Settlement services - International

18.12.2017

Instruction types

Instruction typeSelected currencyCustomers using ICP modeCustomers using DCP mode
Against payment (RvP and DvP)Euro in Central Bank MoneyDvP format and structureDvP format and structure
Against payment (RvP and DvP)non-T2S currenciesDvP format and structureInstruction to be set up as FOP containing debit/credit indicator, currency and cash amount details

Cash management

Settlement in T2S is conducted based on the T2S “Conditional Securities Delivery (CoSD)” logic with the following rule: The settlement with the external platform (Creation) must be finalised before the settlement is executed in T2S. Instructions matched on the Intended Settlement Date (ISD) will automatically be blocked by T2S. They will be released by CBF once finalised in Creation.

The cash leg in Euro will settle in central bank money (CeBM) via the Dedicated Cash Account (DCA) defined in T2S. Instructions specifying the depository account 4496 will be processed via T2S liquidity management. Pending instructions against payment will be part of the T2S and CBF cash forecast reporting. The amounts will be included in the reported total amount of the Cash Forecast. Therefore, no dedicated funding procedure is required. Any setting defined for a DCA will also be applicable for such instructions.

Cash blocking can be conducted in T2S, similar to the securities blocking procedure. The T2S blocking logic does not allow a blocking of cash higher than the available amount on the DCA. On ISD, T2S will block the settlement amount of the receive versus payment instruction (RvP) as soon as the status is matched and released. Customers acting as Cash-DCP that have ordered a camt.068 (IntraBalanceMovementConfirmation) will receive a message about the blocking. Once the cash is blocked, a message will be sent to Creation and a settlement confirmation will be provided. Based on this confirmation, CBF will initiate the CoSD release, so that the processing can be completed in T2S.

In the event of a settlement delay in Creation, the cash blocking will be cancelled after the T2S DvP cut-off time. The amount will be transferred to the RTGS account with the T2S Cash Sweep at around 17:40. The RvP instruction is still subject to CoSD processing. The cash blocking will be re-created by T2S during the next night-time settlement (Cycle 1, Sequence 1), after the liquidity transfer on the DCA.

DvP Settlement in non-T2S currencies will settle via the related 6-series cash account in Creation using Commercial Bank Money (CoBM).

Procedures for Creation (CBL) counterparties

Procedure for the CBL counterparty

Delivery in CBF / Receipt from CBF

  • Deliver to / Receive from: CBF account number in Creation 18757
  • For the account of / By order of: BIC11 of CBF customer in CASCADE

Allowed countervalue difference

A maximum difference in countervalue of EUR 25 is allowed.

Back-to-back processing

Back-to-back processing is not available in this market. Nevertheless, same-day turnarounds are in principle possible, provided that the customer sends its receipt instruction as early as possible to CBF for further processing and that securities provision is available.

Management of failed instructions

In accordance with CBL market practice, instructions that could not be settled on settlement date will be used again the following settlement day. Pending unmatched transactions are automatically cancelled in Creation after 60 business days.

For deliveries, the securities will remain on a reservation CMA sub-account 995 overnight.

After presentation for settlement, matched transactions can only be cancelled in Creation if both counterparties cancel their respective instruction ("bilateral cancellation" principle).

If a CBL counterparty requests the cancellation of a matched instruction, the CBF customer must also cancel his instruction in T2S. The CBF cancellation request is forwarded to Creation. If the cancellation is confirmed by the counterparty, both instructions - in Creation and in T2S - are automatically cancelled.