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Securities trading practices on German exchanges
Trading practices vary between German exchanges. Customers of Custody Clearing Link trade under the exchange rules and trading terms and conditions of the relevant German exchange. Settlement is subject also to the terms and conditions of business of the clearing house in question, depending on whether the transaction involves a central counterparty (CCP) or not (non-CCP).
CCP transactions
The following are the most important rules for trades involving a central counterparty.
For trades dealt via a central counterparty, delivery and payment obligations are continuously netted. Alternatively, the individual transactions can be displayed and managed separately on a gross (trade-by-trade) basis.
The use of the central counterparty affords the trading parties anonymity even after the trade is concluded.
The settlement date is the second business day after the trade date (T+2).
The central counterparty in Germany sets rules on how to proceed in the event of late delivery and what late charges may be payable by the delinquent party.
For the detailed clearing and settlement rules, please refer to the Clearing Conditions of EUREX Clearing AG.
Non-CCP transactions
The following are the most important rules for non-CCP trades – in other words, for contracts settled directly by two market participants without using a central counterparty.
Transactions processed without a central counterparty must be settled on a gross basis. This means that every trade is settled separately.
The identity of the counterparties is disclosed in the contract notes.
The settlement date is the second business day after the trade date (T+2).
For non-CCP trades there is no standard procedure in the event of late delivery and no common set of rules for late charges. OeKB has therefore developed its own dunning system to expedite delivery on overdue positions.
For the detailed clearing and settlement rules, please refer to the clearing terms and conditions of the individual securities exchanges.