Rule 3 Settlement Facilities

3.1 CDP does not Act as Principal

3.1.1

Save where CDP is settling rights and obligations between itself and a Clearing Member arising from the CDP Clearing Rules, in conducting settlement under these Rules, CDP does not act as principal to any Settlement Participant or any other person.

Added on 10 December 2018 10 December 2018.

3.2 Batch Settlement and RTGS

3.2.1

For settlement under these Rules, a Settlement Participant may choose Batch Settlement or RTGS for each Settlement Instruction, subject to the availability of the chosen settlement facility for the relevant settlement.

Added on 10 December 2018 10 December 2018.

3.2.2

RTGS is conducted separately from Batch Settlement.

Added on 10 December 2018 10 December 2018.

3.2.3

Settlement between a Clearing Member and CDP in respect of a Novated Contract is available only through Batch Settlement, save as otherwise determined by CDP.

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

3.2.4

CDP may by notice to Settlement Participants specify the currencies or securities the settlement of which is not available in RTGS and/or Batch Settlement.

Added on 10 December 2018 10 December 2018.

3.3 Netting in Batch Settlement

3.3.1

At each Batch Settlement Run, a Settlement Participant's obligation to make payment will be set-off against its entitlement to receive payment in respect of all the Settlement Instructions that CDP has determined, based on available money and securities, will be executed in that Batch Settlement Run, for each settlement currency.

The resultant net amount payable by the Settlement Participant for each settlement currency will be referred to as the "Net Payable" for that Batch Settlement Run and settlement currency. The resultant net amount payable to the Settlement Participant for each settlement currency will be referred to as the "Net Receivable" for that Batch Settlement Run and settlement currency.

Added on 10 December 2018 10 December 2018.

3.3.2

Settlement of a Settlement Participant's Net Payable or Net Receivable for a Batch Settlement Run and settlement currency shall operate as:

(a) a complete discharge of the Settlement Participant's obligation to make payment in respect of all the Settlement Instructions executed in that Batch Settlement Run and for that settlement currency; and

(b) a complete satisfaction of the Settlement Participant's entitlement to receive payment in respect of all the Settlement Instructions executed in that Batch Settlement Run and for that settlement currency.

Added on 10 December 2018 10 December 2018.

3.4 Settlement Schedule for Batch Settlement

3.4.1

Unless otherwise notified by CDP to the Settlement Participants, the settlement schedule set out in Appendix 1 of Regulatory Notice 3.4.1 shall apply for Batch Settlement. If any activity set out in the settlement schedule is likely to be delayed, CDP shall inform Settlement Participants of the following matters:

(a) that the activity is likely to be delayed; and

(b) the estimated timing for the delayed activity.

CDP shall provide adequate time for Settlement Participants to carry out the activities set out in Appendix 1 of Regulatory Notice 3.4.1 and Settlement Participants shall carry out such activities by such time as stipulated by CDP.

Refer to Appendix 1 of Regulatory Notice 3.4.1.

Added on 10 December 2018 10 December 2018.

3.5 Availability of facilities for foreign currency settlements

3.5.1

Batch Settlement or RTGS in respect of a foreign currency will only be available on a Settlement Day on which both of the following are open for settlement:

(a) the central bank in Singapore; and

(b) the central bank or the inter-bank transfer clearing system designated by CDP for settlement of the foreign currency.

Added on 10 December 2018 10 December 2018.

3.6 Emergency Powers

3.6.1

Where CDP deems it necessary or desirable for ensuring fair and orderly trading or safe and efficient clearing and/or settlement, or for ensuring the integrity of the market or for proper management of systemic risk in the market, CDP may, in relation to one or more Settlement Participant:

(a) extend or vary the availability of the settlement facilities;

(b) create, vary or cancel Settlement Instructions;

(c) refuse to accept or execute Settlement Instructions; and/or

(d) take such other action or require the Settlement Participant to take such action as CDP deems necessary or desirable.

Added on 10 December 2018 10 December 2018.