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13.3.1

The total amount due to CDP under the Block Trade submitted by the Principal in DVP Settlement (the "Block Trade Value") shall be debited to the Principal's daily balance for the Settlement Day which is the due date for settlement of the Block Trade and shall thus be taken into account for the purposes of computing the Net Debit or Net Credit Balance of the Principal for the said Settlement Day. However, the Block Trade Value shall not be taken into account for the purposes of determining whether the Principal's Net Debit Balance exceeds the Principal Net Debit Cap.

Example 4: Assume that a Principal's Principal Net Debit Cap is $10,000,000 and the SB Net Debit Cap is $100,000,000 and the Principal wishes to submit a Block Trade which is valued at $120,000,000 on a Settlement Day. At the time prior to the submission of the Block Trade the Principal's Net Debit Balance is $8,000,000. Where the procedure mentioned in the DVP Procedures Handbook for Block Trades submission has been followed, the Principal would be allowed by CDP to submit the Block Trade and the Block Trade Value of $120,000,000 would be debited to the Principal's Net Debit Balance, increasing the Net Debit Balance to $128,000,000. If the Principal does not submit any further receiving instructions for the Settlement Day, the Net Debit Balance of the Principal on the Settlement Day would be $128,000,000 payable to CDP.

Example 5: Assume that the Principal in Example 4, after submitting the Block Trade, intends to submit further receiving instructions. As his Principal Net Debit Cap is $10,000,000, the Principal is restricted to submitting receiving instructions that in aggregate amounts to $2,000,000 as his Net Debit Balance prior to these further submissions is $8,000,000.

Amended on 3 October 20093 October 2009 and 8 September 20148 September 2014.