FAQs - Settlement
What are internal, Bridge and external settlement?
Internal transactions are transactions between two Clearstream Banking accounts (including those between a customer’s own accounts). Internal transactions can be in any security admitted for settlement in CBL, whether an international or a domestic instrument.
Bridge transactions are those with counterparties in Euroclear Bank. Bridge transactions can only be carried out if the security is eligible for admission in both systems.
External transactions are transactions with a counterparty other than a CBL counterparty in a domestic market. External transactions include instructions for the physical delivery of international and domestic securities.
In which currencies can I settle?
For internal and Bridge instructions all accepted/Clearstream eligible currencies can be used for settlement. For domestic instructions, local market rules apply. Detailed information on eligible currencies are available in the applicable Market Guide.
How should I format my instructions?
Clearstream only accepts formatted instructions that follow the ISO 15022 standards.
Details on the different formats for delivery/receipt against payment/free of payment can be found in the SWIFT User Guide or on the applicable market guides. Instruction formats are available as well for CreationOnline users.
How can I instruct to settle with a counterparty in a local market?
Each local market has its own rules for formatting instructions. The details for each market are in the Creation Links Guides which can be found in Market Coverage.
When is my instruction released to the market, what does provisioning mean?
Instructions are released to the market according to the rules specified in the market guides. In markets for which there is no pre-matching, instructions needs to be provisioned first. That means securities (for delivery) or cash (for receipt) need to be present in your account in order to reserve it for settlement.
How can I see the status of an instruction?
Information on the status of instructions is provided in reporting as an MT548 Settlement Status and Processing Advice and/or MT537 Statement of Pending Transactions.
You can also check the status of an instruction on CreationOnline by using the Securities Post Release query (Activity Status).
How can I find out why an instruction was rejected?
When an instruction is rejected by Clearstream, the reason is reported on the MT548 message and/or MT537 report.
All status and reason codes are detailed in the Appendix of the SWIFT User Guide. If you are using the CreationOnline Securities Post Release query, the reason-narrative details are available in the detailed view of the instruction.
How does Clearstream inform clients of settled instructions?
Clients are informed of settlement via reports and online queries on CreationOnline.
Clients can ask to receive MT54x Confirmations and/or MT536 Statements of Transactions either by managing their subscription to Clearstream’s reports and notifications via CreationOnline or by contacting their Client Services officer.
CreationOnline users can use a Securities/OTC Post Release query for settled transactions.
What are the input deadlines for settlement instructions?
The input deadlines for settlement instructions are available in the Settlement Timings Matrix which contains all settlement deadlines for internal, Bridge and domestic transactions.
How can I check a security balance?
Security balances are reported to clients in the MT535 Statement of Holdings.
CreationOnline users can also obtain information on current positions by using the real-time ‘Securities Balances’ query functionality. In addition it is possible to obtain current positions and historic positions for the previous 12 months.
What do Mandatory Settlement Period (MSP) and Optional Settlement Period (OSP) mean?
Clearstream’s processing day for internal and Bridge against payment instructions is divided into the mandatory settlement period and the optional settlement period. In the mandatory settlement period, all eligible instructions will be automatically presented for settlement.
In order for an against payment instruction to be presented for settlement in the optional settlement period both parties have to agree and both instructions have to be flagged as eligible for optional settlement.
For free of payment instructions this split does not apply.
Are back-to-back instructions possible?
Domestic back to back
In order to ensure that same day turnaround can be achieved for a related purchase and sale in the same security on a domestic market, Clearstream offers a ‘domestic back to back’ service.
This service is similar to a linked transactions service whereby the delivery will only be presented for settlement after the settlement of the associated receipt instruction.
Information on the settlement possibilities for back-to-back instructions on the different local markets is available in the respective Creation Links Guides which can be found in the Markets & Asset Classes.
Transaction linking for internal/Bridge and external instructions
The Transaction Linking Service enables clients to automatically make delivery or receipt of securities dependent or contingent upon the prior settlement of other, specifically linked, securities transactions. The service can be used between any combination of internal, Bridge or domestic instructions, for any number of receipt and delivery Instructions and for any combination of settlement details. The only linkage criterion is the Pool ID.
