Market Link Guide - Romania
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Direct link to the National Bank of Romania (NBR) operated by BRD Groupe Société Générale S.A |
Indirect link via BRD Groupe Société Générale S.A to the CSD Depozitarul Central S.A. |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Account operator | |
Name | National Bank of Romania | BRD Groupe Société Générale S.A |
Settlement method | National Bank of Romania (NBR) for government bonds and bills via SaFIR (NBR settlement system) | |
FATCA GIIN | Not available | QQA6ZW.00076.ME.642 |
LEI | 259400VHILGGKLBNL383 | 5493008QRHH0XCLJ4238 |
Country of incorporation | Romania | Romania |
Account type | Omnibus account | Mirror omnibus account |
Legal account name/ holder | Clearstream Banking S.A. | Clearstream Banking S.A. |
CSD | Custodian | |
Name | DEPOZITARUL CENTRAL S.A. | BRD Groupe Société Générale S.A |
Settlement method | Depozitarul Central S.A. (CSD) for RON denominated municipal and corporate bonds and equities via RoClear (CSD settlement system) | |
FATCA GIIN | Not available | QQA6ZW.00076.ME.642 |
LEI | 254900LXHEVKYGERER05 | 5493008QRHH0XCLJ4238 |
Country of incorporation | Romania | Romania |
Account type | Omnibus account | Omnibus account |
Legal account name/ holder | Clearstream Banking S.A. | Clearstream Banking S.A. |
CSD | Custodian | |
Name | DEPOZITARUL CENTRAL S.A. | BRD Groupe Société Générale S.A. |
Settlement method | Depozitarul Central S.A. (CSD) for T2S eligible EUR denominated bonds (CSD T2S settlement system) | |
FATCA GIIN | Not available | QQA6ZW.00076.ME.642 |
LEI | 254900LXHEVKYGERER05 | 5493008QRHH0XCLJ4238 |
Country of incorporation | Romania | Romania |
Account type | Omnibus account | Omnibus account |
Legal account name/holder |
Operational arrangements
| Yes/No | Remarks | |
| Settlement in T2S | Yes | Depozitarul Central S.A. (CSD) offers T2S settlement for eligible EUR denominated bonds. In CBL eligibility is restricted to 2 ISIN codes ROIIBKDBC049 and ROAB22JS4SS1. Settlement with domestic counterparties is available in FOP only. |
| Settlement free of payment | Yes | Restricted to portfolio transfers only. |
| Settlement against payment | Yes | Eligible settlement currency: Romanian Leu (RON) and Euro (EUR) for SaFIR (NBR) eligible securities. RON only for RoClear (CSD) eligible securities. |
| Bridge settlement | Yes/No | SaFIR eligible securities are Bridge eligible. Depozitarul Central S.A. (CSD) eligible instruments are not Bridge eligible. |
| Settlement against payment in central bank money | Yes | EUR against payment for EUR denominated SaFIR (NBR) eligible instruments. |
| Shaping facility | No | |
Hold and Release | No | |
| Partial settlement | No | Partial settlement is not applicable in the Romanian market. |
Recycling | Yes | Please see details in Settlement services |
Bilateral cancellation | Yes | Please see details in Settlement services |
| Settlement penalty fees | Yes | Please see details in Settlement services |
| Pre-matching | Yes | Local pre-matching is market practice, clients are strongly recommended to use the immediate release flag in their settlement instructions. |
| Allegements | Yes | |
| Automatic compensation | No | Automatic compensation by the local CSDs. |
| Registered securities | Yes | NBR is the registrar for government securities. The nominee concept is recognised at the NBR. In Depozitarul Central S.A., the nominee concept is recognised. |
| Multi Market Securities | No | |
| Lending and borrowing | Yes/No | Not available for RoClear (CSD) eligible securities. |
| Proxy voting | Yes | |
| Investment Funds | Yes | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | The account operator offers Repo services for outstanding T-bonds. |
| Market restrictions | No | |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
Moment of entry | According to Depozitarul Central Rulebook: Art. 1371 (1) The time at which the transfer orders are considered placed in the Depozitarul Central’s settlement system, being valid/irrevocable and binding on third parties, producing legal effects between the Participants, is the time at which the transaction is registered in Depozitarul Central’s system according to the provisions of 137 par. (1). (2) Starting with the time mentioned at par. (1), the transfer orders registered in the system may not be revoked by a Participant to Depozitarul Central’s system or by a third party, being protected according to the provisions of Law no. 253/2004 on the final nature of settlement in payment systems and settlement systems for securities operations and Law 297/2004, even in case an insolvency procedure is initiated against a Participant. (3) After the time mentioned at par. (1) the transfer orders registered in Depozitarul Central’s system may be changed and/or revoked only by Depozitarul Central according to the provisions of the present Code. |
Irrevocability | Matched instructions are irrevocable and require bilateral cancellation. Only unmatched instructions in SaFIR (NBR) can be cancelled unilaterally. Only instructions that have not been uploaded into RoClear (CSD) or instructions have not been matched, can be cancelled unilaterally. |
Settlement finality | Yes According to Depozitarul Central Rulebook: Art. 142 (1) After the completion of securities settlement operations, the transaction settlement is considered final and irrevocable. Depozitarul Central will send notices regarding the settlement confirmation to the participants involved and/or to Clearing participants, as the case may be. (2) After Depozitarul Central confirms the completion of settlement, the Clearing participants and the participants involved have the obligation and exclusive liability to deposit, on the settlement date, in the credit accounts, the amount needed for settling the transaction on a gross basis. (3) The respective Participants are fully liable for making the funds transfer. |
Legal Arrangements
The below section is based on the legal opinion obtained by CBL that was issued on 16 May 2023 (direct operated link) and 16 May 2023 (indirect link). The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the account operator/custodian | Confirmed |
Account operator/Custodian’s liability for negligence | Confirmed |
Book-entry regime with in rem rights | Confirmed |
Recognition of nominee concept | Laws and regulations of Romania do not expressly recognize the "nominee" concept. |
No right of retention for the acount operator/custodian | Confirmed |
Segregation of assets at the CSD/custodian | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | Confirmed |
Insolvency of the account operator/custodian with no impact on CBL's rights | Confirmed |
Shortfall pro-rated among holders | Laws and regulations of Romania do not set out any provision in this respect. |
| Record keeping period of at least 10 years | Confirmed |
Settlement finality in case of insolvency | Confirmed |