The Bulgarian National Bank (BNB) has informed ESROT participants about the forthcoming regulatory amendments and testing related to the introduction of DVP settlement for Euro-denominated government securities. DVP settlement will be performed in accordance with the BIS DVP Model 1 via the TARGET2-BNB system component. According to the draft regulatory amendments, secondary-market DVP settlement for EUR-denominated government bonds will be mandatory for transactions between ESROT participants, but will not be possible for transactions between ESROT participants and their clients or between clients of ESROT participants.
The draft regulatory amendments also envision the introduction of government securities lending.
Test scenarios and a schedule are to be provided by BNB at a later stage.
Impact on investors: Forthcoming introduction of DVP settlement for Euro-denominated government securities.