Latvian Central Depository rules No 1 on the LCD participants approved of the Latvian Central Depository Council meeting of 23 January 2004, in the Latvian Central Depository (LCD) Regulation No 1 "on the LCD participants" (hereinafter referred to as the rules) shall determine the admission and exclusion of members in the LCD. The rules developed based on financial instruments market law (hereinafter the law) article 94 in the second part of the second point.
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. Financial intermediary, investment firm or a credit institution which has a license for the provision of investment services or activities of a credit institution established in a Member State of the investment firm or credit institution established in a Member State which prescribed by law is entitled to initiate the provision of investment services or activities of a credit institution registered in a foreign company, which provides investment and law have the right to take possession of the financial instruments.
1.3 LCD participant financial intermediary who made the holding of financial instruments that are posted to the LCD and/or the settlement of transactions in financial instruments.
1.4. participant status of the issuer in the LCD — issuers of financial instruments, which, by becoming a member, you get the right LCD LCD post financial instruments and that the LCD open emissions account for every kind of financial instrument.
1.5. the special status of the LCD participants — Member States, the Republic of Latvia, the Republic of Latvia and the Member State authorities, the Bank of Latvia, the market Organizer.
1.6. Financial instrument for the event — is any fact or circumstance which affect the characteristics of financial instruments, as well as the issuer's action, a commitment to the financial instrument.
1.7. Code ISIN – internationally recognized identification number of financial instruments (English cur-International Securities Identification Number) assigned to each kind of LCD for financial instruments. ISIN code assignment in accordance with the national numbering Agency Association (Association of National Numbering agencies — Anna) standards.
1.8. the offset account LCD — financial instruments accounting account open to members and the LCD LCD list all the members of the current holdings of the LCD to financial instruments.
1.9. Source document, the grounds for the posting or the operation of the financial instruments.
1.10. the Member code: 4-digit LCD, which is assigned to each financial intermediary or an issuer of financial instruments by taking them on an LCD or LCD members issuer status.
2. General provisions 2.1 the rules provide procedures: 2.1.1. financial intermediaries becomes a LCD, as well as members of the order in which financial intermediaries may be stopped or reversed LCD, the participant's status;
2.1.2. the LCD open there and closed the accounts of financial instruments financial intermediary who made the holding of financial instruments that are posted to the LCD, LCD; 2.1.3. give the right to suspend or revoke financial intermediary to make LCDS with posted transactions financial instruments and financial instruments events related to the settlement of financial instruments;
2.1.4. LCD grant, suspend or revoke the right to financial intermediary to make LCDS with posted transactions financial instruments and financial instruments events associated cash accounts.
2.2. the issuers of participant status in the LCD the reception and procedures governed by the LCD turn off rules No 2 "On financial instrument accounting of emissions".
2.3. the special status of the LCD Member admission and exclusion procedures governed by these rules, in so far as it is possible. If necessary, the LCD has the right to impose additional requirements the special status of a participant in the LCD capture and removal of the LCD. 2.4. If a financial intermediary becomes foreign central depository or settlement of financial instruments of the organizing organization, with which the LCD has entered into a cooperation agreement, and its open financial intermediary financial instruments accounts that allowed to hold and use the financial instruments that are posted to the LCD, it is considered that this financial intermediary LCD does not directly open the offset accounts for 2.5 LCD LCD. copies of documents to be submitted are presented according to the laws of the Republic of Latvia.
2.6. Exchange of information between the LCD and LCD members takes place in electronic form and in accordance with Regulation No 11 LCD "for data exchange".
3. the types of activities participants LCDS 3.1 LCD members who performed the 3.1.1: financial instruments, which are posted on the LCD, hold and service;
3.1.2. the LCD posted financial transactions and financial instruments events related to the settlement of financial instruments;
3.1.3. with LCD posted financial instrument transactions and financial instruments events associated cash accounts.
3.2 LCD members — financial instruments account holder who made financial: 3.2.1. instruments that are posted to the LCD, hold and service;
3.2.2. the LCD for the posted transactions and financial instruments events related to the settlement of financial instruments;
3.3 LCD participant accounting analyst who performed: 3.3.1 with LCD posted financial transactions and financial instruments events associated cash accounts.
