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:
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: