Settlement process - Slovenia
Stock Exchange trades
Debt instruments (including government bonds):
All eligible instruments:
Note: Partial settlement is not possible.
Settlement flow for Stock Exchange trades
09:15 - 14:20
Trading takes place on LJSE
13:00 - 16:30
Transfer of matched trades to KDD.
until end of the day
Member's net payment obligation sent to the member.
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
Settlement of block trades and OTC transactions opens.
Settlement for OTC-DVP closes.
Settlement for OTC-FOP closes.
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.
Penalties will be calculated and applied on matched settlement instructions that fail to settle, in full or in part, on and after their intended settlement date (ISD), if both the settlement instruction and the relevant financial instrument are subject to cash penalties.
Instruments subject to cash penalties
Any financial instrument listed in the Financial Instruments Reference Data System (FIRDS) database maintained by ESMA will be subject to cash penalties. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption list.