Market Link Guide - Romania

01.08.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct link to the National Bank of Romania (NBR) operated by BRD Groupe Société Générale S.A

 Indirect link via BRD Groupe Société Générale S.A to the CSD Depozitarul Central S.A.

a. CSD Regulation (EU) No 909/2014 art. 2 (29)

 

CSD

Account operator

Name

National Bank of Romania

BRD Groupe Société Générale S.A

Settlement method

National Bank of Romania (NBR) for government bonds and bills via SaFIR (NBR settlement system)


FATCA GIIN

 Not available

QQA6ZW.00076.ME.642

LEI

259400VHILGGKLBNL383

5493008QRHH0XCLJ4238

Country of incorporation

Romania

Romania

Account type

Omnibus account

Mirror omnibus account

Legal account name/ holder

Clearstream Banking S.A.

Clearstream Banking S.A.


 

CSD

Custodian

Name

DEPOZITARUL CENTRAL SA

BRD Groupe Société Générale S.A

Settlement method

Depozitarul Central S.A. (CSD) for RON denominated municipal and corporate bonds and equities via RoClear (CSD settlement system)


FATCA GIIN

Not available

QQA6ZW.00076.ME.642

LEI

254900LXHEVKYGERER05

5493008QRHH0XCLJ4238

Country of incorporation

Romania

Romania

Account type

Omnibus account

Omnibus account

Legal account name/ holder

Clearstream Banking SA

Clearstream Banking SA


 

CSD

Custodian

Name

DEPOZITARUL CENTRAL SA

BRD Groupe Société Générale S.A

Settlement method

Depozitarul Central S.A. (CSD) for T2S eligible EUR denominated bonds (CSD T2S settlement system)


FATCA GIIN

Not available

QQA6ZW.00076.ME.642

LEI

254900LXHEVKYGERER05

5493008QRHH0XCLJ4238

Country of incorporation

Romania

Romania

Account type

Omnibus account

Omnibus account

Legal account name/ holder



Operational arrangements

 Yes/NoRemarks
Settlement in T2SYes

Depozitarul Central S.A. (CSD) offers T2S settlement for eligible EUR denominated bonds. 

In CBL eligibility is restricted to 2 ISIN codes ROIIBKDBC049 and ROAB22JS4SS1. Settlement with domestic counterparties is available in FOP only.

Settlement free of paymentYesRestricted to portfolio transfers only. 
Settlement against paymentYesEligible settlement currency: Romanian Leu (RON) and Euro (EUR) for SaFIR (NBR) eligible securities.
RON only for RoClear (CSD) eligible securities.
Bridge settlementYes / No

SaFIR eligible securities are Bridge eligible.

Depozitarul Central S.A. (CSD) eligible instruments are not Bridge eligible.

Settlement against payment in central bank moneyYesEUR against payment for EUR denominated SaFIR (NBR) eligible instruments.
Shaping facilityNo 
Partial settlementNoPartial settlement is not applicable in the Romanian market.
Settlement penalty feesYes

Depozitarul Central S.A. (CSD) applies settlement penalty fee for late settlement.

Pre-matchingYesLocal pre-matching is market practice, customers are strongly recommended to use the immediate release flag in their settlement instructions.
AllegementsYes 
Automatic compensationNoAutomatic compensation by the local CSDs.
Registered securitiesYes

NBR is the registrar for government securities.  The nominee concept is recognised at the NBR.

In Depozitarul Central S.A., the nominee concept is recognised.

Multi Market SecuritiesNo 
Lending and borrowingYes / NoNot available for RoClear (CSD) eligible securities.
Proxy votingYes 
Investment FundsYes 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesYesThe account operator offers Repo services for outstanding T-bonds. 
Market restrictionsNo 
FTTNo 
Daily reconciliationYes 
Link eligible for use in Eurosystem credit operationsNo 

Moment of entry

According to Depozitarul Central Rulebook:

Art. 1371 (1) The time at which the transfer orders are considered placed in the Depozitarul Central’s settlement system, being valid/irrevocable and binding on third parties, producing legal effects between the Participants, is the time at which the transaction is registered in Depozitarul Central’s system according to the provisions of 137 par. (1).

(2) Starting with the time mentioned at par. (1), the transfer orders registered in the system may not be revoked by a Participant to Depozitarul Central’s system or by a third party, being protected according to the provisions of Law no. 253/2004 on the final nature of settlement in payment systems and settlement systems for securities operations and Law 297/2004, even in case an insolvency procedure is initiated against a Participant.

(3) After the time mentioned at par. (1) the transfer orders registered in Depozitarul Central’s system may be changed and/or revoked only by Depozitarul Central according to the provisions of the present Code.

Irrevocability

Matched instructions are irrevocable and require bilateral cancellation.

Only unmatched instructions in SaFIR (NBR) can be cancelled unilaterally.

Only instructions that have not been uploaded into RoClear (CSD) or instructions have not been matched, can be cancelled unilaterally.

Settlement finality

Yes

According to Depozitarul Central Rulebook:

Art. 142 (1) After the completion of securities settlement operations, the transaction settlement is considered final and irrevocable. Depozitarul Central will send notices regarding the settlement confirmation to the participants involved and/or to Clearing participants, as the case may be. (2) After Depozitarul Central confirms the completion of settlement, the Clearing participants and the participants involved have the obligation and exclusive liability to deposit, on the settlement date, in the credit accounts, the amount needed for settling the transaction on a gross basis. (3) The respective Participants are fully liable for making the funds transfer

Legal Arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 13 July 2017 (direct operated link) and 9 May 2019 (indirect link). The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the account operator/ custodian

Confirmed

Account operator/ Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Laws and regulations of Romania do not expressly recognize the "nominee" concept.

No right of retention for the acount operator/custodian

Confirmed

Segregation of assets at the CSD/ custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of the account operator/ custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Laws and regulations of Romania do not set out any provision in this respect

Record keeping period of at least 10 yearsConfirmed

Settlement finality in case of insolvency

Confirmed