CFCL Settlement - Austria
Settlement process in T2S
Please refer to Settlement process in T2S.
Settlement services
Pre-matching service
The table below summarises CFCL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CFCL's pre-matching services, see Pre-matching services for external settlement instructions.
The hold and release feature available in T2S will be used by CFCL for the pre-matching of settlement instructions in T2S.
Service offered | Method employed | Start (local time) | |
All securities | |||
CFCL via CBL | CBL releases pre-matching instructions (PREA) only outside the provisioning period to CBF for matching purposes only. As soon as the start of the provisioning period is reached and provided the provisioning of cash and securities is successful, the settlement instruction (NEWM) will be released to CBF for further processing and settlement in T2S. Once the instruction is release to CBF, it cannot be set back on hold again. | Automated through T2S | On receipt of instructions |
Matching service
Matching is mandatory for all transactions settling in T2S. In addition to the mandatory matching criteria in T2S the following fields may, if present, be matching criteria.
Additional matching field
The following additional matching fields are initially not mandatory but, when one of the counterparties provides a value for them in its instruction, matching values must be provided by the other counterparty.
- Opt-out indicator;
- CUM/EX indicator.
The Opt-out and Cum/Ex indicators are processed by OeKB for matching purposes as additional matching criteria in T2S, but ignored and not considered for the detection of market and reverse market claims. We recommend not to use these qualifiers for the detection of market claims. If the underlying instruction contains an activated OPT-OUT, XCPN or CCPN flag, market and reverse market claims are still generated.
Optional matching field
The following optional matching fields must match when provided by both counterparties:
- Common reference;
- Client of delivering/receiving CSD participant;
- Securities account of the delivering/receiving CSD participant.
Note: Clearstream recommends to agree on the usage of a common reference (:20C::COMM) and the T2S Security Account number (SAC) with the counterparty. Both fields are “optional” matching criteria in T2S and avoid cross-matching if it is populated in the Settlement instructions of both parties.
Allegements
T2S will send allegement messages depending on the information indicated in the counterparty’s instruction. The allegements will contain the additional and optional matching criteria described above. These can be used to correctly format instructions to ensure matching if it has not yet been sent to Clearstream Fund Centre.
All securities | |
CFCL | CBL may receive counterparty instructions alleged on its account at CBF and will report them to clients provided that the client’s CFCL account is present in the allegement and the allegement subscription is in place on the client account. |
Identification of CSDs in T2S
In T2S all CSDs will be identified by their BIC11. CFCL clients are required to use the following BIC11 as Place of Settlement for domestic instructions with counterparties in OeKB:
CSD | BIC11 |
OeKB via T2S | OCSDATWWXXX |
Identification of the counterparty in T2S
In T2S, the CSD participants are identified exclusively by the combination of their home CSD (i.e., PSET DAKVDEFFXXX) and their BIC11.
Counterparty identification | |
CFCL | Home CSD BIC11 and the T2S Party BIC11 of the CSD participant. If a CFCL client uses a BIC8 to identify the Receiving/Delivering Agent, CBL shall be entitled to modify the BIC8 provided and the settlement instructions will be then processed by default with a BIC11 by adding the default XXX suffix to comply with T2S settlement rules. Accordingly, such clients remain liable for any settlement fails that the use of the BIC8 may cause and the clients furthermore agree to indemnify CFCL against losses, liabilities, damages, penalties, expenses and all other costs on any kind suffered by CFCL as a result of the client not complying with the above requirement. |
Procedures for domestic counterparties
This section describes the procedures for domestic counterparties of the Austrian market, which is both a domestic and a register market.
CFCL
CBL Depository CBF | |
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent | CEDELULLXXX |
SAFE of the DEAG/REAG | Not to be instructed. If instructed, it must be the valid CBL SAC: |
Buyer/Seller | BIC11 of the CFCL client |
As CBL does not forward its own SAC to the settlement parties, if the client counterparty instructs the SAFE of REAG/DEAG it must match CBL's SAC in T2S exactly.
We encourage clients to ask their counterparties not to include the SAFE of the DEAG/REAG in their instructions (also called securities account of the delivering/receiving party).
CBF
Place of settlement | DAKVDEFFXXX |
Delivering/Receiving Agent | T2S Party BIC11 of the CBF participant |
Partial settlement
In T2S partial settlement for eligible instructions is allowed at the last night-time settlement cycle in sequence ‘X’; and within the real-time settlement period:
At 08:00 CET, 10:00 CET, 12:00 CET, 14:00 CET and 15:30 CET.
30 minutes prior to the DvP cut-off time (between 15:30 CET and 16:00 CET).
