Bulgarian National Bank DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS. Fiscal Services Department December 2008 B N B G S S S

Size: px
Start display at page:

Download "Bulgarian National Bank DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS. Fiscal Services Department December 2008 B N B G S S S"

Transcription

1 DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS B N B G S S S Fiscal Services Department December , Positano St., 1301 Sofia, Bulgaria Telex: ; Fax:

2 INTRODUCTION The following document comprises the answers formulated by the Bulgarian National Bank regarding its securities settlement system in response to the questionnaire published in February 1997 by the joint working group of the Committee on Payment and Settlement Systems (CPSS) of the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO). The has been completed in order to assist potential participants in developing a clear understanding of the organization, operations and procedures of the Bulgarian National Bank's Government Securities Settlement System (BNBGSSS) and to help them assess the risks associated with its securities settlement activities. Therefore, this document provides only a general overview of the system and it should not be considered as a part of the rules and procedures of the system, as an agreement between the Bulgarian National Bank and any person or as an amendment or addition of the aforesaid texts. 2

3 I. Basic information The Bulgarian National Bank (BNB) acts as the exclusive Depository for Government Securities (GS) and acts as cash clearing agent for primary and secondary market transactions in government securities. The government securities, issued by the Bulgarian Government are dematerialized and transferred by book-entries. The Bulgarian National Bank's Government Securities Settlement System consists of ESROT (the Electronic System for Registration Of and Trade in Government Securities) and SDCK (The Electronic System for Government Securities Settlement). Registration of all government securities transactions in the primary and secondary market is performed by ESROT. The settlement of government securities is handled through SDCK, where the participants' securities accounts are located. SDCK has a link to RINGS (the Bulgarian RTGS system), which is used to settle the cash leg of all DVP government securities transactions. Transfer of government securities and same-day funds is done simultaneously on a gross basis in real time, in compliance with the DVP principle (Model 1; settlement cycle T + 0). A. What is the name of the SSS? Bulgarian National Bank's Government Securities Settlement System (BNBGSSS) B. Where and in which time zone is the SSS located? 7, Positano St Sofia Bulgaria Time zone: CET +1 hour C. What functions does the SSS perform? 1. Does the SSS serve as a securities depository and/or provide securities settlement services? Yes. The System serves as a securities depository and provides securities settlement services. (a) What types of instrument are eligible for deposit at the SSS (e.g. debt, equities, warrants, etc.)? All domestic government debt instruments (T-bills, notes and bonds) issued by the Ministry of Finance are eligible for deposit at the System. (b) What types of instrument are eligible for transfer within the SSS? All securities, mentioned in question a) are eligible for transfer within the System. (c) Please describe whether eligible securities are dematerialized, immobilized or transferred physically. Government securities held at the BNBGSSS are dematerialized and registered as book-entry records. (d) Does the SSS provide safekeeping for physical certificates? 3

4 No. The system does not provide safekeeping for physical certificates. 2. Does the SSS provide cash accounts and/or provide funds transfers in conjunction with securities transfers? If so, in what currencies? BNBGSSS uses the cash accounts of participants at the BNB for transfer of funds in conjunction with securities transfers. Cash and securities movements are linked and simultaneous in compliance with the DVP principle. The only currency used for providing cash accounts is BGN. 3. Does the SSS provide a trade matching service? Do others provide such services for securities settled at the SSS? The BNBGSSS is the only entity providing a trade matching service for securities registered in the System. 4. Does the SSS provide a trade netting service (as distinct from undertaking the settlement of securities transfers on a net basis)? Do others provide such services for securities settled at the SSS? In either case, what types of netting (bilateral or multilateral), if any, are performed? The System does not provide a trade netting service. 5. Does the SSS offer a securities lending or borrowing programme? The System does not offer such a facility. 6. Does the SSS provide custodial and/or related services such as the collection of interest, dividends, principal or withholding tax reclamations? Which types of service are provided? Yes. The System provides custodial services and some related services as calculation and payment of principal and interest, fees and commissions charged on GS transactions, etc. 7. Does the SSS act as a central counterparty or principal to transactions with its participants? No. 8. Other? Please specify. No. D. What type of organisation is the SSS? 1. Please indicate whether the SSS is a public sector or private sector entity. The System is a public sector entity. 2. Please indicate whether the SSS is organised on a for-profit or a non-profit basis. The System is organised on a non-profit basis. 3. What is the legal basis for the establishment of the SSS and for securities transfers made through it? Law on the Bulgarian National Bank; Law on the Government Debt; Ordinance No. 5 on the Terms and Procedure for Acquisition, Registration, Redemption and Trade in Government Securities, jointly issued by the MoF and the BNB; Ordinance No. 15 of the MoF and the BNB on the Control over Transactions in Government Securities; 4

5 Ordinance No. 31 of the BNB on Government Securities Settlement; Ordinance No. 3 of the BNB on Fund Transfers and Payment Systems; Agency Agreement between the Ministry of Finance and the BNB on government debts. E. Please describe and provide a diagram outlining the organisational and ownership structure of the SSS. 1. Who are the owners of the SSS? The BNBGSSS is owned and managed by the Bulgarian National Bank. 2. What entity or entities operate the SSS? Which functions of the SSS, if any, are outsourced to third parties? The System is not a separate legal entity and operates within the Government and Government Guaranteed Debts Depository Directorate at the Fiscal Services Department of the BNB. No functions are outsourced to third parties. 3. Does the SSS have a Board of Directors? The Governing Council of the Bulgarian National Bank is responsible for the BNBGSSS management. (a) What is its composition? The Governing Council consists of seven members: the Governor of the Bank, the three Deputy Governors, and three other members. (b) What are its responsibilities? Full management responsibilities. F. Please describe the financial resources of the SSS. 1. Amount of paid-in capital and retained earnings? No capital structure. 2. Guarantees, insurance coverage or other similar arrangements? 3. Credit lines or letters of credit? 4. Powers to assess participants or equity holders? The Bulgarian National Bank is empowered to assess the participants jointly with the MoF. G. Please describe whether the SSS or its operator is subject to authorisation, supervision or oversight by an external authority. The BNBGSSS is subject to supervision and oversight by regulatory authorities (MoF and BNB), independent external authorities and the National Accounts Office. 5

6 II. Rules and procedures of the SSS A. Does the SSS maintain a complete list of the rules and procedures governing the rights and obligations of participants and the duties of the SSS? The rules and procedures concerning the rights and obligations of the participants in the System and their duties are described in the legal framework (see I. D. 3 above). 1. How can participants obtain a copy of the rules and procedures? The System notifies participants by means of official public announcements, press releases, references to web site, , telex and by post. 2. Does other documentation provided to participants (e.g. user guides) have the same status as the rules and procedures? Joint letters of the MoF and the BNB concerning the GS market operation, as well as user guides, have the same status as the rules and procedures. 3. Describe the process for changing rules and procedures, including any need for regulatory approval. (a) What authority is required, and how does this differ depending on the type of change involved? Rules and procedures laid down in the respective ordinances, agreements, etc. should be changed or updated by a decision of the MoF and the BNB. Those envisaged by laws are subject to Parliament approval. (b) How are participants notified of changes in rules and procedures? Please see ІІ. A.1. (c) Is there a procedure for participants or others to comment on proposed rule changes? There is a consultation procedure by which participants are notified of particular rule changes and invited to send their comments. Joint meetings between participants and representatives of the BNB and the MoF are regularly organized as well. B. Are the rules and procedures binding on the SSS as well as its participants? Under what conditions and on whose authority can written rules and procedures be waived or suspended by the SSS? Yes, the rules and procedures are binding on the System as well as its participants. Rules and procedures can be waived or suspended only by a decision of the Minister of Finance and the Governor of the BNB. III. Relationships with participants A. Please describe the types of membership offered by the SSS. The System has direct and indirect participants. Direct participants are the interactive users of the services of the System. Indirect participants do not have direct access to these services but may do so via a direct participant. 1. How do the types differ? The following entities may become participants in the System: primary dealers of government securities; subdepositories of government securities; banks (including banks from other Member States); investment 6

