Settlement services - Thailand

14.11.2017

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)
TSD-eligible securities
Immediate Release Flag availableManual via telephone or secured spreadsheet with custodian banks, electronic TSD matching facility ('SDC, Securities Depository Centre' system) with brokers.09:00 on SD-1
Physical securities
Immediate Release Flag AvailableManual via telephone09:00 on SD-1
Connectivity mediumInstruction format
CreationOnlineTick the box to enable the "Immediate Release" option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Procedures for domestic counterparties

Procedure for the domestic counterpartyDeadline
Receipt in CBL / Delivery from CBL
Customers delivering securities to, or receiving from the Thai market must request their domestic counterparty to deliver / receive the securities from the CBL sub-account with HSBC Bangkok as follows:

Market deadline

-Delivering / Receiving Agent:
HSBC Bangkok (BIC HSBCTHBK)
-

Deliverer's / Receiver's custodian:
Clearstream Banking Luxembourg (BIC: CEDELULL)
for/from account 001-245042-390 Clearstream Nominees Ltd, London
Clearstream’s segregated depository account number at TSD: 3041245042390 (for debt instruments only) a

-Seller / Buyer:
Ordering party's / beneficiary's account number in CBL.

a. Customers must inform their counterparties to include Clearstream Banking’s segregated depository account number, 3041245042390, in the Seller/Buyer Safekeeping Account field :97A::.

Allowed countervalue difference

A maximum difference in counter value of THB 500 is allowed for matching and settlement of against payment transactions with domestic counterparties.

Specific settlement rules / settlement restrictions

Against payment transactions with domestic counterparties can only be effected in THB for all eligible securities.

Bridge settlement

Bridge transactions in Thai domestic securities are not possible. Bridge transactions in THB-denominated Eurobonds are possible.

Internal settlement

Internal settlement of Thai domestic securities and Eurobonds denominated in THB is possible against THB or any other Clearstream-eligible currency.

Pending settlement

Customers with ISINs not impacted by pending settlement will receive settlement confirmations after 14:30 Thai time / 08:30 CET.

Customers with impacted ISINs will receive settlement confirmations of the securities only after 17:00 Thai time / 11:00 CET. If at this point, customers still have pending settlement positions, only the confirmed settled quantity will be credited. For the positions that are still in pending settlement status, the originating defaulted selling broker has until SD+4 to deliver the remaining securities.

When the pending settlement position has resolved (that is, the originating defaulted selling broker has delivered the remaining securities), customers will be credited with the remaining quantity, the full amount for payment of securities will be debited and the original customer instruction will be cancelled. If the pending settlement position is not resolved on SD+4 (that is originating defaulted selling broker cannot deliver the remaining shares) then a cash settlement will be triggered, full amount for payment of securities will be debited and the original customer instruction will be cancelled.

Note: The Thailand Clearing House (TCH) will trigger cash settlement on SD+4 (counting from SD of the originating defaulted selling broker) to terminate outstanding pending settlement if the originating defaulted selling broker still cannot deliver the shares to TCH. If cash settlement is triggered, the customer identified as the pending receiver will receive cash settlement instead of securities.

Local shares received by Clearstream Banking customers

Local shares received by Clearstream Banking customers are sent out, immediately upon settlement, for registration into foreign shares. On receipt of re-registration confirmation, the holdings are booked from ISIN local shares into ISIN foreign shares.

Note: Shares pending registration are not blocked and are available for settlement.

Deliveries from CBL

Cash proceeds remitted by cheque are credited with good value but become final only after clearing on SD+1. The customer therefore runs the risk of such payments being reverted on SD+1. If the payments are reversed, the cash proceeds will be debited to the customer’s account.

To avoid this risk, customers are encouraged to ask counterparties to effect such payments via BAHTNET.

Back-to-back processing

Back-to-back processing is available for transactions in all dematerialised securities 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. To benefit from this functionality, customers must ensure that their back-to-back instructions are formatted as described below:

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: subsequence 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 ‘//’.

Note: Following the implementation of pending settlement in Thailand, same day turnaround transactions/back-to-back processing will have higher risks and may impact/delay onward deliveries.  Clearstream Banking shall, therefore, not be responsible for any loss, claim, liability and/or expense in relation to such turnaround transactions/back-to-back processing.

 Customers who proceed with turnaround transactions/back-to-back processing are deemed to be aware of the higher risks and/or impacts/delays on onward deliveries and undertake to hold Clearstream Banking harmless and indemnify Clearstream Banking from any such loss, claim, liability and/or expense in relation to the turnaround transactions/back-to-back processing.

RTGS-DVP

The RTGS-DVP system is a link between the TSD and the BOT that enables real-time gross settlement, outside the net settlement system of the TSD, for big-lot trades.

When RTGS-DVP is required, customers must include the following details in their instructions:

Connectivity mediumFieldValue
CreationOnlineProcessing Indicator“Optional”
Xact via SWIFT and Xact File TransferField :22F::RTGS sequence E//YRTG

Note: RTGS-DVP can be used for against payment transactions only. Free of payment transactions that attempt to use RTGS-DVP will not be rejected but will automatically be routed for settlement to the TSD net settlement system.

Management of failed instructions

Against payment instructions with domestic counterparties not settled on requested settlement date (SD) are automatically cancelled on SD+2, when provisioned securities are re-credited to customers’ accounts.