Settlement services - Singapore

10.12.2018

Pre-matching service

The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL’s pre-matching services, see Pre-matching services for external settlement instructions.

Service offeredMethod employedStart (local time)
All securities
Immediate Release Flag available

Pre-settlement Matching System (PSMS)

SD-1
Connectivity mediumInstruction format
CreationOnline and Xact Web PortalTick to enable the "Immediate Release" option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Batch settlement and Real Time Gross Settlement (RTGS)

CBL offers two modes of settlement, batch and RTGS. Customers opting to settle by batch or RTGS must ensure that they provision accordingly.

Batch settlement

The Central Depository (Pte) Limited (CDP) initiates their batch run on SD (T+2) from 13:30 SGT to 15:30 SGT. Settlement confirmations may only be expected from 15:30 SGT. 

All trades (AP and FOP) that are not settled during the batch settlement on SD are not automatically attempted under RTGS FOP. Customers attempting to settle (via RTGS) trades that are not settled during the batch settlement can only reinstruct as RTGS FOP by using the RTGS indicator :22F::RTGS/YRTG.

RTGS

Customers opting for RTGS must ensure that they use the below indicator in their instructions:

:22F::RTGS/YRTG

RTGS trades that are not settled on the intended settlement date are rolled over to the next business date as RTGS. Partial settlement does not apply to RTGS.

Cleared trades against clearing members settle in batch mode only. Hence RTGS trades with onward deliveries to settle such cleared trades should therefore settle before each day's batch run. Customers must therefore be aware of the applicable deadlines to ensure they fulfil their obligations accordingly, as detailed under Settlement Timings.

SGX applies a fee of SGD 5 on each RTGS settlement instruction.

Domestic allegement matching service

Complementary to the pre-matching services offered as described above and where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.

If no matching customer instruction is found, the allegement is reported to the customer provided that its CBL account number is present.

For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.

Procedures for domestic counterparties

Procedure for the domestic counterparty

Deadline

Receipt in CBL of CDP-eligible securities and government securities

Customers must request their domestic counterparty to deliver the securities to CBL account with DBS Bank Ltd as follows:

Deliver to: DBS Bank Ltd (DBSSSGSGIBD)

In favour of: CBL (BIC: CEDELULL)

Seller: ordering party's account number in CBL

Market deadline

Delivery from CBL

Customers must request their domestic counterparty to receive the securities from CBL account with DBS Bank Ltd as follows:

Receive from: DBS Bank Ltd (DBSSSGSGIBD)

By order of: CBL (BIC: CEDELULL)

Buyer: beneficiary's account number in CBL

Market deadline

Receipt in CBL / Delivery from CBL of non–CDP-eligible securities (physical deliveries)

Customers receiving/delivering securities from/to the Singapore market must request their domestic counterparty to deliver/receive the securities to/from the CBL account no. SG0600000181 with DBS Bank Ltd. as follows:

Receive from / Deliver to: DBS Bank Ltd

By order of / In favour of: CBL (BIC: CEDELULL)

Seller / Buyer: beneficiary's/ordering party's account number in CBL

 

Allowed countervalue difference

A maximum difference in countervalue of SGD 50 or USD 25 is allowed for matching and settlement of against payment transactions with domestic counterparties.

Back-to-back processing (Linked trades)

Back-to-back processing is available for transactions in all dematerialised equities, warrants, loan stocks, corporate bonds and government bonds eligible in this market. If both the customer and the domestic counterparty meet their settlement obligations and fulfil the market's back-to-back requirements within the relevant deadlines, the linked receipt and the linked delivery will settle with same-day value.

Note: If a linked receipt against payment trade settles partially, the linked delivery against payment trade will not settle. If a linked receipt against payment trade fails, the linked delivery against payment trade will fail as well.

To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:

Connectivity mediumPool ID formatField(s) to be used
CreationOnline16x a
and
Turnaround
Pool Reference

Type of Settlement Transaction
Xact via SWIFT and Xact File Transfer:POOL//16x a
and
:SETR//TURN
Field :20C: sequence A1

Field :22F: sequence E

a. The reference (16x) must neither start nor end with a single slash ’/’ nor must it contain two consecutive slashes ’//’.

Mandatory partial settlement

Partial settlement is mandatory in the market on trades settling as batch, and this will also apply to linked trades. CBL runs provisioning checks on both cash and securities before releasing customer instructions for settlement.

Customers may therefore see their trades partially settle if the counterparty is short on cash or securities. 

If a linked receipt against payment trade settles partially, the linked delivery against payment trade will not settle. If a linked receipt against payment trade fails, the linked delivery against payment trade will fail as well.

Specific settlement rules / settlement restrictions

CBL’s link to the Singapore market excludes settlement services for foreign securities traded by SGX brokers via GlobalQuote.

Settlement with Direct Account Holders of CDP (Private CDP Members)

Customers can settle transactions with counterparties who are direct account holders with the Singapore Central Depository (CDP).

