Management Board of the Central Depository & Clearing Company Inc. (CDCC) on the meeting held on 16 December 2021, announced the termination of the contractual settlement services.
CDCC published the following details on the Decision to terminate the provision of the contractual settlement services :
a) As of 04 January 2022, CDCC will no longer provide contractual settlement services,
b) Rules, Provisions, and other Operating Rules of SKKD related to contractual settlement services will no longer be applicable,
c) In case of non-fulfilment of obligations from transactions, Rules, Provisions, and other Operating Rules of CDCC which regulate the procedures for non-fulfilment of obligations from transactions classified in contractual settlement will be applicable
d) The Decision on the appropriateness of transactions U-443/13-2 as of 14 October 2013 will be repealed,
e) According to the CDCC Provisions, settlement system will process transactions in 15 minutes cycles.
Furthermore, as already announced, SKDD-CCP will go live on 03 January 2022 which will also be the last day of Contractual settlement method (BIS Model 3) within the SKDD system.
All transactions executed from 31 December 2021 onwards will be matched and settled in SKDD Trade-for-trade settlement (BIS Model 1) only, which is considered as a true DVP. This settlement method implies clearing and settlement of transactions on a gross basis, without the netting possibility or guarantee of settlement from CDCC (SKDD).
Impact on investors: SKDD Contractual settlement will no longer be available on Croatian market from 04 January 2022. From that point, only SKDD Trade-for-trade settlement method will be facilitated.
Related Newsflashes: SKDD-CCP granted with the license by HANFA