Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
Rule 1 — Application and Definitions
Rule 2 — Administration
Rule 3 — Membership
Rule 4 — Appointment of Approved Executive Directors and Directors
Rule 5 — Financial/Capital Requirements
Rule 5A — Position Accounts
Rule 6 — Clearing and Settlement between Clearing Members and CDP
Rule 6A — Margin Requirements
Rule 6B — Collateral
Rule 6C — Payments
Rule 7 — Clearing Fund
Rule 8 — Default Rules
Rule 9 — Suspension or Restriction of Clearing
Rule 10 — Liabilities
Rule 11 — Supervisory Rules
Rule 12 — Foreign Market Links
Rule 13 — General
Rule 14 — Transitional Provisions
Appendices
Regulatory Notices to CDP Clearing Rules
Practice Notes
Practice Note 6.5.1B(2) — Priority Considerations when Selecting Buy Trades to Cash Settle
Schedules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
Rule Amendments

  Versions
(1 version)
 
Dec 10 2018 onwards

Practice Note 6.5.1B(2) — Priority Considerations when Selecting Buy Trades to Cash Settle

Issue Date Cross Reference Enquiries
Added on 10 December 2018. Rule 6.5.1B(2). Please contact Clearing Ops:

E-Mail Address: securitiesclearing@sgx.com
1. Rule 6.5.1B(2) states that on any Settlement Day, if and to the extent that the securities available to CDP are insufficient for CDP to settle its delivery obligations in respect of Novated Contracts that are due for settlement on that Settlement Day, CDP may cash settle any of those delivery obligations in whole or in part.
2. This Practice Note sets out the general principles CDP may consider when deciding which buy trade(s) to cash settle when there are insufficient securities available to CDP to settle its delivery obligations.
3. The general principle that CDP considers in selecting which buy trade(s) to cash settle is to minimise knock-on impact and reduce risk to CDP's clearing facility. In particular, the factors that CDP considers, in decreasing order of priority, include the following:
(a) Whether CDP has been informed of any onward sell trade in respect of the buy trade, in which case that buy trade will not be selected for cash settlement.
(b) Age of the buy trade, generally giving priority to the oldest buy trade.
(c) Quantity of securities in the buy trade, generally giving priority to the buy trade with the largest quantity of securities.
4. With respect to paragraph 3(a) above, Clearing Members should immediately inform CDP of any onward sell trade when so informed by a Customer.