Settlement services – Poland
Pre-matching service
The table below summarises CBL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.
| Service offered | Method employed | Start (local time) |
| All securities | ||
Immediate Release Flag available | Manual | On receipt of instructions |
Domestic allegement matching service
Complementary to the pre-matching services offered as described above and where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching client instruction.
If no matching client instruction is found, the allegement is reported to the client provided that its Clearstream Banking account number is present.
For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.
Procedure for the domestic counterparty (T-Bills deposited with National Bank of Poland)
| Procedure for the domestic counterparty | Deadline |
| Receipt in CBL | |
Deliver to: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in NBP (National Bank of Poland) For account of: Clearstream Banking S.A. (BIC CEDELULL) account number 0502343001 In favour of: name and account number of CBL client | Market deadline |
| Delivery from CBL | |
Receive from: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in NBP (National Bank of Poland) In favour of: Clearstream Banking S.A. (BIC CEDELULL) By order of: 0502343001 (Clearstream Banking S.A. account number at Bank Handlowy S.A.) | Market deadline |
Procedure for the domestic counterparty (Securities deposited with KDPW except EUR denominated mortgage bonds)
| Procedure for the domestic counterparty | Deadline |
| Receipt in CBL | |
Deliver to: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in KDPW (Polish CSD) For account of: Clearstream Banking S.A. (BIC CEDELULL) account number 0502343001 In favour of: name and account number of CBL client | Market deadline |
| Delivery from CBL | |
Receive from: Bank Handlowy S.A., Warsaw, BIC CITIPLPX in KDPW (Polish CSD) In favour of: Clearstream Banking S.A. (BIC CEDELULL) By order of: 0502343001 (Clearstream Banking S.A. account number at Bank Handlowy S.A.) | Market deadline |
Procedure for the domestic counterparty (EUR denominated mortgage bonds/Deposited with KDPW)
Procedure for the domestic counterparty | Deadline |
Receipt in CBL | |
Deliver to: Clearstream Banking S.A (BIC CEDELULL or code 0864) in KDPW (Polish CSD) For mirror account opened with CITIPLPX, account number 0502343100 | Market deadline |
Delivery from CBL | |
Receive from: Clearstream Banking S.A (BIC CEDELULL or code 0864) in KDPW (Polish CSD) In favour of: Clearstream Banking S.A. (BIC CEDELULL) By order of: 0502343100 (Clearstream Banking S.A. mirror account number at Bank Handlowy S.A.) | Market deadline |
For KDPW transactions, the indicator of Qualifier :22F::SETR is a mandatory matching criteria. By default, CBL uses TRAD, except if instructed differently (for example, SECL or SECB etc.). Please ensure that your counterparty matches your instructions.
A list of the most Common counterparties in Poland is available.
Specific settlement rules/settlement restrictions
Internal and domestic (both over-the-counter and Warsaw Stock Exchange) instructions are allowed (see details below), however Bridge instructions are not possible for Polish securities except for T-bonds and T-bills, which are Bridge-eligible.
For free of payment (FOP) settlement instructions on Euro-denominated bonds, the CSD requires that the settlement value of the transaction, that is, the value of the cash or non-cash payment relating to the securities, is communicated. In order to do so, clients entering such transactions are requested to send, in parallel to the settlement instruction, an MT599 including the following text:
"Reference: (client's trade reference and place of settlement, that is, market where instruction is to settle)
Attention: Settlement Prague 1
With reference to our settlement transaction reference number ______________, ISIN ______________, amount of securities _________ and with requested settlement date __________, we request Clearstream Banking to add the amount ______________ (include currency and total value of the securities) to this instruction."
If this information is not provided, clients will receive an unmatched report with narrative “REAS//NO SETTLEMENT AMOUNT FOR GIIF REPORTING” advising of the missing information. If the information is not sent by 16:30 CET on SD-1, the instruction will be rejected in the market.
Over-the-counter (OTC) transactions
Clients are allowed to send to CBL both internal and domestic OTC trades (both FOP and AP). Stamp duty may be applicable in certain cases to OTC trades on securities except T-bonds (please refer to the Market Profile - Poland). As per Polish regulations the buyer is responsible to pay stamp duty himself, therefore client is responsible to check with their tax advisor if stamp duty is applicable and to manage the payment directly with the Polish Tax Authorities. The stamp duty is not levied nor paid by CBL and neither CBL nor CBL’s depository offer a service in that respect.
