Collective Safe Custody (CSC)
CBF’s instruction management system, CASCADE, provides a highly efficient platform for the maintenance of transactions in German as well as in foreign and international securities that are eligible for collective safe custody (CSC). CASCADE covers the entry, modification, and deletion of instructions in the settlement process including:
- Administration of securities;
- CBF active / passive matching service for free of payment instructions;
- Interaction with the TARGET2-Securities (T2S) pan-European settlement platform in Euro using central bank money; and
- Cash settlement in other currencies via Clearstream’s correspondent banks in commercial bank money.
The instructions resulting from over-the-counter (OTC) and stock exchange trading (CCP and non-CCP), trading on the Eurex Repo platform and Eurex Derivatives exercises will be transmitted to T2S for further settlement processing.
CBF maintains links with numerous CSDs outside Germany which allows securities kept with these CSDs to be included in its collective safe custody service. For the settlement of securities transactions between CBF’s clients and clients of T2S In-CSDs, there are links setup on T2S platform. CSD links to further depositories are maintained between CBF and the settlement platforms of these CSDs in question.
Registered Shares in Collective Safe Custody (CASCADE-RS)
CBF offers special services for the administration of registered shares on the CASCADE platform via the CASCADE-RS functionality.
This service allows clients to submit shareholder data to the share ledger of the respective issuer, in a highly automated and cost-efficient way.
CASCADE-RS provides automated support for the following core processes:
- The conversion of bearer shares into registered shares held in collective safe custody
- The settlement of stock exchange trades and OTC transactions in registered shares through transfers of positions and entries or re-registrations in the share ledger of the issuer or the share ledger manager.
Non-collective Safe Custody (NCSC)
The settlement of transactions in NCSC securities (over-the-counter (OTC) and Stock Exchange) takes place through the Creation platform, on technically and legally independent CBF-i accounts which are governed by German law and CBF’s General Terms and Conditions. For OTC transactions, clients submit their instructions directly to the Creation platform via their preferred connectivity channel.
Clients may obtain reports via ClearstreamXact or through the CBF communication channels.
Detailed information on the Creation settlement processes can be found in the CBL Client Handbook. A list of the custodians used with information on the relevant market practice and settlement processes can be found under Market Coverage.
Non-collective safe custody to be settled via T2S (NCSC-T)
The settlement of transactions in NCSC-T securities (over-the-counter (OTC) and non-CCP Stock Exchange transactions) takes place through T2S. These securities are T2S-eligible as CBF supports the admission of both, CSC and NCSC-T securities, for settlement in T2S.
Individual Safe Custody
CBF also supports its clients in the settlement of transactions in securities kept in individual safe custody (physical securities) and offers in particular:
- Deposit and withdrawal of physical securities to and from the holdings in the vaults
- Recording and administration of certificate numbers (ledger)
- Conducting checks against the list of invalidated or stopped securities
- Processing defective and replacement certificates.