Amendments To The Law "on Settlement Finality In Payment And Settlement Systems Of Financial Instruments"

Original Language Title: Grozījumi likumā "Par norēķinu galīgumu maksājumu un finanšu instrumentu norēķinu sistēmās"

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.vestnesis.lv/ta/id/227545

The Saeima has adopted and the President promulgated the following laws: law on settlement finality in payment and settlement systems of financial instruments in the "to do" in the law on settlement finality in payment and settlement systems of financial instruments "(Latvian Saeima and the Cabinet of Ministers rapporteur, 2004, no. 2) amendments are as follows: 1. Article 1: expressions of the introductory part of paragraph 1 by the following:" 1) payment and settlement systems of financial instruments (hereinafter the system) — a financial instrument of payment and transfer orders execution mechanism acting in accordance with the agreement and meets all the following conditions: ";
make a paragraph 1 subparagraph by the following: "(a)) it is agreed between at least three members, not including the system maintainer, the settlement agent, the central counterparty, clearing or an indirect participant, on the execution of transfer orders between the participants or including with central counterparty or without it, in accordance with common rules and standardised procedures";
Replace paragraph 1 of point "b", the words "of the European Union or European economic area Member States" with the words "Member States of the European Union or the European economic area (hereinafter referred to as Member States)";
to make the "c" paragraph 1 subparagraph by the following: "(c)), Latvia or another Member State, under the law of which the system works, defined by the system and has been informed of the decision of the European Commission;"
Express (2), "a", "b" and "c" section as follows: "(a)) it is in the Republic of Latvia or another Member State registered in the bank, a branch of a foreign bank branch, the central bank, Credit Union or postal operator, which according to laws or regulations is right to provide payment services, (b)) it is registered in a Member State of the investment brokerage company, branch or foreign investment brokerage firm branch, c) is the national governing body or the State or municipal corporation;"
2. turn off point "d" section;
replace the words "in paragraph 5 of that institution" with the words "the said authorities";
Express 6, 7 and 8 of the following: "6) member of the authority, a central counterparty, a settlement agent, a clearing centre or the system maintainer;
7) indirect participant — authority, the central counterparty, a settlement agent, a clearing centre or the maintainer, the system can be identified and which has an agreement with a member for transfer orders in the system;
8) system provider (operator), the institution that is responsible for ensuring the functioning of the system; "
make paragraph 10 subparagraph "a" the following: "(a) a statement of the participant) amounts of money transfer to the disposal of the recipient with the accounting records of the bank, the central bank, the central counterparty or settlement agent's account or accept payment instructions or perform the payment obligations in accordance with the rules of the system,";
make the following paragraph 11: "11) insolvency proceedings — any measures, including proceedings provided for in the Member State, or a foreign law to the Elimination of the participant, as well as the target or to reorganise it, where such measure involves financial instruments or money order suspension or limitation;"
turn off paragraph 12, the words "the Republic of Latvia, the European Union or the European economic area" and replace the words "other country" with the word "foreign";
Replace paragraph 14, the words "and for the storage of financial instruments and the settlement of" with the words "or for the storage of financial instruments or settlement";
make paragraph 15 as follows: ") 15: marketable securities assets, including funds, financial instruments and credit claims, provided that they use and obligations that may arise in connection with participation in the system, or the security provided by the central bank;"
Replace paragraph 16, the word "State" with the words "Member States";
turn off paragraph 20;
to supplement the article with 21 and 22 the following: "21) working days — the time provided for in the rules of the system when the system in question is likely to transfer orders.
22) European system: two or more systems of systems which are mutually agreed Sustainer for arrangements that include the execution of transfer orders between systems. ";
to supplement the article with the second part as follows: "(2) the statutory term" credit claims "meet the financial security law explain term" credit claims ";
believe the current text of article about the first part.
2. in article 4: replace the first paragraph, the words "the Republic of Latvia or the European Union or European economic area Member States" with the words "the Commission";
make the second paragraph as follows: "(2) the agreement between the European systems do not constitute a separate system."
