On June 11, 2015 the Romanian Central Depository issued the technical specifications for settlement in T2S. In accordance with these specifications the following details were provided:
Starting date: June 22, 2015
Types of eligible financial instruments: all instruments for which the local CSD is main registrar or technical depository;
Types of transactions: transactions concluded outside the trading system (OTC Turnaround is not allowed);
Cut of Times for receiving instructions: DvP: SD - 16:00 local time FoP: SD - 18:00 local time
Matching criteria:
DEAG//REAG; CSD of the DEAG//REAG; ISIN Code; Trade date; Intended settlement date; Quantity; Currency;
Type of instruction;
Additional matching criteria:
• CUM/Ex Indicator – states if the settled financial instruments have attached rights or not (e.g.: dividends, coupon)
• Opt-out ISO transaction condition indicator – states if the instruction is eligible for a possible future instruction "market claims" or "transformations” or not.
If one of the counterparties mentions one of the above fields, they become matching criteria.
Optional matching criteria:
• Common trade reference • Client of delivering CSD participant • Client of receiving CSD participant
• Securities account of the delivering CSD participant • Securities account of the receiving CSD participant
If one of the counterparties mentions one of the optional matching criteria, the matching is done even if the other one does not mention it.
An unmatched settlement instruction will remain active in the T2S system for maximum 20 working days from the intended settlement date or from the date of the last amendment. After this period of time, if the settlement instruction will not be matched, it will be automatically canceled by the T2S system.
A matched settlement instruction will remain active in the T2S system until the settlement will be done or the instruction will be bilaterally canceled.
The statuses provided by the Central Depository through its graphic interface are:
• Accepted – for settled instructions;
• Aborted – for cancelled instructions;
Tolerance:
• 2 EUR – for settlement with a value smaller than or equal to 100,000 EUR • 25 EUR – for settlement with a value higher than 100,000 EUR
The matching process will take into consideration the settlement amount of the seller. At this stage partial settlement and allegement reports will not be allowed. Regarding corporate actions, the Central Depository will issue the technical specifications for each event at a further date. The fees applied by the Central Depository for T2S will be published at a future date.
Impact on investors: Central Depository in Romania will connect to T2S starting June 22, 2015.