On July 26, 2018 the Croatian Financial Services Supervisory Agency Decision on obligation for submission of the debt financial instrument transactions that are concluded outside the regulated market or MTF, CLASS: 011-02/18-01/04, REGNO: 326-01-770-18-01 („the Decision“). The Decision is published at the Croatian Financial Services Supervisory Agency web page.
By subject Decision it is decided that transactions with debt financial instruments that are listed in the regulated market which has been concluded outside the regulated market or MTF need to be reported to the exchange, unless the transaction is already reported to Zagreb Stock Exchange, Inc. as APA in which case the obligation is considered to be fulfilled. The Exchange is obliged to publish transaction data on its web page without delay.
The obligation to report OTC transaction does not apply to transactions of borrowing on the basis of financial instruments (for instance, repurchase and reverse repurchase agreements, buy and sell back and sell and buy back, Lombard loans etc.). Financial instrument for which there is an obligation for OTC transaction reporting are bonds and commercial papers. Article 2 Paragraph 2 of Decision defines the persons that are obliged to submit the subject transactions.
A subject to the obligatory reporting is a person who is a seller in mentioned transaction as follows:
1. an investment firm,
2. a credit institution,
3. other financial institutions authorised by the competent authority in accordance with the provisions governing their operations,
4. an insurance undertakings,
5. collective investment schemes and management companies of such schemes,
6. management companies of pension funds and pension funds,
7. a pension insurance undertakings,
8. a commodity and commodity derivatives dealers,
9. a local firms,
10. other institutional investors whose main activity is not covered by indents 1 to 9 of this paragraph, and which are required to be authorised or regulated to operate in the financial market,
11. a legal persons which, in relation to the previous financial year, meet at least two of the following requirements:
- total assets amounting to at least HRK 150 million,
- net turnover amounting to at least HRK 300 million,
- own funds amounting to at least HRK 15 million,
12. Other institutional investors whose main activity is to invest in financial instruments and which are not required to be authorised or regulated by the competent authority to operate in the financial market, including entities established for the purpose of securitisation of assets.
If the seller in the transaction is not the person referred to under item 1-12 hereto or does not have a registered seat in the republic of Croatia, the transaction has to be reported by the buyer in the subject transaction that has a registered seat in the Republic of Croatia.
The transaction is reported to the Exchange by the end of trading day on which the transaction is concluded or by the beginning of the next trading day if concluded after the end of the trading day.
The persons obliged to report the transactions are responsible for the accuracy of the reported data (Article 3 of Decision).
In accordance with the Article 6 of the Decision, the Decision cease to be valid starting from the provision of the CTP service that has obtained the approval to perform services in the EU, at which the data on transactions with the debt financial instruments that are listed in the regulated market in the Republic of Croatia shall be available, on which the Croatian Financial Services Supervisory Agency shall inform the subjects of supervision.
Pursuant to mentioned, Zagreb Stock Exchange, Inc. allows person obliged to report OTC transactions, reporting trough ZSE APA System in line with the Terms and Conditions for Debt Financial Instrument Reporting.
The Users that on the day of entering into force of these terms and Conditions have already signed contracts on usage of the ZSE OTC Service, reserve the right to use the ZSE APA System under this Terms and Conditions, and in accordance with the information stated in their previous applications, until such time that they submit a new application.
Fulfilled Application form needs to be delivered to the following e-mail address: email@example.com
. Upon receipt of the fulfilled Application for the user name and password will be provided in order to access to the ZSE APA System.