Pre-matching services for external settlement instructions
Pre-matching is the process whereby the trade and settlement details givien by two counterparties to a trade are compared for accuracy and consistency and the results are reported to the concerned parties.
Three types of service related to pre-matching in the domestic markets are offered:
Early release of external settlement instruction to the domestic market for pre-matching
Clients set the "immediate release" flag on their instruction to request immediate provisioning and release of their settlement instruction to the domestic market.
This service is available, without subscription, to all clients who use CreationDirect and/or Creation via Swift.
Release of a pre-matching instruction followed by a settlement instruction
Clients do not have to set a flag for immediate provisioning and release of settlement instructions to the domestic market.
On receipt, the instruction will be sent to the depository for pre-matching immediately (irrespective of the formal provisioning period and without provision check) and then for settlement (after the start of the formal provisioning period and on successful provisioning).
Pre-matching feedback is reported to clients as soon as information is available from the depository.
The appropriate information is provided per domestic market in the Creation Link Guides and includes the following details:
- Which instrument types are pre-matched in the market;
- The service offered;
- The pre-matching method employed by the depository (automated or manual pre-matching via telephone, fax, email etc.);
- The time at which the pre-matching process starts on the market.
This information enables clients to release instructions to domestic markets in such a way as to avoid the possible inconveniences that might result from performing a release of instructions for pre-matching, and subsequent provisioining, too early with regard to the expected settlement.
Domestic allegement matching service
Where supported by the local market and as a complement to the pre-matching services described above, we receive, via our depositories, allegements from domestic market counterparties where no pre-matching instruction was sent from the market for matching purposes.
For such an allegement message, a search is made for the best matching client instruction:
- If no matching client instruction is found, and provided that its account number is present, the allegement is reported to the client.
- If the allegement potentially matches with a client instruction, up to eight unmatched reason codes (one primary plus a maximum of seven secondary), detailing the differences with the alleged instruction, will be reported.
In addition, the allegement will be forwarded as though received from the domestic market in real-time, continuous or intraday mode, depending on the reporting channel.
- If the allegement matches completely with a client instruction, the allegement is not reported but the status/reason is reported on the client instruction.