Latvian Central Depositary Regulation No. 5 on the DVP settlement of financial instruments approved by the Latvian Central Depository Council meeting of 23 January 2004, in the Latvian Central Depository (the LCD) Regulation No 5 "for the DVP settlement of financial instruments" (the rules) have been developed based on the financial instruments market law (hereinafter the law) the second subparagraph of article 94 of the fourth paragraph.
1. the 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. Broker — LCD which in his or another person's exercise concluded a deal.
1.3. the analyst Settlement: the LCD, giving out financial instruments and/or cash settlement of transactions.
1.4 LCD participant financial intermediary who made the holding of financial instruments that have been posted and/or carrying out LCD, settlement of transactions in financial instruments.
1.5. Posting date: the date that the transaction is posted in the LCD 2. General provisions 2.1 the gross financial instruments and cash settlements in accordance with the principle of MAGPS.
2.2. to take the gross financial instruments and cash settlement, there must be a contract between the participants in the settlement, the LCD and the Bank of Latvia (hereinafter LB) cash settlement. Riga Stock Exchange (hereinafter Exchange) immediately in the event of transactions such contract must be concluded between brokers, LCD and LB. If the settlement is not money operator or broker account, cash settlements are performed LBS with its LCD Member, who has a money account and who has contracted the LB for LB on the LCD and cash settlement.
2.3. The settlement process is broker and settlement.
2.4. the settlement process messages. Message type is determined according to the provisions of no. 11 LCD "for data exchange."
Message type message title origin and destination 6041 OTC transaction registration task for sale (broker or account sending the reviewer) Broker or billing analyst-> LCD transaction registration 6042 OTC task purchase (send the broker or analyst settlement) settlement Broker or investigator — > LCD settlement confirmation agent 6101 financial instrument delivery billing performer — > reviewer's approval of the LCD 6102 Settlement money paid billing performer — > LCD LCD notice 327 mistakenly filled message LCD — billing performer > broker error notice 519 LCD confirmation messages (transaction registration refusal) LCD-settlement, whom > broker 6044 money klīrētāj approval cash settlement of the brokerage company billing analyst-LCD LCD notice 514 > in the settlements — billing performer LCD > 6049 OTC transaction cancellation notice Billing analyst-billing notice the LCD 317 > removal LCD — settlement investigator 2.5 > in Operation.
Gross settlement are carried out following operations: OTC deal — 06:07 3. Repo transaction reporting procedures 3.1. Settlement starts the LCD on the settlement date, if the LCD to the settlement date at noon. 14.30 received messages, 6041, 6042 6101, 6102, and information about the business in these reports. 6101 and 6102 are to receive, if they need the specified messages and 6042 6041. If the settlement is a brokerage firm analyst, LCD can start only after the settlement message receipt, which empowered 6044 LCD make a cash settlement of brokerage company, using the bank's money account LBS. Billing are initiated as soon as it is received in the settlement require reports.
3.2 LCD does not register message and sends the message to 327, in case the received message 6101 6102 6041, 6042, or the information is incorrect (for example, specified a non-existent account number LCD).
3.3. the LCD don't start billing and 519, in case any of the 3.3.1: received messages, 6101 or 6102 6041, 6042 specified information does not match.
3.3.2. to the settlement date at 14.30 not received all the required reports (6041, 6042, 6101 or 6102).
3.4. when submitting a transaction registration task, you can specify whether the reviewer's approval of the settlement. In the event the deal registration the applicant and the settlement of the task performer has two different LCD members, participants in the settlement approval is required.
4. Billing procedures 4.1 billing schedule: 4.1.1 Settlement are made every working day from 9 a.m. till 17.4.1.2. Settlement are executed in the order of registration of the message.
4.2. Financial instruments and cash transfer: 4.2.1. Entering the settlement of transaction participants offset the LCD financial instruments account is blocked in the settlement of the LCD the necessary financial instruments.
4.2.2. If settlement is available the necessary financial instruments, LCD, submit payment order LB. If the settlement is available the required amount of money, make cash transfers. LB.
4.2.3. The LCD after money transfer confirmation from LB blocked financial instruments previously carried out the transfer. After the settlement completion LCD LCD participant sends a notice of settlement 514.4.2.4. in case the financial instruments or amounts of money is not enough, the settlement shall be made as soon as the settlement date is available the necessary financial instruments or money.
4.2.5. If the end of the day to the settlement it is not possible to make a settlement, because there is no guarantee the necessary financial instruments or cash amount, settlement of the transaction is cancelled. LCD in this case to send the notification to the holder of the current account cancellation transaction logging 317.5. withdrawal 5.1. Registered account transaction is undone, if to the settlement date to the beginning of the LCD is a message received 6049 (cancellation of the transaction report). 6049 sends both settlement agents.
5.2. LCD confirms that the transaction is cancelled and shall send a notice of the 317 (billing cancellation notice).
6. the Transaction is posted to the account holder accounts 6.1. based on the billing statement on the LCD (report 514), the account holder shall take the following postings: 6.1.1. purchase of financial instruments account holder's accounts should be carried out as follows: (a) debit entries): 21 (financial instruments LCD);
(b)) credit: 11 (the customer's financial instruments account);
6.1.2. the sales of financial instruments account holder's accounts must be carried out as follows: (a) debit entries): 11 (the customer's financial instruments account);
(b)) credit: 21 (financial instruments LCD).
7. final provisions 7.1. provisions shall enter into force on the day following their publication in the newspaper "journal".
7.2. With the entry into force of these regulations shall lapse with the Latvian Central Depository Board decision of 19 November 1997 on the approved LCD instruction No. 13 "on LCD gross organised securities and cash settlements" and 26 November 1997 and March 8, 2000 in the amendments.