The BNB Implements Against-Payment Settlement For Government Securities

Bulgaria
UniCredit Bulbank AD
Summary: 
The Bulgarian National Bank (BNB) implemented against-payment settlement for client transactions in government securities and confirmed its technical readiness to facilitate the settlement of on-exchange trades in government securities.
Tue, 03/10/2017

The BNB announced that it has finalized the project for the implementation of RVP/DVP settlement of government securities transactions of clients who participate in ESROT (BNB system for registration and settlement in government securities).  As of 2 October 2017 client trades in government securities, concluded on the OTC market, can settle either against- or free of payment.

The BNB has also announced that it has finalized the project for establishing a direct link with the Bulgarian Stock Exchange - Sofia (BSE-Sofia) to facilitate the settlement of government securities concluded on-exchange. After the start of the trading of government securities on BSE-Sofia, ESROT participants will be able to settle client transactions in government securities concluded on the BSE-Sofia only against payment.

The BSE-Sofia members will be able to settle transactions in government securities concluded on-exchange via Central Depository AD (CDAD) after the inclusion of CDAD as a participant in ESROT.

Impact on investors: reduced counterparty risk related to trades in government securities.

Related news: New rules for government bonds; Rules for government securities