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Law (1999:1309) On Settlement Of Obligations On Financial Markets

Original Language Title: Lag (1999:1309) om system för avveckling av förpliktelser på finansmarknaden

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Scope and definitions



1 §/expires U: 2016-03-01/

This law applies to the notification and authorisation system

for clearing and settlement of obligations to pay or

to deliver financial instruments (securities settlement systems) on

the financial market.



In European Parliament and Council Regulation (EU) No 648/2012

of 4 July 2012 on OTC derivatives, central counterparties and

trade repositories, see special rules on clearing and

central counterparties. Law (2014:483).



1 §/comes into force: 2016-03-01/

This law applies to the notification and authorisation system for clearing and settlement of obligations to pay or to deliver financial instruments (securities settlement systems) on the financial market.



In European Parliament and Council Regulation (EU) No 648/2012 of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, see special rules on clearing and central counterparties.



In European Parliament and Council Regulation (EU) no 909/2014 of 23 July 2014 of improved securities settlement systems in the European Union and of central securities depositories and amending Directive 98/26/EC and 2014/65/EU and Regulation (EU) no 236/2012 lays down specific rules on securities settlement systems. Law (2016:54).



2 §/expires U: 2016-03-01/

In this law, the term



Administrator: a company that is responsible for the operations of

a securities settlement system; the company shall be deemed to be participants in

system,



signed settlement system: a settlement system in which a State

in the EEA has reported to the European Securities and

markets authority or the EFTA Surveillance Authority,



central securities depository "means an undertaking which has

authorisation to kontoföra financial instruments in

central securities depository register pursuant to the law (1998:1479) of

financial instruments,



Clearing House: a company authorised to drive

clearing operations under the Act (2007:528) on

the securities market,



EEA: European economic area,



collective insolvency proceedings: bankruptcy, reorganisation

or other similar procedure;



interlocking system: two or more notified settlement systems

the administrators have concluded a mutual arrangement

means that the transfer orders are executed between the systems.

Law (2012:190).



2 §/comes into force: 2016-03-01/

In this law, the term administrator "means an undertaking which is responsible for the activities of a securities settlement system; the company shall be deemed to be participants in the system, reported the settlement system: a settlement system in which a country in the EEA has reported to the European Securities and markets authority or the EFTA Surveillance Authority,



Clearing House: a company authorized to operate the clearing operations under the Act (2007:528) on the securities market, EEA: European economic area, collective insolvency proceedings: bankruptcy, reorganisation or other similar procedure;



interlocking system: two or more notified settlement systems whose administrators have entered into a mutual arrangement in which transfer orders executed between systems, and



central securities depository: same as in article 2.1.1 of Regulation (EU) no 909/2014, in the original wording.

Law (2016:54).



Approval of settlement systems



paragraph 3 of the administrator may, upon application by the financial services authority after

consultation with the Riksbank may accept the settlement systems under this

team. The Riksbank may operate securities settlement systems without

FSA approval.



4 §/expires U: 2016-03-01/

A securities settlement systems should have an administrator.



Administrator in a securities settlement systems may be:



1. clearing house,



2. central securities depository,



3. undertakings authorised to drive bank-or

finance law pursuant to lagen (2004:297) on banking and

finance law, and



4. company licensed under Chapter 2. 1 § 1, 2, 4 or 8

Act (2007:528) on the securities market. Law (2011:733).



4 §/comes into force: 2016-03-01/

A securities settlement systems should have an administrator.



Administrator in a securities settlement systems may be: 1. clearing house, 2. the Swedish central securities depository,



3. company authorized to operate the banking or finance law pursuant to lagen (2004:297) on banking and finance law, and 4. company licensed under Chapter 2. 1 § 1, 2, 4 or 8 teams (2007:528) on the securities market.



Specific rules on the operation of the securities settlement systems, see article 18(2) of Regulation (EU) no 909/2014. Law (2016:54).



section 5 of The securities settlement systems must have three or more participants

In addition to the administrator. It must be adequately

common rules and standardised arrangements in order to

execute transfer orders and rules that specify that Swedish law

shall apply to the system.



6 §/expires U: 2016-03-01/

A settlement system that meets the requirements of sections 5 and 8

and is administered by a clearing house or a central

Securities Depository shall be approved.



