Read the untranslated law here: https://www.vestnesis.lv/ta/id/93898
Riga Stock Exchange rules on cash and settlement of financial instruments approved Riga Stock Exchange Council of 31 august 2004, shall enter into force on 27 September 2004, 1. General questions 1.1. Riga Stock Exchange rules "For cash and settlement of financial instruments" (hereinafter referred to as the rules) have been developed based on the financial instruments market law article 27 and 28 the fifth of the fifth subparagraph of article 15(4).
1.2. These rules determine the order in which money is taken and the settlement of financial instruments on Riga Stock Exchange (hereinafter Exchange) trading system transactions concluded or registered (hereinafter collectively, two transactions) and the establishment of the guarantee fund and the procedure for the use of regulated markets closed the stock market or the registered transactions.
1.3. the terms used in these provisions comply with the Latvian Central Depository (LCD) financial instrument accounting procedures and rules governing membership and trading rules, unless used in these rules provide otherwise.
1.4. the settlement of stock exchange transactions concluded or registered shall organise, in accordance with the provisions of the LCD the LCD.
1.5. the exchange of payment to take place according to those rules and procedures laid down in the rules for the LCD and the settlement of transactions would be undertaken in accordance with the terms of the transaction.
1.6. The settlement of stock exchange transactions concluded or registered are made subject to the DVP basis. The settlement of the transactions concluded on the stock exchange is usually done in the current period T + 3 settlement period for stock exchange transactions can be registered on T + 0 and T + 40.1.7. Certain types of financial instruments or different currency segments traded financial instruments Exchange Board may set different billing periods.
2. the participants in the settlement 2.1. Financial instrument for the settlement of the Member or registered transactions concluded can perform: 2.1.1. Member, if it is LCD, which take account of the range of financial instruments and the settlement of financial instruments;
2.1.2. the LCD which has a member account holder of the financial instrument and that, in accordance with the agreement concluded between is committed to providing the financial instrument for the settlement of the Member;
2.1.3. a person who, in accordance with the rules is entitled and the LCD out associated with financial instruments and in accordance with the settlement concluded between the contract is committed to ensuring the financial instrument for the settlement of Member transactions.
2.2. the cash settlement of transactions can take Members: 2.2.1. Member if it is LCD, which is entitled, and make transactions with financial instruments related to cash settlement;
2.2.2. the LCD which has a right to and carried out with the financial instrument transactions related money settlement and in accordance with the agreement concluded between is committed to providing Members with business-related cash payments.
2.2.3. a person who, in accordance with the rules is entitled and the LCD out associated with financial instruments and in accordance with the settlement concluded between the contract is committed to ensuring the financial instrument for the settlement of Member transactions.
2.3. Member no later than one day before the start of trading on the stock exchange trading system for the exchange of such submitted account properties: 2.3.1. its financial instruments and cash checking account properties that you can specify the stock exchange where Members trade information entered into the system for the settlement of whom will be incorrect, incomplete, or not be entered at all;
2.3.2. the financial instruments and cash settlement account properties to which you can bring to the liability of the Members if the LCD in the order specified in the Member's account will be rejected by the offender or is approved by the settlement.
3. Information on the settlement of payment providers and exchange procedures 3.1. Member, conclusion or registering the transaction of stock exchange trading system, a task in the task you entered or posted shall indicate in the notice the information about the participants in the settlement.
3.2. If a member of the stock exchange trading system information about the current caller is specified by the incomplete, inaccurate or is not indicated by the information of the participants in the settlement, trading system as current operator is automatically specified person who is designated as a member of the settlement movement in such cases.
3.3. entering task or notification of stock-trading system, Members may indicate that before the settlement of enforcement is required to receive approval from the current caller.
3.4. the approval of the settlement agent is required if the transaction data, information about the settlement movement is incorrect, incomplete or not specified at all, and trading system as current operator is automatically specified person, for which the Member has informed the stock exchange according to point 2.3 of these rules.
3.5. the stock exchange at the end of the trading day shall send each Member a notice of the task or notification is submitted, as well as send the LCD all the relevant tasks in the settlement of trade executed transactions a day.
3.6. Member at this point 3.5 of the rules of receipt of the information referred to inform Members of the stock exchange transactions settlement workers involved.
3.7. A member of the track and ensure that the rules established within the LCD would be provided with membership transactions related settlement requires financial instruments and money.
