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  • CSD-4.1 CSD-4.1 Business Rules of Licensed Clearing Houses and Licensed Central Depositories

    • CSD-4.1.1

      The CBB may prescribe the matters that a licensed clearing house or licensed central depository shall make provision for in the business rules of the licensed clearing house or licensed central depository.

      Amended: April 2016

    • CSD-4.1.2

      A licensed clearing house or licensed central depository shall, in line with CBB Law, and to the satisfaction of the CBB, make provision in its business rules for continuing requirements for each member or depository participant, including requirements that the member is a Category 1 Investment Firm licensed by the CBB.

      Amended: April 2016

    • CSD-4.1.3

      A licensed clearing house or licensed central depository shall, in line with CBB Law, make provision in its business rules and to the satisfaction of the CBB for continuing requirements for each member or depository participant, including requirements relating to the terms and conditions under which transactions will be cleared, settled or deposited, including but not limited to:

      (a) The legal obligations and rights of the licensed clearing house and members relating to the clearing and settlement of transactions;
      (b) The legal obligations and rights of the licensed clearing house or central depository and members or depository participants relating to payments, including netting of obligations, distribution of entitlements, assumption of obligations and method of payment.
      Amended: April 2016

    • Business Rules of a Licensed Clearing House and Licensed Central Depository Have Effect as Contract

      • CSD-4.1.4

        The business rules of a licensed clearing house and licensed central depository shall be deemed to be, and shall operate as, a binding contract:

        (a) Between the licensed clearing house and licensed central depository and each issuer of securities;
        (b) Between the licensed clearing house and licensed central depository and each member or depository participant;
        (c) Between each issuer of securities and each member or depository participant; and
        (d) Between each member or depository participant and every other member or depository participant.
        Amended: April 2016