Bulgaria: Direct link to the Bulgarian National Bank for Bulgarian government securities

03.12.2013

Effective settlement date

9 December 2013

Clearstream Banking will deposit assets and settle all transactions in Government securities in ESROT (the Bulgarian National Bank’s settlement system) as a direct participant.

This direct participant status will ensure better protection of our customers’ assets and will enable future service upgrades.

We continue to use Eurobank Bulgaria AD as the operator of this direct account.

Details of the tax relief services that will be available through Clearstream Banking will be published separately.

Note: Our link to Central Depository AD (CDAD), the Bulgarian CSD for equities and corporate bonds will remain unaffected by the changes and we will continue to access CDAD via Eurobank Bulgaria AD acting as our custodian.

Impact on customers

  • The settlement process for customers (settlement timings, instruction formats, reporting and service level) will not change.
  • Pending provisioned domestic customer instructions in Bulgarian government securities released to the market prior to 9 December 2013 and with requested SD on 9 December 2013 or after will automatically be cancelled and re-entered by our agent to our account in ESROT: no action will be required from the customer.
  • As a direct participant in the ESROT system, CBL is obliged to disclose on a monthly basis, to its local agent and the Bulgarian National Bank, the global holdings per security held on behalf of its customers. The identity of the holders within CBL and the underlying beneficial owners will remain undisclosed.

Impact on domestic counterparties

Customers should inform their counterparties about the revised information to be indicated in their settlement instructions regarding CBL’s direct account with the Bulgarian National Bank as follows:

Procedure for the domestic counterparty
Deadline
For receipt and delivery transactions free of payment:

Deliver to/receive from: Clearstream Banking Luxembourg
(BIC: CEDELULL)

For/from: Clearstream Banking (BIC: CEDELULL)
Account number: 9252205700 (client account for BGN denominated bonds)
9257205700 (client account for foreign currency denominated bonds)

By order of: Clearstream Banking customer account number XXXXX

Market deadline.

Further information

The Creation Link Guide (Bulgaria) will be updated and published on the website on the 9 December 2013.

For further information, please contact Clearstream Banking Customer Service or your Relationship Officer. For more general information regarding our products and services, please visit www.clearstream.com