7 intermediaries (including such from other Member States); the Bulgarian National Bank and other members of the ESCB; member states central securities depositories; the Ministry of Finance; the Reserve Guarantee Fund of which the BNB keeps a register under Art. 7 of Ordinance No.5; other entities approved by the Minister of Finance and the BNB Governor. Government securities primary dealers shall be banks whose license includes the investment services and activities under Art. 2, para. 2, items 8 and 9 of the Law on Credit Institutions or investment intermediaries which have been granted a license to conduct investment services and activities pursuant to the Law on Markets in Financial Instruments. Primary dealers shall be selected on the basis of criteria by a commission designated by the Minister of Finance for a period of one year. Subdepositories of government securities may be credit institutions under Art. 2, para. 5 of the Law on Credit Institutions licensed to conduct depository and custodian activities. Banks, other than the primary dealers and the subdepositories of government securities, whose licenses provide for the services and activities under Art. 2, para. 2, items 8 and 9 of the Law on Credit Institutions are eligible to become participants. Investment intermediaries, other than the primary dealers of government securities, whose licenses provide for the services and activities under Art. 5, para. 2, items 1, 2 and 3 of the Law on Markets in Financial Instruments are also eligible to become participants. 2. Within each membership category, are all participants subject to the same rules and procedures? Please describe important exceptions, including both differences in rules across participants and the rationale for these differences. Within each membership category all participants are covered by the same rules and procedures and by a standard participation agreement. The investment intermediaries and banks approved to be government securities primary dealers shall conclude an agreement with the Ministry of Finance for primary dealership in government securities. The primary dealers are allowed to participate both in the primary and secondary market. Subdepositories of government securities shall maintain systems for registering government securities wherein individual government securities accounts are kept to record government securities held by their customers and the customers of those participants that are not subdepositories, on the basis of a contract concluded with such participants. B. Can participants establish accounts for their customers' assets that are segregated from their own asset accounts at the SSS? Participants can establish accounts for their customers assets which are segregated from their own asset accounts at the BNBGSSS. 1. If so, is this accomplished through a single omnibus customer account or through a multiplicity of accounts and/or sub-accounts? It is accomplished through a single omnibus customer account in which government securities held by a participant on behalf of its customers are kept. 2. Is the segregation optional or compulsory? 7

8 The segregation is compulsory. 3. Does the fact that a sub-account at the SSS bears the name of a third party give any rights to that third party as a participant under the rules of the system? It is not possible to open an account in the System in the name of a third party. C. Please describe participant requirements for each type of membership. 1. Are participants required to be domiciled or resident in a particular jurisdiction? Participants could be domestic entities as well as entities incorporated within the EU. 2. Are participants required to be subject to a supervisory regime? If so, please describe. Participants are subject to supervision by the competent authorities - the BNB, the MoF and the Commission of Financial Supervision. 3. Are participants required to hold an equity stake in the SSS? No. 4. Are there financial, economic, personal or other requirements (e.g. minimum capital requirements, "fit and proper" tests)? If so, please describe. The basic requirements are laid down in the Law on Credit Institutions (for banks) and the Law on Markets in Financial Instruments (for investment intermediaries). Ordinance No. 5 on the Terms and Procedure for Acquisition, Registration, Redemption and Trade in Government Securities also specifies a set of organizational, operational and technological requirements for participants: banks and investment intermediaries are required to have a relevant license for providing investment services and activities; have a current account with the BNB or specify a bank s current account with the BNB which shall be used for the cash settlement of transactions in government securities pursuant to a contract concluded with this bank; have technical communication facilities necessary to send instructions for and notifications of transactions in government securities in the secondary market, as well as to receive notifications and confirmations on behalf of the BNB. Each participant after submitting the required documents shall pass tests to prove its technical preparedness for communication via SWIFT and/or a System WEB-based interface applying a universal electronic signature. D. Does the SSS engage in oversight of its participants to ensure that their actions are in accordance with its rules and procedures? If so, please describe. The Bulgarian National Bank (BNBGSSS) together with the Ministry of Finance engage in oversight of the participants in accordance with Ordinance No. 15 on the Control over Transactions in Government Securities. E. Under what conditions can participants terminate their membership in the SSS? Does this mark the end of all liabilities of the participant? If not, please describe what liabilities could remain. Participation in the BNBGSSS can be terminated at the participant s request with a one-month prior notice. Within this month the participant shall transfer the administration of government securities owned by him or by his customers to another participant. Transactions agreed upon in advance with a value date on or after the date on which the participation is terminated shall not be registered in the System. 8

9 F. Under what conditions can the SSS terminate a participant's membership in the SSS? The BNBGSSS can unilaterally terminate a participant s membership where: the license of the participant has been revoked or insolvency proceedings have been instituted; the decision on termination has been taken by the competent authority of the participant; the participant no longer meets the requirements for participation in the System; in the cases provided for by the law where measures restricting the provision of investment services or conduct of activities by the participant have been imposed. G. Please describe the scope of the SSS's liability to participants, including the standard of liability (negligence, gross negligence, wilful misconduct, strict liability or other), the force majeure standard, and any limitation to the scope of liability of the SSS (e.g. indirect or consequential damages). Where are these liabilities and their limitations set out (e.g. in statute or contract)? In accordance with the Bulgarian civil code the scope of the System's liability is limited only to direct losses incurred by participants (in the cases of negligence and wilful misconduct). IV. Relationships with other SSSs and commercial intermediaries A. Does the SSS maintain linkages (including sub-custodian or cash correspondent relationships) or other relationships with other SSSs? The System does not maintain links with other SSSs. 1. Please identify each of the other SSSs used and the type of securities transferred via the linkages. (a) What is the name of the other SSS? Where is it located? (b) What securities are eligible for transfer via the linkage to the other SSS? (c) Are transfers of securities made via the linkage to the other SSS limited to only those that are free of payment or are transfers against payment also made via the linkage to the other SSS? If against payment, please describe the timing of the transfers and the corresponding payments. risks? (d) Does the other SSS provide custody services to the SSS and, if so, who bears any credit or custody B. Does the SSS use securities custodians (other than the other SSSs addressed in the previous question) and/or commercial cash correspondents? Please identify the custodians or cash correspondents used and the duties that each performs. No. 9

10 C. Please describe the standards used in approving or reviewing relationships with other SSSs, custodians or cash correspondents, including any financial or operational requirements or the presence of insurance or public supervision. D. Does the SSS advance funds or securities to or on behalf of other intermediaries such as issuing or paying agents? If so, please identify the circumstances in which such exposure could arise. No. The System does not advance funds or securities to or on behalf of other intermediaries. E. Please describe measures in place to protect the SSS and its members against the failure of other SSSs or commercial intermediaries to meet obligations to the SSS, including risk controls, collateral or alternative sources of funds and securities. V. Securities transfers, funds transfers and linkages between transfers A. Please discuss whether and how settlement instructions are matched between participants prior to processing by the SSS. 1. Is matching required for all transactions without exception? Matching is required for all transactions except for internal transfers between the securities accounts of the same participant. 2. What procedure is used when instructions do not match? In case of a mismatch the Bulgarian National Bank waits till the end of the system day and if instructions are still not matched, they are automatically cancelled and relevant participants are informed. 3. Are matched settlement instructions binding on participants? Matched settlement instructions are binding on participants. (a) If so, please describe the consequences of failure by participants to meet obligations (e.g. forced settlement, penalties, short positions). BNBGSSS checks automatically if the execution of a transaction is possible. If the seller of GS does not have the sufficient amount of GS the transaction is not settled and it is put in ordered queue waiting to become implementable. If by the end of the day it is still pending, it is cancelled and participants are immediately notified. In case of buyer's lack of funds in his cash account at the BNB, the System waits till the end of operation time of the payment system, and if he still can not provide the amount needed, the System cancels the settlement and informs the parties concerned. The failing party has to pay a penalty according to the Tariff of the Fees and Commissions Charged on Government Securities Transactions. (b) Please describe whether this is a feature of the SSS's rules and procedures or of national law or regulations. This is a feature of Ordinance No. 5 of the MoF and the BNB. 10

11 c) Please provide a time line indicating the points at which matched instructions become binding, as well as any pre-matching process that takes place. All matched instructions are binding and cannot be cancelled by participants. B. Are securities transferred within the SSS registered? 1. Who is the registrar? All securities transferred within the System are subject to registration in ESROT. 2. Is it normal practice to register the securities in the name of the SSS (or its nominee) or in the name of the beneficial owner? Are there instances in which securities housed within the SSS are registered to neither the SSS (or its nominee) nor the beneficial owner? The System registers government securities in the name of the participants. owner? 3. If the SSS offers custodial services, will it hold securities registered in the name of the beneficial The participants in the System appear to be beneficial owners as regards their own holdings of government securities. The participants (subdepositories) on their part are in charge of keeping book-entry registers where securities of their customers, and the customers of those participants that are not subdepositories, are registered in the name of the beneficial owners. 4. Under what circumstances does the SSS initiate registration of securities in the buyer's name? On condition that the settlement is successfully accomplished. 5. How long does the registration process typically take? Are participants notified when registration is complete? The registration is performed immediately after the settlement and participants are informed via the WEBbased interface of ESROT and SWIFT messages. 6. Can securities be transferred within the SSS before registration in the buyer's name is complete? If so, do the rules and procedures of the SSS provide for an unwind or reversal of such transfers in case of bankruptcy or other events which result in the buyer's name not being entered on the register? No. C. Please describe how securities transfers are processed within the SSS. Instructions that have been sent to the BNB in the primary and secondary market are irrevocable after matching and based on the principle of double notification. After matching the participants instructions, the System processes securities transfers by debiting and crediting the respective securities accounts (buyer and seller s accounts) on a trade by trade basis. 1. Please indicate whether the transfers are processed as debits and credits to members' accounts or via some other method. The transfers are processed by debiting and crediting the members accounts. 11

