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Regulation for the Securities Settlement System of the Bank of Latvia
COUNCIL OF THE BANK OF LATVIA
| Riga, 20 April 2009 | Regulation No. 166/1 |
Regulation on Participation
in the Securities Settlement System of the Bank of Latvia
Issued pursuant to
Item 2 of Paragraph 1 of Article 72 of the
State Administration Structure Law
1. Hereby the "Regulation for the Securities Settlement System of the Bank of Latvia" (Appendix 1) and sample agreements "On Participation in the VNS" (Appendices 2-4) have been accepted and approved.
2. Chairman of the Board of the Bank of Latvia or a member of the Board of the Bank of Latvia authorised by him has been authorised to sign agreements with participants of the securities settlement system of the Bank of Latvia referred to in Paragraph 1 of this Regulation.
3. An agreement with the present participants of the securities settlement system of the Bank of Latvia (except the Financial and Capital Market Commission) shall be concluded as per the sample agreement presented in Appendix 2 hereto.
4. An agreement with participants of the securities settlement system of the Bank of Latvia to be concluded as of 1 June 2009 shall be concluded as per the sample agreement presented in Appendix 3 hereto.
5. An agreement with the Financial and Capital Market Commission shall be concluded as per the sample agreement presented in Appendix 4 hereto.
6. By 1 June 2009, the Board of the Bank of Latvia shall approve the message forms related to participation in the securities settlement system of the Bank of Latvia and ensure their public availability on the website of the Bank of Latvia.
7. By 30 April 2009, the Market Operations Department of the Bank of Latvia shall notify the participants of the securities settlement system of the Bank of Latvia on the termination of the existing agreements "On Participation in the Securities Settlement System of the Bank of Latvia" as of 1 June 2009.
8. The Bank of Latvia's Council Resolution No. 131/6 "On Approving the "Regulation for the Securities Settlement System of the Bank of Latvia"" of 16 November 2006 shall be deemed invalid.
9. The Regulation, apart from Paragraph 8 herein, shall take effect on 21 April 2009.
10. Paragraph 8 of this Regulation shall
become effective on 1 June 2009.
| Governor of the Bank of Latvia | I. Rimðçviès |
Appendix 1
to Regulation No. 166/1
of the Council of the Bank of Latvia
REGULATION FOR THE SECURITIES SETTLEMENT SYSTEM OF THE BANK
OF LATVIA
I. General provisions
1. The Regulation provides for the mutual rights and
obligations of a participant and the Bank of Latvia.
2. Terms used in the Regulation:
2.1 bank - a bank or a branch of a foreign bank registered
in the Republic of Latvia, as well as a bank and a branch of a bank of
another Member State, entitled to the right to deliver financial
services in the Republic of Latvia pursuant to legislation;
2.2 bank's collateral - securities held on a bank's
securities account;
2.3 BIC - the bank identifier code in accordance with the
international standard ISO No. 9362 "Bank Identifier Codes";
2.4 participant - an entity that has entered into an
agreement on participation in the VNS, the Financial and Capital Market
Commission that has entered into an agreement on participation in the
VNS, and the Bank of Latvia;
2.5 Member State - a country of the European Economic Area;
2.6 business day - any day on which the VNS operates in
accordance with Appendix IV herein;
2.7 branch - a branch within the meaning of Clause 2 of
Section 1 of the Law "On Credit Institutions";
2.8 insolvency proceedings - insolvency proceedings within
the meaning of Clause 11 of Section 1 of the Law "On Settlement
Finality in Payment and Financial Instrument Settlement Systems";
2.9 cash account - a participant's account with the Bank of
Latvia, the funds whereof are used by the participant for settlements
in lats in the Bank of Latvia's payment systems;
2.10 event of default:
2.10.1 where the participant no longer meets the requirements of Paragraph 8 herein;
2.10.2 the opening of insolvency proceedings in relation to the participant;
2.10.3 the submission of an application relating to the insolvency proceeding as stipulated by law;
2.10.4 the issue by the participant of a written declaration of its inability to pay all or any part of its debts or to meet its obligations arising in relation to intraday credit;
2.10.5 the participant has been declared insolvent according to the procedure stipulated by law;
2.10.6 where the participant's stock of outstanding securities on its securities account or all or a substantial part of the participant's assets are subject to a freezing order, attachment, seizure or any other procedure;
2.10.7 where any material representation made by the participant or which is implied to have been made by the participant under the applicable law is incorrect or untrue, and which may threaten the performance by a participant of its obligations under the Regulation or any other regulations applied to the relationship between that participant and the Bank of Latvia;
2.10.8 the assignment of all or a substantial part of the participant's assets which may threaten the performance by a participant of its obligations under the Regulation or any other regulations applied to the relationship between that participant and the Bank of Latvia;
2.10.1 where the participant no longer meets the requirements of Paragraph 8 herein;
2.10.2 the opening of insolvency proceedings in relation to the participant;
2.10.3 the submission of an application relating to the insolvency proceeding as stipulated by law;
2.10.4 the issue by the participant of a written declaration of its inability to pay all or any part of its debts or to meet its obligations arising in relation to intraday credit;
2.10.5 the participant has been declared insolvent according to the procedure stipulated by law;
2.10.6 where the participant's stock of outstanding securities on its securities account or all or a substantial part of the participant's assets are subject to a freezing order, attachment, seizure or any other procedure;
2.10.7 where any material representation made by the participant or which is implied to have been made by the participant under the applicable law is incorrect or untrue, and which may threaten the performance by a participant of its obligations under the Regulation or any other regulations applied to the relationship between that participant and the Bank of Latvia;
2.10.8 the assignment of all or a substantial part of the participant's assets which may threaten the performance by a participant of its obligations under the Regulation or any other regulations applied to the relationship between that participant and the Bank of Latvia;
2.11 SAMS - the Bank of Latvia interbank automated payment
system;
2.12 SWIFT (Society for Worldwide Interbank Financial
Telecommunication) - an international organization established by banks
to ensure the transmission of interbank financial messages by means of
the telecommunications network;
2.13 securities - debt securities registered with the
Latvian Central Depository (hereinafter, the LCD);
2.14 securities account - a participant's account for
securities settlement and recording in the VNS;
2.15 securities transfer order - a participant's instruction
to the Bank of Latvia to execute a securities transfer within the VNS
or from the VNS to the LCD, as well as an LCD instruction to execute a
securities transfer from the LCD to the VNS.
2.16 VNS - the Bank of Latvia securities settlement system.
II. Appendices
3. The following Appendices form an integral part of the
Regulation:
APPENDIX I. Technical specification of the securities
transfer orders;
APPENDIX II. Terms of reference for capacity and country
opinions;
APPENDIX III. Business continuity and contingency procedures;
APPENDIX IV. Operating schedule;
APPENDIX V. Commission fees and their application.
