CFCL Settlement - Bulgaria
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 | Immediate Release Flag available | Manually via electronic means or telephone | On trade date |
Connectivity medium | Instruction format |
CFC Web Portal | Tick to enable the “Immediate Release” option. |
CFC via Swift and CFC File Transfer | Field :22F::STCO/CEDE/IREL |
Note: For transactions on equities and investment funds:
- Clients are strongly recommended to use the immediate release flag in their settlement instructions to ensure timely pre-matching of stock exchange trades in the Bulgarian market.
- Clients are required to use the immediate release flag in their settlement instructions to ensure timely settlement of OTC transactions.
Domestic allegement matching service
Where no pre-matching instruction has been sent to the market, CFCL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching client instruction.
If no matching client instruction is found, the allegement is reported to the client provided that its Clearstream Fund Centre account number is present.
For details of CFCL's domestic allegement service, see Pre-matching services for external settlement instructions.
Procedures for domestic counterparties
Clients must advise their domestic counterparties to contact CFCL’s depository Eurobank Bulgaria in order to provide trade confirmations and arrange pre-matching of instructions.
Eurobank Bulgaria AD
Custody Services Department
Telephone: +359 2 8166214 / +359 2 8166236
Fax: +359 2 9888191
Email address for trade confirmations: custody@postbank.bg
Settlements Desk:
Mrs Tonya Radeva
Telephone: +359 2 8166236
Diana Dineva
Telephone: +359 2 8116613
Procedure for the domestic counterparty | Deadline |
Securities that settle in CDAD | |
For receipt and delivery transactions free of and against payment: | Market deadline. |
Specific settlement rules/settlement restrictions
Trade date is mandatory in all settlement instructions.
Instructions will not be processed at CDAD and an MT548 cancellation (or settlement status) message will be sent to CFCL and forwarded to the client when the settlement date is in the past.
OTC trading and settlement
In the CDAD system, with respect to against payment OTC transactions, the date on which the instructions of the counterparties actually match is determined as the trade date. Consequently, the settlement of against payment transactions will take place two business days later in accordance with the T+2 settlement cycle. The CFCL deadline for against payment OTC transactions is subject to the matching in the CDAD system. If no matching occurs in the domestic market on the trade date, the settlement will be delayed accordingly.
OTC transactions without change of beneficial ownership
In order to benefit from straight-through processing, the client must complete fields as follows to specify that there is no change of beneficial ownership (the transaction is for a transfer of securities from one custodian to another):
CFC via Swift and CFC File Transfer
:94B::TRAD//OTCO/OTC
:22F::BENE//NBEN
New issues settlement
Transactions in new issues are settled on the day on which the distribution occurs in the Bulgarian market. For expected settlement result times, please refer to Settlement times.
Settlement Discipline Regime and related domestic market settlement functionalities
Recycling of pending transactions
CDAD: Matched instructions are recycled until settlement takes place or a bilateral cancellation is submitted.
Unmatched instructions are recycled for five (5) days and then cancelled.
NBB: Matched instructions are recycled for four (4) days.
Unmatched instructions are not recycled.
Bilateral cancellation
CDAD and NBB: This means that matched instructions can only be cancelled if both domestic counterparties request a cancellation of their instructions.
Until the cancellation confirmation is received from the market, the instruction will remain eligible for settlement, that is, the instruction may be provisioned and proposed for settlement and may be subject to cash penalties.
Cash tolerances
With non-EUR currencies, for settlement amounts equivalent to less than or equal to EUR 100,000, the tolerance level will be equivalent to EUR 2, while for settlement amounts that are equivalent to more than EUR 100,000, the tolerance level will be equivalent to EUR 25. For settlement instructions in currencies other than EUR, CSDs should use the official exchange rates of the European Central Bank (ECB), valid on 1 January of the respective calendar year.
For domestic against payment instructions, the maximum discrepancy tolerated in settlement matching varies in accordance with market practice and the conditions of the domestic link.
Matching information
The trade date is a mandatory matching criteria and domestic instructions will follow local market rules.
Cash penalties
CDAD and NBB: 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. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption listed in the Short Selling Regulation (SSR) exemption list.