Within these windows all transactions that are pending due to lack of securities and hold a positive partial settlement indicator are included in the partial settlement processing.
Whether partial settlement will be applied or not depends on the partial settlement indicator set within the instruction or on the client account setup. A settlement Instruction will settle partially if both counterparties instruct with the Field :22F::PARQ.
Partial settlement applies only when full settlement is not possible due to lack of securities. T2S will perform partial settlement according to the available position after analysing the partial settlement indicator in the instruction. The settlement instructions are submitted to a full settlement attempt before being submitted to a partial settlement attempt (if permitted by instruction indicators and/or client account setup).
Partial settlement is applicable to domestic and cross-border instructions and is not allowed for PFoD instructions. Also, Partial settlement is not applied if instructions are linked to any other settlement instruction with link type "Before", "After", "With" or via pool reference. Partial settlement is not applied if the transaction undergoes a process where a CoSD Hold is used. The unsettled remaining part of a partially settled settlement instruction can be cancelled.
Partial Settlement | |
CFCL | As client delivery instructions are always fully provisioned before being sent to the domestic market, no partial settlement can be performed. For receipts, the partial settlement can take place if the counterparty is short of securities and the instructions are received by T2S within the times set above. When CFCL clients access T2S via CBF, the default set up will be Partial Settlement. Clients that do not wish their transactions to settle partially must provide the No Partial Settlement indicator (NPAR) in their instruction. |
Allowed countervalue difference
The following T2S cash tolerances will apply to instructions (against payment instructions in EUR only):
- EUR 2 for transactions with an amount equal to or less than EUR 100,000; and
- EUR 25 for transactions with an amount greater than EUR 100,000.
In the event of a discrepancy within the limits, in principle the cash amount of the delivering party will prevail.
Settlement with Euroclear (CBL only)
CFCL clients can settle OeKB T2S- eligible securities via the settlement with Euroclear.
Back-to-back processing (Transaction Linking)
Back-to-back processing is available for transactions in OeKB T2S-eligible securities.
Cancellation
Unmatched instructions can be cancelled unilaterally, at any time, by the party who placed the instruction or until cancelled by T2S.
Matched instructions must be cancelled bilaterally by both counterparties.
Recycling rules
Unmatched instructions will be recycled for 20 business days (starting from the initial settlement date), after which they will be cancelled.
Unmatched cancellation requests will be recycled for 20 business days (starting from the date of receipt).
Matched, but not settled instructions will be cancelled by T2S after 60 business days (starting from the date of receipt or on the day the last modification was sent for the instruction).
New issues settlement
Transactions in new issues are settled on the day on which the distribution occurs in the Austrian Market. For confirmation times, please refer to Settlement times - Austria.
Penalties (buy-ins etc.)
The table below indicates the penalties that may be charged for late delivery by the Austrian Securities Authority (ASA).
Timeline | Action | Penalty charged by ASA | OeKB charges |
SD | If securities not available in seller's account at 10:30 (CET) | 0.5% of market value | None |
SD+1 | Second attempt of seller to deliver securities | 0.5% of market value. | None |
SD+2 | Buy-in attempt of OeKB | 0.5% of market value | Buy-in costs plus EUR 350 handling |
SD+3 | Second buy-in attempt of OeKB | 0.5% of market value | Buy-in costs plus EUR 350 |
SD+3 | Defaulting party disclosed to buyer | None | None |
Settlement discipline regime 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
Registered shares
According to the provisions of the amendment to the Austrian Company Act (AktG) passed in 2011 (GesRÄG 2011), shares should as a rule be registered shares (Section 9 (1) AktG (Corporate Law)). The following exceptions apply:
- Bearer shares are exceptionally allowed for Stock Exchange listed companies or when the corporate statutes provide for the shares being listed at a Stock Exchange;
- A company whose shares were traded on the Third Market on 1 August 2011 is considered for the duration of the inclusion of the shares in the Third Market as a Stock Exchange listed company.
For joint stock companies that, by 31 December 2013 at the latest, have not changed bearer shares into registered shares (despite being legally obliged to do so), the bearer shares are considered by law, from 1 January 2014 onward, to be registered shares.
Types of safekeeping and transferability (settlement)
Registered shares endorsed in blank may be held by OeKB CSD in collective clearing custody and in this case may be freely transferred within OeKB CSD’s settlement system (DS.A).
For all registered shares not endorsed in blank, any OeKB CSD securities account holdings are held exclusively under the “individual custody” (ST) type of safekeeping. The holdings concerned have been assigned to individual custody and posted to the blocked securities accounts. It is no longer possible to settle transfers of such securities in OeKB CSD’s settlement system (DS.A).
Exceptions to this are transfers not involving any change of beneficial ownership.