4. In the event of any conflict or inconsistency between the
content of any appendix and the content of any other provision in the
Regulation, the latter shall prevail.
III. General description of the VNS
5. The VNS is a real-time gross settlement system ensuring
securities settlement of the Bank of Latvia monetary and intraday
credit operations as well as other actions related to securities
settlement.
6. The VNS is designated as a securities settlement system
under the Law "On Settlement Finality in Payment and Financial
Instrument Settlement Systems".
7. The Bank of Latvia specifies the VNS technical
configuration and acts both as the VNS operator and an individual
participant.
IV. Participation in the VNS
8. Operational requirements for participation in the VNS
8.1 An
applicant participant shall have a cash account opened in the SAMS.
8.2 An applicant participant shall ensure a possibility to
exchange information electronically with the Bank of Latvia, with the
help of SWIFT connection. The applicant participant shall enter into an
agreement with the SWIFT to obtain the necessary connections in
accordance with the technical specifications of securities transfer
orders provided in Appendix I.
9. Application procedure
9.1 An applicant participant shall apply in writing to the
Bank of Latvia, enclosing an application for participation (in free
format).
9.2 The Bank of Latvia may also request from the applicant
participant the capacity opinion and country opinion as stipulated in
Appendix II hereto, as well as any other information it deems necessary
to decide on the application to participate.
9.3 The Bank of Latvia shall communicate its decision on the
application to participate to the applicant participant within one
month of the Bank of Latvia's receipt of the application to
participate. Where the Bank of Latvia requests additional information
pursuant to Paragraph 9.2 herein, the decision shall be communicated
within one month of the Bank of Latvia's receipt of this information
from the applicant. Any rejection decision shall contain reasons for
the rejection.
9.4 The Bank of Latvia shall reject the application to
participate if the applicant participant fails to meet the requirements
stipulated in Paragraph 8 or if, in the Bank of Latvia's assessment,
such participation would endanger the overall stability, soundness and
safety of the VNS, or would jeopardise the Bank of Latvia's performance
of its tasks as defined in the Law "On the Bank of Latvia".
9.5 In case the Bank of Latvia decides to approve the
participation of the applicant participant in the VNS, the Bank shall
communicate to the applicant participant the date on which it will
become a participant in the VNS.
10. Directory of participants
10.1 The Bank of Latvia has the right to maintain the
directory of participants and publish it on the Bank of Latvia's
website.
10.2 The Directory of participants shall contain the names
and the BICs of participants.
11. Duration and ordinary termination of participation
11.1 Without prejudice to Paragraphs 12 and 13 herein,
participation in the VNS is for an indefinite period of time.
11.2 A participant may terminate its participation in the
VNS at any time giving 14 business days' notice thereof, unless it
agrees a shorter notice period with the Bank of Latvia.
11.3 In the event the Bank of Latvia suspends or terminates
the VNS operation, the Bank of Latvia may terminate a participant's
participation in the VNS, giving six months' notice thereof, unless it
agrees a different notice period with that participant.
11.4 On termination of participation, the confidentiality
duties laid down in Paragraph 29 herein remain in force for a period of
five years starting on the date of termination.
11.5 Where participation is terminated according to the
procedure stipulated in Paragraphs 11.2, 11.3 or 13, the participant
shall submit to the Bank of Latvia an order to transfer all securities
from its securities account to a securities account with the LCD.
The Bank of Latvia shall execute the securities transfer order if the
participant has met its obligations to the Bank of Latvia.
Subsequently, the Bank of Latvia shall close the settlement account of
the respective participant.
12. The Bank of Latvia may suspend a participant's
participation in the VNS, notifying all VNS participants to that
effect, where
12.1 one or more events of default (other than those referred to in Paragraph 13.1 herein) occur;
12.2 the participant is in repeated material breach of the Regulation;
12.3 the participant repeatedly fails to carry out any material obligation to the Bank of Latvia which, in the Bank of Latvia's assessment, would threaten the overall stability and safety of the VNS, or which would jeopardise the Bank of Latvia's performance of its tasks as defined in the Law "On the Bank of Latvia".
12.1 one or more events of default (other than those referred to in Paragraph 13.1 herein) occur;
12.2 the participant is in repeated material breach of the Regulation;
12.3 the participant repeatedly fails to carry out any material obligation to the Bank of Latvia which, in the Bank of Latvia's assessment, would threaten the overall stability and safety of the VNS, or which would jeopardise the Bank of Latvia's performance of its tasks as defined in the Law "On the Bank of Latvia".
13. The Bank of Latvia shall, immediately and without prior
notice, terminate a participant's participation in the VNS, notifying
all VNS participants to that effect, where
13.1 insolvency proceedings in relation to the participant have been opened (Paragraphs 2.10.2, 2.10.3 or 2.10.5 herein) or the participant no longer meets the requirements stipulated in Paragraph 8 herein (Paragraph 2.10.1 herein);
13.2 the participant's participation in the VNS has not been restored within three months following the suspension of the participant's participation in it.
13.1 insolvency proceedings in relation to the participant have been opened (Paragraphs 2.10.2, 2.10.3 or 2.10.5 herein) or the participant no longer meets the requirements stipulated in Paragraph 8 herein (Paragraph 2.10.1 herein);
13.2 the participant's participation in the VNS has not been restored within three months following the suspension of the participant's participation in it.
14. Upon suspension or termination of a participant's
participation in the VNS, the Bank of Latvia shall:
14.1 record the time of suspending or terminating the
participant's participation in the VNS and reject all securities
transfer orders submitted by the participant or addressed to the
participant;
14.2 inform the participant whose participation has been
suspended or terminated about the suspension or termination, other
participants and the LCD, indicating the time of suspending or
terminating the participant's participation in the VNS. Once such
message has been sent by the Bank of Latvia to participants and the
LCD, they shall be deemed informed of the suspension or termination of
the participant's participation in the VNS.
15. Restoration of participation
15.1 If the participant eliminates the faults underlying the suspension of its operation in the VNS pursuant to Paragraph 12 within three months, the participant shall inform the Bank of Latvia thereof in writing. The Bank of Latvia, identifying the elimination of the respective faults, shall restore the participant's participation in the VNS, recording the time thereof.
15.2 The Bank of Latvia shall inform other participants and the LCD about restoring the bank's participation in the VNS, indicating the time thereof.
15.1 If the participant eliminates the faults underlying the suspension of its operation in the VNS pursuant to Paragraph 12 within three months, the participant shall inform the Bank of Latvia thereof in writing. The Bank of Latvia, identifying the elimination of the respective faults, shall restore the participant's participation in the VNS, recording the time thereof.