12 2. On a continuous (real-time) basis, or in one or more batches? The System handles securities instructions on a continuous trade-by-trade basis. 3. If continuous, during what hours does the processing occur? If in batches, at what time or times is the processing initiated and completed? The processing of instructions occurs during the hours between 8:30 a.m. and 4:45 p.m. local time. 4. Do securities settlements occur daily? Please identify securities for which settlement occurs only on specific days of the week or month. The securities settlement occurs daily for all kind of securities. D. Please describe whether final funds transfers in conjunction with the SSS are made as debits and credits to balances held at the SSS, at one or more commercial banks, at the central bank, or via some other method. Final funds transfers are made as debits and credits to balances held at the central bank. 1. Does the SSS maintain cash accounts for its participants? Are these accounts equivalent to deposit accounts at a commercial or central bank or do they serve only as "cash memorandum" accounts? The System is managed by the central bank, where the participants' cash accounts are held. 2. On what entity (SSS or other) does the participant bear cash deposit risk? The participants do not bear cash deposit risk, as they have cash accounts opened at the BNB. 3. Under what circumstances does the SSS provide credit extensions or advances of funds to its participants and thereby expose itself to credit risk? The BNBGSSS does not provide credit extensions or advances of funds to its participants, so there is no such credit risk exposure. 4. How long can such credit extensions last? How long do they typically last? E. Is the SSS a DVP system? If so, please describe the DVP model used according to the models outlined in the DVP Report (see the Introduction). Please also provide a diagram indicating the timing of events in the processing of securities and funds transfers in the SSS. Where the SSS provides more than one alternative for settlement processing, please provide a response for each alternative and indicate the relative importance of each alternative. The securities transactions are processed in compliance with the main principle in the securities trade - the DVP principle, defined as Model 1 (simultaneous gross settlement of securities and funds transfers). The necessary technical, legal and contractual framework is established. 1. Are funds transfers and securities transfers processed within the same system or in different systems? If different, how are they linked? 12

13 Funds transfers and securities transfers are processed in two different systems, both managed by the BNB. The settlement of the securities leg of transactions is handled in SDCK, while the settlement of the cash leg is processed in RINGS. There is an automatic link established between the two systems. (a) Please describe whether each securities transfer is linked to a specific funds transfer on a trade-bytrade basis or on a net basis or via some other method. The system runs a gross settlement process. It means that a securities transfer is linked to a funds transfer on a trade-by-trade basis. (b) Does the SSS "split" large transactions into multiple transactions or require participants to do so? The System does not split large transactions into multiple ones and it does not require participants to do so. 2. When do securities transfers and funds transfers become final? (a) At what time do securities transfers become final? After what event or events? Securities transfers become final upon completion of each settlement process. (b) At what time do funds transfers become final? After what event or events? Does this timing allow for same-day retransfer of funds received in exchange for securities? Funds transfers become final upon completion of each settlement process. The timing allows for same-day retransfer of funds. (c) If final delivery of securities precedes the final transfer of funds, can participants dispose freely of such securities prior to funds finality? If so, what actions will be taken if funds are not received? (d) If final delivery of funds precedes the final transfer of securities, can participants dispose freely of such funds prior to securities finality? If so, what actions will be taken if securities are not received? (e) Does the timing of finality differ depending on the type of security transferred or the currency in which payment is to be made? Please describe. The timing of finality is the same regardless of the type of securities transferred or the currency of payment. 3. Please discuss whether participants are notified of securities or funds transfers while they are still provisional, only when they are final, or both. Participants are notified of securities or funds transfers when they become final. F. Does the SSS itself "guarantee" funds or securities transfers? The System itself does not explicitly "guarantee" funds or securities transfers. 1. Under what circumstances and at what point are transfers guaranteed by the SSS? 2. What actions does the guarantee obligate the SSS to take? 13

14 3. Please indicate whether the guarantee is a feature of the SSS's rules and procedures or of national law or regulations. VI. Default procedures A. Please discuss the events or circumstances that would constitute default of a participant under the rules and procedures of the SSS or that would lead the SSS to make use of exceptional settlement arrangements or unwind procedures. 1. Failure by a participant to meet a test of its solvency under the applicable laws of its jurisdiction? In case of a participant's insolvency the System employs adequate procedures in order to protect other participants and their clients from the negative consequences this event entails. 2. Failure to make payments or deliveries of securities within the time specified? The failure to make one payment or delivery is not considered as an event of default by the System. In such a case the System just cancels the unsettled transaction. The systematic non-fulfillment of participant's obligations concerning the payment and the securities delivery may be considered as a default. 3. To the extent that the rules and procedures grant discretion in the determination of the use of default or other exceptional procedures, please discuss where the authority to exercise such discretion resides and the circumstances in which this authority would be used. The System itself has not such discretion. B. What procedures are followed by the SSS once it has determined that a default event has occurred or that exceptional settlement arrangements are to be employed? The procedures are described in Ordinance No.5 of the MoF and the BNB (Art. 36) and in the participation contract (Art. 6, para. 2, item 2) 1. How and at what point are participants notified that this has occurred? The participants are notified in writing, via electronic message or press release, issued by Banking Supervision Department in the BNB (for banks) and press release, issued by the Commission of Financial Supervision (for investment intermediaries). 2. Would the SSS be expected to continue to meet all its obligations to participants under these circumstances? Please discuss the resources in place to ensure that this would occur (e.g. collateral, participants' fund, insurance, loss-sharing arrangements, etc.). The System does not act as a central counterparty, but only in the name and on behalf of the participants. Therefore, in the event of a participant's default this does not have any impact on the fulfillment of the obligations of the System. The System does not offer such facilities like collateral, participants' fund, loss-sharing arrangements, etc. 14

15 3. Please describe and provide a time line indicating the order in which these resources would be used as well as the timing of participant notifications and important deadlines (e.g. when the SSS's obligations to participants would be met, when participants would need to cover their loss-sharing obligations). 4. Please describe all conditions under which provisional transfers of securities or funds could be unwound by the SSS. SSS? (a) How and on what authority would a decision to unwind securities or funds transfers be made by the (b) When and how would participants be notified of a decision to unwind provisional securities or funds transfers? (c) How long would participants have to cover any debit positions in their own securities or funds accounts resulting from an unwind? (d) In the event of an unwind, would all transfers be unwound or would only a subset of transfers (e.g. only securities purchases or only those of a subset of participants) be unwound? (e) If only a subset of transfers, what procedure would be followed to determine which transfers and in what order? 5. Can bankruptcy or insolvency be declared retrospectively in the SSS's jurisdiction (e.g. under a "zero-hour" rule), and could this cause provisional securities or funds transfers to be unwound? Bankruptcy or insolvency can not be declared retrospectively. 6. Please describe any circumstances in which transfers of securities or funds that were defined as final in response to question V.E.2 above would ever be unwound. C. Has a participant in the SSS ever been declared in default or become insolvent? No. 1. Have loss-sharing procedures been invoked? 15

16 2. Please describe whether any of these defaults or insolvencies resulted in losses for the SSS or its participants and how they were absorbed. VII. Securities overdrafts, securities lending and back-to-back transactions A. Is it possible for debit positions (overdrafts) in securities accounts at the SSS to arise? Debit positions are not allowed by the System. 1. Under what conditions could such debit positions occur? (a) Do these conditions always result in debit positions in securities accounts rather than failed transactions? If not, please explain the basis for differential treatment by the SSS. (b) Are these situations covered explicitly by the rules and procedures of the SSS? 2. How long can such debit positions last? How long do they typically last? 3. How are debit positions in securities accounts prevented, rectified or managed? 4. What procedures would be followed by the SSS in case the debit cannot be rectified? (e.g. failure by a participant with a debit balance in a securities account or unavailability of the securities in the market) (a) Application of loss-sharing provisions allocating the loss to participants? (b) Absorption of the loss by the SSS? (c) Other? Please specify. B. Under what circumstances does the SSS provide for the lending of securities to ensure settlements? The System does not provide for the lending of securities. 1. Is the process for lending securities automatic? If not, please describe the procedures used by the SSS to determine whether a securities loan will be made. 16

