Past version: Effective from 26 Apr 2013 to 09 Dec 2018

CDP shall, pursuant to any Novated Contract which is due for settlement on any Settlement Day, receive securities from the selling Clearing Member on that Settlement Day. CDP's right to receive such securities shall be satisfied by CDP debiting such securities from the Clearing Account of the selling Clearing Member. Upon such debiting, the selling Clearing Member irrevocably authorises CDP to recover such securities from the balance of the Securities Account or sub-account of the customer of the selling Clearing Member on whose behalf the selling Clearing Member executed the relevant Exchange Trade for Inter-Broker Settlement by debiting the said Securities Account or sub-account and to thereafter credit such securities to the Clearing Account of the selling Clearing Member. In the event that there are insufficient or no securities in the balance of such Securities Account or sub-account, the selling Clearing Member shall be responsible for such shortfall. The shortfall in the securities shall be debited to the selling Clearing Member's Clearing Account.

Amended on 3 April 20083 April 2008, 23 January 200923 January 2009, 20 November 200920 November 2009 and 26 April 201326 April 2013.