Back Custom print Link Text Only Rich Text Print

  • CSD-4.3 CSD-4.3 Business Rules Specific to a Licensed Central Depository

    • CSD-4.3.1

      The content of the rules of the central depository must include:

      (a) The terms and conditions under which transactions will be conducted on a central depository;
      (b) The qualifications and standards for participation;
      (c) The process and criteria for the admission, suspension and termination of depository participants;
      (d) A decertification of the structure of the services;
      (i) The legal obligations and rights of the central depository and depository participants arising from the use of the services, including any indemnity;
      (ii) The legal obligations and rights of the central depository and depository participants relating to the holding of securities by the depository on behalf of depository participants, as recorded in accounts maintained by the central depository for depository participants;
      (iii) The decertification of the risk control mechanisms including system-operating caps, lines of credit, and depository participant funds;
      (iv) The criteria for determining the type of collateral, and for calculating the amount of the collateral, to be charged by a depository participant with respect to a collateral pool or a depository participant fund;
      (v) The process to be followed in the event of a depository participant suspension, and the realisation under the security interests and guarantees granted to the central depository;
      (vi) The process for adopting and amending the business rules, and for prescribing and amending the procedures and user guides; and
      (vii) The legal obligations and rights of the central depository and depository participants relating to confidentiality and use of information; and
      (e) The class or classes of transactions that may be conducted on a central depository.
      Amended: April 2016