3.8. The stock exchange shall have the right to cancel any of the current tasks only membership and trading rules, in cases or in cases where it has been requested by a member, which is one half of the transaction, and the other party of the transaction is confirmed in writing the consent for the transaction.
3.9. If the parties to the transaction agree to the settlement, the Management Board of the stock exchange made the moment is entitled to cancel the transaction if you have violated the rules of the stock exchange or related exchange or decision of the Board of Directors are also jeopardised the safety of the market.
4. special conditions for settlement if the transaction results in financial instruments are being transferred to or from foreign central depository 4.1. Members may provide that it carried out the execution of transactions in financial instruments are transferred to or transferred from the foreign central depository unless the Member has informed the stock exchange before about this business and has been submitted to the stock exchange for the information about the people who provide the settlement of such transactions.
4.2. If the transaction as is specified in the analyst settlement foreign central depository participant is a required task that is required to get approval from the current caller.
4.3. the settlement periods for transactions that result in financial instruments is to be transferred to or from foreign central depository, may not be less than T + 1.5. Guarantee Fund and the modalities of use 5.1. To reduce the risk of that time are not settlements for transactions or to prevent suspension of settlement of transactions due to not, Exchange creates a guarantee fund.
5.2. the guarantee fund does not have legal personality. It is created and the procedure for determining the use of these provisions.
5.3. the guarantee fund deposit funds are kept separate from the stock funds and may be used only for the execution of transactions. A member of the guarantee fund of funds means stock exchange lists the Member concerned in the sub-account.
5.4. the guarantee fund of funds may invest only in safe and liquid stock investments should the Council.
5.5. the profit and loss of the guarantee fund of funds are then distributed among the participants of the guarantee fund in proportion to their total amount, according to the average balance of the year.
5.6. Members must join the Membership before the guarantee fund launches trade stock trading system. With a member of the guarantee fund of the Member's contributions made to understand stock specified billing account specified in these provisions and in order.
5.7. A member must make the following payments to the guarantee fund: 220.127.116.1100 dollars on trade of late market segment;
18.104.22.16800 euros or its equivalent in the respective foreign currency for trading in foreign currency on each individual segment.
5.8. the Stock Exchange Management Board may take a decision to increase the guarantee fund in the amount of contributions to be made a member of the stock exchange, which the Board considered risky or stock exchange regulated market of continuous and safe operation of hazardous (for example, there is a large number of outstanding transactions or transactions are regularly delayed settlement not execution). Such an increase may not exceed this provision set out in point 5.7 of the double amount of the contributions.
3.7. A member shall contribute a specified stock exchange settlement account no later than two working days before the date of the Member's plan to start trading stock trading system. If the Member does not deposit the amount of money specified in the guarantee fund, Exchange does not allow a member to do business the Stock Exchange's trading system.
5.10. If the Member does not have sufficient amount of money so the enforcement transactions, settlement of payments on outstanding business Exchange uses the resources of the guarantee fund. The deal required amount of money from Stock funds transferred to the guarantee fund for the other transaction. The guarantee fund are not used to settle stock exchange registered (direct) transactions that are made in foreign currency.
5.11. If the guarantee fund does not have enough funds to ensure the implementation of the deferred transaction transaction ensures only the resources of the guarantee fund.
5.12. the segment of one currency means the guarantee fund may not be used in other segments of the currency transactions of financial instruments. This condition does not apply to the use of the funds of the Members that a deal for the enforcement of the guarantee fund are used.
5.13. If one of the Members of the guarantee fund's total share in local currency or foreign currencies is not large enough to ensure his delayed execution of the transaction, you must first use this companion lats and foreign currency cash guarantee fund and, if the quantity is not enough, use another Member contributed funds in proportion to each Member's share of the total, but not to exceed his total of LCY or foreign currencies.
5.14. Members for which transactions have been used for the execution of the settlement guarantee fund shall be subject to the lodging of a guarantee fund in the amount that is used from the guarantee fund, as well as interest on the means used by the Bank of Latvia, double the rate of refinancing of the amounts of time. A member of the payments referred to in this paragraph shall take Stock of the Management Board to the extent specified in the order and within a time limit.
5.15 5.14. These provisions in accordance with the procedure laid down in paragraph contributed a sum of money is credited to the guarantee fund and a member of the sub-accounts listed according to the amount of funds that were used from the deposit guarantee fund of the Member features. Originally reimburses members other cash used.
5.16. Interest on the guarantee fund (Bank of Latvia, double refinancing rate on funds used to the use of time) is divided between the other members in proportion to the amount of funds that were used in the execution of the transaction postponed.
