After the migration of Slovak CDCP to T2S, the Slovak Debt and Liquidity Management Agency (ARDAL) changed the Rules for trading on primary and secondary markets with government debt securities (GDS). The Slovak Republic is the issuer of the GDS, acting through the Ministry of Finance of the Slovak Republic and represented by ARDAL.
The changes primarily concern securities and cash settlement processes of the GDS. Before the migration to T2S, settlements of primary market trades were performed on a non DvP basis. Buyers were obliged to send payments for the purchased securities to ARDAL first. After receipt of payment, ARDAL credited the securities to the buyers account. Since 10 February 2017, these trades are settled through T2S on a DvP basis.
The following rules apply:
- Settlement date of the GDS trades on both, Primary and Secondary Market is the second Business day following the auction day/ trade day.
- The day of issue on Primary Market and first interest date of GDS is the day when the GDS was settled (cash and delivery).
- On both markets, Cash and Delivery settlement is realized through settlement orders - DvP (Delivery versus Payment) on DCA account at T2S platform. Orders are submitted with ISSU (issuance) or TRAD (trade) parameters, NMAT (unmatched) via CSDSSKBA; Counterparty BIC – APRDSKB1XXX (ARDAL).
- Transaction counterparties (ARDAL and Primary Market Dealer or its client) ensure submitting of unmatched settlement orders for delivery versus payment settlement to the Slovak CDCP on the settlement day at latest.
Clients are kindly requested to quote PSET: CSDSSKBAXXX and APRDSKB1XXX (BIC of ARDAL) as a DEAG/REAG in their settlement instructions relating to either primary or secondary market trades with GDS with the ARDAL.
Impact on investors: Improvement on the market. Effective from 10 February 2017, both primary and secondary market transactions will be settled on a DvP principle using a standard settlement procedure of CDCP, in compliance with T2S rules. Standard settlement deadlines will apply.