4. admission procedure the LCD participants 4.1 financial intermediary To become members and allow the LCD to the activity referred to in point 3.1., it shall submit the following documents: the LCD 4.1.1. application;
4.1.2. a certificate of registration or an equivalent copy of the document;
4.1.3. the Statute, or similar copy of the document;
4.1.4. Financial and capital market Commission (hereinafter the Commission) issued a licence for the provision of investment services, which gives the right to take possession of financial instruments, or of the business of credit institutions, or equivalent document (you);
4.1.5. the document certifying person the power to represent the financial intermediaries and the financial intermediary's name to sign contracts and other documents, a copy of it;
4.1.6. working with the LCD the trustee of financial intermediary signatures;
4.1.7. the completed form with data on financial intermediaries;
4.1.8. the completed form with data on financial intermediaries on financial instrument accounting and billing departments responsible employees;

4.1.9. the document that contains the two financial intermediary of employee names and ID number, which is valid for LCD professional certificates;
4.1.10. the accounting of financial instruments and the settlement of payments;
4.1.11. the financial instruments accounting and billing software used;
4.1.12. the financial instruments accounting and billing database protection;
4.1.13. the accounting of financial instruments and the settlement of internal control (audit);
4.1.14. financial intermediaries unit carrying out the financial instruments account opening, keeping and room service, description;
4.1.15. of financial intermediaries, the parties signed the agreement on the participation of LCD (2 copies under the LCD model);
4.1.16. of financial intermediaries, the parties signed a tripartite cooperation agreement between the LCD, the Bank of Latvia and the financial intermediary for the supply of financial instruments for payment transactions gross cash settlement (under the LCD model);
4.1.17. from the financial intermediary parties signed a tripartite cooperation agreement between the LCD, the Bank of Latvia and the financial intermediary for the supply of financial instruments for payment net cash settlement of transactions (under LCD model).
4.2. financial intermediary To become members and allow the LCD to the activity referred to in point 3.2, 4.1.1-4.1.15. LCD submitted the documents listed, as well as the cooperation agreement concluded between financial intermediaries and LCD members, who shall have the right to do with the LCD for the posted transactions and financial instruments events associated cash accounts, copy.
4.3. financial intermediary To become members and allow the LCD to 3.3 in the steps above, it shall submit 4.1.1-4.1.9. The LCD point and paragraph 4.1.15., 4.1.17 documents referred to, but-in paragraph 4.1.14 4.1.10 documents presented and submitted to the extent that they relate to the LCD for the posted transactions and financial instruments events related to cash settlement.
4.4. financial intermediaries taking on the LCD, the LCD Board members shall decide within 10 working days after the document referred to in point 4.1 of the submission of the LCD the LCD Board is 4.5. right to refuse to host financial intermediaries on LCD participant if the financial intermediary LCD provided incomplete or inaccurate information. LCD Board may decide on the admission of financial intermediary for participants in the LCD 4.4.
4.6. the LCD Board decision indicates that while financial intermediaries becomes LCD members, and what actions it is permitted to do.
4.7. If a financial intermediary, becoming LCD participant is allowed to hold and use financial instruments, LCD then open offset accounts LCD. 4.8 LCD will provide a new LCD of the new LCD participants participant and all existing LCD members, indicating at least the following information: the name of the participants 4.8.1 LCD;
4.8.2. LCD participant registration number;
4.8.3. LCD Member registration date;
4.8.4. LCD members address;
4.8.5. LCD members code;
4.8.6. financial intermediaries member of reception on LCD.
4.9 LCD Board decision about the admission of financial intermediary LCD members published on the website on the internet. The LCD
5. changes to the LCD data members 5.1 members of LCD is obliged to notify the LCD of any changes to the documents referred to in point 4.1 of 5 working days from the date of the changes.
5.2. If necessary, the LCD Board within 10 working days after the document referred to in point 5.1. submission LCD LCD participants shall take a decision on the exchange of data.
5.3. If you made changes to the LCD base data member (4.8.1-4.8.6. that information), the LCD will provide all the LCD, indicating the current participants 4.8.1-4.8.6. information referred to in paragraph 1.