17 2. At what point are participants notified that securities are being lent to them in order to complete their settlements? 3. Which securities on deposit at the SSS are eligible for lending? Do participants have the option to make securities available for lending or is it mandatory? 4. Are lent securities identified by the SSS with specific participants as lenders or only with a common pool of securities available for lending? Does the participant whose securities are lent become a principal to the transaction? C. How does the SSS settle back-to-back transactions? The BNBGSSS settles back-to-back transactions. Securities may be redelivered on the same day only if they have been received after settlement of the relevant trade. 1. Under what conditions are delivery instructions by participants receiving and redelivering securities on the same day under back-to-back transactions settled for same-day value? (a) Only if the participant has securities on deposit with the SSS that have been received pursuant to a final securities transfer? Yes. (b) If the participant has securities on deposit with the SSS that have been received pursuant to a provisional securities transfer? No. (c) Before securities have been received either provisionally or finally, but when a matched receipt instruction exists for the same or greater value? Is such a practice limited to markets where matching is binding? No. (d) Before securities have been received either provisionally or finally, but when a third party has promised to deliver to the SSS securities of the same or greater value? Must the provider of the guarantee have itself received the securities through a final transfer? Please describe how the SSS evaluates such promises, and whether they are addressed by the written rules and procedures of the SSS. No. (e) Other? Please specify. No. 17

18 2. Please describe limits or controls in place with respect to any of the above arrangements for the settlement of back-to-back transactions, including limits on amounts involved or related to the liquidity of the underlying securities. There are no such limits or controls applied in the settlement of back-to-back transactions. 3. Under what conditions are payment instructions by participants in the SSS under back-to-back transactions settled for same-day value? Can participants use the proceeds of an on-delivery of securities without the need for an extension of credit? Please see VІІ. C. above. VIII. Risk control measures A. Please describe the roles and responsibilities of those areas of the SSS responsible for risk management and control. The rules for risk management and control are included in the legal basis - Law on the Bulgarian National Bank, Ordinance No.5 of the MoF and BNB, Ordinance No. 31 of BNB and particularly Ordinance No. 15 of the MoF and BNB. The Ordinance No. 15 on the Control over Transactions in Government Securities establishes the main purposes, procedures and manner of exercising control on the transactions in government securities. 1. Please describe the process for the internal review of risk management policies and procedures. The Bulgarian National Bank has introduced a risk management system compliant with the ECB requirements. In 2007 the BNB Governing Council approved the Operational Risk Management Policy which outlined the scope, principles and responsibilities of the participants. The Operational Risk Management Committee was set up with responsibilities for planning, coordinating and monitoring the operational risk management activities in the central bank. Based on the information and contributions provided by the risk managers from the operational departments within the bank (conducting self-assessments of their particular business area) the Committee shall prepare the consolidated operational risk report and forward it to Governing Council for consideration. The BNBGSSS was one of the BNB structural units where in 2008 the new risk management system was first tested and built in. 2. Is there a risk management policy that addresses the review and approval of new products and services offered by the SSS? At what level of the organisation is risk management approval given for a new product or service? Yes. 3. Does the SSS have a risk management function with clear independence from and authority over operational or marketing functions? There is also a risk management and control function confined to a unit within the structure of the System operator itself, which is separated and independent from operational divisions, in charge of exercising daily control over the registration and settlement of government securities transactions, the users of the System, etc. 4. Does the Board of Directors review risk management policies and procedures? Does the Board have a risk management or audit committee? 18

19 Yes, the Governing Council determines and reviews the risk management strategy and policy. Please see VIII. A. 1. B. Please describe any internal or external audits or supervisory/regulatory examinations that are performed with respect to the SSS. For each such audit or examination, please address the following questions. 1. Who performs the audit or examination? The BNBGSSS is subject to internal and external audit. Internal audits are carried out by the BNB Internal Audit unit. The external auditor is appointed by the Governing Council for a term of three years on the basis of a procedure under the Public Procurement Law. 2. What is the scope of the audit or examination? (a) Please indicate whether and how it addresses the sufficiency of and compliance with internal controls. (b) Please indicate whether and how it addresses the SSS's compliance with its own rules and procedures. The internal audit addresses both the assessment of the adequacy and sufficiency of the internal controls and the assessment of the compliance with the legal base and internal rules and procedures. The assessment of the implemented controls in the BNBGSSS, ensuring data integrity during the input, update and storage as well as the information security are also included in the scope. The external auditor performs a financial audit of the Bulgarian National Bank as a whole, which includes audit of the government securities accounts as well. 3. What is the frequency of the audit or examination? year. Internal audit on the BNBGSSS is performed once every two years and external audit is performed once a 4. Are audit or examination reports available for review by participants? The audit reports, prepared by the Internal Audit unit, are available for review by the BNB Governing Council, the Ministry of Finance and the units that have been audited. The findings of the external auditor are publicly available. C. Please discuss whether the SSS has the capacity to value (i.e. mark to market) the securities that it holds. The System has not the capacity to value the securities it holds. At present the securities transactions are recorded in nominal values. 1. Please describe how these valuations are used by risk control systems at the SSS. 2. How frequently are securities revalued? 3. What are the sources for security valuations? 19

20 (a) What outside price or data sources are used? (b) If pricing models are used, please describe how the models are chosen and how the model inputs are obtained. D. Please discuss whether the SSS has a lien on the securities held in or transferred through it. The System can not impose a lien on participant accounts. 1. Does the lien apply only to the securities owned by the participants themselves or does it extend to the securities beneficially owned by customers of participants? 2. Under what circumstances and in what manner would such a lien allow the SSS to use the securities? E. Please discuss the circumstances in which the SSS requires collateral to limit or mitigate risks. 1. Does the SSS manage its own collateral system? The BNBGSSS does not manage its own collateral system. 2. Does the SSS share a collateral system with another SSS or payment system? 3. Can collateral at the SSS be posted and returned on the same day? 4. What types of transaction at the SSS involve the use of collateral? 5. What are the policies with regard to the type of collateral used or haircuts required? 6. How are collateral valuation methodologies developed and reviewed? 7. To what extent are collateral policies described in the written rules and procedures of the SSS? F. Please describe the SSS's use of limits on exposures to monitor or control risks. 1. Please explain the types of limit used and the exposures to which they apply. There are no limits on exposures for risks control. 20

Disclosure Framework for Securities Settlement Systems. Rejestr Papierów Wartościowych (Securities Register)

Disclosure Framework for Securities Settlement Systems. Rejestr Papierów Wartościowych (Securities Register) Disclosure Framework for Securities Settlement Systems Rejestr Papierów Wartościowych (Securities Register) Domestic Operations Department Warszawa, April 2014 Compiled in: Domestic Operations Department

More information

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS. Central Register of Short-term Securities maintained by the National Bank of Slovakia

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS. Central Register of Short-term Securities maintained by the National Bank of Slovakia DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS Central Register of Short-term Securities maintained by the National Bank of Slovakia Introduction The following document comprises the answers formulated

More information

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS SITEME. Markets and Reserve Management Department

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS SITEME. Markets and Reserve Management Department DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS SITEME Markets and Reserve Management Department SEPTEMBER 2004 DISCLAIMER This document comprises the answers given by Banco de Portugal (the Portuguese

More information

SERVICIO DE ANOTACIONES EN CUENTA Y COMPENSACION Y LIQUIDACION DE VALORES DE LA BOLSA DE BILBAO DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS

SERVICIO DE ANOTACIONES EN CUENTA Y COMPENSACION Y LIQUIDACION DE VALORES DE LA BOLSA DE BILBAO DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS SERVICIO DE ANOTACIONES EN CUENTA Y COMPENSACION Y LIQUIDACION DE VALORES DE LA BOLSA DE BILBAO DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS March 2014 Table of contents I. BASIC INFORMATION...

