CIBC Mellon has added Latvia and Lithuania to its network.
It adds that the Riga Stock Exchange (RSE) in Latvia has an order driven and centralized trading system for dematerialized securities, with settlements via book-entry through the central depository on a delivery-versus-payment or free-of-payment basis. Securities are electronically cleared through the Latvian Central Depository, while cash is cleared through the Bank of Latvia. The settlement cycle for both equities and fixed income is T+3.
In Lithuania, equity transactions are traded on the Central Market of the National Stock Exchange of Lithuania (NSEL) is also order-driven, with settlement on a delivery-versus-payment basis on T+3. For equities traded as block trades, brokers choose a settlement cycle from T+1 to T+30. Treasury bills purchased on the primary market (in Bank of Lithuania auctions) settle T+3 and T+1 on the secondary market. Securities are traded on the Central Market and through block transactions.
CIOBC Mellon says entitlements in Latvia are based upon the record date for equities and bonds, while in Lithuania transfer of ownership and entitlements occurs on settlement date.