CASCADE settlement cycles

CASCADE covers the instruction and processing of securities transfers for CBF customers. That includes instructions entry, matching (free of and against payment), the release and settlement of securities transactions, including payment processing for delivery versus payment (DvP) transactions, in collaboration with TARGET2 (the interbank payment system for the real-time processing of cross-border transfers throughout the European Union).
Transactions processed via CASCADE are delivery instructions resulting from over-the-counter (OTC) and stock exchange trading (Xetra, floor trading), clearing through Eurex Clearing AG (CCP), trading on the Eurex Bonds and Eurex Repo platforms and Eurex exercises. CASCADE supports cash settlement in EUR and in other currencies, especially in CHF through its link to the Swiss CSD.
Incoming delivery instructions in CASCADE are processed in different provisioning and settlement cycles. For (EUR) cash and securities settlement, the CASCADE platform offers:

  • Two night-time processing cycles (STD, RT-STD); and
  • Five daytime processing cycles (CONT SDS1, SDS1, CONT SDS2, SDS2 and CONT SDS3).

In each of these processing cycles, transactions are settled either through:

  • Batch processing (STD at 19:00, SDS1 at 10:00 and SDS2 at 13:15) or
  • Continuous settlement (RT-STD at 01:30, CONT SDS1 at 07:10, 08:00 and 09:00, CONT SDS2 at 11:00 and 12:00 and CONT SDS3 from approximately 13:40 until 18:00 for free of payment (FoP) transactions)

Furthermore, CBF’s customers have the option of participating in real-time settlement (RTS) from 07:00 until 16:00 where EUR DvP transactions are settled.

The settlement timing slots are according to calendar days (00:00 to 24:00). However, settlement for CBF commences on the preceding evening with the start of night-time processing (STD) and ends with the last possible daytime processing on the settlement date (RTS).

Cash entries which do not result directly from securities settlement (for example, corporate actions) are processed separately in two processing cycles, Direct Debit 1 (DD1) and Direct Debit 2 (DD2). In addition, manually entered payments can be carried out in Direct Debit 3 (DD3).

Cash settlement for payments made in EUR takes place through TARGET2. The processing of against payment instructions in non-EUR currency differs as the cash leg is processed on Clearstream´s Creation platform.

Full information on the Settlement Cycles processed on CASCADE can be found in the CBF Customer Handbook.