Trading venues

08.06.2020

Trading venues can be defined as regulated and authorised facilities where securities are traded, and includes, among others, Multilateral Trading Facilities (MTFs) and regulated markets such as stock exchanges. The execution of trades on a trading venue can only be performed by authorised members of a trading venue.

For trades requiring the intervention of a central counterparty (CCP), execution of trades on trading venues is usually followed by clearing. The settlement flows related to this activity are further described on the central counterparties page.

For non-clearable trades (that is, trades that do not require the intervention of a CCP), the settlement is made on a bilateral basis, as highlighted in the diagram below. Trades executed on trading venues are either settled manually, directly by both trading parties through their settlement agents, or through an automatic direct feed from the trading venue to the settlement system. This service is based on a Power of Attorney (PoA) allowing the trading venue to instruct Clearstream Banking on behalf of its participants.

An overview of trading venues and the ways of settling bilateral settlement flows via direct feed to Clearstream Banking as a settlement location are outlined in the trading venue and CCP overview. The overview can be accessed in the attachments section below if logged in as a Premium User.

How to subscribe for the service

Customers should notify the relevant trading venue that their transactions must be settled through Clearstream Banking and send a duly signed PoA to the relevant address of CBL or CBF as mentioned below.

Customers should also complete the PoA provided by Clearstream Banking on their letterhead, designating the customer as “The Company” and the institution as “The Attorney”. It should be signed by one or more authorised signatories, in accordance with the rules defined in the authorised signature lists provided to Clearstream Banking.

N.B.: When the PoA allows the attorney to send securities and cash instructions on behalf of the customer, the customer has to include (an) account(s) valid for both securities and cash to allow the attorney to properly instruct and avoid any rejection of the messages sent by the attorney for that purpose.

PoA templates can be accessed in the attachments section below if logged in as a Premium User.

Address details for PoA

CBL customers should return the completed PoA to the following address:

Clearstream Banking S.A.
Account Administration
L-2967 Luxembourg
Luxembourg