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.
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.