Settlement services - Sweden

09.02.2022

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

Automated through VPC system

On receipt of instruction

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

Procedure for the domestic counterpartyDeadline
For CBL-eligible bonds for receipt in/delivery to CBL (PM system)

For receipt or delivery transactions free of and against payment:

Deliver to/Receive from: SEB  -  ESSESESS (Receiving/ Delivering Agent)
For/from: CEDELULL (Deliverer's/Receiver's Custodian)
By order of: CBL customer 5-digit account number

SEB account held on behalf of CBL in VPC is 86585649
CBL account number in SEB is 01-001-604-997

Market deadline

For CBL-eligible equities for receipt in/delivery to CBL (AM system)

For receipt or delivery transactions free of and against payment:

Deliver to/Receive from: SEB - ESSESESS (Receiving/ Delivering Agent) 
For/from: CEDELULL (Deliverer's/Receiver's Custodian)
By order of: CBL customer 5-digit account number

Market deadline

Specific settlement rules

All fixed income and on-exchange transactions, and equity OTC transactions involving a counterparty outside SEB are processed through VPC and considered as "external" transactions. Equity OTC transactions where the holdings of both parties are within the same SEB omnibus account at VPC are processed through the internal matching system at SEB.

The current structure of the accounts is, as follows:

  • Debt securities
    Debt securities are held in segregated nominee accounts in the name of "SEB for Clearstream Banking", that is, one nominee account at VPC per safekeeping account at SEB. All money market transactions are considered "external" due to this particular account structure.
  • Equities
    Equities are held in segregated nominee accounts in the name of "SEB for Clearstream Banking", that is, one nominee account at VPC per safekeeping account at SEB. All transactions are considered "external" due to this particular account structure.

Settlement cycle for debt securities and equities is T+2. Against payment transactions are settled mainly in SEK, however, some securities are denominated in EUR and consequently settle in that currency.

Internal equity OTC transactions on the books of SEB between two parties who both have EUR cash accounts linked to their custody accounts with SEB can also be settled against payment in EUR.

Settlement restrictions

No nominal limits apply on VPC/NewClear's Aktiemarknad (AM) sub-market. Nominal limits of SEK 500 million and EUR 50 million apply to free of and against payment transfers of debt securities on VPC Penningmarknad (PM) sub-market. Customers settling transactions with Swedish counterparties on VPC PM sub-market must divide any nominal value that exceeds the applicable limit into multiple transactions, each with a nominal value at or below the relevant limit.

Customers are responsible for complying with this requirement and Clearstream Banking will assume no responsibility for delayed transactions or for settlement failures that result from a breach of the relevant VPC limit.

Back-to-back processing

Back-to-back processing is not available in this market.

New issues settlement

Transactions in new issues are settled on the day on which distribution occurs in Sweden. For confirmation times, please refer to Settlement times.

Settlement Discipline Regime and related domestic market settlement functionalities

Recycling of pending transactions

Unmatched instructions, unless cancelled by the CSD member, will remain in the CSD system until they are cancelled by the system after 20 business days from either ISD or entry date, whichever is the later.

Matched, but not settled instructions will be cancelled after 60 business days (starting from the date of receipt or on the day the last modification was sent for this instruction).

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

Hold and Release is not offered via CBL on this market

Partial settlement

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.

Euroclear Sweden supports partial settlement, in the form of split settlement, as per below:

AM sub-market -automated solution

PM sub-market -partial settlement will be performed on a manual bilateral basis.

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.

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.

Matching information

The trade date is a 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.