* Sobolewski: "If we have a participant that fails to settle the trades in cash, we will take decisive steps to remove the threat from the system"
* "Harinvest" has a market share of 26% of the market for trades involving structured products
* The Central Depository has recouped the money of the Fund, market officials say
The Central Depository was forced to use 500,000 Euros, half of the Guarantee Fund it manages, after brokerage firm "Harinvest" did not have the money needed to settle some trades involving structured products issued by Erste Group.
According to procedures in this kind of situations, the broker has initiated forced sales ("sell-out") from the portfolio.
According to the Central Depository, the Guarantee Fund has been rebuilt, as the money was recouped.
The Officials of the Depository told us: "Considering the fact that a participant in the system of the Central Depository did not avail the money needed to complete the settlement, the Central Depository has used a portion of the guarantee fund, which was subsequently repaid in full by the participant in question.
Before, as well as after the use of the guarantee fund, the Central Depository has applied other risk management measures, for example the special or imposed procedure. All the applied measures represent normal procedures stipulated in the Code of the Central Depository".
But the situation which was created was not at all to the liking of Ludwik Sobolewski, the CEO of the Bucharest Stock Exchange, who is announcing drastic measures against the brokerage who failed to honor the settlement.
He told us: "Sometimes it happens that a market participant does not fulfill their settlement obligations. This time it happened on the < cash > side. The market participant did not have enough money for settlement. Since I understand very well the cle