5.17. the information about the guarantee fund stock exchange transactions concluded for Stock Exchange Bulletin published. Stock market bulletin is available in electronic form on the home page of the internet stock exchange.
5.18. If the Member renounces membership status is revoked or membership status, membership in the deposit guarantee fund of funds are repaid after all the Member's name or registered in the stock exchange closed transactions and obligations to the guarantee fund.
5.19. The members shall have the right to submit an application to the stock exchange, petition or other application on matters related to the functioning of the guarantee fund or the rights and obligations of Members, and receive a reasoned written response.
6. changes to the terms of the transaction or settlement 6.1. Exchange until the day of payment (S) has the right to make changes in the information about a transaction or settlement. The stock market may make changes to this information only in cases where it has been requested by a member who has made a deal and the other Members involved in the transaction have given consent to such changes.
6.2. Members may submit requests for changes to such a transaction and settlement conditions: 6.2.1. change the billing date;
6.2.2. to change the transaction status of the transactions concluded on the stock exchange a listed transaction;
6.2.3. to cancel the close.
6.3. If the Stock does not agree with the terms of the transaction or the settlement of stock exchange promptly sent the notice to the Member.
7. Responsibility for the settlement of payments 7.1. Members followed and ensure that the settlement of the stock exchange or registered transactions concluded that the provisions in these terms and the LCD.
7.2. If the Member is not involved in the transaction, the person who provides business-related settlements, then the Member is responsible for settlement of payments with the moment when the LCD Members within the time limit provided for in the transaction data in the originally specified billing performer is rejected or not approved the settlement.
7.3. In case of default, which has suffered damage, can apply to the stock exchange, so it requires a companion that has had enough of a financial instrument or the amount of money in the settlement, to pay the damages caused.
7.4. Insufficient amount of money: 7.4.1. If Exchange receives notification of the transaction from the LCD suspension insufficient money, stock exchange shall immediately inform both the members involved in the transaction;
7.4.2. If LCD rules within the time period provided by its Member business money necessary for the performance of the stock exchange transaction settlement guarantee fund uses existing features;
7.4.3. where the amount of the guarantee fund is not sufficient for a deferred settlement of transactions, the other party to the transaction is notified the missing amount and its Member properties, which was postponed in the settlement.
7.4.4. If the account being used for the performance of the guarantee fund, the stock exchange has the right to suspend the Membership of the future performance of the stock market until the Member in accordance with the provisions of paragraph 5.14 has made payments to the guarantee fund and paid a fine of this provision set out in paragraph 7.6.
7.5. the insufficient amount of financial instruments: 7.5.1. If Stock is received from the LCD message that the settlement of transactions requires a sufficient amount of financial instruments, stock exchange shall immediately inform the members involved in the transaction;
7.5.2. If the LCD on the settlement date provided for in the settlement require the amount of the financial instrument is not supported, the settlement of a deal is postponed until the necessary financial instruments is ensured. Stock Exchange on settlement of suspension shall immediately inform both members involved in the transaction;
7.5.3. A member that has not provided a sufficient amount of settlement of financial instruments, stock Board can impose fines on those provisions set out in paragraph 7.6. From the membership fees collected fine shall be apportioned as follows: 22.214.171.124.50% of the fine money is credited to the guarantee fund and distributed proportionally to all members;
126.96.36.199.50% of the fines shall be paid to a member who is the other party to the transaction.
7.5.4. the receipt of the notification by the LCD does not have sufficient amount of financial instruments of the members further action in the stock market is suspended to the settlement and payment of the fine.
7.6. If the Member has not ensured the settlement of transactions required for the implementation of the money or a financial instrument quantity, Member must pay a fine of 70 lats, as well as the amount of 0.5% of the deferred transaction value for each delayed day. The decision on the imposition of the fine takes the stock Board. Decision of the Executive Board of the stock exchange may challenge the membership and trading rules.
8. other business 8.1. These regulations shall enter into force by a separate decision of the Council of the stock exchange, but no sooner than the day following the publication of these regulations in the law on the financial instruments market.
8.2. With the entry into force of these regulations shall lapse: 8.2.1. Riga Stock Exchange Council of 23 January 2004 approved regulations on "financial instruments and cash settlement" 8.2.2. Riga Stock Exchange Council of 22 March 2004, the approved Riga Stock Exchange guarantee fund rules ".
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