New Rulebook on Clearing and Settlement in Republic of Srpska

Please be informed that Central Registry of Securities, Banja Luka (CSD) has adopted a new Rulebook on Clearing and Settlement in the Republic of Srpska. The new Rulebook has been approved by the Republic of Srpska’s Securities Commission on 29 January 2013, and will come into force as of 21 February 2013.

The highlighted changes are:

• Introduction of the manual allocation of securities: The members of the CSD will have the right to choose between manual and automatic allocation of securities in the system of the CSD. Previously, the CSD had implemented only automatic allocation. In case a CSD member chooses to use the manual allocation, the deadline for allocation would be T+2 by 12:00 p.m. CET. In case a member does not allocate within the above noted deadline, the CSD will start the buy-in or sell-out procedure. However, please note that manual allocation as an option is not currently available. It will be available only after the adoption of a new document by the CSD, Guidelines on Custody Activities Performed by the Central Registry, which regulates types of accounts at CSD level. The adoption of the new Guidelines is expected in the foreseeable future.
• Movement of the deadline for buy-in procedures from T+2 9:30 a.m. CET to after settlement (T+3): In case the seller does not have a sufficient quantity of securities on a securities account, they are obliged to ensure that there is a sufficient quantity of securities by 09:00 a.m. CET on T+3. The purchase of an insufficient quantity of securities will be done through securities lending. In case that seller is not successful in buying the sufficient quantity of securities for settlement within the above noted deadline, the CSD will then activate a buy-in procedure. When a buy-in procedure is activated, the purchase of securities will be executed on the stock exchange using a type of order known as “all or nothing” in accordance with the Rulebook on Professional intermediary. In case the securities are not purchased through securities lending or during the buy-in procedure, the settlement will not be possible and the transaction will receive an unsettled status.  In this case, the CSD sends notification to SEC, SE and members.
• Reduction of the fine for the activation of the guarantee fund: The fine for the activation of the guarantee fund is reduced from 100% to 10% of the activated amount of the guarantee fund.

Impact on investors: The new Rulebook on Clearing and Settlement in Republic of Srpska comes into effect on 21 February 2013.