On The Settlement Of The Stock Exchange Or Registered Transactions Concluded

Original Language Title: Par norēķiniem par biržā noslēgtajiem vai reģistrētajiem darījumiem

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/93897

 
Latvian Central Depositary Regulation No 6 on the settlement of the stock exchange concluded the transactions registered by the Latvian Central Depository approved by the Council meeting of 18 June 2004 shall enter into force on 27 September 2004 in the Latvian Central Depository (LCD) Regulation No 6 "on settlement of stock exchange transactions concluded or register" (hereinafter rules) have been developed based on the financial instruments market law (hereinafter the law) the second subparagraph of article 94 of the fourth period and lays down the procedure What is the settlement of stock exchange transactions concluded or registered with financial instruments, which are posted in LCD. terms used in the rules 1.1. terms used in the terms and concepts that are not understood, comply with statutory used terms and concepts.
1.2. Stock-Corporation that a validly obtained authorisation for the organisation of the regulated market.
1.3. Membership: an investment brokerage firm or a credit institution which, in accordance with the procedure prescribed by law has the right to provide investment services in Latvia and has obtained membership status.
1.4. The transaction — a transaction that is made with LCD and stock exchange posted the regulated markets in financial instruments and which, according to the procedures laid down in the stock exchange is closed, or a registered stock exchange trading system.
1.5. DVP settlement: settlement type "supply against payment" (delivery versus payment) transactions in financial instruments in which transfers of financial instruments and related money dealings going on at the same time, thus eliminating the risk that the parties to the transaction do not supply financial instruments or does not pay the money.
1.6. the offset account LCD — financial instruments accounting account LCD LCD open participant and listing the Member's holdings in existing LCD financial instruments.
1.7 LCD participant investment firm or a credit institution which, in accordance with the procedure prescribed by law has the right to provide the investment services and financial instruments to keep accounts and LCD in the order has acquired the status of participants. The LCD
1.8. The net position — one member of the set of commitments the LCD in cash or financial instruments against other LCD members, calculated in the light of the transactions concluded with the same S day deducted from the result of the deleted off mutual claims.
1.9. Billing tasks — tasks that Exchange shall submit the LCD to make DVP settlement of financial instruments purchases and sales.
1.10. T day — the transaction date or the date of registration.
1.11. T + 0 for the transaction date or the date of registration, which is also a day in which the financial instrument and associated cash account.
1.12. T + 1 — the next business day after the transaction date or the date of registration.
1.13. T + 3 — the third business day after the transaction date or the date of registration.
1.14. S day: a day in which the settlement of financial instruments and the related accounting.
1.15. S-1 day-one working day before the S date.
2. General questions 2.1. rules determine the order in which the LCD organized settlement of transactions, if the related cash settlement shall be made in local currency.
2.2 LCD with payment systems for transactions related to the settlement are made in one of the following ways: DVP settlement after 2.2.1 net positions, if the transaction settlement period is T + 1 or longer;
2.2.2. DVP settlement of each transaction individually (by gross), provided the settlement period is T + 0.2.3. DVP settlement result is transferred to the settlement on behalf of the LCD to the listed financial instruments from the LCD participants offset at which the salesperson of financial instruments financial instruments account open, the LCD on the offset account, the participant at which the buyer of financial instruments financial instruments account open, and līdzejoš transfer of financial instruments , including money, to which members of the LCD to the financial instrument for the seller to open a financial instruments account, money in the account specified.
2.4. Cash settlement bank transactions that related cash settlement shall be made in dollars, the Bank of Latvia.
2.5 LCD with associated cash account transactions can be made: 2.5.1. direct, if the LCD there money members accounts and has entered into a tripartite agreement with the LCD and the Bank of Latvia in accordance with the provisions of no. 1 LCD "on the LCD participants";
2.5.2. indirectly, if the participant has contracted LCD with LCD members, who can make money accounts directly (trustee LCD member), for a cash settlement and the contract is submitted. the maximum amount of money the LCD, the LCD which is entitled to use the net and gross settlement transactions per day (s), is specified in the agreement or on the basis of the Treaty mandate, which the participant placed LCD LCD. The contract may lay down that the trustee LCD participant each day provides LCD message indicates the amount of money on which it agrees to make a cash settlement of other LCD participant transactions.
