Long-term Government Bonds to be listed on BELEX Regulated Market

UniCredit Bank Serbia JSC
Summary: 
A new group of debt securities issued by Republic of Serbia will be admitted to trading on the Prime Listing segment of the Regulated Market as of 12 November 2015.
Thu, 05/11/2015

Today, 5 November 2015, Belgrade Stock Exchange (BELEX) decided to admit 64 long-term government bond issues to trading on the Prime Listing segment of the Regulated Market.  The on-exchange secondary trading with these instruments will take place using the continuous trading method starting from 12 November 2015.

The involvement of BELEX members is mandatory for on-exchange trades and investors trading on-exchange need to take into consideration the associated fees, which include BELEX fee and broker fee. Broker fees are subject to agreement, while BELEX fees represent 0.1% of the traded value and are capped at a maximum of RSD 5,000 (approximately EUR 40) per trade order.

At the moment, the trading with this type of government debt securities is executed over-the-counter only through bilateral investor agreements. That will continue to be possible after 12 November 2015 as well.

The list of government bonds included to the Prime Listing segment will be published on the website of BELEX (http://www.belex.rs/eng/trzista_i_hartije/trzista/prime/obv) subsequently.

The current standard settlement cycle for on-exchange trades is T+3 with the possibility that counterparties may bilaterally agree on shorter settlement cycle (from T to T+2) on per-trade basis. The settlement will be performed against payment in the currency of denomination of the securities (RSD or EUR). The existing standard settlement instruction cut-off times will continue to apply to these trades as well. The settlement fee charged by the CSD for such on-exchange transactions is 0.1% of traded value capped at a maximum of RSD 1,500 per trade order.

Long-term government bonds are available to all types of investors, resident or nonresident. According to the prevailing tax regulations, the income from these bonds is tax exempt.

Impact on investors: As of 12 November 2015, in addition to OTC trades, resident and non-resident investors will have the possibility to also trade long-term government bond issues on-exchange.