Market infrastructure - Serbia
Institutions and organisation
The National Bank of Serbia (NBS)
Established in 2003, the National Bank of Serbia is the sole bank of note issue and is responsible for the monetary policy, stability of the currency, financial discipline and performance of other operations.
Core functions of the National Bank of Serbia are laid down in the Constitution of Serbia, the Law on the National Bank of Serbia (RS Official Gazette, No. 72/2003, 76/2012, 106/2012, 14/2015, 40/2015 and 44/2018).
Securities Commission (SEC)
The Republic of Serbia Securities Commission (SEC) was established in 1990 based on a Federal Government decree but reformed in 2003 to its current legal status and organisation. An independent commission, legally answerable to the Serbian Assembly (parliament).
The SEC safeguards orderly functioning of the capital market, enhancing investor protection and ensuring integrity, efficiency and transparency of the market.
The SEC regulates the activities of the Belgrade Stock Exchange, the CSD, and their members and also enforces the Law on Prevention of Money Laundering and Terrorism Financing when it comes to custody and broker-dealer activities. The SEC supervises investment firms, custodians (local fund administration business), investment funds, CSD and the Belgrade Stock Exchange.
The power and responsibilities of the SEC are specified by the following laws:
- The Capital Market Law
- The Law on Takeovers
- The Law on Investment Funds
Central Securities Depository and Clearing House (CSD)
Established in 2001, the Central Securities Depository and Clearing House (CSD) is a 100% state-owned organisation. In 2003 it converted to an independent standalone entity founded on the basis of the Company Law and Law on the Market of Securities and Other Financial Instruments (governing capital markets at that time).
The CSD is regulated by the SEC and managed by Directors reporting to Management and Supervisory Boards.
It is mandatory for all Serbian securities to be cleared and settled at the CSD. Treasury securities are traded in the primary market with T+0 to T+2 settlements. Standard cycle for secondary trading is T+2. Issuance of corporate bonds is limited and performed mainly as private placements.
The CSD provides simultaneous against payment settlement for all securities. All trades matched in the CSD system must be settled by T+2. Partial settlements are not permitted.
Belgrade Stock Exchange (BELEX)
Ownership structure: around 10% Republic of Serbia and around 90% Others (banks and broker-dealer companies).
Traded Instruments: Equities, Government bonds, Treasury securities, Corporate bonds, Municipal bonds and International financial institution bonds.
Settlement agent: Central Securities Depository and Clearing House (CSD)
Clearing agent: Central Securities Depository and Clearing House (CSD)
Trading hours: Equity and Bonds markets: from 09.00 to 14:00
Settlement cycle: T+2 for Equity and Bonds markets
Clearing Agencies
All domestic (RSD) payments in Serbia are processed via the payment system of the National Bank that combines both gross (RTGS) and net settlement.
Commercial banks are connected electronically to the system and are obliged to monitor liquidity in their accounts intra-day. The National Bank will intervene to unblock problematic trades that are awaiting settlement. Payments over RSD 300,000 (about USD 2,950) are regarded as large payments and processed via RTGS.
The CSD provides simultaneous against payment settlement for equities and government bonds via the RTGS payment system.