Settlement services - Romania

06.03.2019

Pre-matching service

The table below summarises CBL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.

 Service offeredMethod employedStart (local time)
All securities
 Immediate Release Flag available“Manually” via fax, telephone
or file exchange
Upon receipt of settlement instruction from the customer or advice from the local counterparty, chronologically throughout the day.
Connectivity mediumInstruction format
CreationOnline and Xact Web PortalTick to enable the “Immediate Release” option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Local pre-matching, which is market practice, starts, subject to counterparty availability, on receipt of instructions and continues until Settlement Date (SD).

Note: To ensure timely pre-matching of their trades in the Romanian market, customers are strongly recommended to use the immediate release flag in their settlement instructions.

Domestic allegement matching service

Complementary to the pre-matching service offered for this market, where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.

If no matching customer instruction is found, the allegement is reported to the customer provided that its Clearstream Banking account number is present.

For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.

Procedures for domestic counterparties

In order to provide trade confirmations and arrange pre-matching of instructions, customers must advise their domestic counterparties to contact the Settlement desk at CBL’s depository BRD as follows:

 Dorina LuculetLorica Tiu
Telephone:
Fax:
+40 21 2008366
+40 21 2008373
+40 21 2008374
+40 21 2008373

Procedure for the domestic counterparty

Deadline

Securities that settle in SaFIR

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

PSET: NBORROBB
REAG/DEAG: CEDELULL
ACCOUNT: CEDE1

For/from: Clearstream Banking Luxembourg (BIC: CEDELULL), account number: CEDE1 (CBL account at NBR.)

By order of: CBL customer account number

Market deadline

Securities that settle in RoClear

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

PSET: DECNROBUXXX
DEAG/REAG: BRDEROBUTIT
SAFE account: 5269897
Participant code: SG  

For/from: Clearstream Banking Luxembourg (BIC: CEDELULL), account number: 5269897 (CBL account number at BRD.)

By order of: CBL customer account number

Market deadline

Securities that settle in Depozitarul Central S.A. T2S platform (ROIIBKDBC049 and ROAB22JS4SS1 only) 

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

CSD BIC: DECNROBUXXX
BRD custodian bank BIC: BRDEROBUTIT
TARGET2 securities account: DECNRODCBRDESGRO000000000000000001

For/from: Clearstream Banking Luxembourg (BIC: CEDELULL)
By Order of: CBL customer account number

 

Fees for pure OTC trades

Pure OTC trades (without on exchange legs) at Depozitarul Central S.A. (CSD) bear additional fees as listed below:

  • Settlement fee: 0.095% applied to the settlement amount;
  • Matching fee: 0.08% applied to the settlement amount;
  • FSA fee: 0.06% applied to the settlement amount, only for buy trade;
  • Late instruction fee, if the trade date is different from the settlement date and the instruction will be released on settlement date:
    • until 10:30 CET: 50 RON;
    • until 13:30 CET: 100 RON.

Allowed countervalue difference

To reflect the local settlement rules, no countervalue difference is allowed for against payment transactions with domestic counterparties.

Specific settlement rules / settlement restrictions

Settlement on the secondary market in SaFIR occurs on a contractual basis and can be T, T+1 or T+n.

As indicated in the rules regarding the registration and settlement of government securities in SaFIR, free of payment trades between participants can only be portfolio transfers. As a consequence, customers must ensure that they send only free of payment instructions for portfolio transfers. A special format is required; please refer to the relevant CBL instruction specifications (see links below).

Euro-denominated securities, may settle in RON  if the counterparties agree accordingly.

Settlement on the secondary market in RoClear (CSD) occurs on T+2.
As indicated in the rules regarding the registration and settlement of municipal and foreign bonds in RoClear (CSD), free of payment trades between participants in the CSDs can only be portfolio transfers (NCBO), and customers should act accordingly. As a consequence, customers must ensure that they send only free of payment instructions for portfolio transfers. A special format is required; please refer to the relevant CBL instruction specifications.

RoClear (CSD) eligible bonds can settle exclusively in RON.

T2S (CSD) eligible EUR bonds are limited to internal settlement and FoP (NCBO) domestic transactions.

Bridge settlement

SaFIR (NBR) Romanian government securities are Bridge eligible.

RoClear (CSD) eligible bonds are not Bridge eligible.

T2S (CSD) eligible EUR bonds are not Bridge eligible.

Back-to-back processing

Back-to-back processing does not exist in SaFIR and RoClear.

However, CBL can support back-to-back processing; CBL's depository will process the instructions as linked transactions. If both the customer and the domestic counterparty meet their settlement obligations within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value.

To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used, as follows:

Connectivity mediumPool ID formatField(s) to be used
CreationOnline16x a
and
Turnaround
Pool Reference

Type of Settlement Transaction
Xact via SWIFT and Xact File Transfer:POOL//16x a
and
:SETR//TURN
Field :20C: sequence A1

Field :22F: sequence E

a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.

Management of failed instructions

Unmatched receipt and delivery instructions with domestic counterparties will be cancelled 30 business days after the requested settlement date.

New issues settlement

Auctions on Romanian government securities are organised by the NBR. Primary dealers in the NBR system place bids for auctions.

Subscription to primary auctions is not possible via CBL; only secondary market trades can settle via CBL.