Status update on Croatia’s joining T2S

Zagrebacka Banka d.d.
Fri, 24/02/2023
The Croatian National Bank (CNB) together with the Central Depository and Clearing Company Inc. (SKDD) organized a workshop on the topic of SKDD connection to Target-2-Securities (T2S). Besides the re-confirming T2S go-live date for Croatia (11 September 2023), additional points to consider are as follows: 
  • SKDD decided to choose Indirectly Connected Party (ICP) approach for its participant members’ access to T2S, ensuring the continued use of all functionalities of the SKDD system to its participant members;
  • SKDD will access T2S using a “layered” model, meaning that the custody accounts opened and managed by Zagrebačka banka GSS, as your local custodian, will remain in SKDD and assets safekept therein will be replicated on its T2S omnibus account. In due course of migration to T2S, SKDD will open at least one omnibus account per each local custodian in T2S;
  • Communication between Zagrebačka banka GSS and SKDD will remain on SWIFT ISO 15022 format, using new BIC code of Zagrebačka banka GSS. Zagrebačka banka GSS will continue to accept settlement instructions in SWIFT ISO 15022 format from its clients. Clients will be advised in due course if communication between Zagrebačka banka GSS and its clients should be directed to new BIC code or will remain on the existing one. SKDD will communicate with T2S via SWIFT ISO 20022;
  • Settlement will be processed on two levels: T2S settlement and SKDD settlement. Settlement instructions will be sent and matched in the SKDD system and then forwarded to T2S. T2S will validate and settle (if settlement conditions are met) the already matched settlement instructions and send the confirmation of settlement to SKDD, which will settle the instruction in its system and notify its participant members accordingly;
  • Technical details on the expected changes to the settlement and income collection process in T2S will be discussed on the workshop organized by SKDD and scheduled for the end of March 2023. Clients will be advised on the necessary amendments to fields within SWIFT MT540-543 accordingly;
  • SKDD participant members are expected to participate in T2S test from June till August 2023.

Further details on T2S developments on Croatian market are expected by the end of March 2023. 

Impact on investors: For information purposes