Transactions between a Clearstream customer and counterparties in Euroclear Bank settle across the Bridge. The Bridge is the electronic communications platform that facilitates the efficient settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank. Transactions for Bridge settlement can be executed both free of payment or against payment. Bridge transactions can only be carried out if the security is eligible for admission in both systems.
Bridge instructions are matched through inter-ICSD matching transmissions, known as 'ACE' transmissions.
During both the mandatory and optional settlement periods, delivery and feedback files are exchanged between Clearstream and Euroclear Bank across the Bridge.
The settlement day, comprising both the night time and real-time processing, is split into two periods, for both internal and Bridge instructions:
- The mandatory settlement period, during which a delivery may only be refused for reason of cash or credit provision;
- The optional settlement period for against payment transactions, during which customers may determine eligibility for settlement by means of an Optional Settlement Flag (OSF).