On the capital market of the Republic of Srpska is successfully implemented the transition to the new shorter cycle settlement T + 2 as of 1 January 2015.
Settlement represents execution of obligations arising from transactions on the stock exchange, or transfer of securities from the seller to the buyer followed by the transfer of funds from the buyer to the seller. Shortening cycle settlement from T + 3 to T + 2 means that the obligations arising from transactions will be executed on the stock exchange within two working days from the date of concluding the transaction on the stock exchange instead of the three working days. Shorter cycle alignment will shorten the time of exposure of the participants in the transactions to risk (counterparty risk) and reduce the costs of capital employed to cover the trading cycle by one third. Shorter cycle of settlement T + 2 will make the market faster and more efficient and allow investors quicker reinvestment of resources and better capital management. In accordance with the new regulations of the European Union from 6 October 2014, the shorter cycle of settlement T + 2 is adopted by 29 European markets. Harmonization of domestic legislation with EU regulations allow the Central Registry transition to shorter cycle of settlement T + 2. Shortening cycle alignment resulted from the permanent improvement of regulations and practices in the capital market of the Republic of Srpska and it will positively contribute to creating a more competitive investment environment in the capital market of the Republic of Srpska.
Central Registry of securities JSC Banja Luka
