UNIVYC, a.s., a subsidiary of Burza cenných papírů Praha, a.s. (Prague Stock Exchange), has been granted permission by the Czech National Bank to act as central depository, thus making an important step on its way towards standardisation of the Czech capital market.
Establishment of the central depository, which consolidates registration of investment tools and settlement of trades, enabling also a multi-stage register common in other European countries, is a necessary condition for standardising the Czech capital market, since the current situation has been ineffective from the long-term point of view.
Another step to be taken by UNIVYC will be the signing of an agreement with the Czech Ministry of Finance concerning the transfer of registers. The central depository will be fully functional once the Exchange members and other banks and securities traders to participate in the central depository are fully technically prepared. This will take several months.
“Once the project has been fully implemented, we will have a more transparent market and we look forward to be able to find space for a gradual cost reduction in the process of registration and settlement as well as for increasing the effectiveness of the entire process, which will open up new possibilities to extend product offer,“ says Helena Čacká, UNIVYC Chief Executive Officer.
“UNIVYC has a long-term experience with the settlement of security trades on our market, and its settlement system fully complies with the rules and standards required by the EU,“ said Petr Koblic, CEO of the Exchange.
The central depository is a joint-stock company which maintains the securities register in the Czech Republic, assigns the international identification numbers (ISIN) to securities and operates the settlement system. UNIVYC, a.s. has a dominant position in the area of settlement of securities trades on the Czech capital market. Besides the settlement of exchange trades and OTC transactions, Univyc offers other services and products for the Exchange members, Univyc participants and other market players.