Central securities depository
The central securities depository of Banco de Portugal, SITEME, ensures the following functions:
- Registration, control and settlement of transferable securities of a monetary nature, issued in book-entry form or that have been dematerialised following prior deposit; and
- Other services related to the market trading of the securities registered therein.
Its framework is governed by Decree-Law N.º 22/99 of 28 January, and by Notice of the Banco de Portugal N.º 5/99 of 23 November.
The above-mentioned securities may take the form of Treasury Bills, commercial paper, ECB debt certificates or other money market tradable securities. Portuguese Treasury Bills are issued by the Instituto de Gestão da Tesouraria e do Crédito Público (Portuguese Treasury and Government Debt Agency) and registered in SITEME.
All operations are settled in central bank money, on a delivery versus payment (DvP) basis, model 1 of the classification of the Bank for International Settlements. The central securities depository also accepts free of payment deliveries. Securities are transferred on a continuous basis and in real time, by the credit/debit of the securities accounts opened with SITEME in the name of the entities involved in the transaction. Same-day settlement finality is ensured from 7:00 a.m. to 5:15 p.m. (UTC).
The institutions which are eligible for Eurosystem’s monetary policy operations may participate in SITEME, as well as other entities authorised by Banco de Portugal. Communications between SITEME and the participating entities are established through data communication lines, via the BPnet service.
The SITEME central securities depository complies with the criteria established by the Eurosystem in terms of the deposit/registration of assets to be used as collateral in Eurosystem’s credit operations.
For further information on SITEME, see the document “Disclosure Framework for Securities Settlement Systems” and Instruction N.º 47/98 of the Banco de Portugal.
In addition to SITEME, another central securities depository is established in Portugal (Interbolsa). Additional information on this depository can be found on the Interbolsa’s website.