ARTICLE
1 November 2016

New Regulation On "T+2" Settlement Among Other Rules On The Central Depositary System For Financial Instruments

SS
Shearman & Sterling LLP

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The Italian legislative decree No. 176 of 12 August 2016 has amended The Italian Securities Act introducing a new regulation relating to the central depositary system for financial instruments...
Italy Corporate/Commercial Law

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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