How should I format a cross-border instruction?
Cross-border instructions are for securities which are transferred from one market to another. Some securities are listed on more than one stock exchange, which means that they may be traded and settled in several markets.
In order to see the markets on which these securities can be traded and the instruction formats that should be used for each market, please refer to the respective Market Guide.
Transfers need to be done always via the home market of the security.
How can I cancel a settlement instruction?
Settled instructions cannot be cancelled. In some markets matched instructions cannot be cancelled unilaterally and need bilateral cancellation.
You can cancel a settlement instruction by re-sending the original instruction with the message function changed to reflect that it is the cancellation of an existing instruction rather than a new instruction.
Using CreationOnline you can cancel an outstanding instruction simply by issuing a cancellation instruction.
When is the bilateral cancellation applied?
Matched internal instructions can be bilaterally cancelled if matching cancellations from both customers are received by Clearstream Banking Luxembourg before the instructions are settled.
For matched Bridge instructions, no bilateral cancellation is necessary; cancellation can be one-sided.
In certain domestic markets the bilateral cancellation concept applies as well. Further details are available in the Markets & Asset Classes area of the website.
How can I block an instruction from settlement?
The hold/release mechanism enables clients to temporarily hold back a securities transaction from settlement, even if cash or securities provision is available, and to release it only when settlement is desired.
The service is available for internal, Bridge and domestic instructions, free of payment or against payment instructions.
Instruction matching is unaffected by the hold/release functionality. Once released, the instruction follows the normal settlement pattern.
What is an alleged instruction?
An allegement is an instruction presented by a counterparty against an account for which no exactly-matching instruction can be found.
Upon receipt of an allegement, CBL will search for the best matching client instruction candidate.
If the allegement potentially matches with a client instruction, up to eight unmatched reason codes (one primary plus a maximum of seven secondary), detailing their differences with the alleged instruction will be reported. SWIFT and CreationDirect users will receive the information via MT548 Settlement Status and Processing Advice and/or MT537 Statement of Pending Transactions. CreationOnline users can view the same information by using the OTC post-release detail view.
If no matching client instruction is found, the allegement will be reported to the client provided that its Clearstream account number is present.
Is it possible to apply buy-in rules?
Clearstream will apply the buy-in rules that are in force in each local market. All related information can be found in the related Market Profiles in the Market Guide.
How can I check if a security is eligible in Clearstream Banking?
Information about all Clearstream Banking eligible securities is available in the security database on the website.
CreationOnline users can also find this information within the online Reference Data – Financial Instruments.
How can I request the creation of an ISIN code or make a security eligible in Clearstream?
Clients should call or send an email to Client Services, specifying key data such as the ISIN code, issuer and/or market. Clients should also advise about the urgency of the request. In some cases additional information might be needed.
Are all Clearstream Banking securities eligible for Bridge transactions?
Some securities eligible in Clearstream cannot be settled across the Bridge that links clients holding accounts in Clearstream with counterparties in Euroclear Bank. Information as to whether or not a security is Bridge-eligible is available in the Securities Database in Codelist. CreationOnline users can also find this information within the online Reference Data.
Where can I find information on the minimum and other denominations of an instrument?
This information is available in the Securities Database in Codelist. CreationOnline users can also query the online Reference Data.
Should the minimum trade amount field be empty it means that the minimum denomination is equal to the multiple trade amount.
Where can I find the account number of my counterparty?
All Clearstream-listed account numbers and those of already-listed counterparts within other CSDs and ICSDs are available in the Customer Listings area. CreationOnline users can also obtain this information using a query under settlement parties in the Online Reference Data.
How can I change the reports that I receive from Clearstream?
Using CreationOnline, administrator users and business supervisors can add, modify or cancel scheduled reports for whatever communication channel is used.
If you do not have CreationOnline, an MT599 free message can also be sent to Clearstream which will apply the changes in the setup of the client’s account.
All requests sent prior to 18.00 CET will be effective on the next day.
Whom should I contact if I have further questions?
If you have any further questions, please call your Client Services Officer who will be pleased to help you.