After becoming an ICCS Member by signing the standard Terms & Conditions and Pricing Agreement, the Member can designate which BSPs, CASSes, GSAs, Credit Card receivables they would like to have cleared via ICCS. The Member must also indicate a default instruction for the funds, designating their bank account and the currency.
ICCS then notifies the BSP's/CASSes/etc. that the participant would like to use ICCS. The BSP/CASS will then notify ICCS of that participant's Settlement Balances as soon as the data becomes available in the BSP/CASS data processing centre.
Members can access the Information & Netting (I&N) System on-line to view or print their cash flow positions in advance (ICCS Sample Report and Explanatory Note (pdf)).
The BSP/CASS Clearing Bank will transfer its settlement funds to the ICCS bank account (instead of the participant's own local sales office bank account).
ICCS Clearance Cycle comprises four consecutive working days:
Day 1: Order Day - ICCS Members enter and transmit their Currency Orders into the I&N System. If they do nothing, then ICCS will apply the default instruction that the Member has set up. ICCS confirms the receipt and acceptance of Orders from each airline.
Day 2: Contract Day - ICCS carries out multi-lateral, multi-currency netting. When the "currencies required" do not exactly match the "currencies available", the difference is converted by ICCS at the exchange rates based on inter-bank, benchmark rates on a spot (normal two-day value) basis, to mature on the ICCS Clearance Day.
Funds are received into the ICCS bank accounts from the BSPs on their individual Settlement Dates and immediately begin earning interest for the members. The interest earned is distributed to the ICCS Members quarterly.
Day 3: Closing Day - Coincides with the latest BSP/CASS Settlement Date included in a given ICCS Clearance Cycle. ICCS verifies the receipt of all relevant funds and executes international payments, electronically, for value to the Members' designated bank accounts the next day.
The Settlement Dates of the individual BSPs may differ due to the local data processing cycles, public and bank holidays and other local procedures.
Day 4: Clearance Day - The currency conversion contracts executed by ICCS mature, the outgoing payments executed by ICCS mature, the Members' bank accounts around the world receive funds for good value and the Clearance is completed.
Learn more about how ICCS works by viewing the ICCS Orientation (PPS 539 KB)