The regulatory basis for the listing of government securities will be updated. By Kristina Spasova, Relationship Manager, GSS Bulgaria
The Bulgarian National Bank (BNB), via the Association of Banks in Bulgaria, has provided market participants, for discussion, draft amendments to the regulations on government securities.
The main proposed amendments contain the following:
-The introduction of provisions to facilitate the registration of trades in government securities concluded on a regulated market and multilateral trading system. The changes are a result of the planned introduction for the trading of government securities on the Bulgarian Stock Exchange AD-Sofia and the technical implementation of the direct connection of the government securities depository with the E-BOND system to the Bloomberg Professional platform.
-The Minister of Finance and the BNB Governor will be granted the authorisation to approve the rules for trading and settlement of government securities on a regulated market and multilateral trading system.
-CSD participants in ESROT (the electronic system for registration, and servicing of trades in government securities) will be required to provide their CSD license as part of the application procedure for participation in ESROT in line with EU legislation governing CSD activities.
-The Reserve Guarantee Fund of RINGS (the RTGS system for BGN clearing) will be excluded from the list of ESROT participants in view of its replacement by a Guarantee Mechanism of Systems Processing Card-based Payment Transactions in Regulation No 3 of 16 July 2009 on the Terms and Procedure for the Execution of Payment Transactions and Use of Payment Instruments.
These draft amendments refer to Regulation No 5 of 4 October 2007 on the Terms and Procedure for Acquisition, Registration, Redemption and Trade in Government Securities and Regulation No 15 of 4 October 2007 on the Control over Transactions in Government Securities.