More information

S.D. INDEVAL S.A. DE C.V. (CENTRAL SECURITIES DEPOSITORY FOR THE MEXICAN SECURITIES MARKET) DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS

S.D. INDEVAL S.A. DE C.V. (CENTRAL SECURITIES DEPOSITORY FOR THE MEXICAN SECURITIES MARKET) DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS S.A. DE C.V. (CENTRAL SECURITIES DEPOSITORY FOR THE MEXICAN SECURITIES MARKET) DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS ENERO 8, 1998 INDEX I. BASIC INFORMATION 1 II. RULES AND PROCEDURES

More information

Barcelona Stock Exchange Clearing and Settlement Service SCLBARNA. Disclosure Framework for Securities Settlement Systems

Barcelona Stock Exchange Clearing and Settlement Service SCLBARNA. Disclosure Framework for Securities Settlement Systems Barcelona Stock Exchange Clearing and Settlement Service SCLBARNA Disclosure Framework for Securities Settlement Systems February, 2014 0 Table of contents Disclosure framework SCLBARNA I. Basic information...

More information

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS February 1997 Response updated as of 31 December

More information

COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR

COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR CADE PLATFORM JANUARY 2014 - 2 - Table of contents Disclosure framework I. Basic

More information

Securities Settlement System. Cash - iesecu

Securities Settlement System. Cash - iesecu Securities Settlement System Cash - iesecu February 2012 DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS 1 THE SECURITIES SETTLEMENT SYSTEM of the National Bank of Belgium NBB-SSS February 2012

More information

Central Securities Depository of Lithuania

Central Securities Depository of Lithuania Central Securities Depository of Lithuania Answers to the questionnaire included in the Disclosure Framework for Securities Settlement System prepared by the Committee on Payment and Settlement Systems

More information

Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems

Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems Premise Monte Titoli is Italy s central securities depository (CSD). It manages the securities

More information

TAKASBANK Compliance to Securities Settlement Systems and CPSS-IOSCO Recommendations for Securities Settlement Systems-2008

TAKASBANK Compliance to Securities Settlement Systems and CPSS-IOSCO Recommendations for Securities Settlement Systems-2008 TAKASBANK Compliance to Securities Settlement Systems and CPSS-IOSCO Recommendations for Securities Settlement Systems-2008 This questionnaire addresses each of the joint CPSS-IOSCO recommendations relating

More information

Disclosure Framework for. Securities Settlement Systems

Disclosure Framework for. Securities Settlement Systems Disclosure Framework for Securities Settlement Systems Updated version December 2014 Table of Contents Introduction... 3 I. Basic information... 4 II. Rules and procedures of the SSS... 13 III. Relationships

More information

COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR

COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DISCLOSURE FRAMEWORK FOR SCLV PLATFORM JANUARY 2014 - 2 - Table of contents Disclosure framework I. Basic

More information

THE RULES ON THE SECURITIES SETTLEMENT SYSTEM OF THE CENTRAL SECURITIES DEPOSITORY OF LITHUANIA I. GENERAL PROVISIONS

THE RULES ON THE SECURITIES SETTLEMENT SYSTEM OF THE CENTRAL SECURITIES DEPOSITORY OF LITHUANIA I. GENERAL PROVISIONS APPROVED BY the CSDL Board meeting on October 19, 2007 Minutes No. 4 THE RULES ON THE SECURITIES SETTLEMENT SYSTEM OF THE CENTRAL SECURITIES DEPOSITORY OF LITHUANIA I. GENERAL PROVISIONS 1. The Rules on

More information

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS MALTA STOCK EXCHANGE PLC DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS March 2015 Page 1 of 34 Introductory Note The following constitutes the response of Malta Stock Exchange Plc, as operator

More information

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEM

DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEM DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEM I. Basic information A. What is the name of the SSS? Hong Kong Securities Clearing Company Limited (herein referred to as "Hongkong Clearing"). B.

More information

The Association of Global Custodians Questionnaire 2012-2013

The Association of Global Custodians Questionnaire 2012-2013 The Association of Global Custodians Questionnaire 2012-2013 Lithuania - Central Securities Depository of Lithuania, plc. Name Lithuania - Central Securities Depository of Lithuania, plc. Contact Name

More information

2013-03-01. Participation in Euroclear Sweden AB

2013-03-01. Participation in Euroclear Sweden AB 2013-03-01 Participation in Euroclear Sweden AB TABLE OF CONTENTS 1 INTRODUCTION... 3 2 CLEARING AND SETTLEMENT... 3 AM SUB-MARKET... 3 PM SUB-MARKET... 3 3 SAFEKEEPING... 3 OWNER- REGISTERED ACCOUNT...

More information

THE DEPOSITORY TRUST COMPANY RESPONSE TO THE DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS

THE DEPOSITORY TRUST COMPANY RESPONSE TO THE DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS THE DEPOSITORY TRUST COMPANY RESPONSE TO THE DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS JUNE 2002 Table of Contents Disclosure Framework Introduction...3 I. Basic Information...4 II. III. IV.

More information

Guideline. Large Exposure Limits. Category: Prudential Limits and Restrictions. No: B-2 Date: August 2003. I. Introduction

Guideline. Large Exposure Limits. Category: Prudential Limits and Restrictions. No: B-2 Date: August 2003. I. Introduction Canada Bureau du surintendant des institutions financières Canada 255 Albert Street 255, rue Albert Ottawa, Canada Ottawa, Canada K1A 0H2 K1A 0H2 www.osfi-bsif.gc.ca Guideline Subject: Category: Prudential

More information

(Informal Translation) Chapter One. General Provisions. 1- The deposit of securities with the Company or with any licensed entity;

(Informal Translation) Chapter One. General Provisions. 1- The deposit of securities with the Company or with any licensed entity; CAPITAL MARKET AUTHORITY (Informal Translation) Central Securities Depository and Registry Law No. 93 of 2000 Chapter One General Provisions Article 1 In this Law, the Company means a company licensed

More information

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Client Asset Requirements Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Instructions Paper November 2007 1 Contents 1 Contents 2 Introduction 1 2.1 Scope

More information

Financial Stability Standards for Securities Settlement Facilities

Financial Stability Standards for Securities Settlement Facilities Attachment 4 Financial Stability Standards for Securities Settlement Facilities Introduction The Financial Stability Standards for Securities Settlement Facilities (SSF Standards) are determined under

More information

Law. on the Government Debt. Chapter One General Provisions. Chapter Two Government Debt. Law on the Government Debt

Law. on the Government Debt. Chapter One General Provisions. Chapter Two Government Debt. Law on the Government Debt Law on the Government Debt 1 Law on the Government Debt (Issued by the 39th National Assembly on 17 September 2002; published in the Darjaven Vestnik, issue 93 of 1 October 2002; amended, issue 34 of 2005;

More information

Dubai Financial Market Rules for DVP Clearing and Settlement. ( DVP Rules )

Dubai Financial Market Rules for DVP Clearing and Settlement. ( DVP Rules ) Dubai Financial Market Rules for DVP Clearing and Settlement ( DVP Rules ) 20/04/2011 Table of Contents DEFINITIONS... 3 1 CLEARING AND SETTLEMENT... 5 2 TRANSFERS OF SECURITIES ARISING FROM LATE CONFIRMATION...

More information

The assessment report on the kdpw_stream s compliance with the ESCB-CESR recommendations for securities settlement systems

The assessment report on the kdpw_stream s compliance with the ESCB-CESR recommendations for securities settlement systems The assessment report on the kdpw_stream s compliance with the ESCB-CESR recommendations for securities settlement systems 1 I. Introduction General Presented assessment of securities settlement system

More information

The Bermuda Securities Depository (BSD) Participants User Guide WEB VERSION

The Bermuda Securities Depository (BSD) Participants User Guide WEB VERSION The Bermuda Securities Depository (BSD) Participants User Guide WEB VERSION November 2001 Table of Contents INTRODUCTION...1 LEGAL STRUCTURE...5 PARTICIPANTS...7 SYSTEM...10 ACCOUNTS...12 TRADING...17

More information

RISK MANAGEMENT IN NETTING SCHEMES FOR SETTLEMENT OF SECURITIES TRANSACTIONS

RISK MANAGEMENT IN NETTING SCHEMES FOR SETTLEMENT OF SECURITIES TRANSACTIONS RISK MANAGEMENT IN NETTING SCHEMES FOR SETTLEMENT OF SECURITIES TRANSACTIONS A background paper for the 4th OECD/World Bank Bond Market Workshop 7-8 March 02 by Jan Woltjer 1 1 Introduction Settlement

More information

Best practice guidelines for depositary banks in relation to the safekeeping of assets from UCITS funds held through the traditional custody network

Best practice guidelines for depositary banks in relation to the safekeeping of assets from UCITS funds held through the traditional custody network Best practice guidelines for depositary banks in relation to the safekeeping of assets from UCITS funds held through the traditional custody network The purpose of the following is to provide general principles

