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 Chief Executive Officers 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
Regulatory Notice 6.5—Compensation for corporate action entitlements
Practice Notes
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

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  • Regulatory Notice 6.5—Compensation for corporate action entitlements

    1. Rule 6.5.4 provides that, subject to Rule 6.5.5,
    (a) a Clearing Member that is due to, but does not, deliver securities in respect of Novated Contracts is liable to compensate CDP for corporate action entitlements that accrue on those securities and that a recipient of those securities would have been entitled to receive but for the delivery failure; and
    (b) a Clearing Member that is due to, but does not receive securities in respect of Novated Contracts is entitled to be compensated by CDP for corporate action entitlements that accrue on those securities and that a recipient of those securities would have been entitled to receive but for the delivery failure.
    2. Rule 6.5.5 states that Rule 6.5.4 applies only to such types of corporate action entitlements that CDP shall from time to time notify.
    3. Rule 6.5.6 states that any compensation under Rule 6.5.4 shall be made in such form and value, and be due by such time, as CDP shall specify. Where CDP requires any action by a Clearing Member to effect such compensation, the Clearing Member shall do so, and shall obtain all necessary authorisation from its Customer to enable it to do so, by such time as CDP shall specify.
    4. Appendix A to this Regulatory Notice sets out:
    (a) the types of corporate action entitlements to which Rule 6.5.4 applies. CDP may additionally prescribe, as it shall from time to time notify, further types of corporate action entitlements to which Rule 6.5.4 applies; and
    (b) the form and value of the compensation to be made, the date on which such compensation is due to be made between the Clearing Member and CDP, and the action required by a Clearing Member to effect such compensation. CDP may replace, vary, supplement or additionally specify, as it shall from time to time notify, the form or value of any compensation to be made under Rule 6.5.4, the due date of such compensation, and the action required by Clearing Member to effect such compensation.

    Added on 10 December 2018.

    • Appendix A to Regulatory Notice 6.5

      No. Corporate Action Action required of
      Clearing Member to
      effect compensation
      Form and value of
      compensation
      Due date of
      compensation
      1. Cash dividend None Cash in the currency and
      amount that the buying
      Customer would have received
      but for the failed delivery
      Dividend
      payment date
      2. Renounceable
      entitlement (e.g.,
      bonus issue /
      renounceable rights
      issue/ dividend in
      specie) in security
      that is custodised
      with CDP
      None The security in the quantity
      that the buying Customer
      would have received but for
      the failed delivery
      Credit date of the
      entitlement
      3. (a) Non-
      renounceable
      entitlement (e.g.,
      non-renounceable
      rights issue) in
      security that is
      custodised with CDP

      (b) Renounceable or
      non-renounceable
      entitlement in
      security that is not
      custodised with CDP
      None Cash in a currency and in such
      amount as determined by CDP
      based on the closing price of
      the underlying security as of
      the closing day of the
      entitlement exercise period
      minus the subscription price of
      the entitlement
      One Market Day
      after CDP
      determines the
      compensation
      amount.
      4. Conversion None The security into which the
      conversion has been made and
      in the quantity that the buying
      Customer would have received
      but for the failed delivery
      Effective date of
      conversion, i.e.
      one Market Day
      after book
      closure date
      (BCD+1)
      5. Bond redemption Clearing Members to
      submit settlement
      instructions for the
      offsetting trades for
      settlement with their
      Customers one Market
      Day after bond maturity
      Cash in a currency and in such
      amount as determined by CDP
      based on the cash-settlement
      methodology described in
      paragraph 4 of Appendix 2—
      Determination of Cash
      Settlement Amount.
      Two Market Days
      after bond
      maturity date
      6. Scrip / cash election
      dividend
      Buying Clearing
      Member shall obtain its
      Customer's election
      instruction and submit
      the same to CDP one
      Market Day before
      election closure date
      (ECD-1).

      Selling Clearing
      Member shall inform its
      Customer of the
      elected form of
      compensation upon
      being notified by CDP
      of the assignment of
      elections.
      (a) Scrip dividend elected: The
      security, in the quantity that
      the buying Customer would
      have received but for the failed
      delivery.

      (b) Cash dividend elected: Cash
      in the currency and amount
      that the buying Customer
      would have received but for
      the failed delivery.
      Dividend
      payment date
      7. Currency election
      dividend
      Buying Clearing
      Member shall obtain its
      Customer's election
      instruction and submit
      the same to CDP one
      Market Day before
      election closure date
      (ECD-1).

      Selling Clearing
      Member shall inform its
      Customer of the
      elected form of
      compensation upon
      being notified by CDP
      of the assignment of
      elections.
      Cash in the currency elected
      and in the amount that the
      buying Customer would have
      received but for the failed
      delivery
      Dividend
      payment date
      8. Partial Offer Buying Clearing
      Member shall obtain its
      Customer's election
      instruction (as to
      whether to accept the
      offer) and submit the
      same to CDP one
      Market Day before
      election closure date
      (ECD-1).
      (a) If the offer consideration is
      in the form of cash: Cash in the
      currency and in the amount
      that the buying Customer
      would have received but for
      the failed delivery

      (b) If the offer consideration is
      in the form of a securities
      listed on SGX-ST: The security
      in the quantity that the buying
      Customer would have received
      but for the failed delivery.

      (c) If the offer consideration is
      in the form of a security that is
      non-transferable or not listed
      on SGX-ST: Cash in a currency
      as determined by CDP and in
      the amount that CDP
      determines is a fair
      representation of the market
      value of the security that the
      buying Customer would have
      received but for the failed
      delivery.
      Payment date of
      the partial offer
      9. Takeover Offer Buying Clearing
      Member shall obtain its
      Customer's instruction
      (as to whether to
      accept the offer) and
      submit the same to CDP
      within 3 Market Days
      from election closure
      date (by ECD+3).
      (a) If the offer consideration is
      in the form of cash: Cash in the
      currency and in the amount
      that the buying Customer
      would have received but for
      the failed delivery.

      (b) If the offer consideration is
      in the form of a security listed
      on SGX-ST: The security in the
      quantity that the buying
      Customer would have received
      but for the failed delivery.

      (c) If the offer consideration is
      in the form of a security that is
      non-transferable or not listed
      on SGX-ST: Cash in a currency
      as determined by CDP and in
      the amount that CDP
      determines is a fair
      representation of the market
      value of the security that the
      buying Customer would have
      received but for the failed
      delivery.
      6 Market Days
      from election
      closure date
      (ECD+6)

      Added on 10 December 2018.