2.6. Exchange of data between the LCD and LCD members takes place in electronic form in accordance with Regulation No 11 LCD "for data exchange".
2.7. Data Exchange between the LCD and the Exchange takes place in the form set out in the contract concluded between the LCD and the stock exchange. The contract also specifies the order in which Exchange supports LCD with information about those billing processors to be used for that: 2.7.1. Stock trading system information about the current operator, which is used in the settlement of the transaction you have entered incorrect or incomplete;
2.7.2. The rules in these cases the settlement over the Stock Exchange member who has entered into, or transactions registered by the stock exchange.
2.8. If the DVP settlement process for transactions involving a foreign central depository or settlement of financial instruments an organizing Organization (hereinafter referred to as foreign central depository) with which the LCD has entered into a cooperation agreement, then the meaning of these provisions, it is considered to be the LCD. LCD Board pursuant to those provisions, if necessary, arrangements, which describes the specific requirements to be met by LCD members, if the settlement process on the DVP transactions involved foreign central depository.
3. the settlement of net positions DVP General questions 3.1. take DVP settlement NET LCD lines for those transactions for which the settlement period is T + 1 or longer. If the stock market's current task is indicated by a different billing period on a net settlement positions DVP is made in the current period T + 3.3.2. take DVP settlement NET LCD lines, on the basis of the settlement of stock exchange.
3.3. NET positions settlement at DVP you complete S day at 10.30 a.m. (also: the first billing cycle) If pursuant to S day at 9.00 the calculated net positions, 4. in accordance with the procedure laid down in section provides sufficient financial instruments and money.
3.4. If the first billing cycle from the net positions settlement included tasks cannot be executed without sufficient money, all included in the respective net position current task execution is transferred to the second billing cycle and billing are made under section 5 of the rules.
3.5. If the first or second billing cycle after the net positions settlement in one of the tasks are not completed because of the provisions of chapters 4 and 5 and in accordance with the procedure laid down in the specific moment does not ensure sufficient quantity of financial instruments, the LCD turns off settlement task from the calculation of net positions and make them separately according to the rules in paragraph 6.12 of the procedures laid down.
4. NET positions settlement DVP first cycle 4.1. Exchange T day prepares and sends the current tasks of the LCD in accordance with the procedure laid down in between the LCD and the contract concluded on stock exchanges.
4.2. the day after the settlement of the task stock LCD immediately examine and evaluate whether transactions on the settlement of the tasks requires approval (consent to take the settlement) from LCD Member who according to the billing information specified in the tasks provided with Business-related settlements.
If approval is required, the LCD immediately sends an approval request to the LCD, indicating the necessary approval.
4.3 LCD LCD members required from approval (consent to operate accounts) in the following cases: If the stock exchange presented 4.3.1 settlement task shows that entering the stock exchange trading system task, information about the participants in the settlement was entered incorrectly and consequently the settlement required information is added to the stock market, given the membership information specified in that case settlement to be used and by whom;
4.3.2. If stock settlement submitted task shows that entering the stock exchange trading system task, information about the participants in the settlement was fully entered the settlement and with it the necessary information is added to the stock market, given the membership information specified in that case settlement to be used and by whom;

4.3.3. If the proposed settlement of the exchange exercise, the LCD indicates that the task is required to receive approval from the LCD Member who is designated as the operator of settlement for the transaction;
4.3.4. If the proposed stock exchange settlement task indicates that the associated with the transaction settlement provides LCD participant who is not the same legal entity (membership) that this deal is concluded or registered stock trading system.
