Clearstream Banking AG¹ informs clients that effective

December 2025 (date to be defined)

clients can subscribe to CBF’s new automated Smart Realignment Service (“the service”) to manage settlement fails of securities deliveries.

Becoming even more important under a compressed T+1 cycle², the service aims to increase settlement efficiency and may decrease CSDR penalties, by reducing the number of s failing delivery instructions due to a lack of securities on or after the intended settlement date. To provision these deliveries, CBF will automatically generate realignments from other eligible securities accounts of the subscribing client.

Background

The service considers any fails in securities of the markets being in the scope of the service (“Full scope service”) as a trigger for CBF to generate realignment instructions. Alternatively, clients can limit the service to only cover securities delivery fails related to their Eurex “special Repo” trading activity (“Special scope service”).

If a relevant settlement fail was detected, a realignment instruction will be generated to transfer an available held-free securities long position from a client’s dedicated source accounts to the same client’s target accounts lacking the securities. Source accounts can be with CBF and/or Clearstream Banking S.A. (CBL).

Eligible accounts

Only CBF client securities main accounts categorised as own assets and linked to the same legal entity (LEI) are eligible for the service. Specific CBF sub-accounts can also be assigned in combination with their main account. Client accounts with no LEI assigned are not eligible.

Service scope

Detection of failing securities delivery instructions

CBF applies the following rules to identify an instruction subject to the service:

• The instruction is to be settled in one of the markets in scope of the service.
• The security is eligible for settlement in at least one of the markets in scope,
• Any financial instrument type eligible for settlement in CBF for a market in scope, is part of the service.
• The delivery versus payment or free of payment instruction:
  • is matched and:
    • for CBL-internal, Bridge, CBF/T2S and non-T2S domestic pre-matching markets, it fails due to “LACK“ (lack of securities);
    • for non-T2S domestic markets without pre-matching, it is flagged as “Your Security Provision”;
  • has an Intended Settlement Date (ISD) being older than or the same as the current business day;
  • is not put on hold or otherwise restricted for settlement, that is, the instruction must be eligible for or already be presented to settlement to be in scope.

The required security quantity to be transferred to the target account is calculated by CBF:

• considering any “held-free” long position on the source account; but
• ignoring any pending receipt instructions (whether matched or unmatched) on the target account.

Detection of available securities on the source accounts

• If there are several source accounts holding a held-free position in the required security, CBF will first select an account belonging to the same Clearstream CSD entity as the target account.
• If the available balances on the source accounts of the same Clearstream entity are insufficient, transfers across Clearstream CSDs will be generated.
• Multiple realignments from different source accounts and several Clearstream CSDs are possible.
• The realignment instructions generated by CBF will be subject to partial settlement by default.

Markets and securities

Settlement fails in securities that are eligible for settlement in CBF for the following markets³ are in scope of the service:

• Austria;
• Belgium;
• France (except for registered shares);
• Germany;
• Greece;
• Italy;
• Netherlands;
• Spain;
• Portugal;
• Selected XS/ EU ISINs.

Realignment process steps

The detection process for failing delivery instructions in CBF is triggered at fixed points in time during the business day:

Window #	Start time (CET)
Realignment window 1	07:30
Realignment window 2	09:30
Realignment window 3	10:30
Realignment window 4	12:30
Realignment window 5	14:40
Realignment window 6	15:15
Realignment window 7	15:40
Realignment window 8	16:40
Realignment window 9	17:40
Realignment window 10	18:10
Realignment window 11	19:40

Settlement cut-off times are considered to ensure that, under normal circumstances, realignments are only triggered when the failing delivery instruction on the target account can still settle after the realignment instruction has been processed.

Reporting

For all realignment instructions, the SWIFT ISO15022 status messages generated by CBF through the service, have a transaction reference (“RELA”) consisting of a unique value of 16 characters starting with “REAL” (for example, “20C::RELA//REAL000000044234”).

A common reference (“COMM”) in the format “CREAL” followed by an 11-digit unique number is provided to map the delivery and receipt legs of the Realignment transaction (for example, ”20C::COMM//CREAL94625437689”).

The settlement Transaction indicator is “TRAD” (“22F::SETR//TRAD”).

The narrative (“NARR”) contains the term “REAL” plus the full reference of the failing client delivery instruction on the target account (for example, “70E::SPRO//REAL-JR12345678XYZ”).

Special Scope Service

CBF clients with Eurex “special Repo” trading activity who wish to limit realignments to this activity can alternatively subscribe to the Special Scope Service. The same service features and conditions apply as for the full scope service, except that only failing securities delivery instructions to specific Eurex accounts as the receiving counterparty are considered as a trigger for the realignment instruction generation process.

The Eurex Clearing AG accounts acting as the CBF client’s counterparty are:

• CBL account 51295;
• CBF account 7525 000;
• Euroclear Bank account 22563.

Further information

More detailed information, including the application forms, will be provided in course of November 2025.

For further information, please contact Clearstream Banking Client Services or your Relationship Officer.

Source: Clearstream