Bridge: Processing enhancements by the ICSDs in preparation for T+1 settlement

To support participants ahead of T+1, Clearstream¹ and Euroclear Bank SA/NV will introduce improvements to the current Bridge settlement flows. Following T+1 industry recommendations, these changes aim to speed up transaction processing and keep settlement efficient under T+1.

Key Bridge processing enhancements

Enhanced matching period

The matching window will be extended for longer matching opportunities.

Today, Bridge instructions are matched through inter‑ICSD matching transmissions, known as ACE files that are exchanged on a rolling basis between the ICSDs from 01:55 CET to 21:00 CET.

Going forward, ACE file exchanges will run from 23:00 CET to 21:30 CET.

As a direct consequence, the client input deadline for instructions eligible for Back Valuation (BV) will be extended from 21:00 CET to 21:30 CET. The eligibility criteria for Back Valuation will remain unchanged.

Improved velocity of Bridge file exchange

To accommodate the anticipated intraday settlement shift under T+1, settlement exchanges over the Bridge will be accelerated. This enhancement offers quicker settlement feedback, lowers latency between ICSDs, and streamlines recycling of pending transactions, especially near key deadlines.

How will we increase the velocity

Today, Bridge transactions settle via delivery and feedback file exchanges between the ICSDs, with 53 scheduled transmissions each day processed every 10 minutes.

Going forward, file exchanges will follow a rolling, event driven model. Exchanges will happen as soon as Bridge processing is completed and no longer at fixed 10 minutes intervals, except for the first file exchange which will take longer to complete with an expected ultimate completion deadline of 01:30 CET. The daily number of transmissions will vary with settlement volumes.

The first Bridge exchange of proposed delivery and feedback files will start at 23:00 CET (instead of 22:30 CET) and will continue to finish at 19:05 CET.

Enhanced DVP cut‑off times

The Industry Committee's High-Level Roadmap to T+1 securities settlement in the EU recommends that non-EUR European currencies should have their delivery-versus-payment (DvP) cut-off times matched to the EUR DvP cut-off at 16:00 CET. This alignment aims to standardise DvP settlement windows throughout European markets.

Based on this recommendation, both ICSDs will take the opportunity to extend and optimise current DvP cut-offs where possible. These changes seek to improve settlement efficiency while preserving strong risk management.

As a result, the following changes will be implemented:

• Alignment of non-EUR European currencies² with the EUR against payment input deadline of 15:20 CET on SD. 

• Extension of the GBP against payment input deadline to 16:50 CET on SD. 

• Extension of the CAD, MXN and USD against payment input deadline to 18:30 CET on SD.

 New deadlines overview:

a. The exact list of European currencies subject to DVP cut off at 15:20 CET is being finalised and will be provided at a later stage.

Introduction of a dedicated lifecycle for Securities Financing Transactions (SFT)

The EU T+1 Industry Committee recommends establishing a new gating event, at a specific time on settlement date, to tackle possible liquidity gaps caused by transitioning some fixed income activity to T+1. This event is meant to be adopted across all settlement platforms, following uniform formatting rules and aligned principles.

In line with this recommendation, this new gating event will be introduced for Bridge settlement.

The gating event is scheduled to start at 11:00 CET. Instructions eligible for settlement will only be submitted for settlement to the other ICSD as of the opening of the gating event window at 11:00 CET. We strongly advise submitting instructions at least 15 minutes prior to this time to help ensure timely settlement.

Unsettled transactions at the end of the intended settlement date (ISD) will be recycled at the earliest opportunity on ISD+1, rather than being held for the gating event on ISD+1.

All Bridge instructions (DVP or FOP) with any transaction type (for example, TRAD, REPU) in any instrument type can use this new feature.

How to flag your instruction?

Include :22F::STCO//GATE in your new settlement instructions to indicate participation in the gating event. This field does not require matching; either party may opt into the gating event by using the flag.

Partial settlement – Partial release

Partial settlement

A "partial settlement proposed delivery instruction" refers to a delivery instruction eligible for partial settlement. This indicates that the instruction is not placed “on hold”, both parties have agreed to settle part of it, but full completion is not possible due to insufficient securities in the delivering client's account.

With the transition from a fixed file exchange schedule to a rolling, event driven model, the start and end time of the existing partial settlement runs will be changed as follows (all timings are expressed in CET):

Partial release

A “Partial release proposed delivery instruction” refers to an instruction that the client has placed “on hold”, meaning it is initially not available for settlement. However, it is subsequently released for settlement, but only for a part of the total quantity involved.

The partial release functionality will be enhanced to operate throughout the entire Bridge settlement period and will no longer depend on the execution of a partial settlement run.

Next steps

The ICSDs will announce the implementation timeline for these changes at a later date. We also suggest consulting the specific documentation offered by each ICSD for additional details.

Further information

For further information, clients may contact Clearstream Client Services or their Relationship Officer.

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1. Clearstream refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Europe AG (for Clearstream Europe AG clients using 6-series accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
Clearstream Banking S.A. is registered as an Australian CS (Overseas) Facility, under subsection 824B(2) of the Corporations Act 2001, with registration number ARBN 675 244 783.

2. The exact list of European currencies subject to DVP cut off at 15:20 CET is being finalised and will be provided at a later stage.