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3.2.1

The transaction accepted for DVP Settlement shall (unless earlier cancelled in accordance with Rule 6) be novated to CDP immediately after the Cut-off Time for DVP Validation on the Settlement Day on which such transaction is due for settlement in DVP Settlement.

Amended on 3 October 20093 October 2009.

3.2.1A

Upon the novation of a DVPT transaction to CDP:

(A)
(i) the obligation of the receiving Principal to pay the purchase consideration and brokerage to the buying Trading Member and the obligation of the buying Trading Member to pay the purchase consideration to its qualifying Clearing Member is replaced by the obligation of the receiving Principal to pay the purchase consideration and brokerage to CDP and the obligation of CDP to pay the same to the qualifying Clearing Member of the buying Trading Member. The right of the buying Trading Member to receive the purchase consideration and brokerage from the receiving Principal and the right of the qualifying Clearing Member to receive the purchase consideration from its buying Trading Member is replaced by the right of CDP to receive the purchase consideration and brokerage from the receiving Principal and the right of the qualifying Clearing Member of the buying Trading Member to receive the purchase consideration and brokerage from CDP;
(ii) the obligation of the qualifying Clearing Member of the buying Trading Member to deliver the securities to its buying Trading Member and the obligation of the buying Trading Member to deliver the securities to the receiving Principal is replaced by the obligation of CDP to deliver such securities to the receiving Principal's Designated Securities Account;
(iii) the obligation of the qualifying Clearing Member of a buying Trading Member to pay the purchase consideration to CDP under the Interbroker Settlement System is set off against the right of the same qualifying Clearing Member to receive the purchase consideration and brokerage from CDP; and
(iv) the obligation of CDP to deliver the securities to the qualifying Clearing Member of the buying Trading Member pursuant to a purchase transaction effected on the SGX-ST is replaced by the obligation of CDP to deliver the securities to the receiving Principal's Designated Securities Account.
(B)
(i) the obligation of the delivering Principal to deliver the securities from the delivering Principal's Designated Securities Account to the selling Trading Member and the obligation of the selling Trading Member to deliver the securities to its qualifying Clearing Member is replaced by the obligation of the delivering Principal to deliver such securities to CDP;
(ii) the obligation of the qualifying Clearing Member to pay the sale consideration to its selling Trading Member and the obligation of the selling Trading Member to pay the sale consideration less brokerage to the delivering Principal is replaced by the obligation of the qualifying Clearing Member of the selling Trading Member to pay the sale consideration less brokerage to CDP, and the obligation of CDP to pay the same to the delivering Principal. The right of the selling Trading Member to receive the sale consideration from its qualifying Clearing Member and the delivering Principal's right to receive the sale consideration less brokerage from the selling Trading Member is replaced by the delivering Principal's right to receive the sale consideration less brokerage from CDP and CDP's right to receive the same from the qualifying Clearing Member of the selling Trading Member;
(iii) the obligation of CDP to pay the sale consideration to the qualifying Clearing Member of the selling Trading Member under the Interbroker Settlement System is set off against the right of CDP to receive the sale consideration less brokerage from the same qualifying Clearing Member; and
(iv) the obligation of the qualifying Clearing Member of the selling Trading Member to deliver the securities to CDP pursuant to a sale transaction effected on the SGX-ST is replaced by the obligation of the delivering Principal to deliver the securities from the delivering Principal's Designated Securities Account to CDP.

Amended on 3 October 20093 October 2009.

3.2.2

Upon the novation of a FDVP transaction to CDP:

(a) the obligation of the receiving Principal to pay the consideration for the transfer is replaced by the obligation of the receiving Principal to pay that consideration to CDP;
(b) the obligation of the delivering Principal to transfer the securities to the receiving Principal's Designated Securities Account is replaced by the obligation of the delivering Principal to transfer the securities from the Designated Securities Account to CDP; and
(c) CDP is obliged upon receipt of the consideration for the transfer from the receiving Principal to transfer the securities to the receiving Principal's Designated Securities Account and to pay the said consideration to the delivering Principal.

Amended on 3 October 20093 October 2009.

3.2.3

The obligations and rights under the novated contracts:

(a) between the receiving Principal and CDP; and
(b) between the delivering Principal and CDP,

are owed by and to the parties as principals to each other notwithstanding that the receiving Principal or the delivering Principal may have acted as agent for another person submitting a DVP instruction.

Amended on 3 October 20093 October 2009 and 26 April 201326 April 2013.

3.2.4

The terms of the novated contracts are governed by these DVP Rules. In particular, each of the obligations to make payment is discharged by, and each of the entitlements to receive payment is satisfied by, net payment in accordance with these DVP Rules.

3.2.5

Notwithstanding that payment is settled on a net basis in DVP Settlement, the delivery of securities in DVP Settlement shall not be settled on a net basis.

CDP shall, pursuant to any novated contract which is due for settlement on any Settlement Day, make delivery of securities to the receiving Principal on that Settlement Day. CDP's obligation to make such delivery shall be discharged by crediting the securities to be delivered to the securities account or sub-account (the "Designated Securities Account") as specified by the receiving Principal when the receiving Principal is submitting a DVP instruction.

CDP shall, pursuant to any novated contract which is due for settlement on any Settlement Day, receive securities from the delivering Principal on that Settlement Day. CDP's entitlement to receive such securities shall be satisfied by debiting the securities to be received from the securities account or sub-account (the "Designated Securities Account") as specified by the delivering Principal when the delivering Principal is submitting a DVP instruction.

Amended on 3 October 20093 October 2009 and 26 April 201326 April 2013.

3.2.6

When the DVP instructions have been matched, CDP shall earmark, in the CDP Systems, the securities from the Designated Securities Account from which the delivery is to be effected. CDP shall be entitled to debit the earmarked securities on Settlement Day of the matched and validated transaction in DVP Settlement.

Amended on 3 October 20093 October 2009.

3.2.6A

Neither the Settlement Bank of the Principal nor any other person shall have any right to or interest in the securities in the Designated Securities Account which have been earmarked for delivery pursuant to Rule 3.2.6.

Added on 22 April 201322 April 2013.