The Settlement cycle in the Federation of Bosnia-Hercegovina is T+2, meaning that 2 (working) days after the trade date (T) all obligations from the concluded trade must be fulfilled. Standard T+2 settlement applies for equities and bonds. Settlement is mandatory.

• T+0 (Trade date): Sarajevo Stock Exchange delivers a report of all matched trades to the Securities Registry (CSD). The Registry blocks securities which were sold on trade date in order to prevent abuse.
• T+1: The Securities Registry submits to each member a report on the amount of net debts/claims by 10:00. If the buying / selling member does not object to the report till 10:30, it is considered accepted by the member.
• T+1: Members are required to pay the net debt amount into the clearing and settlement account of the Registry latest by 13:00 (Prefunding of cash)
• T+2: The Securities Registry transfers securities from the seller's account into the buyer's account, as well as the funds from its account at the Central Bank to the seller's cash account. Settlement is final at 13:00 on T+2

Failure provisions and Buy-in procedures

A Guarantee Fund is installed at the Securities Registry (CSD) to cover potential damages in case any of the CSD-members fail to to pay their liabilities. All members are required to contribute to the Guarantee Fund.

If a CSD-member fails to pay its net debt on T+2, the Registry will settle the trade using the Guarantee Fund. Please note that custody banks are also members of the Registry clearing and settlement system and are therefore liable for the settlement.

If a CSD member does not cover his short securities position by 10:00 on T+1, the buy-in procedure is started.

Lending of securities is allowed, with the written permission of the securities owner.