Based on application from Zagreb Stock Exchange (ZSE), on 13 May 2016 the Croatian Financial Services Supervisory Agency (HANFA) approved new ZSE Rules and new ZSE Price List.
The ZSE Rules, in part Regulated Market and Multilateral Trading Facility (CE Enter Market), have been separated and the provisions regulating the CE Enter Market have been transformed into a separate legal document, CE Enter Market Rules. The Price List related to the CE Enter Market will be regulated through the general ZSE Price List. On 13 June 2016 ZSE will launch a new webpage for the CE Enter Market at www.ceenter.hr.
The amended ZSE Rules prescribe the possibility of listing open-end investment fund units, primarily ETFs, on the Regulated Market. The conditions and the parameters for market makers of open-end investment fund units will be determined by ZSE based on the same methodology as for equities.
A new kill switch mechanism has been introduced to the ZSE Rules, enabling SKDD-CCP Smart Clear Inc. (SKDD-CCP) to request ZSE to withdraw already placed orders from the Regulated Market and to suspend the placement of new orders. The implementation of the kill switch mechanism will begin once HANFA grants approval to SKDD-CCP to provide services of central counterparty.
With regards to structured products (certificates), a new rule has been introduced in relation to the cancellation of transactions in structured products, providing for a higher level of transparency of the criteria for cancellation of transactions in the cases where the price at which the transaction has been executed is considered to differ significantly from the prevailing price.
The new ZSE Price List prescribes reduction in the price of a member seat from HRK 390,000 (ca. EUR 52,000) to HRK 250,000 (ca. EUR 33,300). The listing application processing fee has been eliminated and thus issuers of financial instruments applying for listing will, after the signing of agreement with ZSE, have to pay the listing fee only. Listing fee and listing maintenance fee have been introduced for open-end investment fund units (ETFs). ZSE has also introduced fee for confirmation of admission to trading on the CE Enter Market in the amount of HRK 150 (ca. EUR 20). Additionally, the following discounts will be granted to market makers from their fees due on their total daily market making turnover conducted in the course of a single trading day: (i) 40% to market makers of structured products and ETFs (ii) 60% to market makers of equities.
Impact on investors: The new Zagreb Stock Exchange Rules will become effective as of 13 June 2016. The new Zagreb Stock Exchange Price List will come into force starting from 23 May 2016.