On 28 December 2018, the Serbian Central Securities Depository and Clearing House (referred to below as the CSD) announced Amendments and Supplements to its Operating Rules and New Tariff Rates Rules.
The CSD harmonized its Operating Rules with the Law on Financial Collateral, which will apply as of 1 January 2019, prescribing the conditions and manner of recording the transfer of financial instruments or the registration of a pledge right in a financial instrument as collateral under Financial Collateral Agreements.
The changes mainly relate to:
- Introduction of new types of accounts of financial instruments:
- Financial collateral proprietary account
- Financial collateral pledge account
- Registration of third-party rights to financial instruments
- Limitation of rights arising from financial instruments
- Seizure of property resulting from criminal offense
- Financial collateral
The Amendments and Supplements to the CSD Operating Rules became effective as of 28 December 2018.
With the new Tariff Rates Rules, which will apply as of 5 January 2019, the CSD introduces new fee categories related to opening and transacting with the new types of accounts and increases all existing fees with 10% compared to the currently valid Tariff Rulebook.
For convenience purposes, you may find below a non-exclusive comparison between the current and the new fees related to some of the most common CSD tariff categories:
|
TARIFF CATEGORY |
UNTIL 4 JANUARY 2019 |
AS OF 5 JANUARY 2019 |
|
|
|
|
|
I. Accounts |
|
|
|
Account opening (proprietary account) |
RSD 500 |
RSD 550 |
|
Account opening (omnibus account) |
RSD 10,000 |
RSD 11,000 |
|
*new tariff category* Account opening (proprietary financial collateral account) |
|
RSD 11,000 |
|
*new tariff category* Account opening (pledge financial collateral account) |
|
RSD 11,000 |
|
Account closure |
RSD 500 |
RSD 550 |
|
|
|
|
|
II. Settlement |
|
|
|
Settlement against payment of trades executed on regulated market / MTP |
0.10% of transaction value, max RSD 1,500 |
0.11% of transaction value, max RSD 1,650 |
|
Settlement against payment of block trades with shares executed on regulated market / MTP |
0.12% of transaction value, max RSD 500,000 |
0.132% of transaction value, max RSD 550,000 |
|
Settlement against payment of block trades with debt securities executed on regulated market / MTP |
0.05% of transaction value, max RSD 900,000 |
0.055% of transaction value, max RSD 990,000 |
|
Settlement against payment of trades with shares executed outside regulated market / MTP |
0.10% of transaction value, max RSD 600,000 |
0.11% of transaction value, max RSD 660,000 |
|
Settlement against payment of trades with corporate bonds executed outside regulated market / MTP |
0.10% of transaction value, max RSD 600,000 |
0.11% of transaction value, max RSD 660,000 |
|
Settlement against payment of trades with financial instruments issued by Republic of Serbia or National Bank of Serbia executed outside regulated market / MTP |
0.10% of transaction value, max RSD 5,000 |
0.11% of transaction value, max RSD 5,500 |
|
Settlement against payment of trades with financial instruments issued by autonomous provinces or municipalities executed outside regulated market / MTP |
0.10% of transaction value, max RSD 5,000 |
0.11% of transaction value, max RSD 5,500 |
|
Settlement against payment of financial instruments and funds based on REPO agreement or financial collateral agreement |
RSD 1,000 |
RSD 1,250 |
|
Change of financial instruments in case of REPO agreement or financial collateral agreement |
RSD 1,000 |
RSD 1,250 |
|
Change of data in case of REPO agreement or financial collateral agreement |
RSD 600 |
RSD 660 |
|
*new tariff category* Settlement free of payment to / from proprietary financial collateral account |
|
RSD 2,500 |
|
*new tariff category* Settlement free of payment to / from pledge financial collateral account |
|
RSD 2,500 |
|
|
|
|
|
III. Corporate Actions |
|
|
|
Coupon |
0.05% of coupon value |
0.055% of coupon value |
|
Dividend |
0.05% of dividend value |
0.055% of dividend value |
|
Redemption |
0.05% of redeemed amount, max RSD 5,000 |
0.055% of redeemed amount, max RSD 5,500 |
|
|
|
|
|
IV. Other |
|
|
|
Confirmation of trade details after the CSD cut-off time |
RSD 600 |
RSD 660 |
|
Guarantee Fund activation |
0.50% daily of cash amount, max RSD 15,000 |
0.55% daily of cash amount, max RSD 16,500 |
|
Buy-in / Sell-out procedure activation |
0.50% daily of market value, max RSD 15,000 |
0.55% daily of market value, max RSD 16,500 |
|
Approval of OTC settlement after the standard CSD cut-off time, but before 16:30 local time |
RSD 6,000 |
RSD 6,600 |
|
Payment of settlement funds after the CSD cut-off time |
RSD 6,000 |
RSD 6,600 |
(As of 31 December 2018 and according to National Bank of Serbia, 1 EUR = 118.1946 RSD)
At present, the above referred to documents are available in Serbian only. The English versions are expected to be published on the website of CSD in the upcoming days.
Related newsflash: Law on Financial Collateral and changes to the Law on Bankruptcy
Impact on investors: Amended and Supplemented Operating Rules of the Serbian CSD introduce new types of accounts to support Financial Collateral arrangements on the local market. New Tariff Rates Rules increase costs for settlement and other CSD services for CSD members, and consequently, for investors.