The following information is required:

  • Name of the counterparty;
  • Nationality of the counterparty;
  • Personal identification number or passport number of the counterparty or (if the counterparty is a local resident) NRIC number;
  • Counterparty’s private CDP account number;
  • (For customer receipts directly from the counterparty’s CDP private member account) CBL’s end client (transferee) confirmation that signatures in the CDP Form 4.2 are verified and authorised.

The information provided must be in line with records of the CDP.

For customer receipts directly from the counterparty's CDP private member account, the following procedure must be observed:

  1. The counterparty, as transferor, must complete and sign off the physical CDP Form 4.2 “Request for Transfer of Securities” (available for download from CDP’s website). Supporting documents must be provided for the type of transfer chosen.
  2. The completed physical form must be sent, either by the customer or by the counterparty, to CBL’s depository agent at the following mailing address for further processing:
    DBS Bank
    Securities & Fiduciary Services Operations
    10 Toh Guan Road
    #04-11 Jurong Gateway
    Singapore 608838
    Attn: T&O - IBG Ops - SFSO Custody - Client Services Manager
  3. DBS Bank further completes the CDP form 4.2 as Depository Agent and lodges it with the CDP.
    The CDP may take three to five working days to process Form 4.2.

Note: Customer deliveries of securities to a direct account holder do not require a CDP Form 4.2.

Instruction specifications

FieldValue
CreationOnline
Settlement Processing NarrativeNCBOa/name, nationality and passport number or (if a local resident) NRIC number plus, for customer receipts directly from the counterparty’s CDP private account, the customer’s confirmation of the CDP Form 4.2 signaturesb
Delivering / Receiving Agent PartyCDPLSGSG
AccountDirect account holder’s account number at the CDP (CDP private member account number)
Xact via SWIFT and Xact File Transfer
:70E::SPRO//NCBOa/name, nationality and passport number or (if a local resident) NRIC number plus, for customer receipts directly from the counterparty’s CDP private account, the customer’s confirmation of the CDP Form 4.2 signaturesb
:95P::DEAG// or :REAG//CDPLSGSG
:97A::SAFE//Direct account holder’s account number at the CDP (CDP private member account number)

a. Only when no change of beneficial owner is entailed (see below).
b. CBL does not verify CDP Form 4.2 signatures: the confirmation is taken as customer verification that signatories are authorised. If the signatures on CDP Form 4.2 does not tally with the CDP’s records, CDP may reject the form and the transfer may either be delayed or may not take place.

No change of beneficial owner (NCBO)

NCBO securities transfers require both custodians to identify the final beneficial owner.

The settlement instruction sent by customers to CBL when effecting an NCBO transfer must include, in the narrative, the code “NCBO” and the name of the final beneficial owner on whose behalf the portfolio/securities transfer is being executed.

Note: (1) NCBO portfolio or securities transfers are non-STP; that is, they will not be processed on a straight-through processing basis; MT548s will be generated on such transfers.
(2) CBL maintains a “foreign” status sub-account at the CDP. Customers who are transferring their securities to CBL from their “local” status account must indicate their trades as CBO since the CDP does not recognise crossings between different account statuses as NCBO even when there is no change in beneficiary.

Suspended securities

For suspended securities, CBO transfers cannot be executed without the prior submission of a Statutory Declaration Form in addition to a standard settlement instruction. For NCBO transfers, deposits or withdrawals, the Statutory Declaration Form is not required. Customers are advised, before trading, to ascertain whether the securities in question are suspended or not and whether prior written approval is required from MAS before transferring the securities.
In addition to the Statutory Declaration Form, additional documents will need to be submitted, including but not limited to the following:

  • Certificate of registration of the company;
  • Registration of companies;
  • Trade confirmation – sale and purchase agreement or documents that clearly state the identities of the buyer/seller;
  • Board resolution for the sale

Note: Additional documentations may be requested by CDP/MAS and may only be known after submission.

Where CBO transfers of suspended securities are subject to CDP and MAS approvals, Clearstream’s subcustodian in Singapore, DBS, will request this approval on behalf of the customer upon timely submission of the Statutory Declaration Form.

Please therefore send:

  • A cover letter providing the ISIN, account number, transaction reference and settlement date;
  • Additional documents, as required;
  • The Statutory Declaration Form, completed at the level of the final beneficial owner, signed and notarised;

to:

Clearstream Banking S.A., Singapore Branch
Settlement Operations
Republic Plaza #55-01
9, Raffles Place
Singapore 048619

Customers will be notified via MT564 when securities are suspended by the SGX and when the suspension is lifted.

Off-exchange declaration

The SGX requires that equity and corporate bonds off-exchange transactions  are declared as either “on-exchange” or “off-exchange” transaction by using the mandatory fields of :94B: and :22F: in settlement instructions.

For the avoidance of doubt, “on-exchange” trades refer to primary and/or secondary settlements pursuant to transactions on SGX-ST. Settlements not pursuant to transactions on SGX-ST are considered as “off-exchange” trades.

