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Zagreb Stock Exchange Has New Rules

The new rules of the Zagreb Stock Exchange, which will come into effect in a week, will, among other things, allow listing on the regulated market without the issuer’s consent under conditions specified by law and regulations, while the foreign and domestic multilateral trading platform (MTP) will be replaced by a new MTP structure, and the trading hours of the Exchange will be extended to 4:30 PM.

The Zagreb Stock Exchange reminds that the new rules were approved by the Croatian Financial Services Supervisory Agency (Hanfa) at the end of last week.

The new rules will apply from next Monday, September 16, the Exchange announces, noting that the new trading hours will begin to apply one month from the date of entry into force of the new rules.

Among the innovations brought by the new rules, the Exchange highlights the possibility of membership through remote access, as well as the distinction between the roles of specialists and market makers depending on the type of security for which liquidity support is provided (equities or structured products).

According to the new rules, the foreign and domestic multilateral trading platform (MTP) will be replaced by a completely new MTP structure, which will be divided into three segments (MTP – Alter, MTP – Fortis, MTP – X) with different conditions for the admission of financial instruments to trading as well as obligations after admission, in order to facilitate the admission process and motivate companies to raise the necessary capital through the exchange.

The balancing auctions for structured products will also be shortened, and the possibility of trading interruption due to extraordinary market volatility will be introduced, specifically due to a decline in the value of the Crobex stock index by 10 percent or more.

The new rules also allow for listing on the regulated market without the issuer’s consent under conditions specified by law and the Exchange’s rules, provisions related to the settlement of exchange transactions and trade transparency have been amended, as well as those related to the Committee for Conflict of Interest Decisions and the Disciplinary Measures Committee, which becomes the Market Protection Measures Committee.

The trading hours of the Exchange are also changing, with pre-opening lasting from 9:00 AM to 9:15 AM (+ variable ending of up to 5 minutes), and regular trading from the end of pre-opening until 4:30 PM.

Reporting of OTC transactions will be possible from 8:30 AM to 4:30 PM, and the new trading hours will begin to apply one month from the date of entry into force of the new rules, the Exchange states in its announcement.