Final Obstacle To CSD In Czech Republic In 2006 Is Cleared

The Prague Stock Exchange (PSE) settlement subsidiary UNIVYC has signed an agreement with IT company PVT to provide technical support for the development of the Securities Centre Prague (SCP) into a fully fledged CSD. "This news removes the final obstacle

By None

The Prague Stock Exchange (PSE) settlement subsidiary UNIVYC has signed an agreement with IT company PVT to provide technical support for the development of the Securities Centre Prague (SCP) into a fully fledged CSD.

“This news removes the final obstacle to an application for a CSD licence,” says Vit Cermak, the head of custody at HVB Bank Czech Republic. “UNIVYC sent its application to the Securities and Exchange Commission (SEC) yesterday afternoon.”

According to Helena Cacka, the CEO of UNIVYC, a contract with PVT was signed last Friday. PVT has provided IT services to the SCP since its early days, and will now handle not only the transition from the present split responsibility, but operate the CSD after its completion.

A response from the SEC is expected after two months. The new CSD is expected to go live on 1 January 2006.

“The implementation of the CSD – a joint project of PSE and UNIVYC on one side and the Ministry of Finance and SCP on the other side – should further harmonise the Czech capital market along with EU standards,” says Cermak.

«