5.4. the decision of the Board on the LCD the LCD data exchange participant shall be published on the website on the internet. The LCD
6. LCD activity change 6.1. If the LCD participant wants to expand the range of activities allowed under rule 3.1, it shall submit the necessary documents to the LCD according to point 4.1.
6.2. If the LCD participant wants to narrow the scope of activities allowed under the rules, the 3.2 LCD application and agreement of cooperation concluded between the LCD and the other members of LCD members, who shall have the right to do with the LCD for the posted transactions and financial instruments events associated cash accounts, copy.
6.3. If the LCD participant wants to narrow the scope of activities allowed under the rules, the LCD 3.3 application and agreement of cooperation concluded between the LCD and other participants participant Member on LCD LCD holding financial instruments Portfolio acquisitions, copy.
6.4. the LCD expansion or member of the Executive Board shall decide upon the narrow LCD 10 working days after the submission of the required documents LCD according to 6.1. – 6.3.
6.5 LCD Board has the right to refuse to extend the participants or the LCD to narrow the actions allowed if LCD LCD members have provided incomplete or inaccurate information. LCD Board may decide on the LCD participant activities allowed expansion or reduction in paragraph 6.4.
6.6. The LCD Board decision indicates that while the LCD is allowed to expand or narrow the allowed actions.
6.7. the decision of the Board on the LCD LCD participant activities allowed expansion or restriction shall be published in the website on the internet. The LCD
7. LCD monitoring 7.1 Each participant LCD operator is responsible for his own sort of financial instrument accounting and transactions with financial instruments related to the settlement.
7.2. the LCD has the right at any time to check the LCD in the financial instruments of the members organize accounting and transactions with financial instruments related to the accuracy of billing and compliance with the provisions of the LCD
7.3. LCD check: 7.3.1 General accounting of financial instruments and transactions with financial instruments linked settlement systems against the LCD;
7.3.2. the total number of financial instruments in the financial instruments of the individual accounts of the owners of the compliance with the financial instruments to offset the number of LCD accounts (balance sheet financial instruments);
7.3.3. the owner of the individual financial instruments financial instruments accounts compliance LCD accounting system registered posting (the operation journal and the main book);
7.3.4. financial instruments and the associated cash accounts are correct;
7.3.5. financial instruments and the associated cash accounts of time limits;

7.3.6. accounting (excuse) document design, insofar as it related to the accounting for financial instruments and settlement;
7.3.7. accounting (justification), so far as it related to the accounting for financial instruments and settlement;
7.3.8. the internal control system (audit), in so far as they related to the accounting for financial instruments and settlement;
7.3.9. the internal control (audit) and the results found during the correction of deficiencies, in so far as they related to the accounting for financial instruments and settlement;
7.3.10. technical support of the participant's compliance with the LCD;
7.3.11.4.1.1. – and paragraph 4.1.17 LCD the validity of the documents submitted;
7.3.12. other financial instruments accounting and settlement-related activity and LCD documents, on the basis of which these operations were carried out.
7.4. After examination of each participant dials the LCD test. If during the examination of the irregularities, they are fixed by the test Act.
7.5. Member of each LCD test results are communicated to the LCD Board that irregularity case down the deadlines for the correction of infringements and penalties.
7.6. the participants in the LCD Found sort of accounting of financial instruments and transactions with financial instruments related to non-compliance with the settlement terms, the Board of the LCD the LCD can be applied the following penalties: 7.6.1. warn;
7.6.2. in imposing a fine;
7.6.3. suspend the Member's membership; the LCD LCD 7.6.4. put LCD participant holding the portfolio of financial instruments in other LCD members;
7.6.5. excluded LCD participants from LCD. 7.7. during the inspection Of the alleged infringements and the LCD Board established the prevention of deadlines and penalties LCD LCD members immediately informed and the Commission.
7.8. After expiry of the irregularities are made to participants. The LCD
7.9. The LCD Board may determine the detailed modalities of inspections of members of the LCD.
8. LCD Member suspension 8.1 LCD Board is entitled to temporarily suspend the operation of the LCD, the LCD participant if the participant has breached the LCD. LCD Board renewed operation of the LCD the LCD participants after the violations are corrected.
