Generation of SIs

Netting, Aggregation and generation of Settlement Instruction (SI) will take place between 19:00 and 20:00 of the business day before to the Intended Settlement Date (ISD).

BME Clearing will perform netting or not on a position account’s transactions depending on the position account type:

  • Transactions registered in gross position accounts will not be netted but rather will be gross settled (previous aggregation of transactions per ISIN and side). 
  • Transactions registered in net position accounts will be subject to netting if they have the following common attributes:
    • Intended Settlement Date
    • Trade Date
    • ISIN
    • Position Account

Failed Transactions from previous sessions and the held sell Transactions from different dates held at BME Clearing are not involved in this process. Buy-in Transactions generated by BME Clearing in Fails Management are not netted either.

Once the CCP generates the Settlement Instructions, the original transactions stop existing and they are replaced in the CCP records by the Settlement Instructions. The entities are only responsible for compliance with the obligations of cash payment and securities delivery resulting from said Settlement Instructions.

Regarding to securities, the Netting will generate net buying, selling or null instructions. While, as regards cash, the netting will generate without or with payment instructions (receiving or delivering cash).

Settlement Instructions generated and sent to IBERCLEAR can be of the following types:

  • Delivery versus payment
  • Receive versus payment
  • Delivery with payment
  • Receive with payment
  • Delivery free of payment
  • Receive free of payment
  • Payment free of delivery
  • Collection free of delivery
  • Payment instructions free of delivery and zero cash (are not sent to IBERCLEAR).
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