More information

THE RULES OF THE CENTRAL SECURITIES CLEARING SYSTEM

THE RULES OF THE CENTRAL SECURITIES CLEARING SYSTEM THE RULES OF THE CENTRAL SECURITIES CLEARING SYSTEM THE RULES DEFINITIONS Article 1 Unless the context requires otherwise, for all purposes of these Rules: "CSCS" means Central Securities Clearing System

More information

MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION CROATIAN PARLIAMENT

MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION CROATIAN PARLIAMENT CROATIAN PARLIAMENT 3136 Pursuant to Article 88 of the Constitution of the Republic of Croatia, I hereby issue the DECISION PROMULGATING THE ACT ON AMENDMENTS TO THE COMPANIES ACT I hereby promulgate the

More information

Agreement on Account Management, Settlement and Collateralisation between... (name of the Bank) and. For Norges Bank

Agreement on Account Management, Settlement and Collateralisation between... (name of the Bank) and. For Norges Bank Page 1 of 13 Agreement on Account Management, Settlement and Collateralisation between. (name of the Bank) and Norges Bank Type of account (please mark one): Ordinary account Contingency account Oslo,

More information

EVLI SWEDEN EQUITY INDEX FUND

EVLI SWEDEN EQUITY INDEX FUND EVLI SWEDEN EQUITY INDEX FUND FUND-SPECIFIC RULES The fund rules consist of fund-specific rules and common rules based on the UCITS IV Directive. 1 The Fund The name of the mutual fund will be Sijoitusrahasto

More information

SECURITIES AND FUTURES ACT (CAP. 289)

SECURITIES AND FUTURES ACT (CAP. 289) Monetary Authority of Singapore SECURITIES AND FUTURES ACT (CAP. 289) NOTICE ON RISK BASED CAPITAL ADEQUACY REQUIREMENTS FOR HOLDERS OF CAPITAL MARKETS SERVICES LICENCES Monetary Authority of Singapore

More information

OPERATING RULES OF THE CENTRAL SECURITIES DEPOSITORY AND CLEARING HOUSE. (Consolidated text reflecting amendments entered into force Jan, 19, 2015)

OPERATING RULES OF THE CENTRAL SECURITIES DEPOSITORY AND CLEARING HOUSE. (Consolidated text reflecting amendments entered into force Jan, 19, 2015) OPERATING RULES OF THE CENTRAL SECURITIES DEPOSITORY AND CLEARING HOUSE (Consolidated text reflecting amendments entered into force Jan, 19, 2015) Page 1 I. BASIC PROVISIONS 1. [1] The Central Securities

More information

Securities Lending and Borrowing: [1] General Procedures [2] SLB Rules. Version 1.0

Securities Lending and Borrowing: [1] General Procedures [2] SLB Rules. Version 1.0 : Version 1.0 Table of Contents 1. Document History... 3 2. Introduction... 4 3. Definitions... 4 4. Features of the DFM SLB Business Model... 6 5. Restricted Transfers of Borrowed Securities... 15 6.

More information

Central Counterparties and Settlement Systems

Central Counterparties and Settlement Systems Central Counterparties and Settlement Systems Greg Johnston Reserve Bank of Australia Workshop On Developing Government Bond Market in APEC Economies Shanghai National Accounting Institute, P.R. China

More information

Authorisation Requirements and Standards for Debt Management Firms

Authorisation Requirements and Standards for Debt Management Firms 2013 Authorisation Requirements and Standards for Debt Management Firms 2 Contents Authorisation Requirements and Standards for Debt Management Firms Contents Chapter Part A: Authorisation Requirements

More information

Official Journal of the European Communities

Official Journal of the European Communities 11. 6. 98 EN Official Journal of the European Communities L 166/45 DIRECTIVE 98/26/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 May 1998 on settlement finality in payment and securities settlement

More information

APPENDIX FOR U.S. SECURITIES TRADING

APPENDIX FOR U.S. SECURITIES TRADING APPENDIX FOR U.S. SECURITIES TRADING This Appendix applies in respect of securities trading services in U.S. Securities provided by ICBCIS to the Client. In the event that there is any inconsistency between

More information

PAYMENT TRANSACTIONS ACT (PTA)

PAYMENT TRANSACTIONS ACT (PTA) PAYMENT TRANSACTIONS ACT (PTA) Published in the Official Gazette of the Republic of Slovenia No. 30 on 5 April 2002 All effort has been made to ensure the accuracy of this translation, which is based on

More information

Law. on Payment Services and Payment Systems. Chapter One GENERAL PROVISIONS. Section I Subject and Negative Scope. Subject.

Law. on Payment Services and Payment Systems. Chapter One GENERAL PROVISIONS. Section I Subject and Negative Scope. Subject. Law on Payment Services and Payment Systems 1 Law on Payment Services and Payment Systems (Adopted by the 40th National Assembly on 12 March 2009; published in the Darjaven Vestnik, issue 23 of 27 March

More information

CHAPTER 11 NOMINEE SERVICES

CHAPTER 11 NOMINEE SERVICES 11/1 CHAPTER 11 NOMINEE SERVICES 1101. Scope and extent of nominee and similar services Subject to the Rules, applicable laws and applicable regulatory approval, in respect of Eligible Securities deposited

More information

Government Debt Act. Chapter One GENERAL PROVISIONS. Chapter Two GOVERNMENT DEBT

Government Debt Act. Chapter One GENERAL PROVISIONS. Chapter Two GOVERNMENT DEBT Government Debt Act Promulgated, State Gazette No. 93/1.10.2002, amended SG No. 34/19.04.2005, effective 1.06.2005, amended and supplemented, SG No. 52/29.06.2007, effective 1.11.2007, SG No. 23/27.03.2009,

More information

VPO NOK Rules. Rules for the Central Securities Settlement. in Norwegian Kroner

VPO NOK Rules. Rules for the Central Securities Settlement. in Norwegian Kroner Entry into force: 29. April 2015 Version: 1.1 Published 27. April 2015 VPO NOK Rules Rules for the Central Securities Settlement in Norwegian Kroner This document is a translation from the original Norwegian

More information

Netherlands- Euroclear Nederland (registered tradename of Necigef)

Netherlands- Euroclear Nederland (registered tradename of Necigef) The Association of Global Custodians - Questionnaire Name Contact Name Address Country Netherlands- Euroclear Nederland (registered tradename of Necigef) Alain Muluwayi Herengracht 459-469, 1017 BS AMSTERDAM

More information

CHAPTER 16 INVESTMENT ENTITIES

CHAPTER 16 INVESTMENT ENTITIES CHAPTER 16 INVESTMENT ENTITIES Introduction 16.1 This Chapter sets out the requirements for the listing of the securities of investment entities, which include investment companies, unit trusts, closed-end

More information

Regulation for Establishing the Internal Control System of an Investment Management Company

Regulation for Establishing the Internal Control System of an Investment Management Company Unofficial translation Riga, 11 November 2011 Regulation No. 246 (Minutes No. 43 of the meeting of the Board of the Financial and Capital Market Commission, item 8) Regulation for Establishing the Internal

More information

Managed Fund Service. Terms and Conditions

Managed Fund Service. Terms and Conditions Managed Fund Service Terms and Conditions Important Information These are the Terms and Conditions for your Balkerne Asset Management Managed Fund Service. You are advised to read them carefully. The terms

More information

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13 Version 1.1/5.11.13 NASDAQ OMX Clearing Investor Risks 1 Introduction This document describes the levels of protection and the costs associated with the different levels of segregation offered by, and

More information

CENTRAL BANK OF MALTA

CENTRAL BANK OF MALTA CENTRAL BANK OF MALTA DIRECTIVE NO 2 in terms of the CENTRAL BANK OF MALTA ACT (CAP. 204) PAYMENT AND SECURITIES SETTLEMENT SYSTEMS Ref: CBM/02 DIRECTIVE NO 2 PAYMENT AND SECURITIES SETTLEMENT SYSTEMS

More information

EXCHANGE RULES, SECTION XII. Conditions for Admission of Collective Investment Securities to Trading on the Regulated Market of the Exchange

EXCHANGE RULES, SECTION XII. Conditions for Admission of Collective Investment Securities to Trading on the Regulated Market of the Exchange EXCHANGE RULES, SECTION XII. Conditions for Admission of Collective Investment Securities to Trading on the Regulated Market of the Exchange PART I. GENERAL Article 1 Subject Matter and Definitions (1)

More information

Federal Reserve Policy on Payments System Risk

Federal Reserve Policy on Payments System Risk Federal Reserve Policy on Payments System Risk As amended effective January 11, 2007 INTRODUCTION RISKS IN PAYMENTS AND SETTLEMENT SYTEMS I. RISK MANAGEMENT IN PAYMENTS AND SETTLEMENT SYSTEMS A. Scope

More information

Disclosure 17 OffV (Credit Risk Mitigation Techniques)

Disclosure 17 OffV (Credit Risk Mitigation Techniques) Disclosure 17 OffV (Credit Risk Mitigation Techniques) The Austrian Financial Market Authority (FMA) and the Oesterreichsiche Nationalbank (OeNB) have assessed UniCredit Bank Austria AG for the use of

More information

OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS

OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS 1 Introduction The oversight of payment systems is an essential function of central banks and aims to ensure the smooth functioning of payment systems

More information

Terms and conditions of investment service

Terms and conditions of investment service 1 Terms and conditions of investment service May 2014 2 Contents 1. Purpose and scope of application of the terms and conditions of agreement... 4 2. Definitions... 4 Client... 4 Client s Representative...

