Settlement process - Denmark
Settlement cycles
| Danish T-bills | T+2 |
| Equities and debt instruments | T+2 |
Participants may agree a different settlement period.
Settlement flow
Trading process
Securities listed on Nasdaq Copenhagen A/S and unlisted unit trust certificates are traded in the INET Nordic trading system. Derivatives are traded in OMX CLICK.
Settlement process
VP offers clearing and settlement free of and against payment for the Danish market in both Euro and Danish Krona currencies.
VP operates an RTGS system and an additional netting system in the form of a batch process that consists of six clearing and settlement blocks with netting of customers' positions in both cash and securities. Delivery and payment on a net basis are simultaneous.
Real-time gross settlement (RTGS)
Brokers having a cash account at the Central Bank of Denmark have access to the RTGS system which is available on all settlement days during the opening hours of the Danish Central Bank (08:00am until 15:00 hours).
Matching occurs as soon as the instructions are sent with an immediate finality.
Settlement is only possible in DKK.
Settlement transactions that remain pending are cancelled at the end of the day.
VP Batch process for net settlement
VP offers three overnight batches for net settlement free of or against payment in DKK or EUR. These batches function from SD-1 to SD for value SD and are as follows:
- VP 10 starting at 18:00;
- VP 20 starting at 00:35;
- VP 30 starting at 07:05.
During the daytime, VP offers four more batches allowing settlement free of or against payment in DKK in the first two blocks and settlement free of or against EUR currency only on the last block. The daytime blocks are as follows:
- VP 33 starting at 10:00;
- VP 40 starting at 10:15;
- VP 60 starting at 12:00;
- VP 50 starting at 14:15.
Finality is achieved at the end of each settlement block. Cash settlement takes place through the accounts at the Central Bank.
VP's account to account transfer system on free of payment trades is also available and sometimes used to settle pending trades after the last VP batch; however, settlement of account-to-account transfers depends on acceptance by the counterparty’s local custodian.
Settlement transactions that are matched but remain unsettled will be recycled in the CSD for 20 business days before cancellation occurs.
Settlement transactions that remain unmatched will be recycled in the CSD for 20 business days before cancellation occurs.
Registration
Equities
All Danish equities are issued in bearer form. Investors may register the securities if they wish to do so and this may be necessary in order to be able to attend shareholders meetings and vote on limited companies.
Debt instruments
Danish debt instruments are in bearer form.
Stamp duty
Stamp duty is not applicable in the Danish market.
Penalties
No specific penalties are applied in this market.