Fails management services

The management of pending transactions is facilitated by the following services:

Bilateral cancellation

Our bilateral cancellation service for matched settlement transactions is available for internal and Bridge settlement.

Once you and your counterparty have sent their cancellation messages, the instructions are immediately cancelled and reported accordingly. However, the cancellation of unmatched transactions stays unilateral.

Automatic recycling of instructions

In the event that instructions have not been settled or cancelled by end-of-day on the intended settlement date, Clearstream will represent and recycle such unsettled instructions as soon as the next settlement day opens.

For matched instructions which have been pending for 45 business days following the requested settlement date or the matching date (depending on which one is the latest), Clearstream will send a request to either cancel the automatic recycling of the unsettled instruction or to confirm continuation of recycling.

If no decision from both parties to extend the period is provided, the unsettled instruction will be recycled for a further 15 business days, after which the transaction will automatically be cancelled. If confirmations are received from both sides, the 60 business-day period (that is, 45 plus 15) starts over again.

The same process exists for unmatched instructions. Unmatched instructions which have been pending for 15 business days after the requested settlement date will be sent for confirmation to clients and will be recycled for a further five business days, after which the instruction will automatically be cancelled if there is no confirmation received from the client.

Benefits include:

• No need for clients to reinstruct
• Reporting to clients of their pending matched and unmatched instructions after 45 business days for matched and 15 business days for unmatched;
• Cleaning of pending instructions after 60 (matched) or 20 (unmatched) business days if no action has been taken by the client.

Recycling of instructions when a security code is not open

The instruction recycling service improves the handling of settlement instructions when the instruction relates to a security code that was not opened by Clearstream.

By subscribing to the service, you will, when sending a settlement instruction in a security code not yet open in Clearstream, avoid automatic cancellation at the end of the period while the eligibility of the security code in Clearstream is being investigated.

The settlement instruction will be recycled during a period starting on and including the day of receipt of the instruction up to the client's requested settlement date (RSD) or for at least four business days, whichever is longer.

Benefits include:

• Preventing your transaction, for a certain period, from being automatically cancelled while the security code is being investigated.