The Central Securities Depository in the Czech Republic, CDCP, in cooperation with its participants, will introduce system-based matching, which will replace the trade settlement prematching currently performed over the phone.
The main reason underlying this change is the efforts of CDCP to standardise the local processing in line with ESF-ECSDA Market Standards, to increase the efficiency of matching and STP processing and to save time and potentially also related costs to CDCP participants. It will enable the participants to use the hold/release mechanism to change the status of their trade settlement instructions.
Along with this, a new settlement batch will be introduced at 10:00 CET.
The table below depicts the new UniCredit and market deadlines for securities settlement at CDCP:
|
Instrument |
Settlement |
Transaction |
UniCredit Bank Czech |
Market |
| Equities
|
Overnight |
Against payment |
SD-1, 15:30 |
SD-1, 16:30 |
| Daytime
|
Against payment |
SD, 9:00 |
SD, 10:00 |
|
|
Against payment |
SD, 10:00 |
SD, 11:00 |
||
|
Against payment |
SD, 11:30 |
SD, 12:30 |
||
|
Free of payment |
SD, 15:30 |
SD, 16:30 |
Both changes will come into effect as of 2 December 2013.
Impact on investors: While reducing operational risk and increasing efficiency in the market, the change in the manner of pre-matching will not have a direct impact on our clients and on the way they instruct trade settlement. The introduction of the new settlement batch at 10:00 CET will provide an additional opportunity to optimise intra-day flows, both with respect to securities and cash.