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  • Settlement Procedure

    • CSD-2.2.5

      The licensed exchange or clearing house shall prescribe the procedure, schedule, manner and mode to be followed in respect of settlement of all transactions contracts entered into or to be entered into in any security or securities by the clearing members through the licensed clearing house.

      Amended: April 2016

    • CSD-2.2.6

      All the clearing members, custodians, clearing banks, central depositories, depository participants and other persons having beneficial interest in settlement shall comply with the provisions contained in the rules and regulations of the licensed exchange and the rules of the licensed clearing house from time-to-time.

      Amended: April 2016

    • CSD-2.2.7

      Key aspects of the settlement process that the legal framework should support include the following:

      (a) Enforceability of transactions;
      (b) Protection of customer assets, particularly against loss upon the insolvency of a custodian;
      (c) Dematerialisation of securities and the transfer of securities by book entry;
      (d) Netting arrangements;
      (e) Securities lending, including repurchase agreements and other economically equivalent transactions;
      (f) Finality of settlement;
      (g) Margin trading and securities lending and borrowing;
      (h) Arrangements for achieving delivery versus payment;
      (i) Default rules addressing the consequences of a member's default;
      (j) Arrangement for registration of pledges and liens; and
      (k) Liquidation of assets pledged or transferred as collateral to support members' obligations.
      Amended: April 2016

    • CSD-2.2.8

      The licensed clearing house shall maintain a settlement guarantee fund to guarantee settlement obligations of clearing members.

      Amended: April 2016

    • CSD-2.2.9

      The licensed clearing house shall deliver, at its discretion, securities which it has received from a clearing member to any other clearing member who is entitled to the same.

      Amended: April 2016

    • CSD-2.2.10

      The licensed clearing house shall determine the settlement obligations relating to delivery and receipt of securities by and between clearing members to be exchanged electronically through the clearing and settlement system of the licensed clearing house.

      Amended: April 2016