CFCL Settlement – Mexico
Reference
CFCL is exclusively using Clearstream Banking Luxembourg (CBL) as sub-custodian.
All settlement instructions received from CFCL Clients are first processed and checked by CFCL and then reflected in Clearstream Banking Luxembourg. Once instructions reach the sub-custodian's settlement system, the standard deadlines, matching and provisioning processes of the custodian apply.
Settlement services
Clearstream provides a comprehensive range of services, designed specifically to maximize settlement opportunities while minimizing delays.
Vestima, the investment fund order routing, execution and management service, facilitates access to these services and simplifies all aspects of investment funds trading.
Settlement options
Participants (the OI and the OR) can specify that settlement instructions are to be generated automatically by Vestima for an order. Vestima can generate both securities and cash instructions. If the settlement instructions are generated automatically by Clearstream Fund Centre (“locked-in settlement”), the risk of error associated with settlement is avoided.
Specifics of MT54x instructions generated by Vestima
Applicable to CFCL:
M/O | Tag | Qualifier | Specification | Vestima usage | Seq |
| M a | :20C: | :COMM | //16x | Vestima unique order identification | A1 |
M | :20C: | :TRRF | //16x | Order (deal) reference given by the participant (OI or OR) | A1 |
M | :94B: | :TRAD | /EXCH/XVES | The market identification code of Vestima | B |
M | :98A: | :TRAD | //8!n | Trade (deal) data as per order confirmation | B |
M | :22F: | :SETR | One of the following: //REDM //SUBS //TRAD | Type of settlement transaction, used as per market specifications (TRAD by default) | E |
M | :22F: | :STCO | //NPAR | Partial settlement is not allowed, present when one of both participants will rely on T2S to settle the orders | E |
a. This field will not be included in automatically generated settlement instructions for ISINs that Clearstream holds with a domestic depository in ESES France or ESES Netherlands. | |||||
Settlement models
Orders can be settled free of payment or against payment. Subscription/buy and redemption/sell orders settle against payment, in most cases as a DVP transaction. For switch orders, the proceeds from the switch-from leg are used to “pay” for the switch-to leg, and the individual legs settle FOP.
