After fine-tuning the procedures with the Croatian National Bank and market participants, the Croatian Central Depository (SDA) has disclosed its term sheet on the transition of the payment processing from the current clearing to the full Real-Time Gross Settlement payments.
Starting July 4, SDA will accept and dispose settlement proceeds only through the RTGS system while, at the same time, abolishing its market-level pre-funding requirements.
Consequently, any settlement obligation arising from purchases that will be settled on July 4 will no longer require SDA members to forward funds to the SDA one day in advance and such purchases will have to be paid through RTGS only on July 4.
While the transition date has been set now, the issue of the official timing for the shortening of the stock exchange settlement cycle still remains open. Pursuant to the Securities Markets Law, the responsibility for the trading cycle is completely on the respective domestic stock exchanges.
This means that the Zagreb Stock Exchange and Varazdin Stock Exchange will have to pass official decisions regarding the acceptance of the T+3 cycle, together with the dates when the first trades under this shortened cycle are to be performed.
Sinisa Juric, spokesperson for HVB Splitska Banka said all purchases which are to be settled on or after July 4, will be paid by HVB Splitska Banka to the SDA with same day value. Accordingly, all customer accounts will be debited with the purchase amounts on the actual settlement date.