15.2 The Bank of Latvia shall inform other participants and the LCD about restoring the bank's participation in the VNS, indicating the time thereof.
V. Obligations of the parties
16. Obligations of the Bank of Latvia and participants
16.1 The Bank of Latvia shall offer the services described
in Section VI herein. Save where otherwise provided for by the
Regulation or required by the laws and regulations, the Bank of Latvia
shall use all reasonable means within its power to perform its
obligations under the Regulation, without guaranteeing a result.
16.2 The participant shall pay to the Bank of Latvia the
fees laid down in Appendix V herein.
16.3 The participant shall ensure that it can send and
receive securities transfer orders and other information in the VNS on
business days.
16.4 The participant represents and warrants to the Bank of
Latvia that the performance of its obligations herein does not breach
any laws and regulations, regulation or by-law applicable to it or any
agreement binding on it.
17. Cooperation and information exchange
17.1 In performing their obligations and exercising their
rights under the Regulation, the Bank of Latvia and participants shall
cooperate closely to ensure the stability, soundness and safety of the
VNS operation. They shall provide each other with any information or
documents relevant for the performance of their respective obligations
and the exercise of their respective rights under the Regulation,
without prejudice to any banking secrecy obligations.
17.2 The Bank of Latvia shall assist the participant with
solving issues related to the VNS operation.
17.3 The Bank of Latvia may communicate messages to
participants by any means of communication.
17.4 Where a participant is willing to change its BIC, it
shall submit an application to the Bank of Latvia in writing. The Bank
of Latvia shall set the date from which securities transfers to the
respective participant shall be effected, using the new BIC code, and
notifies all participants thereof.
17.5 Any participant shall immediately inform the Bank of
Latvia if an event of default occurs in relation to it.
17.6 A participant shall inform the Bank of Latvia about any
change in its legal capacity and other relevant legislative changes
affecting issues covered by the country opinion relating to it within
three months of the day the changes take effect.
VI. Management of accounts and execution of
securities transfer orders
18. Opening and management of accounts
18.1 The Bank of Latvia shall open and operate a securities
account for a participant.
18.2 The Bank of Latvia shall open an individual account for
each fund managed by the Financial and Capital Market Commission as
stipulated by law.
18.3 On the first business day of each month, the Bank of
Latvia shall provide the participant a statement on the
securities held on its securities account and the granted loans.
18.4 Upon a request by a participant, the Bank of Latvia
shall provide a statement on the securities held on its securities
account and the granted loans or a statement on the participant's
securities transfers.
19. Submission, acceptance and execution of securities
transfer orders
19.1 A participant or the LCD shall submit to the Bank of
Latvia a securities transfer order.
19.2 The Bank of Latvia shall accept a securities transfer
order submitted by a participant or the LCD to the extent that the
SWIFT message prepared on the basis of the above securities transfer
order complies with the SWIFT message forms, approved by the Bank of
Latvia, and the securities transfer order submitted by the participant
or the LCD has been submitted, complying with the operating hours
referred to in Appendix IV hereto.
19.3 The Bank of Latvia shall accept and execute securities
transfer orders in the order of their receipt.
20. Execution of securities transfers in the VNS
20.1 Where the securities transfer order has been accepted,
sufficient securities for executing the transfer indicated in the
securities transfer order are available on the participant's securities
account and it is possible to debit the amount of securities on the
bank's securities account in compliance with the Bank of Latvia's
"Regulation for the Use of the Bank of Latvia's Monetary Policy
Instruments", the Bank of Latvia shall debit securities from the
participant's securities account and credit them to the Bank of Latvia
securities account, and send to the participant a confirmation of the
executed securities transfer order.
20.2 Where the securities transfer order has not been
accepted, the amount of securities available on the participant's
securities account is not sufficient or it is not possible to debit the
amount of securities on the bank's securities account in compliance
with the Bank of Latvia's "Regulation for the Use of the Bank of
Latvia's Monetary Policy Instruments", the Bank of Latvia shall send a
rejection of the securities transfer order to the participant.
21. Execution of securities transfers between the VNS and
the LCD
21.1 Where the securities transfer order has been accepted,
sufficient securities for executing the transfer indicated in the
securities transfer order are available on the participant's securities
account and it is possible to debit the amount of securities on the
bank's securities account in compliance with the Bank of Latvia's
"Regulation for the Use of the Bank of Latvia's Monetary Policy
Instruments", the Bank of Latvia shall reserve securities on the
participant's securities account and instruct the LCD to credit them to
the securities account indicated by the participant.
21.2 Having received a confirmation of the executed order
from the LCD, the Bank of Latvia shall debit the reserved securities
from the participant's securities account and credit them to the LCD
securities correspondent account in the VNS, and send to the
participant a confirmation of the executed order of securities transfer
to the LCD.
21.3 Where the Bank of Latvia receives from the LCD a
rejection of the execution of the order of securities transfer to the
LCD, the Bank of Latvia shall unblock the securities reserved on the
participant's securities account and send a rejection of the securities
transfer order to the participant.
21.4 Where the securities transfer order has not been
accepted, the amount of securities available on the participant's
securities account is not sufficient or it is not possible to debit the
amount of securities on the bank's securities account in compliance
with the Bank of Latvia's "Regulation for the Use of the Bank of
Latvia's Monetary Policy Instruments", the Bank of Latvia shall send to
the participant a rejection of the securities transfer order.
22. Execution of securities transfers between the LCD and
the VNS
22.1 Where the securities transfer order has been accepted,
the Bank of Latvia shall debit securities from the LCD securities
correspondent account in the VNS, credit them to the securities account
of the respective participant, sends a confirmation of the execution of
the securities transfer order to the LCD and a confirmation of
crediting securities to the participant.
22.2 Where the securities transfer order has not been
accepted, the Bank of Latvia shall send a rejection of the securities
transfer order to the LCD.
23. Irrevocability of securities transfer orders and their
entry into the VNS
23.1 A securities transfer order shall be irrevocable as of
the moment the Bank of Latvia accepts the securities transfer order.
23.2 A securities transfer order shall be deemed entered
into the VNS at the moment the Bank of Latvia debits securities from
the participant's securities account or from the LCD securities
correspondent account in the VNS.
24. Payment of interest income on securities or principal
24.1 The Bank of Latvia shall pay interest income on
securities or principal amount in accordance with the balance on the
participant's securities account. The date of calculating interest
income or principal amount shall be set according to the procedure
stipulated by the LCD rules.
24.2 The Bank of Latvia shall not accept transfer orders of
the respective securities from the participants and the LCD on the day
the principal amount of securities is due.
