Rule 4 Settlement Instructions

4.1 Settlement based on Settlement Instructions

4.1.1

Settlement under these Rules will be conducted based on Settlement Instructions. Each Settlement Participant irrevocably authorises CDP to act on any Settlement Instruction submitted by the Settlement Participant or on its behalf as provided in these Rules.

Added on 10 December 2018 10 December 2018.

4.1.2

Each Settlement Participant that submits a Settlement Instruction warrants to CDP and every other Settlement Participant that the Settlement Instruction is accurate and that it is authorised to deliver to or from the Securities Account named in the Settlement Instruction.

Added on 10 December 2018 10 December 2018.

4.1.3

Notwithstanding Rule 4.1.2, if CDP is made aware that a Settlement Participant submitted a Settlement Instruction that is not accurate, or that the Settlement Participant is not authorised to deliver to or from the Securities Account named in the Settlement Instruction, CDP may, in its absolute discretion, vary, cancel or refuse to accept or execute such Settlement Instruction. Nothing in this Rule shall oblige CDP, and CDP shall have no duty, to enquire into whether a Settlement Instruction is accurate, or whether a Settlement Participant is authorised to deliver to or from the Securities Account named in a Settlement Instruction.

Added on 10 December 2018 10 December 2018.

4.2 Settlement Instructions submitted by CDP

4.2.1

CDP will, and each Settlement Participant irrevocably authorises CDP to, submit Settlement Instructions:

(a) for settlement of rights and obligations between each Clearing Member and CDP under the CDP Clearing Rules;

(b) to effect any action that CDP is entitled to take, and to settle any rights and obligations arising, under the CDP Clearing Rules, in relation to the default of a Clearing Member; or

(c) pursuant to Rule 7.6.2.

Added on 10 December 2018 10 December 2018.

4.2.2

Subject to Rule 4.2.3:

(a) the intended settlement day of any Settlement Instruction submitted by CDP for the settlement of securities and money consideration under a Novated Contract will be the intended settlement day of the Novated Contract; and

(b) the intended settlement day of any Settlement Instruction submitted by CDP for the settlement of any other right or obligation under the CDP Clearing Rules will be the due date for the settlement of that right or obligation as specified by CDP under the CDP Clearing Rules.

Added on 10 December 2018 10 December 2018.

4.2.3

CDP may subsequently submit, amend, cancel or reissue any Settlement Instruction to effect any cash settlement, under the CDP Clearing Rules, of an obligation to deliver or right to receive securities.

Added on 10 December 2018 10 December 2018.

4.3 Matching of Settlement Instructions

4.3.1

A Settlement Instruction (other than a Settlement Instruction described in Rule 4.3.4) shall not be eligible for settlement unless and until it has been matched with the corresponding Settlement Instruction, in accordance with such matching criteria as CDP may define.

Added on 10 December 2018 10 December 2018.

4.3.2

A Settlement Participant may specify, in which event CDP will take into account, a tolerance level for differences in money value when determining a match. CDP shall notify the relevant Settlement Participants of the money value at which the Settlement Instructions are matched and will be settled.

Added on 10 December 2018 10 December 2018.

4.3.3

A Settlement Participant may submit a request to amend or cancel any Settlement Instruction to which it is a party but CDP will not act on such request unless and until the request has been matched with a corresponding request from the other party to the Settlement Instruction.

Added on 10 December 2018 10 December 2018.

4.3.4

This Rule 4.3 does not apply to the following Settlement Instructions:

(a) Settlement Instructions submitted by CDP; and

(b) Settlement Instructions submitted by a Settlement Participant to deliver securities to or from a Securities Account as authorised by the Securities Account holder.

Added on 10 December 2018 10 December 2018.

4.4 Timelines for Submission of Settlement Instructions

4.4.1 Batch Settlement

(a) For a Settlement Instruction to be eligible for settlement in a Batch Settlement Run, the Settlement Instruction must be submitted and, if required, matched pursuant to Rule 4.3 within the timelines specified in Appendix 1 of Regulatory Notice 3.4.1, or such other time as CDP may specify, for that Batch Settlement Run.

(b) Unless otherwise determined by CDP, Settlement Instructions that are submitted and, if required, matched pursuant to Rule 4.3 after the prescribed cut-off time(s) will be carried forward to the next available Batch Settlement Run.

Refer to Appendix 1 of Regulatory Notice 3.4.1.

Added on 10 December 2018 10 December 2018.

4.4.2 RTGS

(a) For a Settlement Instruction to be eligible for RTGS on any Settlement Day, the Settlement Instruction must be submitted and, if required, matched pursuant to Rule 4.3 within the timelines specified in Appendix 1 of Regulatory Notice 4.4.2, or such other time as CDP may specify, on that Settlement Day.

(b) Unless otherwise determined by CDP, Settlement Instructions that are submitted and, if required, matched pursuant to Rule 4.3 after the prescribed cut-off time(s) will be carried forward to the next Settlement Day on which RTGS is available.

Refer to Appendix 1 of Regulatory Notice 4.4.2.

Added on 10 December 2018 10 December 2018.

4.4.3

Each Settlement Participant shall submit Settlement Instruction(s), by such time so as to:

(a) enable settlement with a Customer within such time as provided in the SGX-ST Rules or CDP Clearing Rules, where applicable; or

(b) enable settlement with a Customer within such time as the Customer instructs, in any other case.

Added on 10 December 2018 10 December 2018.