The Italian legislative decree No. 176 of 12 August 2016 has amended the Legislative Decree No. 58 dated 24 February 1998 (the Italian Securities Act) introducing a new regulation relating to the central depositary system for financial instruments and posttrading services with a view to aligning the national rules with the Regulation No. 909/2014 (Central Securities Depositories Regulation).
In particular, the new rules implemented the following changes to the existing legislative framework: (i) alignment of the settlement date of transactions performed during trading, which cannot occur later than the second business day after the trading date (the so-called "T+2"); and (ii) introduction of specific measures in case of settlement defaults, as well as cash penalties, buyin procedures and suspension procedures in case of systemic breach of delivery obligations.
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