CASCADE Link Guide - Finland

07.01.2022

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct link to Clearstream Banking S.A. for holding Euroclear Finland Ltd securities .

a. CSD Regulation (EU) No 909/2014 art. 2 (29).

 

CSD

Name

Clearstream Banking S.A.

FATCA GIIN

N1V1GJ.00000.LE.442

LEI

549300OL514RA0SXJJ44

Country of incorporation

Luxembourg

Account type

Omnibus account

Legal Account name / holder

Clearstream Banking AG

Operational arrangements – direct link to Clearstream Banking S.A.

For information related to the Clearstream Banking link to Euroclear Finland please refer to the Market Link Guide – Finland.

Yes/NoRemarks
Settlement in T2S

No

Settlement free of paymentYes 

 Settlement with counterparties in Creation (Clearstream Internal Settlement) only.

Settlement against payment

Limited

Settlement with counterparties in Creation (Clearstream Internal Settlement) only.
Eligible settlement currency: Euro (EUR).
Settlement Cycle CBF

Limited

STD, Continuous settlement (Cont-SDS FoP).

Settlement against payment in central bank money account of CBF customer

No

 
Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

No

 
Pre-matching

No

 
Back-to-back processing

No

 
Allegements

Yes

Available only with counterparties in Creation (Clearstream internal settlement).

Automatic compensation

Yes

Adjustments (trade date after ex date but settlement after record date) for trades with counterparties in Finland with the settlement cycle of T+2 and above.

Registered securities

Yes

 
Multi Market Securities

No

 
Lending and borrowing

No

 
Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

No

 
Market restrictions

Yes

Securities that are beneficially owned by Finnish nationals cannot be held in CBF.

FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

Yes

 
Moment of entry of instructions

Internal instructions are deemed to be introduced into the CBL securities settlement system when they are successfully validated, in view of the matching and the settlement processes.

Irrevocability of instructions

Internal instructions become irrevocable under the CBL securities settlement system rules as soon as they are matched. Matched Internal instructions can only be bilaterally cancelled.

Finality of instructions

Internal instructions that have settled in the CBL settlement system are final.

Legal arrangements

For legal arrangements related to the Clearstream Banking SA link to Euroclear Finland please refer to the Market Link Guide – Finland.

The below section is based on the legal opinion obtained by CBF on 13 December 2021 (Luxembourg legal opinion). The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the  CSD

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition as direct CSD account-holder

Confirmed

Recognition of nominee concept

Confirmed

No right of retention for the CSD

Confirmed

Segregation of assets at the CSD

Confirmed

No right of use

Under Finnish law, the CSD holds a statutory right of pledge to book-entry securities registered in a commission as security for the settlement obligations , that the settlement system has assumed in accordance with the rules of the settlement system.

No upper-tier attachments

Confirmed

Insolvency of CSD with no impact on CBF's rights 

Local law does not contain explicit provisions for the means of recovery of securities held in the book-entry system maintained by the CSD if the CSD would be subject to insolvency proceedings.

Shortfall pro-rated among holders

Confirmed

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least 10 years

Confirmed

The CBF to Euroclear Finland link via CBL as T2S Out-CSD is no longer supported. CBF clients can still acquire Finnish securities via the following two steps:

  • Acquire Finnish securities from Euroclear Finland to 6-Series accounts in CBL, and then
  • Realign the Finnish securities from 6-Series accounts in CBL to CBF (link between CBF and CBL as T2S Out-CSD)

For details on receipts from/deliveries to Finnish counterparties, the Market Link Guide Finland is fully applicable.

CBF-eligible security types

  • Finnish securities:
    • Debt instruments;
    • Equities and equity-linked securities;
    • Finnish Depository Receipts (FDR). 
  • Non-Finnish securities:
    • Selected EUREX-eligible securities.

Depository

CLEARSTREAM BANKING S.A.
42 avenue John F. Kennedy
L-1855 Luxembourg

Cash correspondent details

Currency:Euro (EUR) via TARGET2
CCB name:

Bundesbank

CBF account:

RTGS account of a direct TARGET2 participant

Pre-matching service

No pre-matching is performed by CBF on this link.

Settlement times

The deadlines shown below are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in CBF, in CBL and in the local market. Customers must also ensure that any necessary provision is available. If one or more of these criteria are not met, CBF cannot guarantee timely settlement.

