New Rulebook Adopted on CSD Custody Activities

Please take note that the Central Registry of Securities, Banja Luka (CSD), has adopted a new rulebook on custody activities performed within the system of the Central Registry of Securities. The new rulebook was adopted on 11 June 2013 and came into effect on 19 June 2013.

The highlighted changes are:

• Introduction of a so called “joint” custody account and manual allocation of securities: custody banks which are members of the CSD have the right to choose between a manual and automatic allocation of securities which is performed within the CSD system. In case of manual allocation, a so called “joint” custody account is opened within the CSD system. The “joint” custody account is a transitional account which is designated as a “no owner” account and which always has a nil balance. Allocation of securities between the joint account and the segregated/omnibus accounts needs to be done on T+2 by 12:00 p.m. CET.
• Change of the subcustodian/free of payment transfer of assets between two omnibus accounts (NCBO transfers): The procedure for FoP transfers between two omnibus accounts has been simplified. In case of a change of the local subcustodian in the market, the transfer of securities from the omnibus account of the current subcustodian to the omnibus account of the new subcustodian can be done directly. The transfer of securities is performed by the CSD based on the written and signed orders received from local subcustodians. Both subcustody banks need to submit separate orders (signed forms) which are matched at the Central Registry. Based on the submitted and approved orders the CSD performs the transfer of securities between two omnibus accounts.

Related newsflash: New Rulebook on Clearing and Settlement in Republic of Srpska

Impact on investors: The new rulebook on custody activities performed within the system of the Central Registry of Securities has come into effect as of 19 June 2013.