Settlement for stock exchange (SE) trading as per Article 121 of the Securities Law
Transactions concluded on the Warsaw Stock Exchange (WSE) are settled based on successfully pre-matched investor and international broker settlement instructions. No settlement can take place without an instruction from the client to CBL.
N.B.: Foreign investors may place stock exchange orders through either local brokers, international brokers or remote traders.
Lending and borrowing
For lending and borrowing transactions, the following field is mandatory:
Connectivity medium | Format | Field to be used |
Xact via Swift and Xact File Transfer | :22F::SETR//SECL or :22F::SETR//SECB | Field :22F: sequence E |
Xact Web Portal | SECL or SECB | Sec. transaction type |
New issues settlement
Transactions in new issues are settled during continuous settlement processing on the day on which the distribution occurs in the Polish market. For confirmation times, please refer to Settlement times.
Bridge settlement
Polish securities are not eligible for settlement through the Bridge with Euroclear Bank except for T-bonds and T-bills, which are Bridge-eligible.
Stamp duty
Over the Counter (OTC) trades may be subject to 1% stamp duty.
If NCBO or NBEN is present in the instruction the trade is considered as a portfolio transfer and is exempt from stamp duty.
If NCBO or NBEN is not present, or an OTC tag is used in free text fields, trades may be matched OTC (if the counterparty has not confirmed market execution to trade or trade is booked between two client accounts).
Portfolio transfers
Portfolio transfers are defined as free of payment transfers, resulting in no change in beneficial ownership, due to a transfer of portfolio between two local custodians.
:22F::SETR//PORT (for the time being not available in Xact but only via Swift) or :22F::BENE//NBEN must be completed for portfolio transfers.
Settlement Discipline Regime and related domestic market settlement functionalities
Recycling of pending transactions
Unmatched instructions will be cancelled automatically either after 20 working days starting from the intended settlement date or the date of the last status change of the instruction.
Matched, but not settled instructions will be cancelled after 60 business days (starting from the date of receipt or on the day the last modification was sent for this instruction).
Bilateral cancellation
This means that matched instructions can only be cancelled if both domestic counterparties request a cancellation of their instructions.
Until the cancellation confirmation is received from the market, the instruction will remain eligible for settlement, that is, the instruction may be provisioned and proposed for settlement and may be subject to cash penalties.
Hold and release
Not offered on the market via CBL.
Partial settlement
KDPW: Yes, NBP: No
In KDPW, partial settlement is available for domestic transactions and the client’s decision to accept for the transaction to settle/not to settle partially will be systematically included in the instruction sent to the local market. Partial settlement will continue as it does today and Clearstream Banking will continue to report partial settlement feedbacks received from the markets.
Cash tolerances
For domestic instructions against payment in EUR, the following cash tolerance levels will apply (as at present):
- EUR 2 for transactions of an amount up to or equal to EUR 100,000; and
- EUR 25 for transactions of an amount greater than EUR 100,000.
With non-EUR currencies, for settlement amounts equivalent to less than or equal to EUR 100,000, the tolerance level will be equivalent to EUR 2, while for settlement amounts that are equivalent to more than EUR 100,000, the tolerance level will be equivalent to EUR 25. For settlement instructions in currencies other than EUR, CSDs should use the official exchange rates of the European Central Bank (ECB), valid on 1 January of the respective calendar year.
For domestic against payment instructions, the maximum discrepancy tolerated in settlement matching varies in accordance with market practice and the conditions of the domestic link.
Matching information
The trade date is a mandatory matching criterion and domestic instructions will follow local market rules.
Cash penalties
Penalties will be calculated and applied on matched settlement instructions that fail to settle, in full or in part, on and after their intended settlement date (ISD), if both the settlement instruction and the relevant financial instrument are subject to cash penalties.
Instruments subject to cash penalties
Any financial instrument listed in the Financial Instruments Reference Data System (FIRDS) database maintained by ESMA will be subject to cash penalties. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption listed in the Short Selling Regulation (SSR) exemption list.
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1. Article 121 of the Law on Trading in Financial instruments.