Settlement services - Norway
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 | |||
Immediate Release Flag available | Automated through VPS | Settlement Date -1 | |
| 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 |
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 its depository 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
Domestic counterparties must include the following information (Subsequence E1 of Swift MT54x) in their instructions to VPS:
| Receipts in CBL | Deliveries from CBL |
:95P::REAG//CEDELULLXXX | :95P::DEAG//CEDELULLXXX |
or | or |
:95R::REAG/VPSN/15330 | :95R::DEAG/VPSN/15330 |
| :97A::SAFE//153300000145 a | :97A::SAFE//153300000145 a |
:95P::BUYR//CEDELULLXXX | :95P::SELL//CEDELULLXXX |
:97A::SAFE//xxxxxb | :97A::SAFE//xxxxx b |
a. This field is optional.
b. 5-digit account number in CBL.
Allowed countervalue difference
A difference of NOK 50 is allowed for transactions with domestic counterparties. In case of discrepancy, the cash amount of the delivering party will prevail.
Back-to-back processing
Back-to-back processing is available for transactions in all equities and dematerialised bonds that are eligible in this market. If both the customer and the domestic counterparty meet their settlement obligations and fulfil the market's back-to-back requirements within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value. To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:
| Connectivity medium | Pool ID format | Field(s) to be used |
Xact via Swift and Xact File Transfer | :POOL//16x a and :SETR//TURN | Field :20C:: sequence A1 Field :22F:: sequence E |
a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.
Management of failed instructions
In accordance with market standard procedures, unmatched settlement instructions will be automatically cancelled by the VPS system 20 calendar days after the requested settlement date. Matched instructions that remain unsettled will be valid in the system until cancelled by the customer, although, CBL reserves the right to cancel such instructions that have not settled by the 30th calendar day after the requested settlement date.
Settlement Discipline Regime and related domestic market settlement functionalities
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
Not available (postponed until further notice)
Partial settlement
Partial settlement is available for domestic transactions and the customer’s decision to accept for the transaction to settle/not to settle partially will be systematically included in the instruction sent to the local market. Partial settlement will continue as it does today and Clearstream Banking will continue to report partial settlement feedbacks received from the markets.
Cash penalties (starting 1 March 2022)
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 listed in the Short Selling Regulation (SSR) exemption list.
New issues settlement
Transactions in new issues are settled on the day on which distribution occurs in Norway. For confirmation times, please refer to Settlement times.
Dump of shares
It is the Norwegian market practice to dump shares in the settlement of conversion of dual listed securities and the settlement of fund units.
In order to accurately receive their dumped shares, customers are requested to instruct on T+0 (TD and SD must be same day) following the below format:
:95P::SELL//Counterparty’s BIC
:97A::SAFE//Counterparty’s VPS Account
:16S:SETPRTY
:16R:SETPRTY
:95P::DEAG//VPSNNOKKXXX
:16S:SETPRTY
:16R:SETPRTY
:95P::PSET//VPSNNOKK