SKDD, the Croatian central securities depository depositary, amends its rules and procedures
SKDD announced the issuance of a partial decision on the approval of amendments to the SKDD Rules, Procedures and SKDD Pricelist by the Croatian Financial Services Supervisory Agency (HANFA). The amendments took effect as of 28 April.
Amendments to the rules and procedures include the following details:
- Definition of participants - the definition of participant has been aligned with the provisions of the Settlement Finality Act in Payment Systems and Settlement Systems for Financial Instruments.
- Membership in the Central Counterparty (CCP) – determination of the terms for membership that are, in accordance with the provisions of the EMIR, include the authorisation to provide the services of the central counterparty and the functionalities associated with the membership of the CCP.
- Back-to-back service – this new functionality allows the net settlement of liabilities between parties within the "pool" settlement instructions that could not be solved individually due to the lack of financial instruments/cash funds. Transactions must have the same ISIN and same settlement date.
- Aggregate settlement of cash amount for trade-for-trade settlement - existing process is completely retained, including the ability of a member to make a cash payment for a particular transaction.
- Defining obligation to issue tax certificates – amendments to the Ordinance on Income Tax prescribed that the issuer of the securities, also SKDD when acting as a paying agent of the issuer, is not obliged to dispatch tax returns on the calculated and paid income tax (dividend tax - money) unless the taxpayer specifically requests so.
Amendments to the SKDD Pricelist are related to the new functionalities (e.g. back-to-back service and aggregate settlement of cash), membership to the CCP and clearing and settlement fees for CCP transactions.
Nikoleta Rodin Marotti
Global Securities Services Croatia