The Bratislava Stock Exchange amends rules according to MIFID II

Slovakia
UniCredit Bank Czech Republic and Slovakia, a.s., pobočka zahraničnej banky
Summary: 
Bratislava Stock Exchange amends rules according to MIFID II since January 2018.
Mon, 18/12/2017

The Bratislava Stock Exchange (BSSE) changed rules in line with MIFID II (European regulations 2014/65/EU and 600/2014/EU). At the same time, the amendment incorporates the latest changes in Act  429/2002 on Stock Exchange and  Act 566/2001 on Securities and Investment Services.

Amendments to these Rules were approved by the National Bank of Slovakia on 29 November 2017 and will come into effect on 3 January 2018. Some provisions came into effect on 1 December 2017.

Major changes comprise:

  - new conditions of securities admission into stock exchange markets

  - obligation of the issuer to have assigned the LEI code

  - higher transparency and availability of information about issues and issuers

  - modification of conditions on interruption, suspension or cancellation of trading with a security        

  - amendment to operating rules of market makers system

  - introduction of new segmentation of trades

There was no direct change to the level or structure of stock exchange fees.  However, the obligation for BSSE members to register OTC trades with listed securities in stock exchange system was cancelled. This will allow custodians to enter OTC trades of clients directly into the Information System of Central Securities Depository (IS CSD). Thus, transaction fee will be lowered by the stock exchange fee which in some cases reached EUR 332. Settlement of OTC trades in a single system IS CSD should improve market deadlines and increase STP in the market.

Impact on investors:  Higher transparency and protection of  BSSE members and its clients as result of MIFID II legislation.

Custodian OTC trades may be registered and settled in IS CSD, trade registration with BSSE can be eliminated.