24.3 The Bank of Latvia shall pay the interest income on
securities or the principal after the receipt of funds from the LCD, by
crediting the respective funds to the participant's cash account and
debiting securities from the participant's securities account in the
event of securities redemption.
25. Contingency measures
25.1 In the event of an abnormal external event or any other
event which affects smooth operation of the VNS, the business
continuity and contingency procedures described in Appendix III hereto
shall apply.
VII. Liability regime
26. Liability regulation
26.1 In performing their obligations pursuant to the
Regulation, the Bank of Latvia and the participants shall be bound by a
general duty of reasonable care in relation to each other.
26.2 The Bank of Latvia shall be liable to its participants
in cases of fraud (including but not limited to wilful misconduct) or
gross negligence, for any loss arising out of the operation of the VNS.
In cases of ordinary negligence, the Bank of Latvia's liability shall
be limited to the participant's direct loss, i.e. the amount of the
transaction in question, excluding any indirect loss.
26.3 The Bank of Latvia is not liable for any loss that
results from any malfunction or failure in the technical infrastructure
(including the Bank of Latvia's computer infrastructure, programmes,
data, applications or networks), if such malfunction or failure arises
in spite of the Bank of Latvia having adopted those measures that are
reasonably necessary to protect such infrastructure against malfunction
or failure, and to resolve the consequences of such malfunction or
failure (the latter including but not limited to initiating and
completing the business continuity and contingency procedures referred
to in Appendix III hereto).
26.4 The Bank of Latvia shall not be liable for any loss
caused by a participant or where any loss arises out of external events
beyond the Bank of Latvia's reasonable control (force majeure).
26.5 The Bank of Latvia and any participant shall take all
reasonable and practicable steps to prevent or mitigate any damage or
loss.
26.6 In performing its obligations under the Regulation, the
Bank of Latvia may commission third parties to provide technical
infrastructure on its own behalf, if this is necessary to meet the Bank
of Latvia's obligations or is standard market practice. The
Bank of Latvia's obligation shall be limited to the due selection and
commissioning of any such third parties and the Banks of Latvia's
liability shall be limited accordingly.
27. Evidence
27.1 Unless otherwise provided for in the Regulation, all
securities transfers in the VNS and messages related to securities
transfer processing therein, such as confirmations of securities
transfers or statement messages, shall be exchanged between the Bank of
Latvia and a participant through the SWIFT.
27.2 Electronic or paper-based records of the messages
retained by the Bank of Latvia or by the SWIFT shall be accepted as a
means of evidence of the securities transfers processed through the
Bank of Latvia. The saved or printed version of the
original message of the SWIFT shall be accepted as a means of evidence,
regardless of the form of the original message.
27.3 If a participant has no access to the SWIFT, the
participant shall use the alternative means of transmission of messages
laid down in Paragraph 11 of Appendix III hereto. In such
cases, the saved or printed version of the message produced by the Bank
of Latvia shall have the same evidential value as the original message
(regardless of its form).
27.4 The Bank of Latvia shall keep complete records of the
VNS information on securities transfer orders submitted by any
participant or the LCD and securities transfer orders received by any
participant or the LCD for a period of five years from the time at
which such securities transfer orders are submitted and received.
27.5 The Bank of Latvia's own books and records (whether
kept on paper, by electronic or magnetic recording, or in any other
mechanically reproducible form) shall be accepted as a means of
evidence of any obligations of the participant and of any facts and
events that the parties rely on.
27.6 The Bank of Latvia shall keep the information referred
to in Paragraph 27.5 herein for a period of five years from the time
when such information was created.
VIII. Other provisions
28. The Bank of Latvia's rights of pledge and set-off
28.1 The Bank of Latvia shall have a pledge over the
participant's existing and future credit balances on its cash accounts
(maintaining participant's ownership rights), thereby collateralising
any current and future claims arising out of the legal relationship
between the parties.
28.2 The Bank of Latvia shall have the rights referred to in
Paragraph 28.1 herein even if its claims are only contingent or not yet
due.
28.3 In the event of default of settlement obligation,
notwithstanding the commencement of any insolvency proceedings with
respect to a participant and notwithstanding any assignment, judicial
or other attachment, or other disposition of or with respect to the
participant's rights, all obligations of the participant shall be
automatically and immediately accelerated, without prior notice and
without the need for any prior approval by any authority, so as to be
immediately due. In addition, the mutual obligations of the
participant and the Bank of Latvia shall automatically be set off
against each other, and the party owing the higher amount shall pay to
the other the difference.
28.4 The Bank of Latvia shall promptly give the participant
notice of any set-off pursuant to Paragraph 28.3 herein after such
set-off has taken place.
28.5. The Bank of Latvia may, without prior notice, debit
any participant's cash account in the SAMS by any amount which the
participant owes to the Bank of Latvia resulting from the legal
relationship between the participant and the Bank of Latvia.
29. Confidentiality
29.1 The Bank of Latvia shall keep confidential all
sensitive or secret information, including where such information
relates to securities transfer, technical and organisational
information belonging to the participant, unless the participant has
given its written consent to disclose or such disclosure is permitted
or required under the laws and regulations of the Republic of Latvia.
29.2 By derogation from Paragraph 29.1 herein, the
participant agrees that the Bank of Latvia may disclose securities
transfer, technical or organisational information regarding the
participant obtained in the course of the operation of the VNS, to the
extent that this is necessary for the performance of the public tasks
of the supervisory and oversight authorities, and provided in all such
cases that the disclosure is not in conflict with the applicable law.
The Bank of Latvia shall not be liable for the financial and commercial
consequences of such disclosure.
29.3 By derogation from Paragraph 29.1 herein and provided
this does not make it possible, whether directly or indirectly, to
identify the participant, the Bank of Latvia may use, disclose or
publish securities transfer information regarding the participant for
statistical, historical, scientific or other purposes.
29.4 Information relating to the operation of the VNS to
which participants have had access, may only be used for the purposes
laid down in the Regulation. A participant shall keep such
information confidential, unless the Bank of Latvia has explicitly
given its written consent to disclose. The participant shall ensure
that any third party to which it has outsourced, delegated or
subcontracted tasks which may have an impact on the performance of the
participant's obligations under the Regulation is bound by the
confidentiality requirements in this Paragraph.
29.5 The Bank of Latvia shall be authorised, in order to
execute securities transfer orders, to process and transfer the
necessary data to the SWIFT.
30. Data protection, prevention of money laundering and
related issues
30.1 Any participant shall be deemed to be aware of, and
shall comply with, all obligations relating to the legislation on data
protection, prevention of money laundering and the financing of
terrorism, in particular in terms of implementing appropriate measures
concerning any securities transfers debited or credited on the
participant's securities account. The participant shall
also acquaint itself with the SWIFT data retrieval policy prior to
entering into contractual relationship with the SWIFT.