Important Note: As part of CBF’s internal compliance procedures, all incoming customer instructions will be automatically scanned before entering transaction processing. Instructions that are internally flagged as requiring further manual investigation are set to status pending, with such status immediately reported to the Customer via their chosen media channel(s), until either being manually released for processing or rejected. In order to ensure that instructions being investigated do not miss the applicable deadlines, Customers are advised to input instructions at least 15 minutes before the associated deadline.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Market Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

InstructionProvisioningDeadline for receipt of valid instruction aExpected settlement results
startendfromtovalue
AP=Against payment FOP=Free of payment SD=Settlement date
Receipts

FOP

19:30
SD-1 b
18:00
SD d
17:45
SD
20:20
SD-1
18:00
SD

AP

07:00
SD c
16:00
SD e
16:00
SD f
07:00
SD
16:00
SD

SD

Deliveries

FOP

19:30
SD-1 b
18:00
SD d
17:45
SD
20:20
SD-1
18:00
SD

AP

19:30
SD-1 b
16:00
SD e
16:00
SD f
07:00
SD
16:00
SD

SD

a. All deadlines refer to online placement in CASCADE and depend on timely CBL matching and sufficient cover.
b. Start of securities reservation in the CASCADE STD processing for SD.
c. Start of cash processing in TARGET2 for SD.
d. End of securities reservation for SD. Securities reservation will continue until the instruction is settled or cancelled by the customer or expires in the market.
e. End of cash processing in TARGET2 for SD. Cash processing will continue until the instruction is settled or cancelled by the customer or expires in the market. The standard cash deadline of 16:00 applies to allow settlement against payment in the optional period in exceptional cases. For settlement in the optional period, customers need to contact CBF in time.
f. Instructions for the same value date must be entered and matched in CASCADE by the counterparties before the deadline of 16:00 in order to be settled on the same day. Securities can still be reserved after 16:00 (using sub-account /995), but with settlement on the next business day.

Procedures for domestic counterparties

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Market Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

Procedure for the CBL counterparty
Delivery in CBF/ Receipt from CBF

-

Deliver to / Receive from: CBF account number in CBL 18757

-

For the account of / By order of: 4-digit account number of CBF customer in CASCADE

Allegement services

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Market Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

For instructions against counterparties in CBL, allegements are forwarded to the CBF customer provided that the Creation counterparty includes the CBF customer's CASCADE account in their instruction. CBF customers are recommended to inform their CBL counterparty to include the CBF customer account.

Matching

Matching is required for all instructions for domestic and internal settlement. Matching of instructions for domestic settlement on the CBL link to Finland  follows the matching process of EFI. Please refer to the Market Link Guide Finland for further information.

Exceptional case

Blocked receipt instructions are not forwarded to CBL and are rejected immediately. CBF customers are informed with REJT for blocked receipt instructions.

Deliver instructions that fail the provisioning are not forwarded to CBL and CBF customers are informed with NMAT//NMAS. As soon as the instruction is successfully provisioned, CBF will forward it to CBL. CBF customers are informed of the matching with MTCH//MACH.

Cancellation of unmatched instructions

CBF recommends cancelling reserved instructions via SWIFT with CANC message. For the online cancellation the reservation needs to be removed before the cancellation.

Instructions with counterparties in Creation are immediately forwarded to CBL for matching. Once they are provisioned, CBF will release them in Creation.

Passive Matching Service

The generation of receipt instructions for customers that are set up as passive matchers in CASCADE depends on the availability of the CBF customers account number in the allegement for CBF.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Market Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

For receipt instructions with allegements containing the CBF account number, passive matching is executed. If the delivering counterparty in Creation does not include the CBF account number, the CBF customer must send an MT540.

Allowed countervalue difference

A maximum difference in countervalue of EUR 25 is allowed for against payment Clearstream internal settlement instructions (counterparty in Creation).

Back-to-back processing

Please refer to the Market Link Guide Finland for further information.

Management of failed instructions

Matched instructions require bilateral cancellation. Automated forwarding of "request for cancellation notification" of the cancellation by the counterparty will be implemented by CBF in a later release. Until then CBF customers are requested to advise their counterparty that when they cancel a matched instruction first, the counterparty must inform the CBF customer and request that the CBF customer also cancels their instruction.

Domestic settlement in Finland (counterparty in Finland)

Please refer to the Market Link Guide Finland for further information.

Clearstream internal settlement (counterparty in CBL)

In accordance with procedures in CBL, unsettled instructions (matched or unmatched) are deleted 60 business days after the intended settlement date.

New issues settlement

Transactions in new issues are settled on 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.