Sub-custody guide: Bulgaria
There have been a number of significant developments in the
Bulgarian market over the last 12 months. Probably the most important of these
has been the ongoing implementation of amended rules and IT system for the
Central Depository (CDAD), which will impact the post-trading environment.
Some of the amendments have already been implemented, such
as the second daily settlement batch and the settlement guarantee fund. The
rest are expected to become effective in the coming months: the division of CSD
functions into register and clearing and settlement system; introduction of
Swift communication; buyer protection and market claims regulation;
distribution of corporate actions information; and a centralised securities
pool to facilitate securities lending.
Important amendments have been made to the local Ucits
legislation, including the AIFM directive’s transposition and the introduction
of new types of collective investment vehicles such as umbrella sub-fund
structures and ETFs. New tax benefits were made effective for non-resident
legal entities meeting certain eligibility criteria as of the beginning of
2014.
“The joint privatisation of the Bulgarian Stock Exchange
AD-Sofia and CDAD is expected to serve as catalyst for attracting new investors
in the market and contribute to the further market modernisation,” says
Borislav Hitov, head of global securities services Bulgaria at UniCredit.
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