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6.5.1

Settlement of a Clearing Member's right on any Settlement Day to receive securities in respect of Novated Contracts (including any right to receive securities as compensation for corporate action entitlements as provided in these Clearing Rules) shall be effected and final upon CDP crediting such securities into the Clearing Member's Clearing Account.

Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 23 January 200923 January 2009, 26 April 201326 April 2013 and 10 December 201810 December 2018.

6.5.1A [Rule has been deleted.]

Deleted on 10 December 201810 December 2018.

6.5.1B

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:

(1) defer any of those delivery obligations, in whole or in part, for settlement on the next Settlement Day; or
(2) cash settle any of those delivery obligations, in whole or in part.

Refer to Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E) and Practice Note 6.5.1B(2).

Added on 10 December 2018 and Amended on 6 September 2021.

6.5.2

(1) Settlement of a Clearing Member's obligation on any Settlement Day to deliver securities in respect of Novated Contracts (including any obligation to deliver securities as compensation for corporate action entitlements as provided in these Clearing Rules) shall be effected and final upon CDP debiting such securities from the Clearing Member's Clearing Account.

(2) Failure by a Clearing Member to deliver securities when due shall subject the Clearing Member to Rule 6.7A.

Amended on 3 April 20083 April 2008, 23 January 200923 January 2009, 20 November 200920 November 2009,26 April 201326 April 2013 and 10 December 201810 December 2018.

6.5.2A

A Clearing Member shall ensure that the securities required to meet its delivery obligation in respect of Novated Contracts are made available in such manner and by such time as provided in the CDP Settlement Rules to enable the delivery of those securities on the Settlement Day that the obligation is due. Failure by a Clearing Member to comply with this Rule 6.5.2A shall subject the Clearing Member to Rule 6.7.

Added on 20 November 200920 November 2009 and amended on 26 April 201326 April 2013 and 10 December 201810 December 2018.

6.5.2B [Rule has been deleted.]

Deleted on 10 December 201810 December 2018.

6.5.2C [Rule has been deleted.]

Deleted on 10 December 201810 December 2018.

6.5.3 [Rule has been deleted.]

Deleted on 10 December 201810 December 2018.

6.5.4

Subject to Rule 6.5.5:

(1) 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.
(2) 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.

Added on 10 December 201810 December 2018.

6.5.5

Rule 6.5.4 applies only to such types of corporate action entitlements that CDP shall from time to time notify.

Refer to Regulatory Notice 6.5.

Added on 10 December 201810 December 2018.

6.5.6
(1) 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.
(2) 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.

Refer to Regulatory Notice 6.5.

Added on 10 December 201810 December 2018.