CRHoV to switch to T+2 Settlement Cycle as of 1 January 2016

UniCredit Bank Serbia JSC
Summary: 
The Central Securities Depository and Clearing House of Serbia will change its standard settlement cycle from T+3 to T+2 as of 1 January 2016.
Tue, 03/11/2015

The Serbian Central Securities Depository and Clearing House (CRHoV) announced today to its members that it intends to shorten the standard cycle for financial instruments settlement from T+3 to T+2, in order to be aligned with European Union regulations. In the coming weeks the CSD will adjust its software and will adopt a new Terms Schedule, which will become effective as of 1 January 2016.

Please note that T+3 is the present standard settlement cycle for on-exchange transactions. Subject to agreement between the counterparties, the settlement cycle can be shortened for specific on-exchange trades to T, T+1 or T+2. The settlement cycle for secondary OTC trading is negotiable, from T to T+3.
Upon publication of the new CSD Terms Schedule, UniCredit GSS Serbia will advise its clients of the new settlement cut-off times, valid as of 1 January 2016.

Impact on investors: The migration of the standard settlement cycle to T+2 will align the Serbian market with the EU and is expected to lead to reduction in settlement related risks on the market.