2012-01-19
Report on how the Depository meets international recommendations discussed
The Board of the Bank of Lithuania was presented a report on the Payment Systems Department’s conducted assessment of whether the securities settlement system of the Central Securities Depository of Lithuania meets the Recommendations for Securities Settlement Systems provided by the European System of Central Banks and the Committee of European Securities Regulators. The assessment has been conducted in cooperation with the former Securities Commission of the Republic of Lithuania. The Board of the Bank of Lithuania approved of this report.
The 19 Recommendations for Securities Settlement Systems encompass a number of the following functional aspects: from the moment conclusion of securities transactions is finalized to their settlement is completed and the securities reach the investor. Therefore, the assessment encompassed some functional aspects of the NASDAQ OMX Vilnius Stock Exchange, Bank of Lithuania, and the former Securities Commission.
The assessment revealed that the securities settlement system of the Central Securities Depository of Lithuania met 15 out of the 19 recommendations, 3 recommendations were basically observed, and the requirements of 2 recommendations were not applied.
The Assessment Report specified the measures recommended for the Depository. In addition to them, the Report formulated three proposals whose implementation does not influence the final assessment of meeting the recommendations; however they would still more enhance the credibility of the securities settlement system of the Central Securities Depository of Lithuania. The Assessment Report also presents proposals to implement the Guarantee Fund related measures that would contribute to increasing the efficiency of the Guarantee Fund, as the financial safeguard of the market in the event of default of any of its members. It is intended to propose implementing these recommended measures to the Stock Exchange.
The Finnish company NASDAQ OMX Helsinki OY acquired a 60 % block of shares of the Depository this year to increase its share in the latter to 92%. The remaining 8% of the authorised capital are held by AB NASDAQ OMX Vilnius which belongs to the NASDAQ OMX group.
Termination of operation permitted
The Board of the Bank of Lithuania permitted the branch of the Icelandic bank MP Banki hf. in the Baltic States to terminate operation.
The decision regarding termination of operation of the branch of the bank MP Banki hf. in the Baltic States was adopted by the Board of Directors of MP Banki hf. on 14 December 2011.
While adopting the decision, the Board of the Bank of Lithuania took into account that the branch of MP Banki hf. in the Baltic States did not have customers and did not provide financial services; moreover, after removing the branch from the Register of Legal Entities, creditors of the branch will be able to file their claims regarding failure in meeting the branch’s obligations directly to the bank MP Banki hf., which, after removal of the branch from the Register of Legal Entities, will maintain responsibility for adequate meeting of the obligations.