Settlement process - Latvia
Settlement cycles
| Stock exchange trades: | |
| RSE automated trades: | T+2 |
| RSE negotiated trades: | T+0 to T+40 |
| OTC Trades: | T+1 to T+360 (in practice, this is T+2) |
Settlement flow
The keys steps for settlement and clearing of stock exchange trades are as follows:
Note: All times are local time (CET +1).
| TD (Trading phase): | |
| 9:00 - 10:00 | Period before Opening call auction (pre-opening). |
| 10:00 | Opening call auction (uncross). |
| 10:00 - 15:55 | Continuous Trading |
| 15:55 - 16:00 | Period before Closing call auction (pre-closing). |
| 16:00 | Closing call auction (uncross). |
| +/- 16:00 - 16:30 | Post trading session. |
| 16:30 - 9:00 (T+1) | Market is closed. |
| SD: | |
| OTC transactions | |
| FOP | Free of payment (FOP) settlement instructions are settled continuously in real time during the general business hours and effected as the orders from both transaction parties have been entered into the system by the sub-custodians (account operators), FOP settlement is executed until 19:00. |
| DVP | Against payment (DVP) settlement instructions settle continuously in real time during the general business hours. DVP settlement is executed until 17:00. The cash leg of DVP transfer orders for T2S-eligible securities is settled via dedicated cash accounts (DCAs) at payment banks in T2S. The cash leg of DVP transfer orders for non-T2S-eligible securities is settled via cash accounts in T2S. |
| Stock Exchange transactions | |
| 08:00 - 17:00 | Nasdaq CSD captures trades from the Nasdaq Baltic exchange. Trade feeds should be enriched by participant with settlement information of settlement instructions that are sent to the CSD. The CSD receives the feed from Nasdaq Baltic and generates settlement instructions for CSD participants. The stock exchange member should appoint one single account operator to settle all its trades at the CSD. The stock exchange member has to provide its account operator with the relevant settlement information. On SD, the Nasdaq CSD confirms the availability of shares in the seller's account via its securities settlement system and if a sufficient position is available. |
Registration
Security registration is not applicable in the Latvian market, only nominee registration applies.
Stamp duty
Stamp duty is not applicable in the Latvian market. Capital gains tax is not applicable to non-residents.