Settlement sequence management

Our flexible settlement sequence management services allow customers to simplify and control their transaction flows according to business needs. Safe and efficient, they are designed to ease the operational burden and reduce the risks of relying on in-house transaction management.

Customers can choose from three different models:

Domestic back-to-back service - optimal same-day turnaround of domestic transactions.

With this service customers can use their domestic transactions to access back-to-back settlement services in many domestic markets. They use POOL-ID to link and settle a domestic purchase and a domestic sale on a one-to-one basis, providing it has the same value date and underlying security. Benefits include:

  • Access to domestic back-to-back settlement on numerous markets
  • Optimal same-day turnaround
  • Use your domestic securities purchase to provision the sale, optimising use of securities and purchasing power for same-day trading.

Transaction linking - controlled settlement of any combination or number of instructions.

This advanced, fully-automated service prevents drawing on omnibus securities positions when executing deliveries. It also allows securities purchases to be made contingent on deliveries, helping control the liquidity extended to underlying customers. Any combination of instructions, in any number or type, can be used and the service supports purchases reliant on delivery or vice versa.

Benefits include:

  • Early matching of ‘held’ instructions and automatic release
  • Total flexibility to link any number or combination of transactions (internal to Bridge, domestic to internal, etc) regardless of their terms or means of settlement
  • No restriction on settlement currencies, underlying security codes and/or counterparts
  • Full automation to help eliminate delays and operational risks.

Hold/release service - easy control of individual transaction settlement.

This service allows customers to input an instruction and place it on hold, ready to manually release when they need. This is particularly beneficial as the instruction is pre-matched, meaning the counterparty can see the instruction is already prepared and ready for them, but the customer has full control over the individual settlement process. Customers can also decide at any time to put pre-entered but pending instructions on hold.

Benefits include:

  • Hold and release settlement transactions at your own discretion
  • Match results early without any risk of unintended settlement
  • Release held transactions by simply resetting the hold flag and without having to re-instruct
  • Supports the use of MT530 Transaction Processing Command.

Transaction priority defined at transaction or account level - managing the settlement sequence of transactions

This service gives customers the possibility to prioritise their instructions depending on their needs. The priority code gives one transaction priority over other instructions ready for settlement, providing they are on the same account and in the same security or currency. Customers can decide to change the priority of a specific instruction at any time. Customers can also specify the settlement sequence option at account level and change it whenever they wish, if required.

Benefits include:

  • Prioritisation of both deliveries (to control settlement in a specified security code) and receipts (to control the use of funds)
  • Possibility to add a priority to pending transactions via MT530
  • Define the order in which transactions are considered for provisioning and settlement via the settlement sequence options on the account.