4.4. To the S-1 daily at 1 p.m. LCD on its own initiative, the participant has the right to reject the settlement of the tasks in the following cases: 4.4.1. If stock trading system enter task information on the participants in the settlement was entered incorrectly and consequently the settlement required information is added to the stock market, given the membership information specified in that case settlement to be used and by whom;
4.4.2. If stock trading system enter task information on the participants in the settlement was completely entered the settlement and with it the necessary information is added to the stock market, given the membership information specified in that case settlement to be used and by whom;
4.4.3. If stock trading system enter task information on the participants in the settlement was entered in full, but it does not correspond to the order of the parties to the transaction (objective).
4.5 LCD, rejecting a settlement task on its own initiative, sent to the LCD the statement. In this communication, the Member shall have the right to specify the LCD an updated billing information, for which the LCD will confirm the rule in point 4.2. If the LCD participants declines the stock trading system in the execution of a task, and you entered did not specify specify billing information, the LCD is assuming that the settlement is a member of the stock exchange who have concluded this deal or registered by the stock exchange, and the LCD will confirm the rule prescribed in paragraph 4.2 LCD Member, at which a member of a stock exchange opened in the financial instruments account.
4.6. To the S-1 days 16:00 LCD members submitted a reply message LCD (consent or refusal to perform settlement) on the confirmation request is sent to the participant the LCD the LCD in accordance with rule 4.2. After receipt of the reply promptly sent to the LCD the LCD participant in one of the following statements: statement on 4.6.1. consent to take the settlement, if the LCD has agreed to make a member accounts;
4.6.2 statement of membership to take the settlement, if the LCD is the participants refused to make payments;
4.6.3. notification of incorrect fill the message if the reply message in the LCD participants in any of the fields are filled in incorrectly.
4.7. If to the S-1 days 16:00 LCD does not receive a reply to the members of the LCD of the provisions referred to in point 4.2 approval request as well, if a member disagrees with the LCD make a settlement Member response message or an LCD is faulty, the settlement of Transactions over the Stock Exchange member who entered into such transactions or registered by the stock exchange, and the stock market and sent the LCD LCD members corresponding statements.
4.8. S-1 day at 16.30 LCD calculates the planned financial instruments and net positions settlement money's day and check if the LCD corresponding accounts of the participants have sufficient financial instruments to carry out the settlement after the planned net positions S day. If the number of financial instruments is not sufficient, the LCD the LCD participants concerned informed on sales settlement tasks for which not enough of a financial instrument, and indicates how the financial instrument is not enough.
4.9 LCD participant can use simple (non) on the transfer of financial instruments, to ensure their offset accounts LCD sufficient financial instruments to carry out the settlement after the planned net positions S day.
4.10. If the LCD is not yet begun settlement tasks, it may be withdrawn by the stock market, sending it the task of lifting the LCD billing statement.
4.11. S-1 day at 17.00 to the trustee sends members notice the LCD the LCD on the maximum amount of money that can be used in other LCD members purchase task execution account. The notice need not be given if the trustee has provided participants LCD LCD rules referred to in paragraph 2.5.2. contract or purchase power and task required for the performance of the settlement amount does not exceed the powers specified in the contract or in the limit.
4.12. If to the S-1 day at 17.00 LCD is not received from the participant rules 4.11 LCD above statement or notification received confirms less than necessary settlement tasks, select LCD settlement tasks for which it is possible to execute the settlement, taking into account the quantity of available cash and stock deals specified order (subject to the principle of "first in, first out").
4.13. S day at 9.00 LCD calculation of new planned net position S day and notify all the parties in the settlement, as well as the exchange of billing tasks not approved deferred cash position.
4.14. the Settlement of orders that have not been approved pending cash position, runs on each transaction separately rule 6.12. in accordance with the procedure laid down in paragraph 1 as soon as the LCD is received rule 4.11. the notification referred to in paragraph 1 a sufficient amount of money, which you can use to perform the deferred billing tasks.
