The process of creation of a single central depository in Slovakia is approaching its completion. The Governing Council of the European Central Bank officially approved termination of participation of Národný centrálny depozitár cenných papierov, a.s. (NCDCP) in the Target 2-Securities, that provides the securities settlement services to both central depositories. In accordance with the plan approved by the European Central Bank, the exit will be executed in period from 12 till 14 November 2021. In order to create a single, advanced securities central depository, Centrálny depozitár cenných papierov SR, a.s. (CDCP) and NCDCP concluded an agreement on transfer of clients’ assets from NCDCP to CDCP; the depositories informed on this fact in July of this year.
Exit of NCDCP from the Target 2-Securities is part of the migration of NCDCP clients’ assets to CDCP in compliance with the concluded agreement. From 15 November 2021, after successful migration of the clients‘ assets, CDCP will start to provide its services also to clients who are currently the clients of NCDCP; services will be provided in scope and under conditions laid down in the regulations of CDCP.
On the present the both depositories are intensively preparing technical conditions for migration of the clients‘ assets. Within the preparatory phase, the first round of tests of NCDCP clients‘ assets migration was performed at the beginning of September in testing environments of NCDCP, CDCP and the ECB. From 5 October 2021 the preparation phase continues in form of the second round of tests in all environments. The depositories will provide the testing results to the National Bank of Slovakia which supervises the process of the clients‘ assets migration from NCDCP to CDCP, as well as the exit of NCDCP from the Target 2-Securities.
