Central Depository AD (CDAD) has approached market participants to discuss the CSD’s intention to introduce a third daily settlement cycle for against-payment transactions. The proposed change aims to further align CDAD’s activity with the provisions of Regulation (EU) No 909/2014 of the European Parliament and of the Council from 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (CSDR) and the technical standards for CSDR.
After the introduction of the third settlement cycle, the CDAD settlement schedule in local time will be as follows:
8:00 - initial processing;
9:00 - intermediate processing;
10:00 - preparation of final net positions and sending instructions to RINGS;
10:30 - receiving confirmation from RINGS and settlement processing;
11:20 - intermediate processing;
12:00 - preparation of final net positions and sending instructions to RINGS;
12:30 - receiving confirmation from RINGS and settlement processing;
13:20 - intermediate processing;
14:30 - preparation of final net positions and sending instructions to RINGS;
15:00 - receiving confirmation from RINGS and settlement processing;
16:30 - intermediate processing;
19:00 - last daily processing.
Currently, there are two against-payment settlement processing cycles a day at CDAD taking place at 11:35 and 15:00.
Impact on investors: Improvement of the settlement processing of CDAD and further alignment of settlement with the EU Regulations.