Depozitarul Central to Introduce Second Net Settlement Cycle & Forth Gross Settlement Session

UniCredit Bank S.A.
Summary: 
Starting with 2 March 2015 Depozitarul Central (Central Depository) will introduce the second net cash settlement cycle and the forth gross settlement session.
Mon, 23/02/2015

In line with the Romanian National Bank recommendations Depozitarul Central developed the technical functionalities for introducing the second net settlement session for cash, aimed to settle the trades unable to be settled in the first session and minimizing the risks associated to settlement failures.

According to Depozitarul Central, the trades carried out on the Bucharest Stock Exchange (BVB) will be settled in two net settlement sessions and the trades concluded OTC turnaround in four gross settlement sessions during each settlement date (SD).

The schedule currently available only for the test environment is presented below and most probably this will remain in place for the live environment:

  • First gross settlement session 8.20 am – 9.05 am
  • Second gross Settlement session 9.40 am – 10.25 am
  • First net settlement session 11.05 am – 11.30 am
  • Third gross settlement session 1.00 pm – 1.40 pm
  • Second net settlement session 2.05 pm – 2.30 pm
  • Forth gross settlement session 3.55 pm – 4.35 pm

All trades not settled in the first net settlement session and all instructions for allocation trades registered with Depozitarul Central on SD between 11.00 am -2.00 pm will settle in the second net settlement session.

Until 27 February 2015 there are testing sessions in place with the Depozitarul Central participants. Starting with 2 March 2015 the new settlement facilities will go live.

Impact on investors: New settlement facilities to be introduced by Depozitarul Central in order to mitigate the settlement associated risks.