30.2 A participant shall be deemed to have authorised the
Bank of Latvia to obtain any information relating to the participant
from any financial or supervisory authority or trade body, whether
national or foreign, if such information is necessary for the
participant's participation in the VNS.
31. Notices
31.1 Except where otherwise provided for in the Regulation,
all notices under this Regulation shall be sent by registered post or
otherwise in writing or by an authenticated message through the SWIFT.
Notices to the Bank of Latvia shall be submitted at K. Valdemara iela
2A, Riga, LV-1050, Latvia or LACBLV2X. Notices to the participant shall
be sent to its address or its SWIFT address as the participant may from
time to time notify to the Bank of Latvia.
31.2 To prove that a notice has been sent, it shall be
sufficient to prove that the envelope containing such notice was
properly addressed and posted or an e-mail was sent.
31.3 All notices shall be given in Latvian. A
participant incorporated outside the Republic of Latvia may submit its
notices in English.
31.4 A participant shall be bound by all documents that the
participant has submitted to the Bank of Latvia in compliance with
Paragraphs 31.1 and 31.2 herein and which the Bank of Latvia reasonably
believes to have received from the participant, its employees or agents.
32. Contractual relationship with network service provider
32.1 For the purposes of the Regulation, the network service
provider shall be SWIFT. Each participant shall enter into
a separate agreement with SWIFT regarding the services to be provided
by SWIFT in relation to the participant's use of the VNS. The legal
relationship between a participant and SWIFT shall be exclusively
governed by SWIFT's terms and conditions.
32.2 The services to be provided by SWIFT shall not form
part of the services to be performed by the Bank of Latvia in respect
of the VNS.
32.3 The Bank of Latvia shall not be liable for any acts,
errors or omissions of SWIFT, or for any acts, errors or omissions of
network providers selected by participants to gain access to the SWIFT
network.
33. Third party rights
33.1 Any rights, interests, obligations, responsibilities
and claims arising from or relating to the Regulation shall not be
transferred, pledged or assigned by a participant to any third party
without the Bank of Latvia's written consent.
33.2 The Regulation does not create any rights in favour of
or obligations in relation to any entity other than the Bank of Latvia
and a participant.
34. Governing law, jurisdiction and place of performance
34.1 The bilateral relationship between the Bank of Latvia
and a participant shall be governed by the laws and regulations of the
Republic of Latvia.
34.2 The place of performance concerning the legal
relationship between the Bank of Latvia and the participant shall be
the Republic of Latvia.
35. Severability
35.1 If any provision in the Regulation is or becomes
invalid, this shall not prejudice the applicability of all the other
provisions hereof.
36. Binding nature
36.1 By participating in the VNS, a participant
automatically agrees to the Regulation between participants themselves
and in relation to the Bank of Latvia.
APPENDIX I
Technical specification of the securities transfer
orders
1. The VNS uses SWIFT services for the exchange of messages.
Each participant therefore needs a connection to SWIFT's Secure IP
Network which ensures message delivery and receipt in real time. Each
participant's account shall be identified by an eight- or 11-digit
SWIFT BIC.
2. The Bank of Latvia shall publish SWIFT message forms on
its website (see www.bank.lv).
3. Where SWIFT message forms are amended, the Bank of Latvia
shall notify the counterparty in writing no later than one month prior
to the amendments taking effect.
4. SWIFT message forms for the VNS
4.1 MT535 (Statement of Holdings) - a
statement on the securities held on a participant's securities account
and the granted loans.
4.2 MT536 (Statement of Transactions) -
a statement on the participant's securities transfers.
4.3 MT542 (Deliver Free) - order of
securities transfer in the VNS, order of securities transfer to the LCD.
4.4 MT544 (Receive Free Confirmation) -
confirmation of crediting securities to the account.
4.5 MT546 (Deliver Free Confirmation) -
confirmation of the executed order of securities transfer to the LCD,
confirmation of the executed order of securities transfer in the VNS.
4.6 MT549 (Request for Statement/Status Advice)
- a request for a statement on a participant's securities account and
the granted loans or a statement on the participant's securities
transfers.
4.7 MT599 (Free Format Message) - a
notice on rejection of the securities transfer order, other notices to
participants.
APPENDIX II
Terms of reference for capacity and country opinions
Terms of Reference for Capacity Opinions for Participant
[location], [date]
[name, surname]
Chairman of the Board
Bank of Latvia
Chairman of the Board
Bank of Latvia
Bank of Latvia
K. Valdemara iela 2A
Riga, LV-1050
LATVIA
Participation in the securities settlement system
of the Bank of Latvia
Dear Mr/Ms [name, surname],
We have been asked to provide this Opinion as [in-house or
external] legal advisers to [specify name of Participant or branch of
Participant] in respect of issues arising under the laws of
[jurisdiction in which the Participant is established; hereinafter the
"jurisdiction"] in connection with the participation of [specify name
of Participant] (hereinafter the "Participant") in the securities
settlement system of the Bank of Latvia (hereinafter the "System").
This Opinion is confined to the laws of [jurisdiction] as
they exist on the date of this Opinion. We have made no
investigation of the laws of any other jurisdiction as a basis for this
Opinion, and do not express or imply any opinion in this regard. Each
of the statements and opinions presented below applies with equal
accuracy and validity under the laws of [jurisdiction], whether or not
the Participant acts through its head office or one or more branches
established inside or outside of [jurisdiction] in submitting
securities transfer orders and receiving securities transfers.
1. DOCUMENTS EXAMINED
For the purposes of this Opinion, we have examined:
1.1 a certified copy of the [specify relevant constitutional
document(s)] of the Participant such as is/are in effect on the date
hereof;
1.2 [if applicable] an extract from the [specify relevant
company register] and [if applicable] [register of credit institutions
or analogous register];
1.3 [to the extent applicable] a copy of the Participant's
licence or other proof of authorisation to provide banking, investment,
funds transfer or other financial services in [jurisdiction];
1.4 [if applicable] a copy of a resolution adopted by the
board of directors or the relevant governing body of the Participant on
[insert date], [insert year], evidencing the Participant's agreement to
adhere to the System Documents, as defined below;
1.5 [specify all powers of attorney and other documents
constituting or evidencing the requisite power of the person or persons
signing the relevant System Documents (as defined below) on behalf of
the Participant] and all other documents relating to the Participant's
constitution, powers, and authorisations necessary or appropriate for
the provision of this Opinion (hereinafter the "Participant Documents").
For the purposes of this Opinion, we have also examined:
1.6 "Regulation for the Securities Settlement System of the
Bank of Latvia" (hereinafter, the System Rules);
1.7 [..].
