On 8th meeting of NPMG Slovene CSD presented changes in SWIFT standards:
- Implementation of ISO 20022 messages for corporate actions (seev messages) with intention to automatize the CA flow and implementation of above mentioned directives and harmonization within T2S.
- Implementation of ISO 20022 messages for payment transactions (Target2 – T2S consolidation)
- Implementation of ISO 20022 messages for settlement.
Timeframe for implementation of ISO 20022 was not presented.
Other issues related to the CSDR were as follows:
- Penalties for late settled trades will be calculated in T2S and distributed to participants by the CSD. The date of start of the calculation is not final yet. According to the CSDR calculation of penalties has to be implemented in September 2020 through T2S module for calculation will be ready in November 2020. ECB and ESMA are in discussion whether it is possible to postpone the implementation for 2 months.
- The buy-ins will be after implementation of settlement discipline in 2020 extended also to OTC trades. The CSD, which now executes buy-ins for Ljubljana Stock Exchange trades will not execute buy-ins in the future, neither for the “on market” nor for the OTC trades. The buy-ins will be executed in line with the EU Regulation 2018/1229 which prescribes that for transactions that are not cleared by a CCP, the parties that originally concluded the relevant transaction should be responsible for the execution of the buy-in.
- The Slovene Securities Market Agency will publish guidelines on reporting of internalized settlement in the near future.
The Companies Act, which will implement the Shareholders Rights Directive II, is in phase of preparation by the Ministry for Economic Development and Technology. The start of public discussion on implementation is expected in February/March 2019 and approved by the Parliament in June 2019.
Impact on investors: Implementation of CSDR and Shareholders Rights Directive II