Bridge Settlement

Transactions between a Clearstream customer and counterparties in Euroclear Bank settle across the Bridge. The Bridge is the electronic communications platform that facilitates the efficient settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank. Transactions for Bridge settlement can be executed both free of payment (transfer of securities between two counterparties) or against payment (simultaneous exchange of cash versus securities between two counterparties). Bridge transactions can only be carried out if the security is eligible for admission in both systems. The same instruction types apply to both Internal and Bridge transactions.

Bridge instructions are matched through inter-ICSD matching transmissions, known as 'ACE' transmissions.

During both the mandatory and optional settlement periods, delivery and feedback files are exchanged between Clearstream and Euroclear Bank across the Bridge.

Settlement periods

The settlement day, comprising both the nighttime and real-time processing, is split into two periods, for both Internal and Bridge instructions:

• The mandatory settlement period, during which a delivery may only be refused for reason of cash or credit provision;

• The optional settlement period during which customers may determine eligibility for settlement by means of an Optional Settlement Flag (OSF).

Mandatory settlement period

The mandatory settlement period begins with the start of the night-time processing in the evening of the business day preceding the settlement date and continues into the afternoon on settlement day.

Optional settlement period

The optional settlement period follows the mandatory period. Provided that customers have determined that their instructions are to be eligible for the optional settlement period (using the Optional Settlement Flag), all Bridge instructions unsettled at the end of the mandatory settlement period and any new or amended instructions received in time are processed in the optional settlement period.

Details on the processing of Bridge instructions and related Securities and Cash instruction deadlines can be found in the Customer Handbook and the Settlement Timings Matrix.