Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	KDD has an electronic - real time-link with the Ljubljana Stock Exchange (LJSE). KDD reports calculation and offset of settlement obligations according to the trade report transmitted from the Ljubljana Stock Exchange Automated Trade Execution System (ATES) by on-line communication. KDD has an electronic real time link with the Bank of Slovenia's Real Time Gross Settlement System. The SWIFT network is used for transfer of payment instructions within the RTGS system. Matching and netting services are being performed within the KDD.
2.	Is there one or more depository or settlement system in the market?	There is only one depository (KDD) and one settlement system within the depository.
3.	If there are several, has a consolidation been considered? If yes, by when?	Not applicable.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	Yes.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Yes, foreign market participants are allowed to become direct participants both in KDD, as well as LJSE. However, the Securities Market Act-1 introduced a differentiation of non-resident participants: EU-based participants can become direct participants in the Slovenian securities market either directly or through an established subsidiary on the basis of their home country regulator's notice to the Securities Market Agency. Non EU-based non-residents of Slovenia can become direct participants in the Slovenian securities market only through establishing a subsidiary which is subject to Securities Market Agency's approval.