More information

INTRODUCTION OF MARGINABLE FUTURES CONTRACTS FOR TRADING ON SGX-ST AMENDMENTS TO CDP CLEARING RULES

INTRODUCTION OF MARGINABLE FUTURES CONTRACTS FOR TRADING ON SGX-ST AMENDMENTS TO CDP CLEARING RULES CHAPTER 1 INTRODUCTION 1.1 APPLICATION 1.1 APPLICATION 1.1.3 Except where CDP otherwise expressly agrees with or expressly commits itself to any party, the benefit of any performance by CDP of its obligations

More information

Article 56 of the Bank of Russia Law.

Article 56 of the Bank of Russia Law. As of October 1, 2015 No. Commentary Relevant laws and regulations 1. Duties and powers of banking supervision 1.1 Banking supervisory Bank of Russia Articles 4 and 56 of authority Federal Law No. 86-FZ,

More information

GENERAL TERMS OF ORDERS AND DEFINITIONS FOR A PROFESSIONAL INVESTOR. April 2007

GENERAL TERMS OF ORDERS AND DEFINITIONS FOR A PROFESSIONAL INVESTOR. April 2007 1 I. SCOPE OF APPLICATION OF THE GENERAL TERMS OF ORDERS AND DEFINITIONS 1 Purpose and scope of application of the Terms of Orders These Terms of Orders shall be applied to the Order Relationship on the

More information

Act on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Professional Investment funds

Act on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Professional Investment funds This is an English translation. The original Icelandic text, as published in the Law Gazette (Stjórnartíðindi), is the authoritative text. Should there be discrepancy between this translation and the authoritative

More information

Chief Executive Officers of All National Banks, Deputy Comptrollers (District) and All Examining Personnel

Chief Executive Officers of All National Banks, Deputy Comptrollers (District) and All Examining Personnel O BC - 196 BANKING ISSUANCE Comptroller of the Currency Administrator of National Banks Type: Banking Circular Subject: Securities Lending To: Chief Executive Officers of All National Banks, Deputy Comptrollers

More information

OVERSIGHT OF THE PAYMENT SYSTEM IN LATVIA

OVERSIGHT OF THE PAYMENT SYSTEM IN LATVIA OVERSIGHT OF THE PAYMENT SYSTEM IN LATVIA Latvijas Banka, 2004 The source is to be indicated when reproduced. Riga 2004 LATVIJAS BANKA 2 CONTENTS INTRODUCTION... 3 1. OVERSIGHT OF SYSTEMICALLY IMPORTANT

More information

Credit Suisse Tailored Loan and Options Facility Terms and Conditions

Credit Suisse Tailored Loan and Options Facility Terms and Conditions Dated 4 June 2013 Issued by Credit Suisse Investment Services (Australia) Limited (ABN 26 144 592 183 AFSL 370450) Credit Suisse Tailored Loan and Options Facility Terms and Conditions 1. OPTIONS FACILITY...

More information

Terms and conditions of the smart + Trading Account from AXA Self Investor

Terms and conditions of the smart + Trading Account from AXA Self Investor Terms and conditions of the smart + Trading Account from AXA Self Investor Terms and conditions of the smart + Trading Account 02 Introduction These Terms and conditions of the smart + Trading Account

More information

EXCHANGE Traded Funds

EXCHANGE Traded Funds EXCHANGE TRADED FUNDS EXCHANGE Traded Funds Guide to listing on the Cayman Islands Stock Exchange Contents Introduction... 3 What CSX has to offer... 4 The listing process... 6 Conditions for listing...

More information

MARKET NOTICE - EXPANDING ELIGIBLE COLLATERAL IN THE DISCOUNT WINDOW FACILITY

MARKET NOTICE - EXPANDING ELIGIBLE COLLATERAL IN THE DISCOUNT WINDOW FACILITY MARKET NOTICE - EXPANDING ELIGIBLE COLLATERAL IN THE DISCOUNT WINDOW FACILITY 1. This Market Notice provides details on the Bank s requirements for accepting portfolios of loans as collateral in the Discount

More information

Chapter 10 EQUITY SECURITIES RESTRICTIONS ON PURCHASE AND SUBSCRIPTION

Chapter 10 EQUITY SECURITIES RESTRICTIONS ON PURCHASE AND SUBSCRIPTION Chapter 10 EQUITY SECURITIES RESTRICTIONS ON PURCHASE AND SUBSCRIPTION Restrictions on Preferential Treatment of Purchase and Subscription Applications 10.01 Normally no more than ten per cent. of any

More information

PUBLIC FINANCE MANAGEMENT ACT

PUBLIC FINANCE MANAGEMENT ACT LAWS OF KENYA PUBLIC FINANCE MANAGEMENT ACT CHAPTER 412C Revised Edition 2014 [2013] Published by the National Council for Law Reporting with the Authority of the Attorney-General www.kenyalaw.org [Rev.

More information

Bank of Jamaica. National Payments System. JamClear. Central Securities Depository. Participant Rules. Document FINAL Version: 017

Bank of Jamaica. National Payments System. JamClear. Central Securities Depository. Participant Rules. Document FINAL Version: 017 Bank of Jamaica National Payments System JamClear Central Securities Depository Participant Rules Document FINAL Version: 017 Kingston, Jamaica June 2011 TABLE OF CONTENTS 1. INTRODUCTION... 1 1.1 Document

More information

ECB-PUBLIC. 2. General observations

ECB-PUBLIC. 2. General observations EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 1 February 2016 on the recovery and resolution of credit institutions and investment firms (CON/2016/5) Introduction and legal basis On 22 December

More information

PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2

PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2 PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2 PART II POLICY REQUIREMENTS...3 Investment and Risk Management Policy...3 Monitoring and Control...5 Roles of

More information

Clearing and Settlement Procedures. New Zealand Clearing Limited. Clearing and Settlement Procedures

Clearing and Settlement Procedures. New Zealand Clearing Limited. Clearing and Settlement Procedures Clearing and Settlement Procedures New Zealand Clearing Limited Clearing and Settlement Procedures 30 November 2011 Contents Section A: Interpretation and Construction 6 Section 1: Introduction and General

More information

RULES FOR THE CLEARING AND SETTLEMENT OF EXCHANGE TRADES BY CCP AUSTRIA (CCP.A CLEARING RULES)

RULES FOR THE CLEARING AND SETTLEMENT OF EXCHANGE TRADES BY CCP AUSTRIA (CCP.A CLEARING RULES) RULES FOR THE CLEARING AND SETTLEMENT OF EXCHANGE TRADES BY CCP AUSTRIA (CCP.A CLEARING RULES) Table of Contents PART I SCOPE OF APPLICATION 5 1 Objective and Scope...5 PART II ORGANIZATION OF CLEARING

More information

A Guide to the Bank of England s Real Time Gross Settlement System

A Guide to the Bank of England s Real Time Gross Settlement System A Guide to the Bank of England s Real Time Gross Settlement System October 2013 2 Contents Contents... 2 1. Introduction... 3 2. History and Main Functions of RTGS... 4 3. Settlement in RTGS... 5 4. Benefits

More information

GLOBAL MASTER SECURITIES LENDING AGREEMENT

GLOBAL MASTER SECURITIES LENDING AGREEMENT GLOBAL MASTER SECURITIES LENDING AGREEMENT CONTENTS 1. Applicability...1 2. Interpretation...1 3. Loans Of Securities...5 4. Delivery...5 5. Collateral...7 6. Distributions And Corporate Actions...10 7.