3. in article 5: replace the first paragraph, the words "the Republic of Latvia or the European Union or European economic area Member States" with the words "the Commission";
to turn off the second part.
4. To make article 6 by the following: "article 6. (1) the Commission members this law, in article 1, first paragraph, within the meaning of point 6 may also be indirect participant, if such a decision is justified by the systemic risk.
(2) If the first part of this article in case the indirect participant on the players, it does not exempt from liability for the obligations of members with which the indirect participant transfers execution to the system transfer orders. "
5. in article 8: replace the first paragraph, the words "any Member" with the words "system or a system of participation or participation system maintainer who is not a member";
to make the second and the third part as follows: "(2) if the transfer orders are entered into a system after the participant's insolvency proceedings and what to do at the start of the working day when the insolvency proceedings, they are valid and binding on third parties only if the prosecution can prove that the time when such transfer order in accordance with the rules of the system became irrevocable when it knew and it had no obligation to know about such proceedings.
(3) regulations, which provide for legal transactions, cancellation does not apply in respect of claims and liabilities, arising from participation in a system and which arose prior to the participant's insolvency proceedings. ';
to supplement the article with a fifth by the following: "(5) the Participation systems in the rules of each system determines when transfer orders entered into the system. One system rules for entering the time of the transfer order shall not affect the other provisions of the system, if it is not provided for all participating system rules. "
6. Make article 9 as follows: "article 9. Member participation system maintainer or the opening of insolvency proceedings shall not affect: 1) use the participant's settlement account, the available funds or financial instruments to enable the participant to run from its participation in the system or participation obligations resulting in a system that has a working day the insolvency proceedings;
2) reduce participant a system of credit against the system or European system of collateral available to fulfill the obligations of a participant in the system. "
7. Article 10: Supplement to the second part of the article as follows: "(2) the Participation systems in the rules of each system determines the moment when the transfer order may not be revoked. One of the system's rules on the moment of irrevocability shall not affect other provisions, unless the system is not intended for all participating system rules. ";
believe the current text of article about the first part.
8. Turn off article 11 paragraph 2 of the third paragraph, the words "of the European Union or the European economic area".
9. Supplement article 12, first sentence, after the word "members" with the words "including the participation system or European system maintainer who is not a participant".
10. Article 13 be expressed as follows: "article 13. The system maintainer or member's right to security, which it delivered in connection with the system or system, or the European Central bank's right to security is not affected by the insolvency proceedings commenced against the participation of members of the system maintainer who is not a participant, the central bank's business partners or any third party which provided the collateral security. Such security for the use of these rights can be realized immediately, and not attributable to that security regulations imposed security restrictions on the right of disposal. "
11. To make article 14 the following: ' article 14. Determining the country under whose laws the system will work, participants can choose only the Member State in which the registered at least one participant. "
12. Supplement article 16, after the word "members" with the words "maintainer" of the system.
13. Replace article 18, second paragraph, the words "central banks" with the words "central bank".
14. Replace article 19, second paragraph, the words "and the number of Directive 98/26/EC" with the words "this Act".

15. Article 20 be expressed as follows: "article 20. The Commission shall inform the European Commission about the system, acting in accordance with the laws of the Republic of Latvia and for the system, which the European Commission to be included in the registry and maintainer of this system. "
16. Make the informative reference to European Union directives as follows: "Informative reference to European Union directives, the law includes provisions resulting from: 1) of the European Parliament and of the Council of 19 May 1998 Directive 98/26/EC on settlement finality in payment and securities settlement systems;
2) of the European Parliament and of the Council of 6 May 2009 directive 2009/44/EC, amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims. "
The law shall enter into force on 30 June 2011.
The law adopted by the Parliament in the March 3, 2011.
President Valdis Zatlers in Riga in 2011 g. 23 March