Interbolsa amended its price list for Financial Intermediaries following the European Central Bank’s decision to increase prices charged for the settlement and account movement through the TARGET2-Securities platform, effective January 1, 2019.

In the strategy defined by Interbolsa, for the prices to be charged in 2019, it was decided to pass on its prices the cost increase with the T2S platform, updating the prices related to settlement and account movement.

Following the project of links between Interbolsa and other European CSDs, which allow cross-border transfers of debt securities between the participants of these CSDs and Interbolsa participants, the link between INTERBOLSA and Clearstream Banking AG (CBF) is in the test phase. Therefore, the prices to be charged for the maintenance of the securities registered in the CBF in the Interbolsa participants’ accounts have already been defined. The following changes were made to Financial Intermediaries’ Fee Books:

Addition of a new paragraph to point 5.1, defining the rules for the application of maintenance fees for debt securities registered in CBF;

Inclusion of Table 6 to point 5.1, establishing the annual percentages to be applied for the purpose of calculating the monthly maintenance fee.

With regard to the prices charged to Issuer Entities, Interbolsa’s Board of Directors decided to reduce the prices charged for the registration and cancellation of issues of warrants and certificates with the purpose of increasing the registration of this type of financial instrument in Interbolsa’s systems.

The fees applied to the manual corrections to the exercise of rights in process or already processed have been changed in order to reflect the risk assumed by Interbolsa.

Interbolsa decided to charge the costs of disclosure information to the market, requested by several entities (issuers entities, paying agents, law firms …). The points 8.7 and 6.10 was added in the price lists of Financial Intermediaries and of the Issuers Entities, respectively.

These amendements shall take effect on 1st of january 2019.

RGPD application and repeal of INTERBOLSA circular 1/2001, relating to the Issuer Agent

In accordance with the legislation and regulations in force, INTERBOLSA provides to the issuers, with registered securities, the service related to the identification of securities holders.

As a service provided by law to the issuers, that request the service, the entities involved in the process of collecting, processing, storing and forwarding of personal data (such as shareholders, banks and INTERBOLSA) cannot refuse to provide this service or to provide the necessary information.

However, without prejudice to the above, and taking into account the application of the General Data Protection Regulation (GDPR), which entered into force on May 25, 2018, INTERBOLSA considered to be relevant to include in INTERBOLSA Regulation 1/2016 a specific provision concerning the protection of personal data in order to make transparent and reinforce the transmission to INTERBOLSA of the personal data collected by the financial intermediaries and the treatment of such data by INTERBOLSA in compliance with the applicable legal provisions.

In order to properly accommodate this change, INTERBOLSA added article 17-A to INTERBOLSA Regulation 1/2016, related to the Participants in the systems managed by INTERBOLSA.

The opportunity is also taken to eliminate article 1 (4) of INTERBOLSA Regulation 1/2016, as well as INTERBOLSA Circular 1/2001, related to the Issuer Agent.

INTEBOLSA offers a new functionality in the Investment Funds System – order routing, allowing Fund Managers to directly confirm/reject the operations of subscription/redemption.

This new feature allows also Custodian/ Settlement Entities to be able to monitor the entire subscription and redemption process, including the financial settlement, whenever it occurs in their cash accounts (DCA).

To properly accommodate this amendment, INTERBOLSA revoked INTERBOLSA Circular 1/2017 and replaced it by INTERBOLSA Circular 1/2019, as well as amended the INTERBOLSA Timetables Notice.

The Settlement Discipline regime is a key feature of the CSD Regulation (CSDR) which will introduce changes to CSDs throughout the European Economic Area and aim to promote their operational efficiency and thus contribute to a timely and efficient settlement in the European Union.

The CSDR – Settlement Discipline Workshop, which took place in Lisbon on 18/09/2019, is part of the preparatory work that INTERBOLSA has been developing with its Participants and the Market, with the aim of providing them with the essential tools for the entry into force of this new regime in September 2020.

The presentation made at the Workshop is available at the following link.

INTERBOLSA has decided to amend its price list for Financial Intermediaries and other entities by reducing the resubmission of instructions fee from 83 cents to 33 cents from 1 October 2019.This fee will be charged to the parties involved in the transaction, per resubmission day, whenever an instruction not settled is  resubmitted on the T2S platform for a new settlement.

Following the adoption of the Trade Date Netting (TDN) model by all the CCPs participants of Interbolsa, it has also decided to change the charge of the cancellation of instructions, beginning on October 1, 2019, this fee to be charged to all cancelled operations.

The Non-euro Currency Settlement System (SLME), managed by INTERBOLSA accepts, since September 30, 2019, the settlement and income payments related to Exchange-Trade Funds (ETFs) denominated in a non-euro currency.

The list of eligible currencies has also been extended to the:

• Chinese offshore;
• Norwegian krone;
• Swedish krona.

The Non-euro Currency Settlement System processes the settlement of all operations in non-euro eligible currency, namely the settlement of operations carried out over-the-counter, the settlement of “non-clearable” market operations and the income payments and redemptions.

To properly accommodate these amendments, INTERBOLSA amended the INTERBOLSA Regulation No. 2/2016, the INTERBOLSA Circular No. 1/2016 and the INTERBOLSA Circular No. 4/2016.

INTERBOLSA has made available the “Partial Release” functionality with the implementation of the T2S Change Request 653 with Release 3.2, occurred on November 16, 2019.

This new functionality that introduces benefits in improving settlement efficiency, enabling fails reduction in accordance with the future CSDR settlement discipline regime, meets the following requirements:

• Available only for securities delivery instructions (DVP, DFP and DWP);
• For settlement instructions:

• matched and not canceled;
• pending with Party “Hold”;
• that permit partial settlement;
• which intended settlement date (ISD) has been reached.

In cases where the partial quantity released does not settle, during the day the partial release functionality was activated (until the end of the respective cut-off), the process will be automatically canceled by T2S, returning the instruction to its original status (Hold of initial quantity).

To properly accommodate this amendment, INTERBOLSA revised Article 46 of INTERBOLSA Regulation 2/2016 (amendment of paragraph 2 and addition of paragraph 4).

Supplementary documentation: Release 3.2 Briefing Paper

INTERBOLSA has implemented a VPN IPSEC Tunnel solution which allows its participants to connect to the INTERBOLSA Wide Area Network (WAN) via Internet.

This solution aims to decrease connection costs, namely for remote customers, as well as to reduce the installation time of the communication lines used in current solutions (ADSL or optic fiber).

The amounts to be charged by INTERBOLSA are defined in point 7.1 of the price list of the Financial Intermediaries.

In INTERBOLSA’s price list was also included a new fee for the backup connection, through optic fiber, to INTERBOLSA’s communication network.

Following the implementation of the CR 694 by T2S, the partial settlement window of 07:00 and 14:45, now have the following schedule: from 07:00-07:30 and 14:30-15:00 (WET).

The aim of this change is to increase the settlement efficiency to allow further processing and settlement of more instructions.

In order to properly accommodate this amendment, INTERBOLSA has changed the notice of the timetables (amendment of paragraph 5).