CDP Settlement Rules
| Rule Violation | Penalty Amount which may be imposed by CDP, where CDP has Determined the Settlement Participant to be Liable | |||
| Rule Chapter/Number | Brief Description of Rule | 1st Violation | 2nd Violation | 3rd Violation |
| Rule 1 — General | ||||
| 1.11 | Provision of Information and Assistance | |||
| 1.11.1 | Settlement Participant to provide any information or records and render assistance as CDP requires to discharge any of CDP's duties. Settlement Participant must ensure that any information or records provided do not contain untrue statements, are not misleading and include rather than omit any material statements. | $2,000 – $5,000 | $5,000 – $10,000 | $10,000 – $15,000 |
| Rule 2 — Settlement Participation | ||||
| 2.2 | Compliance | |||
| 2.2.1 | Settlement Participant to comply with the Rules and conditions or restrictions imposed by CDP. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.3 | Payment of Fees | |||
| 2.3.1 | Settlement Participant to pay all fees, charges and other sums as provided in the Rules. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.4 | Systems and Operations | |||
| 2.4.1(a) | Settlement Participant to ensure its systems and connections to the Settlement System operate properly at all times and have adequate redundancy and scalable capacity to accommodate current and anticipated settlement volumes. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.4.1(b) | Settlement Participant to ensure compliance with the terms and conditions, and any other requirements imposed by CDP, for accessing the Settlement System. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.5 | Business Continuity Requirements | |||
| 2.5.1 | Settlement Participant to have in place and maintain disaster recovery and business continuity arrangements that are adequate to ensure the timely recovery of its usual operations having regard to the nature and extent of the business carried on by that Settlement Participant and any matters as may be specified by CDP from time to time. Settlement Participant to undertake testing of its disaster recovery and business continuity arrangements at such times and in such manner as may be specified by CDP. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.6 | Settlement Participants to Reconcile Records | |||
| 2.6.1(a) | Settlement Participant to reconcile its books with CDP's records in relation to Settlement Instructions that are settled in each settlement run, including the money and securities settled in respect of each Settlement Instruction. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.6.1(b) | Settlement Participant to reconcile its books with CDP's records in relation to transfers of money and securities into or out of, and the daily closing balance in, the Settlement Participant's Cash Account and Securities Account. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.7 | Reporting of Adverse Events | |||
| 2.7.1(a) | Settlement Participant to notify CDP of emergency or potentially debilitating situation that threatens its operations; | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.7.1(b) | Settlement Participant to notify CDP of insolvency, potential insolvency, winding-up application presented, or an order made by a court of competent jurisdiction, or any step is taken or a resolution passed, for its winding-up, dissolution, judicial management or administration; | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| 2.7.1(c) | Settlement Participant to notify CDP of any attachment, distress, execution or legal process instituted against its assets, or the appointment of any liquidator, receiver or any similar person on its assets. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
| Rule 7 - Settlement | ||||
| 7.2.1 | Cash calls for deposit of money | |||
| 7.2.1(b) | Settlement Participant to meet cash call by the cut-off time specified in Appendix 1 of Regulatory Notice 3.4.1, or such other time as CDP may specify. | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 |
Added on 10 December 201810 December 2018.