties to contact NLB on the following numbers:

NLB d.d.
Attn: Custody Services
Mail: Settlements@nlb.si
Fax + 386 1 476 52 45

Receipt of securities in CBL

For all receipts of securities, customers should advise their domestic counterparty to:

  • Pre-match the transactions with NLB as soon as possible;
  • Indicate the Clearstream Banking account at KDD, number 3673204;
  • Indicate the customer's CBL account when pre-matching.

If the transaction is matched successfully and provisions are available, NLB confirms settlement for CBL's real-time processing on SD.

For all against payment receipts of securities, NLB, in accordance with market practice, executes DVP settlement in KDD's system. Cash transfer via RTGS with a separate free receipt of securities is not supported.

Delivery of securities from CBL

For all deliveries, customers should advise their domestic counterparties to:

  • Pre-match the transactions with NLB as soon as possible;
  • Indicate the Clearstream Banking account at KDD, number 3673204;
  • Indicate the customer's CBL account when pre-matching.

For all against payment deliveries of securities, NLB, in accordance with market practice, executes DVP settlements in KDD's system. Receipt of incoming funds via RTGS with a separate free delivery of securities is not supported.

Physical deliveries and receipts

The Slovenian market is almost fully dematerialised. Physical securities are not eligible on the CBL link.

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

Beneficial Ownership

Customer wishes to indicate No change of beneficial ownership

:22F::BENE//NBEN

BENE indicator

Beneficial Ownership

Customer wishes to indicate Change of beneficial ownership

:22F::BENE//YBEN

BENE 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 (mandatory for Settlement via KDD).

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

Not available in the market.

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 KDD:

CSD

BIC11

KDD via T2S

KDDSSI22XXX

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), that is, 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 KDD

Procedure for the domestic counterparty

Deadline

Receipt in CBL/Delivery from CBL

Deliver to/Receive from: BIC LJBASI2XXXX In favour of/By order of: CBL BIC11 and Clearstream account number 3673204

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.

The securities account number (SAC) is an optional matching criteria in T2S.

Partial settlement

Not applicable.

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

Slovenian government bonds and Treasury Bills are Bridge-eligible.

Back-to-back processing (Transaction Linking)

Back-to-back processing is not available for transactions in KDD-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

In general, CBL customers must prepay the Lead Manager directly during the official subscription period for the countervalue of new security (equities or government bonds) to which they want to subscribe. The currency in which such payments are to be made is included in the official announcement of the subscription.

Government bonds

Customers must submit a free of payment receipt instruction, in accordance with the deadlines mentioned in Settlement times. When a bid is successful, KDD delivers the newly issued securities to CBL's account 3673204 (with KDD).

Equities

The Lead Manager holds the prepayment in escrow on behalf of investors. If bids are rejected, prepayments are refunded to the investors according to the payment instructions given to the Lead Manager. When a bid is successful, the Lead Manager delivers the allocation of newly subscribed shares to the KDD, which registers the newly issued shares on CBL's account 3673204 with KDD.

Customers must pre-advise CBL of the receipt of securities through transmission of a free of payment receipt instruction.