Improved interopability between international central securities depositories, Clearstream and Euroclear Bank, will provide customers with a faster turnaround for Bridge settlement, and extended timeframes in which to carry out their trades for all Bridge-eligible securities.
Bridge enhancement features:
- The Bridge settlement turnaround in the operational day will almost triple, with the number of settlement windows increasing to 48 windows compared to 17.
- To enable better settlement and cash management, daytime settlement turnaround will speed up at 10-40 minutes down from 35-90 minutes.
- Customer currency input deadlines on the Bridge will be extended to be nearer to local market deadlines. For example, customers can use new settlement windows to settle EUR and GBP trades on the Bridge with a 20-minute deadline improvement until 15:20, and gain an extra two hours to settle in USD and other American time zone currencies until 17:00.
- The frequency of matching will be nearer to real time thanks to a new programme implementation for the matching of ACE files.
- The settlement day period between the two ICSDs will be extended by 35 minutes, from 18:30 CET to 19:05 CET.
Forming the second phase in a series of Bridge improvements agreed by the two ICSDs in 2015, the Bridge improvements support the growth of same-day cross-border collateral movements and repo transactions, helping to address one of the key challenges of global securities markets.
Phase one of the Bridge enhancements was implemented in September 2015, bringing the Bridge into a currency-driven model with significant improvements to input deadlines for core currencies (EUR, GBP, USD).