New KDD Operation Rules and Regulations

UniCredit Bank Slovenija d.d.
The KDD prepared new Operational Rules and Regulations, which will be valid from 1st of January 2019, in a line with the CSDR Directive and new Market in Financial Instruments Act.
Thu, 20/12/2018

Main changes, prescribed in new Operational Rules and Regulations are as follows:

•              Definition of KDD’s users, which includes its members, linked CSDs, stock exchanges and other trading systems and other users. The conditions for links with the CSDs from other EUR countries are set-up.

•              Protection of securities against insolvency of KDD – securities accounts of KDD’s members and other securities account holders are segregated from securities accounts of KDD, due to that the holders of securities accounts are according to Slovene insolvency legislation not obliged to lodge requests for exclusion of securities from a KDD’s bankruptcy mass.

•              Procedure in a case of insolvency of systemic participant is set. The KDD, even in a case of temporary disconnection of such participant from its system, will allow following transactions to be settled:

               -  Trades, executed on LjSE on a day, when KDD will become aware of insolvency procedure.

               -  Trades, approved by a bankruptcy manager or a bankruptcy court.

               -  Trades of owners of securities, which have a direct agreement with the KDD.              

•              Daily reconciliation of securities positions with the KDD is required for the systemic participants.

•              The KDD’s obligations regarding supervision of its participants are set in a line with the CSDR. 

•              Deadlines for settlement of FOP and OTC DVP/RVP instructions are shortened for 10 minutes: from 18:00 to 17:50 CET for FOP trades and from 16:00 to 15:50 CET for OTC DVP/RVP trades. UniCredit Banka Slovenija d.d. will change adjust its deadlines for OTC DVP/RVP accordingly. Deadlines for FOP trades will not be changed.

•              The deadline for enforcement of KDD’s measures for late delivery of securities for LjSE trades will extended from 11:30 to 13.00 CET.

•              The calculation of principal of guarantee fund is changed and defined as 160% of average daily amount of net cash obligations for settlement of Stock Exchange trades in a past year.     

•              Process of participants’ initiatives and claims is prescribed.                                                             

•              Establishment of Committee of KDD’s Participants for better communication between KDD’s Management Board and its participants, related to relation KDD’s decisions. The Committee was established in October 2018.

The KDD published a new Operational Rules and Regulations  in the Slovenian language on its web page: An English version of new Operational Rules and Regulations will be published later on.