All through October and November 2026, the CNB ran exams protecting the total lifetime of a bond. That included easy transfers, purchases and gross sales in opposition to cost, curiosity disbursements, and repo transactions.
In keeping with the CNB, all of those transactions settled almost instantaneously. In a world the place securities settlement has historically concerned ready durations and a number of intermediaries, that pace is the headline characteristic.
Small numbers, full lifecycle
Every bond carried a nominal worth of CZK 10,000, and complete take a look at volumes amounted to tens of hundreds of koruna.
The CNB stated it confirmed the end-to-end lifecycle of the devices, which required adjustments to contracts and guidelines alongside the best way.
The CNB’s sole commercial-bank counterparty within the exams was Česká spořitelna.
The financial institution additionally went purchasing. As a part of testing its reserve administration, the CNB bought a euro-denominated authorities bond that exists completely on DLT.
Why the governor cares
CNB Governor Aleš Michl framed the venture round two objectives. The primary is making koruna property extra liquid and simpler to commerce, notably relative to alternate options resembling German Bunds.
His second objective is about what cash strikes on these new rails. Michl harassed that settlement ought to depend on central financial institution cash quite than non-public devices.
