Stock Exchange and Eurex central counterparty (CCP) trades
Since the implementation of the project Stock Exchange Transactions, non-cleared stock exchange trade confirmations from German Stock Exchanges are routed to CBF’s Stock Exchange Transaction Interface (SETI). After the transformation in OTC-like instructions, they are transmitted to the settlement platform based on the securities custody type:
- Instructions in collective safe custody (CSC) or T2S eligible non-collective safe custody (NCSC-T) are forwarded to T2S for settlement.
- Instructions in non-collective safe custody (NCSC) are forwarded to Creation for settlement.
The settlement instructions are taken up for real-time processing applying the standard OTC functionality. Whereas the settlement of stock exchange instructions in CSC and NCSC-T instruments with CBF follows the T2S rules, the settlement of stock exchange instructions in NCSC instruments on the Creation platform is subject to CBL procedures:
| Stock exchange trade services | CBF | Creation |
Transaction linking | T2S rulesa | CBL rulesb |
Already-matched instructions | Yes | No |
Allegements | Yes | No |
Partial settlement | Yes | Yes |
Settlement priority | Yes | Yes |
Hold and release | Yes | Yes |
OTC Recycling Service | Yes | Yes |
Market and reverse claims | Yes | Yes |
Transformations | Yes | Yes |
Bilateral cancellation | Yes | Yes |
Recycling period | T2S rulesc | CBL rulesb |
Reporting times | T2S scheduled | CBL scheduleb |
a. See Insights on T2S linking under T2S documents & links / Knowledge-based repository / Settlement / Linking instructions in T2S.
b. See CBL Client Handbook.
c. See T2S Scope Defining Documents, current T2S User Detailed Functional Specifications.
d. See Settlement process in T2S.
Eurex Clearing AG forwards CCP instructions (delivery surplus and gross trades) in CSC securities to CASCADE. These instructions are forwarded to T2S for settlement of securities and cash in EUR.
The figure below illustrates the settlement process for non-CCP Stock Exchange trades and Eurex Clearing CCP trades:
