We would like to advise clients that according to the latest information received from the CDCP a.s. (local CSD in Czech Republic) based on the decision of the CSD Users Committee and due to the actual postponement of the validity of the RTS CSDR until February 2022, certain changes in CSD internal settlement system will be applied on 29 March 2021.
The following will be implemented/supported from 29/03/2021 (subject to change)
The new settlement cycles will be introduced as follows:
1. Settlement cycle DVP: 8:00 (overnight settl. cycle i.e. before the system is open for participants)
2. Settlement cycle DVP: 9:00
3. Settlement cycle DVP: 10:00
4. Settlement cycle DVP 11:00
5. Settlement cycle DVP: 12:00
6. Settlement cycle DVP: 13:00
7. Settlement cycle DVP EUR: 15:30 (only for EUR)
8. Correction cycle DVP EUR: 15:45 (only for EUR)
9. Settlement cycle DFP: 17:00
Settlement in foreign currencies:
Settlement in EUR is ensured within the same settlement cycles as for CZK incl. cycle available at 15:30 and correction cycle for CDCP at 15:45. Settlement in EUR is independent of settlement in CZK, or other currencies. This is executed by CSD via independent accounts for “securities en route” for the CZK currency, EUR and other currencies (USD and GBP). It is therefore not possible to use securities en route in one currency (before reaching the settlement finality) to settle a transfer in another currency. In case of non-payment, the return of transfers is made only for the given "path" / currency in which the failure occurred, not for all transfers. Other currencies (USD and GBP) have one common sub-account of securities en route. The settlement of money is ensured through the CDCP account kept with UniCredit Bank CZ/SK. Settlement in other currencies is possible in cycles intended for settlement in CZK.
The following will NOT be implemented/supported until February 2022:
Partial settlement – in case PART indicator is sent to CSD, the value will be converted into NPAR automatically by the CSD.
LFMP (Late Matching Fail Penalty) and SEFP (Settlement Fail Penalty) - this service will not be supported
Buy-In (as per CSDR SDR) - this service will not be supported
New instructions types:
RWP - receive with payment; DWP – delivery with payment; CPFOD – credit payment free of delivery; DPFOD – delivery payment free of delivery - these listed types will not be supported and such instruction will be rejected by CSD
Place of Trade (:TRAD//EXCH, OTCO, PRIM, SECM, VARI) – this field will not be validated
Place of Clearing (LEI of CCP) – this field will not be validated
For more detailed information please contact the UCB CZ Relationship Management Team: GSS.Relationship.Management@unicreditgroup.cz
Impact on Clients: In order to settle local securities in foreign currencies (EUR, USD, GBP) clients will be required to have respective cash accounts opened prior to instructing the settlement to GSS Custody dept.