Settlement process - Slovak Republic
|Fixed income instruments:||T+2|
Note: For free of payment settlement of fixed income instruments, T+0 cycle is possible as there is no related cash movement.
|by 09:00||Subcustodians receive instructions.|
|by 14:00||Instructions are pre-matched with counterparty via telephone or fax and input into the BSSE system.|
|10:30-14:00||Instructions from members are accepted by the BSSE.|
|14:00-15:30||BSSE sends members list of claims and liabilities arising from trades input today.|
|by 15:30||Members confirm the data and complete the information as necessary.|
|14:00-16:30||The BSSE sends the matched instructions to the CSD for further processing.|
The CSD checks the availablity of securities and cash. Once completed, the CSD executes securities and cash transfers.
Cash transfers are executed from the account of the purchaser to the account of the seller in accordance with the Terms and Conditions of Clearing and Settlement of the CSD.
The CSD is the registrar for all dematerialised securities. Re-registration and change of ownership occur on SD. Ownership is recognised at the segregated account level at the CSD - that is, “registration” occurs automatically upon crediting the segregated securities account (deemed to be the final beneficiary) with transferred securities at the CSD level - or (in the case of so-called “Holders’ Account” evidence) on the books of the CSD members.
Stamp duty is not applicable in the Slovak market.
Buy-ins are not market practice in the Slovak Republic.
Following a settlement failure, brokers will be penalised with:
- EUR 67, paid to the BSSE; and
- 3% of the value of the undelivered securities or of the missing financial means, drawn from the debtor's Guarantee fund account and credited to the buyer's account.
If the seller does not meet this obligation, the BSSE has the right to suspend the broker concerned.