Instruction COSOB No. 10-02 of June 15, 2010, on Documents to be Transmitted to the COSOB by the Central Securities Depository

Instruction COSOB No. 10-02 of June 15, 2010
On Documents to be Transmitted to the COSOB by the Central Securities Depository

Pursuant to the provisions of Legislative Decree No. 93-10, as amended and supplemented, particularly Articles 19 and 31, the activities of the Central Securities Depository are exercised under the control of the Commission for the Organization and Supervision of Stock Market Operations, hereinafter referred to as 'the Commission'.

In this context, the purpose of this instruction is to define the list, content, and periodicity of transmission to the Commission by the Central Depository of the documents and information necessary for the fulfillment of its supervisory mission.

The information required by this instruction is transmitted on paper and/or via duly authenticated electronic media.

The information to be provided by the Central Depository, as mentioned in this instruction, will enable the COSOB to:

• Ensure permanent verification regarding the Central Depository's compliance with the legal and regulatory obligations to which it is subject;
• Monitor risks that could hinder the functioning of the market;
• Complete and cross-reference the information received with that of other market participants;
• Feed the COSOB database and thus consolidate the control tools for all market participants.

Accordingly, the Central Depository is required to transmit to the Commission, upon its request, any other document or information not provided for by this instruction and necessary for the fulfillment of its supervisory mission.

The models and tables presented in the annexes aim to define the content of the information to be transmitted. The Central Depository is free to adapt the presentation of the required documents according to its IT applications.

Article 1. — Annual Documents
Within thirty (30) days following the signing of the minutes of the ordinary general meeting, the Central Depository is required to send the Commission copies of the following documents:

1. The report of the Board of Directors presented to the general meeting;
2. The annual financial statements;
3. The resolutions of the general meeting;
4. The complete report of the statutory auditor on the financial statements.

Art. 2. — Quarterly Documents
At the latest fifteen (15) days after the end of each quarter of the fiscal year, the Central Depository transmits to the Commission the following documents:

• A quarterly activity report as presented in Annex 1;
• Status of admission requests from members (Annex 2);
• Status of issuer accounts (Annex 3);
• Status of current accounts of members (Annex 4).

Art. 3. — Monthly Documents
The Central Depository transmits to the Commission the following monthly statements, at the latest ten (10) days from the end of the month:

• Status of assets managed by members (Annex 5);
• List of transactions settled by the Central Depository (listed securities such as OATs, or over-the-counter);
• Nominal list of members who accessed their workstations (Annex 6).
  The presentation of this list may be organized by date, by operation, and by system.

Art. 4. — Documents to be Communicated Without Delay In the event of a technical incident occurring at the settlement and delivery system level, having an impact on the management of operations, the Central Depository is required to:

• Communicate without delay to the COSOB the nature of the incident and the immediate solutions envisaged by the Central Depository;
• Transmit to the COSOB a detailed report of the incident as well as the corrective and preventive actions implemented by the Central Depository.

Art. 5. — Other Documents
The Central Depository transmits to the COSOB the following documents, upon each preparation or modification, at the latest 15 days after:

• The detailed organizational chart of the Central Depository;
• The composition of the Board of Directors;
• Reports of internal or external controls and audits;
• Reports of statutory audits;
• Minutes of ordinary or extraordinary general meetings;
• Minutes of Board of Directors meetings;
• New instructions or modifications to existing instructions to members;
• New procedures related to the operational activity of the Central Depository;
• Copies of agreements concluded with establishments intervening in the financial market (SGBV, DGT, Bank of Algeria, etc.)*
• Copies of contracts signed with service providers linked to information systems.*
• Membership in international organizations, professional associations, or agreements concluded with other central depositories.

Art. 6. — Exceptional Provisions
As an exception and within a period of thirty (30) days from the entry into force of this instruction, the Central Depository must transmit to the Commission the following documents:

• The detailed organizational chart of the Central Depository (with names and descriptions of functions);
• The annual management report including the financial statements and resolutions of the ordinary general meeting relating to the year 2009;
• The report of the statutory auditor on the financial statements of the year 2009;
• Copies of agreements concluded with establishments intervening in the financial market (SGBV, DGT, Bank of Algeria, etc.);
• Copies of contracts concluded with service providers linked to information systems;
• The list of memberships in international organizations, professional associations, or agreements concluded with other central depositories;
• A copy of internal procedures related to the activity of the Central Depository;
• A copy of instructions to members.

• For these events, the Depository sends a copy of the agreement or contract concluded.

Art. 7. — Final Provisions
This instruction enters into force on the date of its signature.
Made in Algiers, on July 1, 2010.
The President
Noureddine ISMAIL.

ANNEXE 1
The minimum content of the quarterly report

1. Identity and signature of the person responsible for the information contained in the report;
2. Key events during the period. This section explicitly presents:
   — New agreements concluded;
   — New technologies or applications integrated; — New services provided to members; — New procedures; — As well as any other event that may have an effect on the activity of the Central Depository.
3. Presentation of the Depository's activity: this chapter describes the establishment, its resources, and the mode of their organization. It also includes statistics1 on the Depository's activity. These statistics concern, among others:
   — Status of members: number, evolution, and distribution; — Status of managed securities: distribution by volume and value (listed or unlisted, equity, corporate debt, public debt, or UCITS...); — Status of the dematerialization of securities; — Status of settled transactions: evolution and distribution; — Status of OSTs processed by the Central Depository (issuer, security concerned, type of OST, date, amount...)
4. Audit and control operations. This part includes an explanation of the scope and procedures of internal control performed, as well as its frequency and results. It also includes any audit operations, internal or external, their results, and the parties conducting these audits.
5. Technical incidents encountered. This section contains:
   — A register of breakdowns indicating their dates, objects, durations, and actions taken; — A register of incomplete financial operations (whether due to internal or external causes); — A register of maintenance operations performed.
6. Register of complaints: This section is dedicated to complaints received by the Central Depository. It indicates, notably, the identity of the complainant, the date of receipt of the complaint, the subject of the complaint, as well as the follow-up given to the complaint.

1 The statistical tables can be presented in annexes at the end of the report.

ANNEXE 2
Status of admission requests from members
Candidate Name | Date of Submission of Membership File | Date of Response* | Decision | Observations

• the date of notification of the Board of Directors' decision.
  the observations concern the motivations for refusal or any reservations upon acceptance.

ANNEXE 3
Status of Issuer Accounts
Issuer Account | Issuing Entity | Security | Volume Number of Issuers | Number of Lines | Total Volume

ANNEXE 4
Status of Current Accounts of Members
Current Accounts of Members | Member 1 | Member 2 | Member 3 | Member 4 | Totals
| Own | Client | Own | Client | Own | Client | Own | Client |
Security 1
Security 2
Security 3
Security 4
Security 5
Security 6
…
Totals

ANNEXE 5
Status of Assets Managed by Members
Member Name | Code
Own | Client
Equities | Bonds | UCITS | OAT | Other | Equities | Bonds | UCITS | OAT | Other

ANNEXE 6
Nominal List of Members Who Accessed Their Workstations Name | Activity* | Establishment | Access Date | System Used

• to be mentioned if the member is a trader, TCC, SVT, issuer...
  ADJUSTMENT, MATCHING, FREE

Règlementation COSOB Instruction n°10-02