4.15. No later than the day at 9.00 S LCD participant at which the seller is to open an account in financial instruments, are obliged to provide DVP settlement required the number of financial instruments in its offset account LCD. 4.16. No later than 9.30 a.m. S day LCD participant who provides Business-related cash payments, are required to make their money in the account in the Bank of Latvia settlement needed money.
4.17. S day at 9.00 LCD performs the final calculation of the net positions financial instruments and money.
4.18. S day from 9.00 a.m. to 9.30 a.m. LCD check adequacy of financial instruments LCD members offset accounts according to the calculated net LCD line and do the following: 4.18.1. If sufficient number of financial instruments, financial instruments shall be blocked;
4.18.2. If the number of financial instruments is not sufficient, select billing tasks for which it is possible to execute the settlement, taking into account the number of available financial instruments and stock deals order specified;
4.18.3. calculation of net new positions and notify all the parties in the settlement, as well as an exchange for the deferred billing tasks.
4.19. the Settlement of orders that has delayed an insufficient number of financial instruments, the execution of each transaction separately rule 6.12. in accordance with the procedure laid down in paragraph 1 as soon as the settlement provided the necessary financial instruments.
4.20 S daily until 9.30 o'clock LCD order Latvijas submitted to transfer the money according to the calculated net positions.
4.21. S day from 9.30 a.m. to 10.30 a.m., the Bank of Latvia to check the adequacy of the cash money in the accounts of participants in LCD and do the following: 4.21.1. If money is enough, take the cash settlement and approval of the settlement in LCD;
4.21.2. If money is not sufficient to make refusal sent LCD settlement.
4.22. The LCD after approval by the Bank of Latvia on the cash receipt of payment transfer immediately blocked financial instruments according to the calculated net position and send the LCD participants of payment confirmation.
4.23. The LCD participants of payment after receiving confirmation from the LCD immediately take appropriate postings in its financial instrument accounting system.
4.24. where the Bank of Latvia has refused the settlement, financial instruments remain locked to the second net billing cycle and LCD immediately send the LCD participants and the respective Stock Exchange announcements.
5. settlement of net positions DVP second cycle 5.1. DVP settlement of the second cycle occurs only if the first billing cycle on net settlement is not made enough money.
5.2. If the time between the first and second cycle of the net settlement of stock exchange decides to involve completion of the settlement guarantee fund, as well as to postpone or cancel a business tasks, Exchange notifies the LCD no later than 9 a.m. 1 p.m. S day.
5.3. S day at 13.00 LCD new calculation of the net positions of financial instruments and cash if the stock exchange has decided to postpone or cancel any of the business tasks and notify all the parties in the settlement, as well as the stock exchange deferred or cancelled for the settlement of orders.
5.4. S day from 9 a.m. to 1 p.m. at 13.30 LCD checks the adequacy of financial instruments LCD members offset accounts LCD as follows: 5.4.1. If there are no changes in net position, make sure it is locked enough number of financial instruments;
5.4.2. If there is a change in the net position, unlock the first net billing cycle lock (rule 4.18) financial instruments and: 5.4.2.1. where financial instruments are enough newly calculated net positions in financial instruments shall be blocked;

5.4.2.2. If the number of financial instruments is not sufficient, select billing tasks for which it is possible to execute the settlement, taking into account the number of available financial instruments and stock deals specified order, and from the new financial instruments shall be blocked.
5.5. If the Provisions of paragraph 5.4.2.2 case, LCD's day at 13.30 to the calculation of net new positions and notify all the parties in the settlement, as well as an exchange for the deferred billing tasks.
5.6. the Settlement of orders that are suspended in the insufficient number of financial instruments, the execution of each transaction separately in accordance with the Rules of procedure set out in paragraph 6.12., as soon as you have provided billing required number of financial instruments.
