Settlement services - Romania
Pre-matching service
The table below summarises CBL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL's pre-matching services, see Pre-matching services for external settlement instructions.
| Service offered | Method employed | Start (local time) | |
| All securities | |||
Immediate Release Flag available | “Manually” via fax, telephone or file exchange | Upon receipt of settlement instruction from the customer or advice from the local counterparty, chronologically throughout the day. | |
| Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the “Immediate Release” option. |
Xact via SWIFT and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Local pre-matching, which is market practice, starts, subject to counterparty availability, on receipt of instructions and continues until Settlement Date (SD).
Note: To ensure timely pre-matching of their trades in the Romanian market, clients are strongly recommended to use the immediate release flag in their settlement instructions.
Domestic allegement matching service
Complementary to the pre-matching service offered for this market, where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.
If no matching customer instruction is found, the allegement is reported to the customer provided that its Clearstream Banking account number is present.
For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.
Procedures for domestic counterparties
In order to provide trade confirmations and arrange pre-matching of instructions, clients must advise their domestic counterparties to contact the Settlement desk at CBL’s depository BRD as follows:
Dorina Luculet | Cristian Dragoi | |
| Telephone: Fax: | +40 21 2008366 +40 21 2008373 | +40 21 2008392 +40 21 2008373 |
Procedure for the domestic counterparty | Deadline |
Securities that settle in SaFIR | |
Deliver to/receive from: Clearstream Banking Luxembourg PSET: NBORROBB For/from: Clearstream Banking Luxembourg (BIC: CEDELULL), account number: CEDE1 (CBL account at NBR.) By order of: CBL customer account number | Market deadline |
Securities that settle in ArenaPT | |
For RON-denominated securities Deliver to/receive from: Clearstream Banking Luxembourg PSET: DECNROBUXXX For/from: Clearstream Banking Luxembourg (BIC: CEDELULL), account number: 5269897 (CBL account number at BRD.) By order of: CBL customer account number | Market deadline |
For EUR-denominated securities Deliver to/receive from: Clearstream Banking Luxembourg (BIC: CEDELULL) PSET: DECNROBUXXX For/from: Clearstream Banking Luxembourg (BIC: CEDELULL), account number: 52669901 (CBL account number at BRD.) By order of: CBL customer account number | |
Fees for pure OTC trades
Pure OTC trades (without on exchange legs) at Depozitarul Central S.A. (CSD) bear additional fees as listed below:
- Settlement fee: 0.095% applied to the settlement amount;
- Matching fee: 0.08% applied to the settlement amount;
- FSA fee: 0.06% applied to the settlement amount, only for buy trade;
- Late instruction fee, if the trade date is different from the settlement date and the instruction will be released on settlement date:
- until 10:30 CET: 50 RON;
- until 13:30 CET: 100 RON.
Specific settlement rules/settlement restrictions
Settlement on the secondary market in SaFIR occurs on a contractual basis and can be T, T+1 or T+n.
As indicated in the rules regarding the registration and settlement of government securities in SaFIR, free of payment trades between participants can only be portfolio transfers. As a consequence, clients must ensure that they send only free of payment instructions for portfolio transfers. A special format is required; please refer to the relevant CBL instruction specifications (see links below).
Euro-denominated securities, may settle in RON if the counterparties agree accordingly.
Settlement on the secondary market in ArenaPT (CSD) occurs on T+2.
As indicated in the rules regarding the registration and settlement of municipal, foreign bonds, corporate bonds and equities in ArenaPT (CSD), free of payment trades between participants in the CSDs can only be portfolio transfers (NCBO), and clients should act accordingly. As a consequence, clients must ensure that they send only free of payment instructions for portfolio transfers. A special format is required; please refer to the relevant CBL instruction specifications.
ArenaPT (CSD) eligible bonds and equities can settle exclusively in RON.
T2S (CSD) eligible EUR bonds are limited to internal settlement and FoP (NCBO) domestic transactions.
Bridge settlement
SaFIR (NBR) Romanian government securities are Bridge eligible.
ArenaPT (CSD) eligible bonds and equities are not Bridge eligible.
T2S (CSD) eligible EUR bonds and equities are not Bridge eligible.
Back-to-back processing
Back-to-back processing does not exist in SaFIR and ArenaPT.
However, CBL can support back-to-back processing; CBL's depository will process the instructions as linked transactions. If both the customer and the domestic counterparty meet their settlement obligations within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value.
To benefit from this functionality, clients must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used, as follows:
| Connectivity medium | Pool ID format | Field(s) to be used |
Xact via SWIFT and Xact File Transfer | :POOL//16xa and :SETR//TURN | Field :20C: sequence A1 Field :22F: sequence E |
a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.
New issues settlement
Auctions on Romanian government securities are organised by the NBR. Primary dealers in the NBR system place bids for auctions.
Subscription to primary auctions is not possible via CBL for any type of Romanian securities; only secondary market trades can settle via CBL.
Settlement Discipline Regime and related domestic market settlement functionalities
Recycling of pending transactions
CSD: No recycling.
NBR:
Unmatched instructions will be recycled during 20 business days and then cancelled by the SaFIR NBR system.
Matched, but not settled instructions will be cancelled after 4 business days (starting from the date of receipt or on the day the last modification was sent for this instruction).
Bilateral cancellation
This means that matched instructions can only be cancelled if both domestic counterparties request a cancellation of their instructions.
Until the cancellation confirmation is received from the market, the instruction will remain eligible for settlement, that is, the instruction may be provisioned and proposed for settlement and may be subject to cash penalties.
CSD: Yes for matched instructions.
NBR: Yes
Hold and release
Not available on the market via CBL.
Partial settlement
Not available on the market.
Cash tolerances
In SaFIR cash discrepancies between custodian instructions are allowed.
For EUR settlement instructions, the tolerance level is EUR 2 for instructions with a maximum settlement amount of EUR 100,000 and EUR 25 for instructions with a settlement
amount of more than EUR 100,000.
For settlement instructions in other currencies (RON), the tolerance level is equal
to the equivalent amounts calculated on the basis of the ECB's official exchange rate on the
1 January of the current year.
In ArenaPT, for EUR settlement instructions, for settlement amounts equivalent to less than or equal to EUR 100,000, the tolerance level will be equivalent to EUR 2, while for settlement amounts that are equivalent to more than EUR 100,000, the tolerance level will be equivalent to EUR 25.
For settlement instructions in RON currency, the amounts equivalent to less than or equal to RON 500,000 the tolerance level will be 10 RON, while for amounts that are equivalent to more than RON 500,000 the tolerance level will be 124 RON.
For settlement instructions in currencies other than EUR, CSDs should use the official exchange rates of the European Central Bank (ECB), valid on 1 January of the respective calendar year.
For domestic against payment instructions, the maximum discrepancy tolerated in settlement matching varies in accordance with market practice and the conditions of the domestic link.
Matching information
The trade date is a mandatory matching criteria and domestic instructions will follow local market rules.
Cash penalties
Penalties will be calculated and applied on matched settlement instructions that fail to settle, in full or in part, on and after their intended settlement date (ISD), if both the settlement instruction and the relevant financial instrument are subject to cash penalties.
Instruments subject to cash penalties
Any financial instrument listed in the Financial Instruments Reference Data System (FIRDS) database maintained by ESMA will be subject to cash penalties. However, cash penalties will not apply to shares listed in the Short Selling Regulation (SSR) exemption listed in the Short Selling Regulation (SSR) exemption list.