The System Rules and the [..] shall be referred to
hereinafter as the "System Documents" (and collectively with the
Participant Documents as the "Documents").
2. ASSUMPTIONS
For the purposes of this Opinion we have assumed in relation
to the Documents that:
2.1 the System Documents with which we have been provided
are originals or true copies;
2.2 the terms of the System Documents and the rights and
obligations created by them are valid and legally binding under the
laws and regulations of the Republic of Latvia, by which they are
expressed to be governed, and the choice of the laws and regulations of
the Republic of Latvia to govern the System Documents is recognised by
the laws and regulations of the Republic of Latvia;
2.3 Participant Documents are within the capacity and power
of and have been validly authorised, adopted or executed and, where
necessary, delivered by the relevant parties;
2.4 Participant Documents are binding on the parties to
which they are addressed, and there has been no breach of any of their
terms.
3. OPINIONS REGARDING THE PARTICIPANT
3.1 The Participant is a corporation duly established and
registered or otherwise duly incorporated or organised under the laws
of [jurisdiction].
3.2 The Participant has all the requisite corporate powers
to execute and perform the rights and obligations under the System
Documents to which it is a party.
3.3 The adoption or execution and the performance by the
Participant of the rights and obligations under the System Documents to
which the Participant is a party will not in any way breach any
provision of the laws or regulations of [jurisdiction] applicable to
the Participant or the Participant Documents.
3.4 No additional authorisations, approvals, consents,
filings, registrations, notarisations or other certifications of or
with any court or governmental, judicial or public authority that is
competent in [jurisdiction] are required by the Participant in
connection with the adoption, validity or enforceability of any of the
System Documents or the execution or performance of the rights and
obligations thereunder.
3.5 The Participant has taken all necessary corporate action
and other steps necessary under the laws of [jurisdiction] to ensure
that its obligations under the System Documents are legal, valid and
binding.
This Opinion is stated as of its date and addressed solely
to the Bank of Latvia and the [Participant]. No other
persons may rely on this Opinion, and the contents of this Opinion may
not be disclosed to persons other than its intended recipients and
their legal counsel without our prior written consent, with the
exception of the European Central Bank and the national central banks
of the European System of Central Banks [and [the national central
bank/relevant regulatory authorities] of [jurisdiction]].
Yours faithfully,
_____________________
(signature)
_____________________
(name, surname)
_____________________
(position)
Terms of Reference for Country Opinions for
Participant
[location], [date]
[name, surname]
Chairman of the Board
Bank of Latvia
Chairman of the Board
Bank of Latvia
Bank of Latvia
K. Valdemara iela 2A
Riga, LV-1050
LATVIA
Participation in the securities settlement
system of the Bank of Latvia
Dear Mr/Ms [name, surname],
We have been asked as [external] legal advisers to [specify
name of Participant or branch of Participant] (hereinafter the
"Participant") in respect of issues arising under the laws of
[jurisdiction in which the Participant is established; hereinafter the
"jurisdiction"] to provide this Opinion under the laws of
[jurisdiction] in connection with the participation of the Participant
in securities settlement system of the Bank of Latvia
(hereinafter the "System"). References herein to the laws of
[jurisdiction] include all applicable regulations of [jurisdiction]. We
express an opinion herein under the law of [jurisdiction], with
particular regard to the Participant established outside the Republic
of Latvia in relation to the rights and obligations arising from
participation in the System, as presented in the System Documents
defined below.
This Opinion is confined to the laws of [jurisdiction] as
they exist on the date of this Opinion. We have made no
investigation of the laws of any other jurisdiction as a basis for this
Opinion, and do not express or imply any opinion in this regard. We
have assumed that there is nothing in the laws of another jurisdiction
which affects this Opinion.
1. DOCUMENTS EXAMINED
For the purposes of this Opinion, we have examined the
documents listed below and such other documents as we have deemed
necessary or appropriate:
1.1 "Regulation for the Securities Settlement System of the
Bank of Latvia" (hereinafter, the System Rules);
1.2 any other document governing the System and/or the
relationship between the Participant and other participants in the
System, and between the participants in the System and the Bank of
Latvia.
The System Rules and the [..] shall be referred to
hereinafter as the "System Documents".
2. ASSUMPTIONS
For the purposes of this Opinion we have assumed in relation
to the System Documents that:
2.1 the System Documents are within the capacity and power
of and have been validly authorised, adopted or executed and, where
necessary, delivered by the relevant parties;
2.2 the terms of the System Documents and the rights and
obligations created by them are valid and legally binding under the
laws and regulations of the Republic of Latvia, by which they are
expressed to be governed, and the choice of the laws and regulations of
the Republic of Latvia to govern the System Documents is recognised by
the laws and regulations of the Republic of Latvia;
2.3 the participants in the System through which any
securities transfer orders are sent or securities transfers are
received, or through which any rights or obligations under the System
Documents are executed or performed, are licensed to provide funds
transfer services, in all relevant jurisdictions;
2.4 the documents submitted to us in copy or as specimens
conform to the originals.
3. OPINION
Based on and subject to the foregoing, and subject in each
case to the points set out below, we are of the following opinion.
3.1 Country-specific legal aspects [to the extent applicable]
The following characteristics of the legislation of
[jurisdiction] are consistent with and in no way set aside the
obligations of the Participant arising out of the System Documents:
[list of country-specific legal aspects].
3.2 General insolvency issues
3.2.1 Types of insolvency proceedings
The only types of insolvency proceedings (including
composition or rehabilitation) - which, for the purpose of this
Opinion, shall include all proceedings in respect of the Participant's
assets or any branch it may have in [jurisdiction] - to which the
Participant may become subject in [jurisdiction], are the following:
[list proceedings in the original language and Latvian and English
translation] (together collectively referred to as "Insolvency
Proceedings").
In addition to Insolvency Proceedings, the Participant, any
of its assets, or any branch it may have in [jurisdiction] may become
subject in [jurisdiction] to [list any applicable moratorium,
receivership, or any other proceedings as a result of which securities
transfer orders to and/or securities transfers from the Participant may
be suspended, or limitations can be imposed in relation to such
payments, or similar proceedings in the original language and Latvian
and English translation] (hereinafter collectively referred to as
"Proceedings").
3.2.2 Insolvency treaties
[Jurisdiction] or certain political subdivisions within
[jurisdiction], as specified, is/are party (parties) to the following
insolvency treaties: [specify, if applicable, which have or
may have an impact on this Opinion].
3.3 Enforceability of System Documents
Subject to the points set out below, all provisions of the
System Documents will be binding and enforceable in accordance with
their terms under the laws of [jurisdiction], in particular in the
event of the opening of any Insolvency Proceedings or Proceedings with
respect to the Participant.