6 §/comes into force: 2016-03-01/

A settlement system that meets the requirements of sections 5 and 8 and is administered by a clearing house or a Swedish central securities depository to be approved. Law (2016:54).



section 7 of The securities settlement systems which satisfy the requirements set out in sections 5 and 8

and is operated by a company authorised to operate banking

or finance law pursuant to lagen (2004:297) on banking and

finance law or conditions referred to in Chapter 2. 1 § 1, 2, 4

or 8 teams (2007:528) on the securities market shall only

be approved if there are special reasons and the system caters for

the security requirements of the business and is

organised in such a way that the participants ' economic

position in the system can be accessed. In determining whether the

There are special reasons to the system's importance for the

financial stability is taken into account.



For approval as referred to in the first subparagraph is required in addition to

Administrator presents a plan for the business. In the plan

to the main risks associated with the activities

be described as well as how these risks will be managed

(risk management plan). Law (2011:733).



Participants in securities settlement systems



section 8/expires U: 2016-03-01/

Participants in a securities settlement systems may be:



1. The Central Bank and other central banks,



2. The Swedish national debt Office and foreign public institutions

in his native operates comparable to

Office,



3. clearing organizations,



4. central securities depository,



5. company authorized to operate the bank-or

finance law pursuant to lagen (2004:297) on banking and

finance law,



6. undertakings authorized pursuant to Chapter 2. paragraph 1 of the law (2007:528)

If the securities market,



7. foreign companies at home is driving activities

referred to in 3 and 6, as well as



8. other legal person winds up on their own account

obligations to deliver financial instruments in the system.



Foreign companies referred to in the first subparagraph 7, in the home Member State

be subject to prudent supervision by a public authority or any other

competent body. Law (2011:733).



section 8/shall enter into force in: 2016-03-01/

Participants in a securities settlement systems may be: 1. The Central Bank and other central banks, 2. The Swedish national debt Office and foreign public institutions operating in her country which is comparable to the Office, 3. clearing organizations,



4. Swedish central securities depositories,



5. company authorized to operate in banking or finance law pursuant to lagen (2004:297) on banking and finance law, 6. companies that are licensed pursuant to Chapter 2. paragraph 1 of the law (2007:528) on the securities market, 7. foreign companies in their home country runs the operations referred to in 3 to 6 and 8. other legal person on its own behalf liquidating obligations to deliver financial instruments in the system.



Foreign companies referred to in the first subparagraph 7 should be placed under supervision in the homeland safe by an authority or any other competent body. Law (2016:54).



Notification of settlement systems for securities

and markets authority



paragraph 9 of the financial supervision authority shall notify the approved settlement systems

to the European Securities and markets authority, as well as

who is the administrator for them. at the request of the Central Bank shall

the inspection also notify settlement systems operated by the Bank.

Law (2012:190).



Information on participation in securities settlement systems



section 10 of a participant in a reported settlement systems is required to

to anyone who has a legitimate business interest

provide information on which system the participant involved and the

main rules for these systems business.



Notice of bankruptcy or debt restructuring



11 § When the financial supervision authority has received notification of a

bankruptcy, or a decision on debt restructuring

in respect of a participant in a reported settlement systems, to

the inspection shall immediately inform the agency or agencies

as each State within the EEA, notified the Commission of the European

the Commission or the EFTA Surveillance Authority as

authorized recipients of such notification. Also The European

systemic risk Board and the European Securities and

markets authority shall immediately be informed.

Law (2012:190).



Applicable law



section 12 If a collective insolvency proceedings are opened against a

participants in a reported settlement systems, applicable to the

the participant's rights and obligations in the system the law

According to the rules of the system are to be applied.



Transfer orders



13 § Although a collective insolvency proceedings have been opened against

a participant in a reported settlement systems apply a

transfer orders as against third parties, if it has been introduced in

system or in an interoperable system before the decision on the

the procedure was announced.




A transfer order may not be revoked by a participant in

a reported settlement systems or by a third party after the

date referred to in the rules relating to the system or

for a collaborative system. Law (2011:733).



