Settlement services - Iceland
Pre-matching service
The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.
| Service offered | Method employed | Start (local time) |
| All securities, against payment instructions | ||
Immediate Release Flag available | Automatically in the CSD system | As soon as received |
| All securities, free of payment instructions | ||
Immediate Release Flag available | Manual (“best efforts” basis), by telephone or email via Agent | On SD-1 through to SD |
| Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the “Immediate Release” option. |
Xact via SWIFT and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Matching service
Matching is mandatory for all trades settling, and takes below fields into consideration.
Mandatory matching fields
- Securities movement type
- Payment type
- ISIN code
- Trade date
- Settlement quantity
- Intended settlement date
- Delivering (settlement) party
- Receiving (settlement) party
- CSD of Delivering party
- CSD of Receiving party
- Currency (for DvP only)
- Settlement amount (for DvP only)
- Credit/Debit indicator (for DvP only)
Additional matching fields
The following additional matching fields are initially not mandatory but, when one of the counterparties provides a value for them in its instruction, matching values must be provided by the other counterparty:
- Opt out indicator
- Cum/Ex indicator
Optional matching fields
The following optional matching fields must match when provided by both counterparties:
- Common reference
- Client of delivering party
- Client of receiving party
- Securities account of delivering party (counterparty’s account specified in the instruction)
- Securities account of receiving party (counterparty’s account specified in the instruction)
Domestic allegement matching service
Complementary to the pre-matching services offered as described above and where no pre-matching instruction has been sent to the market, CBL accepts allegements via the CSD on against payment transactions from domestic market counterparties.
It will then use these allegement messages to search for the best matching customer instruction. If no matching customer instruction is found, the allegement is reported to the customer provided that its Clearstream Banking account number is present.
For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.
Procedures for domestic counterparties
| Procedure for the domestic counterparty | Deadline |
| All eligible instruments | |
| Deliver to / Receive from: Nasdaq CSD SE For the account of: LuxCSD S.A. Participant code: LUX Nominee account national identifier (NIN): 660215-9990 | Market deadline |
Specific settlement rules/settlement restrictions
Settlement with Bridge counterparties is not possible; only internal and external domestic instructions are allowed.
Instructions with a settlement day in the past are not permitted and will be cancelled by CBL.
Back-to-back processing
Back-to-back processing is not available for transactions in Nasdaq CSD SE Icelandic eligible securities.
New issues settlement
Transactions in new issues are settled on the day on which distribution occurs in Iceland. For confirmation times, please refer to Settlement times.
Settlement Discipline Regime and related domestic market settlement functionalities
Recycling of pending transactions
Unmatched instructions will be cancelled automatically either after 20 working days starting from the intended settlement date or the date of the last status change of the instruction.
Matched, but not settled instructions will be cancelled after 60 business days (starting from the date of receipt or on the day the last modification was sent for this instruction).
Bilateral cancellation
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.
Hold and release
The hold and release mechanism enables customers to temporarily hold back a securities transaction from domestic settlement, even if cash or securities provision is available and to release it to the domestic market only when settlement is desired. The matching process applies independently of the “hold and release” status of the instruction.
Partial settlement
Not offered on the market.
Cash tolerances
For ISK currency, 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 criterion and domestic instructions will follow local market rules.
Cash penalties
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 list.