CDAD begins the settlement of government securities

The Bulgarian Central Depository AD (CDAD)  has become a member of ESROT (BNB’s electronic system for registration and settlement of government securities) and, as of 12 February 2018, is able to settle transactions with government securities. The link established between CDAD and BNB will facilitate the settlement of government securities trades concluded on the Bulgarian Stock Exchange (BSE Sofia) between members of CDAD, which are not ESROT members. The link also allows investment intermediaries to safekeep their clients’ government securities in segregated accounts with CDAD.

To meet the membership requirements of ESROT, CDAD also enhanced its membership in RINGS (BNB’s real-time gross settlement system for BGN clearing), enabling it to make real-time BGN payments of dividends, interest, redemption and other corporate actions proceeds through RINGS.

CDAD has confirmed too that, as of 19 February 2018, it has become an ancillary system in TARGET2, which will allow CDAD to execute settlement of EUR-denominated government securities and make payments related to corporate actions for all securities denominated in EUR. The new functionality will also support the initiatives of BSE Sofia related to trading of international securities on BSE’s International Market and to trading via the regional platform SEE Link.