The Romanian Official Gazette published Regulation no. 9/2020 on 24 September 2020 on settlement risk management and lending facilities granted by the National Bank of Romania in order to streamline the settlement in ReGIS, the domestic RTGS system.
The regulation establishes:
- the rules for managing the settlement risk applicable to the net settlement systems settling in ReGIS imposed by the administrator of the net settlement system and approved by the National Bank of Romania;
- lending facilities granted by the National Bank of Romania, as a central bank, to eligible participants in ReGIS, in order to streamline the settlement in the system.
The Regulation will come into force on 24 December 2020.
Within 3 months from the date of entry into force of the regulation, the National Bank of Romania and the eligible participants in the ReGIS system shall take all necessary measures to sign the framework contracts, in accordance with the provisions of the Regulation.
Impact on investors: Better risk management mechanisms for settlement processes ensuring higher risk mitigation.