UniCredit Bank d.d.
Summary:
The Registry of Securities in Federation of BIH (CSD) has adopted a new Rulebook on clearing and settlement which will become effective as of 1 January 2016. As a result, a switch from T+3 to T+2 settlement cycle will take place.
Thu, 03/12/2015
At its session held on 18 November 2015, the Registry of Securities in Federation of BH adopted a new Rulebook on clearing and settlement which will be applicable from 1 January 2016. The most important changes are as follows:
A New market deadline for transfer of funds and allocation of transactions due to a switch from T+3 to T+2
- Settlement of securities and funds for all trades executed on the stock exchange will be performed on T+2 (except in the case where the buy-in procedure has been initiated or in case of a sell-out or other extraordinary circumstance).
- New payment deadline: CSD members are required to pay the net debt amount on T+2 by 10:00 CET.
- Upon receipt of funds from all CSD members who were required to pay the net debt, the CSD will transfer funds to CSD members who had a net claim on T+2 by 13:00 CET at the latest.
- At CSD level, the transfer of securities and funds is performed on a Delivery Versus Payment (DVP) basis on T+2 by 13.00 CET at the latest (except in extraordinary circumstances).
- New market deadline for allocation of transactions: the CSD member must allocate transactions (to or from the omnibus or segregated accounts) within the CSD system on T+2 by 10:00 CET.
Buy-in procedure moved to settlement date (T+2)
- The seller must ensure that there are sufficient securities on the securities account on T+2 by 10:00 CET. If the CSD member fails to cover the short position, the CSD will start the buy-in procedure.
Impact on investors: Global Securities Services Bosnia will adjust deadlines in accordance with the newly defined market deadlines to T+2 as of 1 January 2016.