Settlement services - Finland
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 offered | Method employed | Start (local time) |
| All securities | ||
Immediate Release Flag available | Automated through EFI | As from SD-2, upon receipt of instructions |
| Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the “Immediate Release” option. |
Xact via SWIFT and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Hold and Release
Customers instructions remain on hold in CBL until provisioned and released to the market.
Partial settlement
Infinity will apply partial settlement when the delivering party does not have the full amount of securities or the receiving party does not have sufficient cash for settlement. Customer delivery and receipt instructions will continue to be provisioned for the full quantity or cash value before being released for settlement. Consequently, customer delivery and receipt instructions may only settle partially if their counterparty is short of securities or cash. Customers that do not wish their transactions to settle partially must provide field :22F::STCO//NPAR or Partial Settlement set to “Partial not allowed” in their instruction.
Matching service
Matching is mandatory for all trades settling
In Infinity the T2S matching rules apply. As a consequence, the following fields may, if present, be matching criteria:
Additional matching field
Additional matching fields are initially not mandatory but, when one of the counterparties provides a value for them in its instruction, matching values must be provided by the other counterparty.
CBL does not populate the additional matching fields and customers may leave them blank as well.
Optional matching field
Optional matching fields are not mandatory and may be omitted by the counterparties. However if a value is provided by both counterparties, they must match.
The optional matching fields such as the Common Trade Reference will not be supported for instructions sent to CBL account in Infinity.
Customers who shall include this optional matching in their instructions to CBL should note that it will not be forwarded to Infinity. If the counterparty fills in the field the transaction will still match.
Other mandatory fields in Infinity
In Infinity the field Client of receiving CSD participant (:95a::BUYR) / Client of delivering CSD participant (:95a::SELL) is required as a mandatory field. The value in the field will however not be used for matching purposes.
Securities account of the delivering party (:97A::SAFE with :95A::DEAG) / securities account of the receiving party (:97A::SAFE with :95a::REAG) in the customers’ instructions will not be forwarded to Infinity.
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 agent 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
Domestic counterparties receiving or delivering securities from or to customers through EFI must instruct the respective clearing systems, as follows:
| Procedure for the domestic counterparty | Deadline |
| Securities in Infinityab | |
Deliver to / Receive from: Clearstream Banking Luxembourg CEDELULL For the account of: BIC of CBL customer | Market deadline |
a. In Infinity, additional matching fields are initially not mandatory unless one of the counterparties provides a value for them in its instruction. Therefore, if either counterparty populates the additional matching field, it becomes a matching criteria and the other counterparty must instruct with the same matching indicator.
b. CBL does not populate the additional matching fields.
c. When instructing against CBL customers with unpublished accounts or accounts without BIC, the domestic counterparty must use the BIC of CBL (CEDELULL) in both "Deliver to / Receive from" and "For the account of".
Allowed countervalue difference
The following cash tolerances are applicable in Infinity:
- EUR 2 for transactions with an amount less than or equal to EUR 100,000; and
- EUR 25 for transactions with an amount greater than EUR 100,000.
In the case of a discrepancy, the cash amount of the delivering party will prevail.
Specific settlement rules / settlement restrictions
In Infinity against payment settlement in EUR is not allowed on instruments not denominated in EUR; customers may only instruct free of payment settlement.
Back-to-back processing
Back-to-back processing is available for transactions eligible in the Infinity system of EFI. If both the customer and the domestic counterparty meet their settlement obligations and fulfil the market's back-to-back requirements within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value. To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:
| Connectivity medium | Pool ID format | Field(s) to be used |
Xact via SWIFT and Xact File Transfer | :POOL//16xa and :SETR//TURN | Field :20C: sequence A1 Field :22F: sequence E |
a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.
Management of failed instructions
Infinity
In accordance with domestic procedures, unsettled instructions are automatically cancelled as follows:
- Unmatched instructions will be recycled for 20 business days (starting from the initial settlement date), after which they will be cancelled.
- Unmatched cancellation requests will be recycled for 20 business days (starting from the date of receipt).
- Matched, but not settled instructions will be cancelled by T2S after 60 business days (starting from the date of receipt or on the day the last modification was sent for the instruction).
However, CBL reserves the right to cancel receipt instructions with domestic counterparties that have not settled or been re-confirmed by the customer by the fifth domestic business day after the requested settlement date.
Delivery against payment instructions that have not settled at the latest two business days after the requested settlement date (SD+2) may be cancelled and the securities re-credited to customers' accounts on that day.
Settlement Discipline Regime 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.
New issues settlement
Transactions in new issues are settled the day on which distribution occurs in Helsinki or in the night-time processing of the next day with back valuation to the previous day.