CFCL Settlement - British Virgin Islands
CFCL is exclusively using Clearstream Banking Luxembourg (CBL) as sub-custodian.
All settlement instructions received from CFCL Clients are first processed and checked by CFCL and then reflected in Clearstream Banking Luxembourg. Once instructions reach the sub-custodian's settlement system, the standard deadlines, matching and provisioning processes of the custodian apply.
Settlement services
Clearstream provides a comprehensive range of services, designed specifically to maximize settlement opportunities while minimising delays.
Vestima, the investment fund order routing, execution and management service, facilitates access to these services and simplifies all aspects of investment funds trading.
Settlement options
Participants (the OI and the OR) can specify that settlement instructions are to be generated automatically by Vestima for an order. Vestima can generate both securities and cash instructions. If the settlement instructions are generated automatically by Clearstream Fund Centre (“locked-in settlement”), the risk of error associated with settlement is avoided.
Specifics of MT54x instructions generated by Vestima
Settlement models
Orders can be settled free of payment or against payment. Subscription/buy and redemption/sell orders settle against payment, in most cases as a DVP transaction. For switch orders, the proceeds from the switch-from leg are used to “pay” for the switch-to leg, and the individual legs settle FOP.