5.7. S day at 13.30 to submit orders to the Bank of Latvia the LCD to transfer the money according to the calculated net positions.
5.8. S day from 14.00 until o'clock at 14.30 Bank checks the adequacy of money corresponding to the accounts of participants LCD Bank: 5.8.1. If the amount of money members cash accounts LCD Latvian Bank, the Bank of Latvia adjusts LCD and a settlement approval;
5.8.2. If the amount of money the LCD corresponding accounts of members of the Bank of Latvia is not sufficient, the Bank of Latvia settlement is made and sent to the LCD.
5.9. LCD after approval by the Bank of Latvia on the cash receipt of payment transfer immediately blocked financial instruments according to the calculated net position and send the LCD participants of payment confirmation.
5.10. If the Bank has refused the settlement, financial instruments remain locked to the next settlement date and will be included in the next settlement date on the first billing cycle on net. LCD LCD participants and send the respective Stock Exchange announcements.
6. DVP settlement of each transaction individually (by gross) 6.1. take DVP settlement in LCD on each transaction separately, if the billing period is T + 0.6.2 the Stock after the transaction date or the logging of its trading system immediately, but not later than the day at 14.30 S prepare and send the LCD task the settlement in accordance with the procedure laid down in between the LCD and the contract concluded on stock exchanges.
6.3. the participant at which the LCD vendor is open in the financial instruments account, are obliged to provide DVP settlement required the number of financial instruments in its offset account LCD not later than the transaction is concluded or registered in the stock exchange.
6.4 LCD participant who provides Business-related cash payments, are obliged to provide DVP settlement needed money in your cash account in the Bank not later than the transaction is concluded or registered in the stock exchange.
6.5. After receipt of settlement from the task, the LCD immediately check whether one of the current tasks require the approval of the members of the LCD (consent to take the settlement). If approval is required, the LCD immediately sends an approval request to the LCD, indicating the necessary approval.
6.6. LCD require approval (consent to carry out the settlement) from the provisions of 4.3 LCD members. in the cases referred to in paragraph 1.
6.7. To S day 15:00 LCD on its own initiative, the participant has the right to reject the settlement tasks rule 4.4.1 – 4.4.3. in the cases referred to in paragraph 1.
6.8. to LCD on its own initiative, a member of the rejected task, it must be sent to the LCD the statement. In this communication, the Member shall have the right to specify the LCD an updated billing information, for which the LCD will confirm the rule in paragraph 6.5. If you decline the tasks, participants clarify the LCD has indicated in the billing information, the LCD is assuming that the settlement is a member of the stock exchange who have concluded this deal or registered by the stock exchange, and the LCD will confirm the rule in point 6.5 LCD in the order at which the participant, a member of a stock exchange opened in the financial instruments account.
6.9. To S day 16:00 LCD members submitted a reply message LCD (consent or refusal to perform settlement) on the confirmation request is sent to the participant the LCD the LCD in accordance with the Provisions of point 6.5. After receipt of the reply promptly sent to the LCD the LCD participant in one of the following statements: 6.9.1. notice of agreement to make payments if the Member has consented to the LCD to make settlements;
6.9.2. statement of membership to take the settlement, if the LCD is the participants refused to make payments;
6.9.3.. notification of incorrect fill the message if the reply message in the LCD participants in any of the fields are filled in incorrectly.
6.10. If S days 16:00 LCD does not receive the reply message from the LCD to the participant request for approval, as well as the reply is filed or error response message does not approve a settlement task (LCD participant does not agree to make payments), the settlement of Transactions over the Stock Exchange member who entered into such transactions or registered by the stock exchange, and the LCD Business in the send notification of involved parties.
6.11. If the LCD not yet started the current task, it can be cancelled by the stock market, sending it the task of lifting the LCD on the settlement statement.
