On 10 November 2021, the Financial Supervisory Authority (FSA) approved the amendments of the CSD Code of Rules. The new provisions will enter into force as of 29 November 2021, except the dimensioning of the Guarantee Fund and the settlement limits. This is published on the CSD website: here
The modifications brought to the CSD Rulebook are related to:
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Introduction of provisions related to the registration of the financial instruments for which the CSD acts as investor CSD as well as the specifications that the CSD may refuse the registration in its system of some financial instruments for risk or opportunity reasons
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Detailing the situation in which a transfer order can be cancelled by the CSD, as a result of the opening of the insolvency procedure, in accordance with the applicable legal framework
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Provisions related to the settlement limits for custodians when matching the operation between the allocation instruction and the counterparty instruction
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Exclusion from the verification of the settlement limits of the transactions concluded between two accounts of the same participant or within the same global account
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Additions to highlight that the CSD will not calculate and collect the replacement cost in case of transactions concluded between two accounts of the same participant or within the same global account. The related payment compensation will be made outside the CSD
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Introduction of new provisions to regulate the new digital services that the CSD intends to make available for issuers, participants and investors
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Completing the methodology for calculating the maximum price variation of each financial instrument in order to harmonize with the rules of the trading venue of the Bucharest Stock Exchange (BVB) regarding the maximum price variations allowed/category of financial instruments, in a trading session
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Introduction of new provisions to regulate the way to calculate the maximum price variation of a financial instrument which is admitted for trading for the first time, for which there is no history of reference prices
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Other changes made in order to harmonize with the definitions of the Regulation (EU) no. 909/2014
Impact on investors: Clients should take note that the CSD Code of Rules was amended to comply with the CSDR requirements and other updates for the harmonization to the EU legislation