Creation Link Guide - Philippines
|Settlement free of payment||Yes||OTC transactions for equities and fixed income are not allowed.|
|Settlement against payment||Yes||Eligible settlement currency: Philippine Peso (PHP). OTC transactions for equities and fixed income are not allowed.|
|Settlement penalty fees||Yes||Refer to the Market Profile.|
|Multi Market Securities||No|
|Lending and borrowing||No|
|Liquidity Hub Connect||No|
|Sale and purchase of rights||No|
|Repo services||Yes||Bonds only (CBL Internal Settlement).|
|Market restrictions||Yes||Refer to Investment Regulations.|
|Type of link||CSD or settlement method|
|Indirect via Standard Chartered Banka Philippines - Securities Services and Trust.||Philippine Depository and Trust Corp (PDTC) - equities, corporate bonds, warrants.|
Bureau of the Treasury (BTR) - government bonds and treasury bills.
a. Standard Chartered Bank is hereinafter referred to as SCB.
CBL has been advised of the following:
- Under Philippines law, the credit of securities to the securities account of CBL with Standard Chartered Bank Philippines - Securities Services and Trust (“SCB” or the “Custodian”) will not confer to CBL acting on behalf of third parties a right in rem on title to such securities; and that
- Under Philippines law, the terms of the custody agreement in place between CBL and SCB will trigger that:
- CBL will be recognised as the direct account-holder of the securities account held in its name but on behalf of its underlying customers; and
- The rights attached to the securities will be available to, and exercisable by, CBL through the Custodian. CBL customers holding positions through CBL’s Philippines domestic link therefore undertake to give instructions in relation to securities held under such link only to CBL;
- The securities eligible under its Philippines domestic link:
- Would remain free from any security interest, statutory lien or right of retention of the Custodian, other than its right to retain the property deposited with it until the full payment of what may be due to the Custodian from CBL under the custody agreement; and
- May not be subject to the claims of general creditors of the Custodian, in the event that the Custodian, or its assets, are subject to the application of any bankruptcy, pre-bankruptcy, insolvency, pre-insolvency, liquidation, pre-liquidation, moratorium, national or foreign composition with creditors, or reorganisation or similar laws affecting the enforcement of creditors' rights;
- Under Philippines law, upper-tier attachment is not prohibited;
- Under Philippines law, there is no statutory settlement finality protection.
Customers are advised to consult with their appropriate counsels prior to holding securities through CBL’s Philippines domestic link. By holding such securities, Customers are deemed to be aware of any law, regulation, rules and policies applicable thereto.