Dear Client,
The Croatioan CSD, SKDD has executed testing of the transition to the new standard settlement period T+2 on 5 and 6 September 2014, including the existence of possible defects in the methodological and operational reports. Testing was successfully completed. The specificity of the change in standard settlement period from 3 to 2 days is an overlap of the intended settlement date for transactions made on the Zagreb Stock Exchange (ZSE) on 3 October 2014 (T+3) and 6 October 2014 (T+2), i.e. netting their commitments on the same day (9 October 2014), as shown in the following schedule:
|
October 2014 |
||||||
|
Mon |
Tue |
Wed |
Thu |
Fri |
Sat |
Sun |
|
|
|
|
2 |
3 |
4 |
5 |
|
|
|
|
|
T1 |
|
|
|
6 |
7 |
8 |
9 |
10 |
11 |
12 |
|
T2 |
T3 |
H |
S1/S2 |
S3 |
|
|
In the same period, SKDD has successfully completed the testing of corporate actions. Impact of changes in standard settlement period on the rights arising from securities purchased on the ZSE is as follows:
|
Ex date |
Matching record date without the rights |
|
3.10.2014. |
7.10.2014 |
|
6.10.2014. |
7.10.2014 |
|
7.10.2014. |
9.10.2014 |
All corporate actions entered into the SKDD’s system after 9 October 2014 will have the ex-date determined as one business day prior to the record date. All corporate actions entered into the system before 9 October 2014, with a record date 7 October 2014 at latest, will have the ex-date two business days before the record date.
SKDD Rules and Procedures will remain unchanged, namely the part related to the definition of the buy in procedures. However, SKDD is currently involved on a reconciliation with Regulation (EC) no. 648 (EMIR), wherewith the buy-in and sell-out procedures will be complied with the standard settlement period T+2, in line with subsequent notifications.
Impact on investors: SKDD confirmed operational details related to migration to T+2 settlement cycle.
Related Newsflash: Migration to T+2 settlement cycle