Settlement types

Collective Safe Custody (CSC)

CBF’s settlement system, CASCADE, provides a highly efficient platform for the settlement of transactions in German as well as foreign and international securities that are eligible for collective safe custody (CSC). CASCADE covers the entry and processing of instructions for all parts of the settlement process including:

  • Transfers of securities
  • Administration of securities
  • Matching of free and against payment instructions
  • Settlement of transactions through transfer of cash and securities.

CASCADE supports cash settlement in EUR in central bank money via TARGET2 (the interbank payment system for the real-time processing of cross-border transfers throughout the European Union) and in other currencies via Clearstream´s correspondent banks in commercial bank money.

The transactions processed via CASCADE are delivery instructions resulting from over-the-counter (OTC) and stock exchange trading (Xetra, floor trading), trading on the Eurex Bonds and Eurex Repo platforms and Eurex exercises. The instructions also include central counterparty deliveries.

CBF maintains links with numerous CSDs outside Germany which allows securities kept with these CSDs to be included in its collective safe custody service. For the settlement of securities transactions between CBF’s customers and customers of CSDs, there are technical links between the CASCADE platform and the settlement platforms of the CSDs in question.

Registered Shares in Collective Safe Custody (CASCADE-RS)

CBF offers special services for the administration of registered shares on the CASCADE platform via the CASCADE-RS functionality.

This service allows customers to submit shareholder data to the share ledger of the respective issuer, in a highly automated and cost-efficient way.

CASCADE-RS provides automated support for the following core processes:

  • The conversion of bearer shares into registered shares held in collective safe custody
  • The settlement of stock exchange trades and OTC transactions in registered shares through transfers of positions and entries or re-registrations in the share ledger of the issuer or the share ledger manager.

Detailed information on Clearstream’s services for Registered Shares can be found in the CBF Customer Handbook and under Registered Shares.

Non-collective Safe Custody (NCSC)

The settlement of transactions in NCSC securities takes place through the Creation platform, on technically and legally independent six-series accounts which are governed by German law and CBF’s General Terms and Conditions. This also applies to NCSC securities executed on German stock exchanges. For the settlement of these transactions, customers submit their instructions directly to the Creation platform via their preferred connectivity CreationConnect connectivity channel.

Customers may obtain reports via CreationConnect or through the CSD communication channels.

Detailed information on the Creation settlement processes can be found in the CBL Customer Handbook. A list of the custodians used with information on the relevant market practice and settlement processes can be found under Market Coverage.

Individual Safe Custody

CBF also supports its customers in the settlement of transactions in securities kept in individual safe custody (physical securities) and offers in particular:

  • Deposit and withdrawal of physical securities to and from the holdings in the vaults
  • Recording and administration of certificate numbers (ledger)
  • Conducting checks against the list of invalidated or stopped securities
  • Processing defective and replacement certificates.