Guarantee cooperative system



13 AOF A administrator, but not such a central counterparty

referred to in the Regulation (EU) No 648/2012, who provide a guarantee

to another administrator by the deposit agreement in respect of

a collaborative system must not permit the pledgeholder right to

dispose of the deposit in any way other than to get the pledgeholder

realize it due to bankruptcy or deposit sättarens

breach of contract.



If the security setting in place is done by a

security transfer (repurchase agreements), the

Security Executive Administrator to ensure that the

the property or the equivalent property will be returned to

administrator if the acquirer declares bankruptcy.

Law (2014:483).



Supervision, etc.



section 14 of the financial supervision authority supervises the observance of this law. In

question about oversight applies to what is prescribed in the laws

regulates the activities of the institutions, subject to the provisions of this

team.



The administrator of an approved settlement system shall notify

Swedish financial supervisory authority (finansinspektionen) who are participants in the system and

immediately notify the supervision authority of any changes in

contributor circuit as well as changes in other relevant to the

the functioning of the system.



The Government or, by authority of the Government,

The Swedish financial supervisory authority, may provide details relating to the



1. in the case of an application for the approval of a settlement system shall

contain and



2. the duty of the administrator to leave the inspection

necessary information about the business.



section 15 Of the examination of an application for approval under this Act

the applicant shall pay the fee in accordance with the detailed rules

Government Announces. If the financial supervision authority for the assessment of a

some question at the trial or otherwise by reason of

changes of importance for the functioning of the need to hire

someone with specific expertise, the cost for this

paid for by the administrator.



16 §/expires U: 2016-03-01/

Approval of a settlement system to be revoked by

The Swedish financial supervisory authority on



1. the Administrator's permission for clearing operations according to

Act (2007:528) on the securities market or authorization

as a central securities depository under the law (1998:1479) on

account-keeping of financial instruments has been revoked,



2. the Administrator's permission to drive bank-or

finance law pursuant to lagen (2004:297) on banking and

finance law or conditions referred to in Chapter 2. 1 § 1, 2, 4

or 8 the securities market Act has been revoked, or



3. settlement system no longer meets the requirements of this

team.



The financial supervision authority shall promptly inform the European

Securities and markets authority and the EFTA

surveillance authority about the recall.



If there are enough get the inspection in the cases referred to in

the first paragraph 3 communicate warning instead of withdraw

approval. Law (2012:190).



16 §/comes into force: 2016-03-01/

Approval of a settlement system shall be revoked by the financial supervision authority if the



1. the Administrator's permission for clearing operations under the Act (2007:528) on the securities market or authorization as central securities depository according to Regulation (EU) no 909/2014 has been revoked,



2. the Administrator's authorizations to operate banking or finance law pursuant to lagen (2004:297) on banking and finance law or conditions referred to in Chapter 2. 1 § 1, 2, 4 or 8, the securities market Act has been revoked, or 3. settlement system no longer meets the requirements of this Act.



The financial supervision authority shall immediately notify the European Securities and markets authority and the EFTA Surveillance Authority on the recall.



If there are enough get the inspection in the cases referred to in the first paragraph 3 communicate warning rather than to withdraw approval. Law (2016:54).



section 17 of the Decision by the Swedish financial supervisory authority under this Act may be appealed

to the General Administrative Court. Decisions in the cases referred to

in paragraph 5 the Administrative Procedure Act (1986:223) may, however,

not subject to appeal.



Leave to appeal is required in the case of appeal to the

the Administrative Court of appeal.



The inspection may determine that a withdrawal decision

According to section 16 shall apply immediately. Team (2013:100).



Transitional provisions



1999:1309



1. This law shall enter into force on 1 January 2000.



2. Questions about approval of settlement systems may be tested before

its entry into force. A decision on such an issue shall apply

from the earliest entry into force.



2011:733



1. This law shall enter into force on 30 June 2011.



2. in the case of bankruptcy decided before the entry into force applies to older

provisions.



2013:100



1. This law shall enter into force on 1 July 2013.



2. Older regulations applies to decisions given

before the entry into force.



2014:483



1. This law shall enter into force on August 1, 2014.



2. For deposit agreements or agreements on security transfer has

concluded prior to the entry into force applies to older provisions.