3.3.1 Execution of securities transfer orders
The provisions on execution of securities transfer orders
[Section VI] of the System Rules are valid and enforceable.
In particular, all payment orders processed pursuant to such provisions
will be valid, binding and will be enforceable under the laws of
[jurisdiction]. The provision of the System Rules which specifies the
precise point in time at which securities transfer orders submitted by
the Participant to the System become enforceable and irrevocable
(Paragraph 23.2) is valid, binding and enforceable under the laws of
[jurisdiction].
3.3.2 Authority of the Bank of Latvia to perform its
functions
The opening of Insolvency Proceedings or Proceedings in
respect of the Participant will not affect the authority and powers of
the Bank of Latvia arising out of the System Documents.
[Specify [to the extent applicable] that: the same opinion is also
applicable in respect of any other entity which provides the
Participants with services directly and is necessarily required for
participating in the System (e.g. network service provider)].
3.3.3 Remedies in the event of default
[Where applicable to the Participant, the provisions
contained in [Paragraph 28] of the System Rules regarding an
accelerated performance of claims which have not yet matured, the
set-off of claims for using the deposits of the Participant, the
enforcement of a pledge, suspension and termination of participation,
claims for default interest, and termination of agreements and
transactions [Paragraphs 26 and -28] are valid and enforceable under
the laws of [jurisdiction].]
3.3.4 Suspension and termination
Where applicable to the Participant, the provisions
contained in the System Rules [Paragraphs 11.5, 12 and 13] (in respect
of suspension and termination of the Participant's participation in the
System on the opening of Insolvency Proceedings or Proceedings or other
events of default, as defined in the System Rules, or if the
Participant represents any kind of systemic risk or has serious
operational problems) are valid and enforceable under the laws of
[jurisdiction].
3.3.5 Penalty regime
Where applicable to the Participant, the provisions
contained in [..] of the System Rules in respect of penalties imposed
on a Participant which is unable to reimburse intraday credit or
overnight credit, where applicable, on time are valid and enforceable
under the laws of [jurisdiction].
3.3.6 Assignment of rights and obligations
The rights and obligations of the Participant cannot be
assigned, altered or otherwise transferred by the Participant to third
parties without the prior written consent of the Bank of Latvia.
3.3.7 Choice of governing law and jurisdiction
The provisions contained in [Paragraph 34] of the System
Rules, and in particular in respect of the governing law, the
resolution of a dispute, competent courts, and service of process are
valid and enforceable under the laws of [jurisdiction].
3.4 Voidable preferences
We are of the opinion that no obligation arising out of the
System Documents, performance thereof, or compliance therewith prior to
the opening of any Insolvency Proceedings or Proceedings in respect of
the Participant may be set aside in any such proceedings as a
preference, voidable transaction or otherwise under the laws of
[jurisdiction].
In particular, and without limitation to the foregoing, we
express this opinion in respect of any securities transfer orders
submitted by any Participant in the System. In particular,
we are of the opinion that the provisions of [Paragraph 23.2] of the
System Rules establishing the enforceability and irrevocability of
securities transfer orders will be valid and enforceable and that a
securities transfer order submitted by any Participant and processed
pursuant to [Paragraphs 19-22] of the System Rules may not be set aside
in any Insolvency Proceedings or Proceedings as a preference to one
creditor, voidable transaction or otherwise under the laws of
[jurisdiction].
3.5 Attachment
If a creditor of the Participant seeks an attachment order
(including any freezing order, order for seizure or any other public or
private law procedure that is intended to protect the public interest
or the rights of the Participant's creditors) - hereinafter referred to
as an "Attachment" - under the laws of [jurisdiction] from a court or
governmental, judicial or public authority that is competent in
[jurisdiction], we are of the opinion that [insert the analysis and
discussion].
3.6 Collateral [if applicable]
3.6.1 Assignment of rights or deposit of assets for
collateral purposes, pledge, repo and/or guarantee
Assignments for collateral purposes will be valid and
enforceable under the laws of [jurisdiction]. Specifically,
the creation and enforcement of a pledge or repo under the [insert
reference to the relevant arrangement with the CB] will be valid and
enforceable under the laws of [jurisdiction]. In the event that a
guarantee from another legal entity is required for adherence of the
Participant to the System, this guarantee will be binding on the
guarantor and fully enforceable against it, without any limit with
regard to the amount of the guarantee, whatever the Participant's
situation.
3.6.2 Priority of assignees', pledgees' or repo purchasers'
interest over that of other claimants
In the event of Insolvency Proceedings or Proceedings in
respect of the Participant, the rights or assets assigned for
collateral purposes, or pledged by the Participant in favour of the
Bank of Latvia or other Participants in the System, will rank in
priority of payment above the claims of all other creditors of the
Participant and will not be subject to priority or preferential
creditors.
3.6.3 Enforcing title to security
Even in the event of Insolvency Proceedings or Proceedings
in respect of the Participant, other Participants in the System and the
Bank of Latvia as [assignees, pledgees or repo purchasers as
applicable] will still be free to enforce and collect the Participant's
rights or assets through the action of the Bank of Latvia pursuant to
the System Rules.
3.6.4 Form and registration requirements
There are no form requirements for the assignment for
collateral purposes of, or the creation and enforcement of a pledge or
repo over the Participant's rights or assets and it is not necessary
for the [assignment for collateral purposes, pledge or repo, as
applicable], or any particulars of such [assignment, pledge or repo, as
applicable,] to be registered or filed with any court or governmental,
judicial or public authority that is competent in [jurisdiction].
3.7 Branches [to the extent applicable]
3.7.1 Opinion applies to action through branches
Each of the statements and opinions presented above with
regard to the Participant applies with equal accuracy and validity
under the laws of [jurisdiction] in situations where the Participant
acts through its one or more of its branches established outside
[jurisdiction].
3.7.2 Conformity with law
Neither the execution and performance of the rights and
obligations under the System Documents nor the submission, transmission
or receipt of securities transfer orders by a branch of the Participant
will in any respect breach the laws of [jurisdiction].
3.7.3 Required authorisations
Neither the execution and performance of the rights and
obligations under the System Documents nor the submission, transmission
or receipt of securities transfer orders by a branch of a Participant
will require any additional authorisations, approvals, consents,
filings, registrations, notarisations or other certifications of or
with any court or governmental, judicial or public authority that is
competent in [jurisdiction].
This Opinion is stated as of its date and addressed solely
to the Bank of Latvia and the [Participant]. No other
persons may rely on this Opinion, and the contents of this Opinion may
not be disclosed to persons other than its intended recipients and
their legal counsel without our prior written consent, with the
exception of the European Central Bank and the national central banks
of the European System of Central Banks [and [the national central
bank/relevant regulatory authorities] of [jurisdiction]].
