Settlement process - Slovenia

25.09.2014

Settlement cycles

Stock Exchange trades

Equities:

T+2

Debt instruments (including government bonds):

T+2

OTC trades

All eligible instruments:

T+n

Note: Partial settlement is not possible.

Settlement flow

Settlement flow for Stock Exchange trades

TD

09:15 - 14:20

Trading takes place on LJSE

13:00 - 16:30

Transfer of matched trades to KDD.

until end of the dayMember's net payment obligation sent to the member.

SD

07:00 - 10:00

Payment of net cash obligation to DCA of KDD Participant.

10:00 - 15:00

Securities and cash settlement.

Settlement Flow for OTC DVP trades

SD

08:00

Settlement of block trades and OTC transactions opens.

16:00

Settlement for OTC-DVP closes.

18:00

Settlement for OTC-FOP closes.

Registration

Segregated securities accounts

The nominee/omnibus account concept has been introduced in Slovenia, however, the segregated account structure is a more frequent market practice. In accordance with the KDD, accounts have to be opened in the name of the beneficial owner or, if opened as an omnibus account, of the account holder/legal owner.

Omnibus securities accounts

On 11 August 2007, the omnibus securities account structure (known as “fiduciary account”) was introduced in the market.

Countervalue difference allowed by the market

A difference in countervalue is allowed at CSD level according to trade value, as follows:

  • For trade values less than or equal to EUR 100,000, the allowable difference is 2.00 EUR.
  • For trade values greater than EUR 100,000, the allowable difference is 25.00 EUR.

Penalties (buy-ins etc.)

For Stock Exchange trades, if a participant fails to meet its payment obligation, KDD activates the liquidity reserve. If the liquidity reserve is insufficient to settle the outstanding obligation, the guarantee fund will be used.

A failing participant is required to repay the amount used for the guarantee fund till 09:15 on the following day after the KDD's request was sent to participants. If this fails, KDD can consider a lien on the securities held in the defaulting participant's proprietary account. It the lien is not sufficient to replenish the guarantee fund, all KDD participants will be requested to contribute funds.

According to KDD rules, a settlement member that fails to deliver must cover buy-in/sell-out expenses and faces penalties.