Entitlement Compensation Rules - Portugal

14.04.2015

Bonds

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:Yes
Restriction on custody events/transaction types:No restriction

Additional information:
There are no standard compensation rules that are accepted by all market players. Transactions that are subject to compensation are detected by CBL’s depository and the compensation is processed as follows:

-

For receipt of a security, the depository contacts the customer's counterparty (on a daily basis) in order to claim the compensation. The compensation amount is credited to CBL's account upon receipt from the counterparty.

-

For delivery of a security, the default action is to automatically debit the compensation proceeds from CBL's account and to credit them to the relevant counterparty.

In terms of compensation, the following rules apply:

-

Entitlement is automatically tracked and compensated until the 15th calendar day of the month following payment. After this date, market claims must be monitored manually between market counterparties.

Service offered by CBL:Adjustment is performed based on information received from the depository.

Equities

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:Yes
Restriction on custody events/transaction types:No restriction
Additional information:
There are no standard compensation rules that are accepted by all market players. Transactions that are subject to compensation are detected by CBL’s depository and the compensation is processed as follows:
-For receipt of a security, the depository contacts the customer's counterparty (on a daily basis) in order to claim the compensation. The compensation amount is credited to CBL's account upon receipt from the counterparty.
-For delivery of a security, the default action is to automatically debit the compensation proceeds from CBL's account and to credit them to the relevant counterparty.

In terms of compensation, the following rules apply:

-

Entitlement is automatically tracked and compensated until the 15th calendar day of the month following payment. After this date, market claims must be monitored manually between market counterparties.

Service offered by CBL:Adjustment is performed based on information received from the depository.