Internal settlement takes place between two Clearstream accounts (including those belonging to the same institution). Internal transactions are settled on a book-entry basis and can be in any security admitted for settlement in Clearstream, whether a euro-instrument or a domestic instrument. Both Free of Payment and Against Payment transactions are eligible.
The settlement processing of internal instructions begins in the evening of the business day preceding the settlement date (SD) and continues on a mandatory basis until the end of the mandatory settlement period. Settlement processing continues for those transactions that are eligible for optional settlement.
The settlement day, including the night time and real-time settlement processing, is split into two periods, for both Internal and Bridge instructions:
The mandatory settlement period, during which a delivery may only be refused for reason of cash or credit provision
The optional settlement period for against payment transactions, during which customers may determine eligibility for settlement by means of an Optional Settlement Flag (OSF)
Mandatory settlement period
The mandatory settlement period begins in the evening of the business day preceding the settlement date and continues into the afternoon on settlement day.
Optional settlement period (against payment only)
The optional settlement period follows the mandatory period. Provided customers have determined that their instructions are to be eligible for optional settlement, all outstanding internal instructions at the end of the mandatory settlement period and any new or amended instructions received in time are processed in the optional period.
Details on the processing of Internal instructions and related instruction input deadlines can be found in the Customer Handbook and the Settlement Timings Matrix.