Yours faithfully,
_____________________
(signature)
_____________________
(name, surname)
_____________________
(position)
APPENDIX III
Business continuity and contingency procedures
I. General provisions
1. This Appendix sets out the arrangements between the Bank
of Latvia and participants, if the operation of the VNS or SWIFT fails
or is affected by an abnormal external event, or if the failure affects
any participant.
2. In the event that a failure of the VNS or SWIFT or an
abnormal external event affecting the normal operation of the VNS
occurs, the Bank of Latvia shall be entitled to adopt business
continuity and contingency processing measures.
II. Incident communication
3. Information about the failure of the VNS or SWIFT
operation or an abnormal external event shall be communicated by the
Bank of Latvia to the persons indicated in the list of the
participants' contact persons referred to in the agreement "On
Participation in the VNS".
4. In addition, the Bank of Latvia may notify participants
of any other existing or anticipated event which has the potential to
affect the normal operation of the VNS.
5. Where a participant incurs problems affecting its
operation in the VNS, the participant shall immediately notify the
persons indicated in the list of the Bank of Latvia's contact persons
referred to in the agreement "On Participation in the VNS" to that
effect and state the expected time period for solving them.
III. Change of operating hours
6. The Bank of Latvia, if necessary, may change the VNS
operating hours.
7. Operating hours of a business day may be extended until
the failure has been eliminated.
8. Upon recovery of the VNS operation, the Bank of Latvia
shall execute all non-executed securities transfers submitted by
participants.
IV. Measures in the event of a
failure of the VNS or SWIFT operation
9. Where technical problems arise in the VNS operation, the
Bank of Latvia may extend the deadline for securities transfer order
receipt and execution in the VNS, notifying the persons indicated in
the list of the participant's contact persons referred to in the
agreement "On Participation in the VNS" to that effect.
10. In the event a participant or the Bank of Latvia
encounters a SWIFT connection disruption, it may submit and receive
securities transfer orders as paper-based documents in compliance with
Paragraph 11 of the present Appendix.
11. Paper-based securities transfers
11.1. A participant shall prepare a securities transfer
order in the VNS or securities transfer order to the LCD. The order
shall contain the following information: the title and reference number
of the document, the date, the name and BIC of the sender, the name and
BIC of the beneficiary, the ISIN code of the securities, the nominal
values of the securities expressed in numbers and words, the signatures
of the persons authorised by the participant as listed in the agreement
"On Participation in the VNS", and an imprint of the participant's seal.
11.2. The participant shall submit the securities transfer
order in two copies. The first copy shall remain with the Bank of
Latvia and the second one, bearing a mark with respect to the execution
or rejection of the securities transfer order, as well as the date and
time of its execution or rejection, shall be returned by the Bank of
Latvia to the participant, the submitter of the securities transfer
order.
11.3. Where the securities transfer order meets the
requirements stipulated in Paragraph 11.1 of the present Annex and
sufficient securities for executing the transfer indicated in the
securities transfer order are available on the participant's securities
account in the VNS, the Bank of Latvia shall execute the securities
transfer and return the second copy of the securities transfer order,
marked as executed by the Bank of Latvia, to the participant. Where a
participant submits several paper-based securities transfer orders
simultaneously, the Bank of Latvia shall execute them according to
their sequence numbers.
11.4. Where the securities transfer order does not meet the
requirements stipulated in Paragraph 11.1 of the present Annex, the
amount of securities available on the participant's securities account
is not sufficient or it is not possible to debit the amount of
securities on the bank's securities account in compliance with the Bank
of Latvia's "Regulation for the Use of the Bank of Latvia's Monetary
Policy Instruments", the Bank of Latvia shall reject the respective
securities transfer order and returns the second copy of the securities
transfer order, marked as rejected by the Bank of Latvia, to the
participant.
V. Security requirements
12. A participant shall implement adequate security controls
to protect its systems from unauthorised access and use.
The participant shall be responsible for adequate protection of the
confidentiality, integrity and availability of its systems.
13. A participant shall inform the Bank of Latvia of any
material security-related incidents in its technical infrastructure
and, where appropriate, security-related incidents that occur in the
technical infrastructure of the third party service providers.
The Bank of Latvia may request further information about the incident
and, if necessary, request that the participant take appropriate
measures to prevent a recurrence of such an event.
14. The Bank of Latvia may impose additional security
requirements on all participants or on participants that are considered
critical by the Bank of Latvia.
VI. Other provisions
15. Participation in measures adopted by the Bank of Latvia
15.1. The Bank of Latvia may require that the participants
participate in regular or ad hoc testing of business continuity and
contingency processing measures, training or any other preventive
arrangements, as deemed necessary by the Bank of Latvia.
15.2. Any costs incurred by the participants as a result of
such testing or other arrangements shall be borne solely by the
participants.
APPENDIX IV
Operating schedule
1. The VNS is open on all days, except Saturdays, Sundays,
New Year's Day, Good Friday, Easter Monday, 1 May, 4 May, 23 June, 24
June, 18 November, 24 December, 25 December, 26 December, New Year's
Eve. If public holidays - 4 May and 18 November fall on
Saturday or Sunday, the next business day shall be designated a public
holiday. Where a business day is rescheduled in accordance with an
Order of the Cabinet of Ministers of the Republic of Latvia, the VNS
shall operate as stipulated in the Order.
2. On a business day, VNS operations are to be executed in
accordance with the following schedule.
|
Time
|
Description
|
|
8.30-17.00
|
Execution of securities operations
|
|
16.45
|
Deadline for the participant securities transfer order
receipt
|
3. The Bank of Latvia may change the operating hours of the
VNS where contingency and business continuity measures are adopted.
APPENDIX V
Commission fees and their application
I. Commission fees
1. For participants, the Bank of Latvia shall stipulate a
fee of LVL 0.80 for each securities transfer order from the VNS to the
LCD.
2. The Bank of Latvia shall stipulate for participants a
monthly fee for storing securities (for the outstanding amount at the
end of the month) in the following amount of the nominal value of the
securities on the participant's securities account:
2.1 for the Latvian government debt securities: 0.0008%;
2.2 for other debt securities: 0.0032%.
II. Invoicing
3. The Bank of Latvia shall send a participant the invoice
for the previous month specifying the fees to be paid, no later than on
the fifth business day of the following month.
4. On the tenth working day of that month at the latest, the
Bank of Latvia shall debit the invoice amount from the cash account of
the respective participant.
| Governor of the Bank of Latvia | I. Rimðçviès |