More information

THE CROATIAN PARLIAMENT. Pursuant to Article 89 of the Constitution of the Republic of Croatia, I hereby issue the DECISION

THE CROATIAN PARLIAMENT. Pursuant to Article 89 of the Constitution of the Republic of Croatia, I hereby issue the DECISION THE CROATIAN PARLIAMENT 1456 Pursuant to Article 89 of the Constitution of the Republic of Croatia, I hereby issue the DECISION PROMULGATING THE ACT ON SETTLEMENT FINALITY IN PAYMENT AND FINANCIAL INSTRUMENTS

More information

Convenience Translation the German version is the only legally binding version. Articles of Association. Linde Aktiengesellschaft.

Convenience Translation the German version is the only legally binding version. Articles of Association. Linde Aktiengesellschaft. Convenience Translation the German version is the only legally binding version Articles of Association Linde Aktiengesellschaft Munich 9 March 2015 Page 1 of 12 I. General Rules 1. Company Name, Principal

More information

Authorised Persons Regulations

Authorised Persons Regulations Authorised Persons Regulations Contents Part 1: General Provisions Article 1: Preliminary... Article 2: Definitions... Article 3: Compliance with the Regulations and Rules... Article 4: Waivers... Part

More information

Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Basel Committee on Banking Supervision Frequently asked questions on the Basel III leverage ratio framework April 2016 (update of FAQs published in July 2015) This publication is available on the BIS website

More information

Act on Investment Firms 26.7.1996/579

Act on Investment Firms 26.7.1996/579 Please note: This is an unofficial translation. Amendments up to 135/2007 included, May 2007. Act on Investment Firms 26.7.1996/579 CHAPTER 1 General provisions Section 1 Scope of application This Act

More information

Finansinspektionen's Regulations

Finansinspektionen's Regulations Finansinspektionen's Regulations Publisher: Gent Jansson, Finansinspektionen, Box 6750, 113 85 Stockholm. Ordering address: Thomson Fakta AB, Box 6430, 113 82 Stockholm. Tel +46 8-587 671 00, Fax +46 8-587

More information

LAW ON FOREIGN EXCHANGE OPERATIONS

LAW ON FOREIGN EXCHANGE OPERATIONS LAW ON FOREIGN EXCHANGE OPERATIONS This Law shall govern: (Consolidated) 1 I. BASIC PROVISIONS Article 1 1) payments, collections and transfers between residents and non-residents in foreign means of payment

More information

RULES. The Central Securities Depository of Poland (KDPW) CHAPTER I GENERAL PROVISIONS

RULES. The Central Securities Depository of Poland (KDPW) CHAPTER I GENERAL PROVISIONS rules_ of The Central Securities Depository of Poland (KDPW) Valid as of 3 February, 2014 RULES Of The Central Securities Depository of Poland (KDPW) CHAPTER I GENERAL PROVISIONS 1 1. The Rules of the

More information

Financial Services and Markets - Regulation No 397/2000 on electronic registration of securities in a central securities depository.

Financial Services and Markets - Regulation No 397/2000 on electronic registration of securities in a central securities depository. This is an English translation. The original Icelandic text, as published in the Law Gazette (Stjórnartíðindi), is the authoritative text. Should there be discrepancy between this translation and the authoritative

More information

Regulations for Shareholders Safekeeping Accounts at Swiss Life

Regulations for Shareholders Safekeeping Accounts at Swiss Life Regulations for Shareholders Safekeeping Accounts at Swiss Life Regulations for Shareholders Safekeeping Accounts at Swiss Life 3 Contents 1. Entitlement / Assets in safe custody 4 2. Opening a safekeeping

More information

OPINION OF THE EUROPEAN CENTRAL BANK. of 9 October 2000. at the request of the Luxembourg Ministry of Finance on

OPINION OF THE EUROPEAN CENTRAL BANK. of 9 October 2000. at the request of the Luxembourg Ministry of Finance on OPINION OF THE EUROPEAN CENTRAL BANK of 9 October 2000 at the request of the Luxembourg Ministry of Finance on 1. a draft law pertaining to the circulation of securities and other financial instruments;

More information

DESCRIPTION OF THE PLAN

DESCRIPTION OF THE PLAN DESCRIPTION OF THE PLAN PURPOSE 1. What is the purpose of the Plan? The purpose of the Plan is to provide eligible record owners of common stock of the Company with a simple and convenient means of investing

More information

CITIBANK T/O MOSCOW SERVICE STANDARDS FOR EQUITY INSTRUMENTS

CITIBANK T/O MOSCOW SERVICE STANDARDS FOR EQUITY INSTRUMENTS Данный документ предназначен только для ознакомления. Обратитесь в Управление ценных бумаг по тел. +7 (095) 725-6736 за получением оригинальных форм для заполнения и подписания. This document is for information

More information

INFORMATION PAPER RITS INFORMATION PAPER RITS REGULATIONS AND CONDITIONS OF OPERATION

INFORMATION PAPER RITS INFORMATION PAPER RITS REGULATIONS AND CONDITIONS OF OPERATION RITS REGULATIONS AND CONDITIONS OF OPERATION CONTENTS 1. OVERVIEW 1 2. OUTLINE OF REGULATIONS 2 3. KEY CONCEPTS 3.1 Types of Members 3.2 Branches 3.3 Cash Accounts 3.4 Cash Elements and Interbank Cash

More information

VERSION: JANUARY 2010 GLOBAL MASTER SECURITIES LENDING AGREEMENT

VERSION: JANUARY 2010 GLOBAL MASTER SECURITIES LENDING AGREEMENT VERSION: JANUARY 2010 GLOBAL MASTER SECURITIES LENDING AGREEMENT CONTENTS CLAUSE PAGE 1. APPLICABILITY...3 2. INTERPRETATION...3 3. LOANS OF SECURITIES...9 4. DELIVERY...9 5. COLLATERAL...10 6. DISTRIBUTIONS

More information

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE TITLE 5 BANKING 900 Regulations Governing Business of Banks and Trust Companies 1 905 Loan Limitations: Credit Exposure to Derivative Transactions 1.0 Purpose This regulation sets forth the rules for calculating

More information

NAB Equity Lending. Facility Terms

NAB Equity Lending. Facility Terms NAB Equity Lending Facility Terms This document contains important information regarding the terms and conditions which will apply to your NAB Equity Lending Facility. You should read this document carefully

More information

Roche Capital Market Ltd Financial Statements 2009

Roche Capital Market Ltd Financial Statements 2009 R Roche Capital Market Ltd Financial Statements 2009 1 Roche Capital Market Ltd, Financial Statements Reference numbers indicate corresponding Notes to the Financial Statements. Roche Capital Market Ltd,

More information

The Warsaw Stock Exchange Rules

The Warsaw Stock Exchange Rules (text consolidated at 20 June 2012)* * 1) The Rules adopted by the Supervisory Board by Resolution No. 1/1110/2006 dated 4 January 2006, as amended by the Exchange Supervisory Board: - by Resolution No.

More information

PAYMENT AND SETTLEMENT SYSTEMS ACT, NO. 28 OF 2005. [Certified on 20th September, 2005] PART I GENERAL PROVISIONS

PAYMENT AND SETTLEMENT SYSTEMS ACT, NO. 28 OF 2005. [Certified on 20th September, 2005] PART I GENERAL PROVISIONS PAYMENT AND SETTLEMENT SYSTEMS ACT, NO. 28 OF 2005 [Certified on 20th September, 2005] AN ACT TO PROVIDE FOR THE REGULATION OF PAYMENT, CLEARING AND SETTLEMENT SYSTEMS ; FOR THE DISPOSITION OF SECURITIES

More information

Requirements for Clearing & Settlement Systems

Requirements for Clearing & Settlement Systems Requirements for Clearing & Settlement Systems Jan Woltjer De Nederlandsche Bank Why is the infrastructure for Clearing, settlement and custody so important? Europe ==> Key to integration of the financial

More information

INSTRUCTIONS TO THE BONDVISION MTF MARKET RULES INSTRUCTIONS TO TITLE I OF THE RULES (GENERAL INSTRUCTIONS)

INSTRUCTIONS TO THE BONDVISION MTF MARKET RULES INSTRUCTIONS TO TITLE I OF THE RULES (GENERAL INSTRUCTIONS) INSTRUCTIONS TO THE BONDVISION MTF MARKET RULES INSTRUCTIONS TO TITLE I OF THE RULES (GENERAL INSTRUCTIONS) Article 1 - Definitions (Article 2 of the Rules) 1. The definitions contained in Article 2 of

More information

Act on Payment Services

Act on Payment Services Act on Payment Services No. 120 27 September 2011 Entered into force 1 December 2011. EEA Agreement: Annex IX, Directive 2007/64/EC. Amended by Act No. 17/2013 (entered into force on 1 April 2013; EEA

More information