Settlement services - Czech Republic

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

Systematic matching used

SD-1 pre-matching: 13:00

Connectivity mediumInstruction format

Xact Web Portal

Tick to enable the "Immediate Release" option

Xact via SWIFT and Xact File Transfer

Field :22F::STCO/CEDE/IREL

Domestic allegement matching service

Complementary to the pre-matching services offered as described above 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

For all securities except T-bills - CSD Prague Settlement (Place of settlement UNIYCZPP)

Procedure for the domestic counterpartyDeadline
Receipt in CBLMarket deadline for pre-matching 16:30, SD-1a

Counterparty must instruct CSD Prague as follows:

  • Deliver to: BIC CEDELULL, CDCP code 614
  • For account of: CEDELULL
Delivery from CBL

Counterparty must instruct CSD Prague as follows:

  • Receive from: BIC CEDELULL, CDCP code 614
  • In favour of: CEDELULL

a. For overnight processing, market deadline is 16:30 SD-1; for T+0 processing, please refer to Settlement times - Czech Republic.
 

For T-bills only - SKD Settlement (Place of settlement CNBACZPP)

Procedure for the domestic counterpartyDeadline
Receipt in CBLMarket deadline for pre-matching 16:30, SD-1a

Counterparty must instruct SKD as follows:

  • Deliver to: BIC BACXCZPP
  • Buyer: CEDELULL
  • For account of: 13783
Delivery from CBL

Counterparty must instruct SKD as follows:

  • Receive from: BIC BACXCZPP
  • Seller: CEDELULL
  • For account of: 13783

a. For overnight processing, market deadline is 16:30 SD-1; for T+0 processing, please refer to Settlement times - Czech Republic.
 

Note: In line with market practice, domestic counterparties can pre-match settlement instructions with UniCredit Bank via telephone. The domestic counterparty should quote the CBL account with UniCredit Bank (2216070000) when pre-matching. Customers are strongly recommended to also indicate the beneficiary account in their settlement instructions.

Queries concerning unmatched transactions or the option chosen for settling a transaction should be addressed to:

UniCredit Bank Czech Republic and Slovakia, a.s.
Attn: Mr Filip Vesely
Settlements

Tel: +420 955 960 780
Fax: +420 224 829 235

Specific settlement rules / settlement restrictions

Against payment transactions with domestic counterparties in all eligible securities can be effected in CZK only.

Trade date and trade price

Trade date is mandatory in all settlement instructions. Customers are recommended to indicate the trade price, where available, in order to facilitate the fully automated processing of settlement instructions in the domestic market.

Cash payments

For pre-advices of funds, customers are strongly recommended to instruct their CZK cash correspondent bank to send a SWIFT MT103 or similar credit advice to CBL's cash correspondent, Citibank Europe Plc Organizacní Složka. Failure to comply with this may lead to delays in customers' accounts being credited.

Bridge settlement

All Czech instruments except equities, exchange traded funds and CSD-eligible open-ended funds are Bridge-eligible.

New issues settlement

Equities

New issues of Czech securities are accepted by CBL.

Government securities

Auctions on Czech government securities are organised by the Czech National Bank. Customers that want to participate in a primary auction should contact their local broker-dealer to place their bid.

The settlement cycle for new issues of Czech government bonds is T+2. Newly issued securities can be received in CBL against payment only. Customers that successfully bid for a new government issue must:

  • Notify their local broker-dealer of CBL’s local agent (UniCredit Bank Czech Republic and Slovakia, a.s.); and
  • Send a receipt against payment settlement instruction to CBL by 14:00 on SD-1.
    The receipt against payment instruction must include the following details:

    Delivering agent:

    Czech National Bank - BIC: CNBACZPPXXX

    Place of Settlement:

    CDCP - BIC: UNIYCZPPXXX

    Settlement Processing Narrative:

    This must include “PRIMARY AUCTION”.

    Type of Settlement Transaction Indicator

    This must be “PLACEMENT” (relates to the placement/new issue of a financial instrument)

    22F::SETR//PLAC

    In order to allow the provisioning before 14:00 SD-1 and to ensure timely settlement of the subscription, customers must instruct CBL using the Immediate Release (IREL) functionality (see Pre-matching service above) and must take the necessary steps to provision their account before the above-mentioned new issue deadline.
    The cash countervalue of the instruction must correspond exactly to the bid amount.
  • Please be informed that for primary purchase of government bonds issued by the CDCP, some orders concluded in the primary market settle as standard secondary transfers. For these orders, the Delivery Agent is the Czech Ministry of Finance (BIC MFCRCZP1). Information on whether the orders from the primary market are settled with the Delivery Agent Czech National Bank or Czech Ministry of Finance is provided in the email of the auction results to the local broker dealer.

Settlement Discipline Regime and related domestic market settlement functionalities

Recycling of pending transactions

CDCP: Unsettled matched instructions will be recycled until settled or bilaterally cancelled, if settlement not achieved by the 20th accounting day the instruction will be automatically cancelled. The 20 accounting days’ time limit applies from the registration of the transfer in the settlement system (settlement date - DEDT) or from the expected settlement date (the later date to be used).

SKD:  Unmatched instructions are not recycled. The unsettled matched instructions will be recycled until settled or bilaterally cancelled, if settlement not achieved by the 7th working day the instructions will be automatically cancelled.

Bilateral cancellation

CDCP: Yes, SKD: No

For CDCP, 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 available on the market via CBL.

Partial settlement

CDCP: Yes, SKD: No

For CDCP, partial settlement is available for domestic transactions and the customer’s decision to accept for the transaction to settle/not to settle partially will be systematically included in the instruction sent to the local market. Partial settlement will continue as it does today and Clearstream Banking will continue to report partial settlement feedbacks received from the markets. 

Cash tolerances

For CDCP, with non-EUR currencies, for settlement amounts equivalent to less than or equal to EUR 100,000, the tolerance level will be equivalent to EUR 2, while for settlement amounts that are equivalent to more than EUR 100,000, the tolerance level will be equivalent to EUR 25. For settlement instructions in currencies other than EUR, CSDs should use the official exchange rates of the European Central Bank (ECB), valid on 1 January of the respective calendar year. For domestic against payment instructions, the maximum discrepancy tolerated in settlement matching varies in accordance with market practice and the conditions of the domestic link.

For SKD : specific matching tolerance:
For amount lower than CZK 2,500,000 the maximum accepted difference is CZK 50 (matching at seller’s price),
For amount higher than CZK 2,500,000 the maximum accepted difference is CZK 625 (matching at seller’s price),

Matching information

The trade date is mandatory matching criterion 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 listed in the Short Selling Regulation (SSR) exemption list.