In compliance with this requirement, the following two SWIFT fields for equities instructions are mandatory in Clearstream Banking in all MT540 (Receive Free), MT541 (Receive against Payment), MT542 (Deliver Free) and MT543 (Deliver against Payment) instructions:

  • Field :94B: (Place of Trade)
  • Field :22F:  (Type of Settlement Transaction)

and in the equivalent fields in CreationOnline Securities Instructions.

Field :94B: Place of Trade

The options available are as follows:

SWIFTCreationOnline
:94B::TRAD//EXCH/XSES (Singapore Exchange)Place of trade: Singapore Exchange 1
:94B::TRAD//OTCO (Off-exchange)Place of trade: OTC Trade

1. If the Place of trade is Singapore Exchange, please use Singapore Stock Exchange. 

The Place of Trade when trades are NCBO is always Off-Exchange (OTCO). When :94B: is declared as off-exchange, you must also declare field :22F: Type of Settlement Transaction.

Field :22F: Type of Settlement Transaction

Field :22F: specifies the type of settlement transaction to allow for transfers to be executed within Pre-Settlement Matching Service (PSMS). The types of transfers available for direct declaration into field :22F: and Type of Settlement Transaction are the following:

SWIFTCreationOnlineType of Settlement Transaction
:22F::SETR/COLICollateral In

Collateral In or Margin In

:22F::SETR/COLOCollateral Out

Collateral Out or Margin Out

:22F::SETR/CONVConversion

ADR Conversion

:22F::SETR/ETFTExchange Traded FundsExchange Traded Funds
:22F::SETR/ISSUIssuance

Issuance

:22F::SETR/OWNIInternal Own Account TransferInternal Account Transfer (NCBO transfer)
:22F::SETR/PLACPlacementPlacement
:22F::SETR/SECBSecurities BorrowingSecurities Borrowing
:22F::SETR/SECLSecurities LendingSecurities Lending
:22F::SETR/TRADTrade SettlementTrade

Manual declaration of transfer type: Joint account transfer “JONT”

Joint account transfer declaration is not available as an option in field :22F: (SWIFT) nor Type of Settlement transaction (CreationOnline). Customers who need to declare a joint account transfer are required to input the declaration in field :70E: or the Settlement Processing Narrative as follows:

  • SWIFT :70E::SPRO//JONT (Joint Account Transfer)
  • CreationOnline Settlement Processing Narrative Joint account transfer

SGX will conduct random audit checks on the trades; it is, therefore, very important to ensure accurate declarations. Customers with trades that are not declared as off-exchange but are deemed, during SGX’s audit checks, possibly to be off-exchange trades may be requested to provide the following supporting information within three business days:

  • Client accounting system (CAS) contract number of primary (DVPT/FOPT) PSMS reference;
  • Identities of the instructing parties, SGX-ST members;
  • Clients settlement instructions (SI) not in the settlement instructions submitted to CDP (this may include the broker informing the customer whether the executed trade is on a ‘principal’ or ‘agency’ basis, or client declarations of market-related activities).

If the above supporting information cannot be provided, the central depository (CDP) will apply the off-exchange fees. The SGX has not yet announced any penalty for incorrect declarations.

Harmonised currency holiday

Settlement of instructions will only take place on common business days between Singapore and the U.S.A.

Half-day trading

The settlement of half-day trading will be aligned with the full day settlement timeline with the settlement runs beginning at 13:30 SGT. Settlement confirmations can only be expected from 15:30 SGT and there is no buy-in for fails on half-day trading.

Out-of-pocket expenses

All out-of-pocket expenses will be charged back to the customer. They include the CDP transfer fee for off-market transactions, amounting to 1.5 bps of settlement value (minimum SGD 75 before GST) per settlement instruction.

Transfer stamp duty

No transfer stamp duty is payable on:

  • Book-entry transactions in the CDP system; or
  • Physical transactions in domestic securities that involve no change in beneficial owner (NCBO transfers).

Duty is payable on transactions in registered physical domestic securities only (which form a small percentage of currently outstanding securities and are not eligible in CBL).

Management of failed instructions

If instructions with domestic counterparties have not settled by the requested settlement date (SD), they can be cancelled via a cancellation instruction from the customer. Instructions for transactions to be settled will remain pending for 30 days before automatic cancellation.

New issues settlement

CDP-eligible securities

Customers that arrange the direct subscription of a new issue through a local agent and want to have the new issues credited to their CBL customer account on distribution date should instruct the agent to send the Form of Application to DBS Bank for execution by the prevailing domestic deadline.

Customers must instruct CBL with an appropriate receipt instruction by the normal deadlines for settlement of receipt transactions. For confirmation times, please refer to Settlement times.

Government securities

Customers should advise the domestic issuing agent to deliver the securities to DBS Bank by 12:00 noon (Singapore time) on the day on which the new issue is distributed.

Customers must instruct CBL with a receipt free of payment instruction by the normal deadlines for settlement of receipt transactions. For confirmation times, please refer to Settlement times.