Settlement services - Cyprus

07.02.2022

Pre-matching service

The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL’s pre-matching services, see Pre-matching services for external settlement instructions.

Service offeredMethod employedStart (local time)
All securities

Immediate Release Flag available

Manual via telephone or fax (“best efforts” basis)

On receipt of instructions

Connectivity mediumInstruction format

CreationOnline and Xact Web Portal

Tick to enable the “Immediate Release” option.

Xact via SWIFT and Xact File Transfer

Field :22F::STCO/CEDE/IREL

Local pre-matching, which is market practice, starts, subject to counterparty availability, on receipt of instructions and continues until settlement date (SD).

Domestic allegement matching service

As a complement to the pre-matching services offered for this market and where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.

If no matching customer instruction is found, the allegement is reported to the customer provided that its Clearstream Banking account number is present.

For details of CBL’s domestic allegement service, see Pre-matching services for external settlement instructions.

Procedures for domestic counterparties

Procedure for the domestic counterpartyDeadline
Receipt in CBL

-

Deliver to:

Citibank Europe Plc Greece Branch (CITIGRAA)

Market deadline

-

For account of:

Clearstream Banking, Luxembourg (BIC: CEDELULL)

-

In favour of:

5-digit account number of CBL customer

Delivery from CBL

-

Receive from:

Citibank Europe Plc Greece Branch (CITIGRAA)

Market deadline

-

For account of:

Clearstream Banking, Luxembourg (BIC: CEDELULL)

-

In favour of:

5-digit account number of CBL customer

Citibank, Athens acts as custodian and operator of the following segregated account for CBL at the CSD:

SAT code: 2004765061-6
SAT account: CY06980067-7
Operator code: 5000000002

Note: SAT is the Dematerialised Securities System and also the clearing system for Cyprus.

Linkage of trading codes (OASIS codes) with accounts in CSD

When the customer/end-investor has an execution agreement with a local broker who is a direct member of CSE (that is, no remote or international broker-dealer is involved), the customer is requested to advise the local broker that the linkage between OASIS code (trading code in CSE) and the CSD account into which the trade settles is not applicable to trades that settle on CBL's account at the CSD.

Specific settlement rules / settlement restrictions - Bonds

In accordance with domestic market practice, Cypriot government and corporate bonds are traded and settled in units. Domestic settlement instructions in Cypriot debt securities must therefore include the quantity of units. Failure to do so may result in settlement delays.

Specific settlement rules / settlement restrictions - Equities

Settlement of Stock Exchange (SE) trades

The registration, which is part of the settlement process, occurs simultaneously with settlement in SAT on T+2.

Processing in the CSD on behalf of CBL customers takes place as follows:

  • On T+2 Client Settlement: transfer of securities from/to the intermediary's principal account to/from CBL's account at the CSD;
  • After T+2 OTC Rectification Trade (used if Client Settlement failed): transfer of securities from/to the intermediary's proprietary account to/from CBL's account at the CSD.

Note: The cycle of T+2 is mandatory in CSE for Client Settlement instructions, for which the CSE accepts no other cycle. Customers can, however, instruct Client Settlement on any date, including on SD.

Settlement of OTC trades (off-exchange)

OTC transactions are allowed free of or against payment. For the settlement deadlines on OTC trades in CBL, please refer to Settlement times.

Late instructions should be cancelled and re-instructed by the customer with a new SD. However, matched trades can only be cancelled if both parties send cancellation instructions.

In order to benefit from straight-through processing, the customer must complete fields as follows to specify the type of OTC transaction that will apply:

OTC transactionXact via SWIFT and Xact File TransferCreationOnline
Type of Settlement Transaction field / Additional Indicators field

OTC Normal trade (OTC TRAD)

:94B::TRAD//OTCO/OTC



:22F::SETR//TRAD

Type: Place of Trade
Code: OTC Trade
Narrative: OTC

Trade Settlement

OTC Re-registration (OTC RERE)

:94B::TRAD//OTCO/OTC




:22F::SETR//TRAD

:22F::REGT//YREG

Type: Place of Trade
Code: OTC Trade
Narrative: OTC


Trade Settlement

Additional Indicators:
Type: Registration Indicator
Code: Register

OTC rectification tradea:94B::TRAD//OTCO/OTC




:22F::SETR//TRAD

:22F::STCO/HCSD/RCTF

Type: Place of Trade
Code: OTC Trade
Narrative: OTC


Trade Settlement

Settlement Processing Narrative: Rectification

----------------------

a. Used after T+2 if Client Settlement failed.

Fees and charges

The following market fees and charges (which are given here as an indication only and may be subject to market changes) are applied by CSE in the settlement process to OTC trades:

  • Equities - normal OTC trade for equities listed in the main market: 3.5 bps per side and for equities listed in the other markets 8.5 bps (plus EUR 1.00 for against payment transactions, per side). Minimum EUR 20.00.
  • Fixed income - normal OTC trades: 1.5 bps per side (plus EUR 1.00 for against payment transactions, per side) with minimum EUR 20.00.
  • Re-registration: EUR 5.00 per side.
  • OTC rectification trade: EUR 20 per side.

Transfers of securities from Cyprus to Greece are subject to a fee of EUR 0.20 per transfer. Please refer to “Settlement process" in the Market Profile - Cyprus.

All charges incurred by CBL in the trading and settlement processes will be passed on to the relevant customer on an “upon receipt” basis.

Back-to-back processing

Back-to-back processing is not available for transactions in Cypriot securities.

New issues settlement

Not applicable in the Cypriot market.

Settlement Discipline Regime and related domestic market settlement functionalities

Recycling of pending transactions

Not applicable on the market

Bilateral cancellation

This means that matched instructions can only be cancelled if both domestic counterparties request a cancellation of their instructions.

Until the cancellation confirmation is received from the market, the instruction will remain eligible for settlement, that is, the instruction may be provisioned and proposed for settlement and may be subject to cash penalties.

Hold and release

Not applicable on the market.

Partial settlement

Not applicable on the market.

Cash tolerances

For domestic instructions against payment in EUR, the following cash tolerance levels will apply (as at present):

  • EUR 2 for transactions of an amount up to or equal to EUR 100,000; and
  • EUR 25 for transactions of an amount greater than EUR 100,000.

Matching information

The trade date is a mandatory matching criteria and domestic instructions will follow local market rules.

Cash penalties

Penalties will be calculated and applied on matched settlement instructions that fail to settle, in full or in part, on and after their intended settlement date (ISD), if both the settlement instruction and the relevant financial instrument are subject to cash penalties.

Instruments subject to cash penalties

Any financial instrument listed in the Financial Instruments Reference Data System (FIRDS) database maintained by ESMA will be subject to cash penalties. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption list.