Czech market discusses ways of introducing euro-clearing.
UniCredit GSS Czech Republic took part in the latest CSD workshop related to its CSDR “Project 2020” held in January. The proposals from the CSD of how euro-clearing should be introduced were as follows:
to have daytime settlement cycles and non-binding settlement finality after each cycle
to have the over-night settlement cycle and daytime settlement cycles with RTGS between these cycles
to have the over-night settlement cycle and RTGS during the day
A fourth option proposed during the workshop was to increase the number of settlement cycles with no RTGS (favoured by the majority), i.e., an hourly frequency, with the precise scheduling yet to be decided.
UBC CZ voted in favour of the third option, however, we were in the minority.
At this moment there has been no decision made concerning EUR cash settlement i.e. whether the deadline should be shifted to the afternoon (the last CZK cycle is at 13:00 CET so the EUR could follow at 15:00). All of these changes are planned for around September 2020.
Head of Global Securities Services Czech Republic