The Croatian Financial Services Supervisory Agency (HANFA) adopted on Monday, 1 July 2013 Rules on the type of listed financial instruments and transaction value of OTC transactions subject to obligatory reporting to the stock exchange.
Pursuant to these Rules, OTC reporting is obligatory for the following financial instruments currently listed on the regulated market in Croatia: equities, bonds and commercial papers. The person that has the obligation to report the executed OTC transaction is also responsible for the accuracy of the reported data.
For equities traded under the Regular Trading regime, OTC transaction reporting is mandatory if the respective transaction value exceeds the amount of HRK 20.000,00, as well as, if the transaction value of a single OTC transaction does not exceed this amount, however the same person has executed several OTC transactions in the same equity during the same day, the total transaction value of which exceed HRK 20.000,00. The reporting of OTC transactions is mandatory irrespective of the transaction value, if the shares have been classified under the Observation Segment or under any trading regime other than Regular Trading.
For bonds and commercial papers listed on the regulated market, OTC transactions have to be reported irrespective of the transaction value.
OTC transactions have to be reported to Zagreb Stock Exchange until the end of the trading day on which the OTC transaction was executed or by the beginning of the next trading day, if an OTC transaction was executed after the closure of the Zagreb Stock Exchange trading session.
Pursuant to the recent amendments to the Croatian Capital Market Act, Zagreb Stock Exchange has been given a transitional period of until 30 September 2013 to comply with the new registration rules and to provide the necessary technical means to enable OTC transactions reporting. At present Zagreb Stock Exchange has not yet finalised its preparations and investors may continue transacting OTC without reporting to Zagreb Stock Exchange until a further announcement is made. Zagrebacka banka is closely monitoring the developments and will update its clients as soon as further information becomes available.
Impact on investors: OTC transactions with financial instruments listed on a regulated market in Croatia have to be reported to its operator as of 1 July 2013, with a transitional period ending on 30 September 2013. While the newly adopted rules provide further clarifications with regards to the scope of transactions to be reported, Zagreb Stock Exchange has not yet made available the technical means to carry out such reporting.
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