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CDP Settlement Rules

7.1 Execution of Settlement Instructions

7.1.1

A Settlement Instruction is executed when all payment and delivery entitlements and obligations as specified in the Settlement Instruction are settled pursuant to Rules 7.3 and 7.4.

Added on 10 December 201810 December 2018.

7.1.2

To enable the execution of any Settlement Instruction, a Settlement Participant shall ensure that:

(a) it has sufficient money deposited with CDP and available in its Cash Ledger Accounts to settle its payment obligations in respect of the Settlement Instruction; and/or
(b) it has sufficient securities available in its Delivering Securities Account(s) to meet its delivery obligations in respect of the Settlement Instruction.

Added on 10 December 201810 December 2018.

7.2 Availability of money and securities in Batch Settlement

7.2.1

Cash calls for deposit of money

(a) In respect of each Batch Settlement, CDP may issue, by the cut-off time set out in Appendix 1 of Regulatory Notice 3.4.1, or such other time as CDP may specify, cash calls for the deposit of money by a Settlement Participant with CDP to enable settlement of the Settlement Participant's payment obligations.
(b) The Settlement Participant must, by the cut-off time set out in Appendix 1 of Regulatory Notice 3.4.1, or such other time as CDP may specify, meet each such cash call.
(c) Nothing in these Rules precludes a Settlement Participant from depositing money with CDP to fund its Cash Ledger Account in the absence of a cash call.
(d) A Settlement Participant that fails to meet a cash call by the prescribed cut-off time shall be liable to CDP for any costs that CDP may incur as a result of, or in connection with, the failure.

Refer to Appendix 1 of Regulatory Notice 3.4.1.

Added on 10 December 201810 December 2018.

7.2.2

Availability of securities

In respect of each Batch Settlement Run, a Settlement Participant must, by the cut-off time set out in Appendix 1 of Regulatory Notice 3.4.1, or such other time as CDP may specify, make available, in such manner as CDP may determine, in the Delivering Securities Account, securities for settlement of its delivery obligations.

Refer to Appendix 1 of Regulatory Notice 3.4.1.

Added on 10 December 201810 December 2018.

7.3 Money Settlement

7.3.1

Settlement of a Settlement Participant's payment obligation in respect of Settlement Instructions (including a Settlement Participant's Net Payable) is effected by and final upon CDP debiting an equivalent sum of money from the Settlement Participant's Cash Ledger Account.

Added on 10 December 201810 December 2018.

7.3.2

Settlement of a Settlement Participant's entitlement to receive payment in respect of Settlement Instructions (including a Settlement Participant's Net Receivable) is effected by and final upon CDP crediting an equivalent sum of money into the Settlement Participant's Cash Ledger Account.

Added on 10 December 201810 December 2018.

7.4 Securities Settlement

7.4.1

Delivery of securities by a Settlement Participant is effected by and final upon CDP debiting such securities from the Delivering Securities Account.

Added on 10 December 201810 December 2018.

7.4.2

Receipt of securities by a Settlement Participant is effected by and final upon CDP crediting such securities into the Receiving Securities Account.

Added on 10 December 201810 December 2018.

7.5 Unexecuted Settlement Instructions

7.5.1
(a) For Batch Settlement:
(i) If, and to the extent that, CDP is of the opinion that the securities or money made available in respect of a Batch Settlement Run are insufficient to fully meet all payment and delivery entitlements and obligations specified in all the Settlement Instructions eligible for settlement in that Batch Settlement Run such as to enable them all to be fully executed, CDP shall determine, in its sole discretion, the Settlement Instructions that will not be executed in that Batch Settlement Run or the extent to which a Settlement Instruction will be executed.

See Practice Note 7.5.1(a)(i).
(ii) Subject to Rule 7.5.2, the Settlement Instruction or such part of the Settlement Instruction that is not executed will be automatically carried forward for settlement at the next available Batch Settlement Run; and
(b) For RTGS:

Subject to Rule 7.5.2, if a Settlement Instruction that is eligible for RTGS is not executed by the cut-off times set out in Appendix 1 of Regulatory Notice 4.4.2 on a Settlement Day, the Settlement Instruction will be automatically carried forward for settlement on the next Settlement Day on which RTGS is available.

Refer to Appendix 1 of Regulatory Notice 4.4.2.

Added on 10 December 201810 December 2018.

7.5.2

CDP shall have the right to cancel any Settlement Instruction or such part of it that remains outstanding after the intended settlement day of the Settlement Instruction.

Added on 10 December 201810 December 2018.

7.6 Compensation for Corporate Action Entitlement

7.6.1

This Rule 7.6 applies only to the corporate action entitlements set out in Appendix 1 of Regulatory Notice 7.6.

Refer to Appendix 1 of Regulatory Notice 7.6.

Added on 10 December 201810 December 2018.

7.6.2

If a Settlement Participant ("delivering Settlement Participant") fails to deliver securities in respect of a Settlement Instruction on the intended settlement day of the Settlement Instruction, CDP may submit Settlement Instruction(s) for the delivering Settlement Participant to compensate the Settlement Participant to whom the securities were to be delivered ("receiving Settlement Participant") for corporate action entitlements accruing on the securities.

Added on 10 December 201810 December 2018.

7.6.3

The delivering Settlement Participant and receiving Settlement Participant may, by agreement, submit a request to amend or cancel any Settlement Instruction submitted by CDP under Rule 7.6.2.

Added on 10 December 201810 December 2018.

7.7 Indemnity

7.7.1

Without prejudice to the generality of Rule 1.10.1, each Settlement Participant shall indemnify CDP against any loss, damage, liabilities, costs, claims, actions and demands that CDP may incur arising from or in connection with the execution of Settlement Instructions submitted by or on behalf of the Settlement Participant pursuant to these Rules.

Added on 10 December 201810 December 2018.