Full range of cross-border settlement types available in Baltic securities market

10.05.2007 RIG

With introduction of cross-border OTC DVP functionality the Baltic CSDs have fulfilled the investors and market participants requirement for the clearing and settlement of full set of transactions types on cross-border secondary market – stock exchange trades (SE DVP), over-the-counter delivery versus payment (OTC DVP) and free of payment (OTC FOP) transfers.

The developed functionality supports clearing and settlement of Estonia, Latvian and Lithuanian securities in their national currencies (EEK, LVL and LTL respectively). Settlements in other currencies are possible only if supported by your local cash-clearing agent.

With introduction of real-time gross settlement of OTC DVP transactions in Estonia the Baltic CSDs have harmonized their clearing and settlement offers for local OTC DVP transactions. This functionality is already existing in Latvian and Lithuanian CSDs. Harmonization of Baltic CSDs’ core services and market practices in line with EU best practices is the basis for our region to become more attractive both for local as well as for foreign investors.

The Baltic CSDs continue to further harmonize their services and market practices for clearing and settlement. As the next step we will introduce Baltic Market Settlement Practices Guide to facilitate the understanding of the clearing and settlement practices in Baltic countries.