Decisions of the Central Depository Board

UniCredit Bank S.A.
Summary: 
Central Depository (Depozitarul Central, DC) Board reconfirms the date of 6 October 2014 as the implementation date of T+2 settlement cycle and announces additional risk management measures
Wed, 17/09/2014

Dear Client,

In the context of system segregation decided and approved by the ASF for 6 October 2014, the DC Board of Directors decided on the meeting held on 10 September 2014 to reconfirm the date of 6 October 2014 as the implementation date of T+2 settlement cycle for the Romanian capital market. Furthermore, the DC announced additional risk management measures, as follows:

  • Starting from 6 October 2014, transactions concluded outside the trading systems can be used as a risk management measure for completing the settlement.
  • For the next 3 months after 6 October 2014, the DC will extend the possibility to settle transactions concluded outside the trading systems for all the instruments registered in the DC. In order to be eligible for settlement in the DC system, these transactions have to fulfill cumulatively the following requirements:
  1. For the transaction concluded outside the trading systems there are corresponding transactions concluded on the Bucharest Stock Exchange (BVB). The volume of the latter is at least equal to the volume of the transaction concluded outside the trading systems.
  2. The settlement date for the transaction concluded outside the trading systems could be the same or different than the settlement date of the corresponding transactions.
  3. The settlement date for the transaction concluded outside the trading systems cannot be later than three days from the settlement date for the settlement date of the initial corresponding transactions concluded on the BVB.
  • For the next three months starting from 6 October 2014, the DC will charge EUR 9, 5 per settlement for the trades concluded outside the trading system, as described at point 2 above. In addition, a fee of 0.08% will be charged by the DC for matching of the instructions received from participants.
  • DC will undertake the necessary steps for running the current net settlement cycle in the second part of the day. The DC Board of Directors announced that it will publish soon a new settlement schedule, as well as a new cut-offs for sending settlement instructions during settlement date, after all these issues will be discussed with the Central Bank (Romanian National Bank).
  • DC approved new tariffs to be paid by the market participants for registry activities 
  • DC approved changing of the penalties for late settlement instructions to be paid by the custodians as follows:
  1. The penalty of 700 RON for the settlement instruction sent during SD-1 local hour 19:00 to SD local hour 8:00, for which the custodian sent refusal, will be cancelled
  2. A penalty of 500 RON will be owed by the custodians to the DC for all settlement instructions sent on SD

The migration to the T+2 settlement cycle will enter into force only after approval of the amendments to the DC Code of Rules by the Financial Supervisory Authority (ASF) and National Bank of Romania.

Impact on investors: Central Depository Board reconfirmed the date of 6 October 2014 for the migration to the T+2 settlement cycle.