8.2. If the LCD Board within the irregularities are not corrected, the LCD Board may decide on the exclusion of a member from the LCD LCD. 8.3. If the Commission has stopped the financial intermediary license for the provision of investment services, which give the right to hold financial instruments or credit transaction, or equivalent document, LCD LCD activity will be suspended for the moment, the Commission has suspended the license issued to the participants.
8.4. LCD Board decision about the LCD the LCD of the suspension shall be published in the members home page on the internet.
8.5 LCD members after the suspension of one business day LCD submitted information on all customers with open account financial instruments at the LCD, indicating members natural persons — the customer's name, surname and personal code, or other identification number, legal name, registration date and number, as well as the financial instrument account number, account keeping financial instrument ISIN code and the number.
8.6. If the LCD the LCD has stopped operation of the participant, the participant shall not be entitled to LCD to do anything with it holding the existing financial instruments, with the exception of: completion of settlement for 8.6.1. transactions with financial instruments, concluded before the suspension of the participants; the LCD
8.6.2. LCD participant holding a portfolio of financial instruments transfer to another Member of the LCD;
8.6.3. other necessary actions in accordance with the decision of the Executive Board of the LCD.
8.7. If, at the time of the Member's activity is the LCD LCD LCD stopped out with financial instruments events related cash costs in the LCD, the participants for the benefit of the customer in the amount of money received by the financial instrument for the transfer of the portfolio to another Member of the LCD.
5.5. If the participant's activities have been suspended for more than an LCD five days the LCD Board is empowered to take a decision on the participant's financial instruments accounting forced the transfer of the other participant or LCD LCD LCD. the following reproduces the accounts shall be made on the basis of special regulations.
8.9. the participants of the action of the LCD is restored with the LCD Board decision.
8.10. The LCD Board decision on the renewal of the LCD activity published in the Web site. The LCD
9. LCD members off 9.1. If a Member wishes even the LCD to terminate the operation of LCD: 9.1.1. it submits application for LCD: 9.1.1.1, indicating the date on which the participant intends to terminate the operation of LCD; cooperation agreement 9.1.1.2. between the LCD and the other members of the participants on the participant's LCD LCD holding financial instruments Portfolio acquisitions after the date shown in paragraph 9.1.1.1, copy;
9.1.2. the cooperation referred to in paragraph 9.1.1.2 of the contract need not be made if the planned termination of the moment the switch is a member of all LCD customer accounts;
9.1.3. the document referred to in paragraph 9.1.1 to LCD Board of receipt within 10 working days, decide on an inspection to the Member who intends the LCD to terminate the operation of the LCD Board LCD; 9.1.4. decide on the LCD of the participant within 10 working days after the results of the examination Board, the examination if the examination to the LCD is not detected irregularities; the LCD
9.1.5. If it is found during the inspection rules, LCD LCD Board decides on the LCD again participant within 10 working days following the receipt of the information of the members of the examination to the LCD found irregularities.
9.2. If the Commission has been revoked by the financial intermediary license for the provision of investment services or activities of the credit institution, or equivalent document: 9.2.1. LCD participant considered off at the moment when the Commission has withdrawn the licence issued to the participants;
9.2.2. LCD inspection on LCD during participant, taking over from the LCD to the participants of the financial instruments and the settlement of related accounting documents;
9.2.3. The LCD Board after an inspection check of other LCD members, who takes over the member holding the LCD financial instruments portfolio;
9.2.4. LCD members are not entitled to make any actions with it holding financial instruments, with the exception of: completion of settlement of 9.2.4.1. transactions with financial instruments, concluded before the suspension of the participants; the LCD
9.2.4.2. where necessary, other actions in accordance with the decision of the Executive Board of the LCD.

9.3. If the LCD has been allowed participants to hold and use financial instruments, by turning off the LCD the LCD participants switch then open offset accounts LCD. 9.4. decision of the Board on the LCD LCD LCD participant shall be published on the internet website.
9.5. The LCD after elimination date a member is entitled to take steps to regularize the obligations to the holders of financial instruments.
10. final provisions 10.1. provisions shall enter into force on the day following their publication in the newspaper "journal".
10.2. With the entry into force of these regulations shall lapse June 16, 1995, the decision of the Board of Directors approved LCD LCD instruction No 1 "for participants" and amended it, as well as with LR Ministry of finance 1995 order No. 266 of the Latvian Central Depository approved rules and amendments thereto.