Since I design some of this stuff, I can help clarify - but others have already 
done a pretty good job of explaining the various alternatives.

What I'd like to ask is what you are actually trying to do?  What is the reason 
for installing the Crypto Express and trying to use it instead of or in 
addition to the CPACF?  The reason I'd expect is that you want additional 
security for your keys, but I don't think you've confirmed that.

If you use ICSF as the interface, it automatically selects the most appropriate 
crypto to use - for example, if you are doing clear-key encryption, it will 
automatically use CPACF because it knows that will be faster than the CEX, but 
if you want to do PIN block translation it knows it has to use the CEX because 
the relevant standards mandate that keys can't be in the clear and that the 
entire translation operation has to be done atomically.

Most people find that CEX performance is not good enough for disk encryption 
applications, so they either use clear-key CPACF or protected-key CPACF, 
depending on their security requirements on the keys.  Performance for 
protected-key operations is only slightly less than for clear-key ones with 
CPACF - you can see some performance information in this paper:  
https://public.dhe.ibm.com/common/ssi/ecm/zs/en/zsw03283usen/ZSW03283USEN.PDF

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