6.12. DVP settlement of each transaction separately order and time schedule: 6.12.1. LCD launched settlement task immediately after receiving it from the stock exchange or by rule 6.5. approval referred to in paragraph (if such is required), but not later than 16:00 S a day;
6.12.2. the task before the settlement of financial instruments check the LCD of the members at which the LCD vendor open financial instruments account, offset account LCD and act according to the situation in one of the following ways: 6.12.2.1. If sufficient number of financial instruments, financial instruments shall be blocked;
6.12.2.2. If the number of financial instruments is not sufficient, the settlement limits the execution of the task until it has secured the settlement of financial instruments required.
6.12.3. as financial instruments below the LCD test, or need approval from the participant's money settlement in LCD, and according to the situation do one of the following LCD intelligent: 6.12.3.1. If approval is not necessary immediately to continue billing process. 6.12.3.2 if approval is required, continue the settlement process only after receipt of an authorized participant of the cash settlement of the LCD made approval where the authorised participants provide LCD in the light of the rule laid down in paragraph 4.11 exceptions;
6.12.4. If S days 16:00 LCD is not received from the participant's approval of the LCD to make cash settlement or received approval confirms the lower amount as necessary, LCD unlocks financial instruments, deferred execution to the next settlement, settlement date, and shall notify the LCD members as well as the transfer of the stock of the settlement;
6.12.5. after receiving confirmation from the LCD, but not later than the participant's day at 16.30, submitted to the Bank of Latvia order LCD transfer money as you receive billing tasks;
6.12.6. after receipt thereof from the LCD, the Bank of Latvia, immediately but not later than the day's at 16.45, examine the adequacy of cash money in the accounts of participants in LCD and act according to the situation in one of the following ways: 6.12.6.1. If money is enough, do the billing and send confirmation of the settlement of LCD;
6.12.6.2. If the amount of money is not enough, the refusal to take forward the LCD settlement.
6.12.7. The LCD following the confirmation of the receipt of payment from the Bank of Latvia, immediately but not later than the day's at 16.45, even blocked financial instruments and send the LCD members as well as an exchange of payment confirmation.
6.13. LCD members, receive a confirmation of payment from the LCD, immediately take the appropriate postings in its financial instrument accounting system.
6.14. If the settlement required the number of financial instruments or money was not provided until 16:00 S day or the Bank of Latvia has refused to take the settlement, the settlement moved to run the LCD to the next settlement date and notify the LCD members as well as an exchange of settlement removal.
6.15. The LCD is not allowed settlement submitted partial execution of tasks.
7. Entries 7.1. With the transfer of financial instruments related postings reflect using classifier, which is definitely the LCD No 11 the rules "for data exchange" and are used for data exchange and financial instruments accounting.
7.2. Receiving notification of stock exchange transactions, a member of no postings to the LCD. To ensure the adequacy of the settlement of financial instruments at the time, the LCD is entitled to block the DVP settlement required the number of financial instruments in the financial instruments account of the seller and the DVP settlement required money for the money in the account of the purchaser.
7.3. LCD participant shall ensure that during the period from T to S day has access to information on net settlement for making the necessary cash and financial positions, if there's a day in May.

7.4. S day LCD, you receive a notification about the DVP settlement task, take your postings and the related financial instruments cash accounting system with the same date the date when the DVP settlement job has been executed from LCD LCD. announcement of the deferred settlement member does not carry out the LCD postings.
7.5. DVP settlement is final with a moment when financial instruments are credited to the participant at which the LCD to the financial instrument for the recipient to open a financial instruments account, offset account.
8. Closing questions 8.1. date of entry into force of the provisions determined by the Council, by individual decision LCD.
8.2. With the entry into force of these regulations shall lapse by JSC "Latvian Central Depositary" Council on 23 January 2004, approved by the decision of the Latvian Central Depository rules No 6 "on settlement of stock exchange transactions concluded or registered".