Settlement services – Philippines
Pre-matching service
The table below summarises Clearstream Banking’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of Clearstream Banking’s pre-matching services, see Pre-matching services for external settlement instructions.
In the event of a mismatch, clients will be informed by 09:30 SD local time. Please note, that if there is a mismatch in the market, no amendment to the instruction is allowed. You must first cancel the instruction and submit a related new instruction by 10:00 SD local time.
| Service offered | Method employed | Start (local time) |
| Government bonds | ||
Immediate Release Flag available | Manual via telephone | 09:00 SD |
| Corporate bonds | ||
Immediate Release Flag available | Manual via telephone | 09:00 SD-1 |
| Listed equities | ||
Immediate Release Flag available | Manual via telephone | 09:00 SD-1 |
| Connectivity medium | Instruction format |
Xact Web Portal | Tick to enable the "Immediate Release" option |
Xact via Swift and Xact File Transfer | Field :22F::STCO/CEDE/IREL |
Procedures for domestic counterparties
| Procedure for the domestic counterparty | Deadline | |
| Receipt in CBL | ||
Clients must request their domestic counterparty to deliver the securities to CBL sub-account with SCB as follows:
| Market deadline | |
| Delivery from CBL | ||
Clients must request their domestic counterparty to receive the securities from CBL sub-account with SCB as follows:
| Market deadline | |
Receipt of securities
For a free of payment delivery to Clearstream Banking, a valid receipt instruction must be submitted by the client.
For receipt of securities, free of or against payment, only securities with a valid Bangko Sentral Registration Document (BSRD) will be accepted in order to ensure repatriation of proceeds at a later stage. Clearstream Banking will not accept securities that do not have a valid BSRD.
The depository will obtain the BSRD on behalf of Clearstream Banking's omnibus account and register the receipt of securities with the BSP.
Allowed countervalue difference
There are no trade tolerance rules in the Philippines. Countervalue differences are not allowed.
Specific settlement rules / settlement restrictions
Payments and funds transfers
Payment and funds transfer instructions must be processed via Real Time Gross Settlement (RTGS) in the Philippines Payments and Settlements SystemPlus (PhilPassPlus). This ensures that there is real-time and immediate settlement of payments. Managers’ Cheques are not accepted by Clearstream Banking as a form of payment.
In order for such instructions to be processed on an RTGS basis, clients must indicate REC/RTGS in field :72: of the Swift instruction MT202) and the BIC of the beneficiary bank in field :58D: of the same instruction.
| Field tag | Field name | Content/Options |
:58D: | Beneficiary Institution | BIC of Beneficiary Institution |
:72: | Sender to Receiver Information | REC/RTGS |
For further information about the instruction formatting of MT202 – General financial institution transfer, please refer to the Xact via Swift User Guide.
Considering the local requirements, clients must, in the case of transfer from a third party bank, ensure that their MT210 pre-advice is in place and funds have actually been credited to the Clearstream Banking CCB account by SD-1, 14:30 PHT for settlement on SD. Should the funds not have been credited by that time, settlement cannot be guaranteed.
Clients should note that due to the settlement complexity of this market, the withdrawal of funds (in relation to this, clients are advised to also refer to the Foreign Exchange Restrictions in the Market Profile) may only be executed on SD+1 if the related securities transaction is confirmed after 13:00 PHT on SD.
Clients should also note that all outbound payment instructions will be sent to Standard Chartered Bank Philippines, who acts as Clearstream Banking's CCB. As for the inward receipt of funds, if these funds are to be used as payment for an against payment trade then they should be received into the CCB. Clients are also advised to refer to the Cash Timings Matrix for cash deadlines.
Dividend payments
Clients should note that it is market practice in the Philippines for Issuers to pay dividends in the form of cheques to the CSD. These require a 1-day clearing period from payment date before they are credited to the clients.
Trade settlement
Purchase trades can be funded by long balances for value on SD.
Trades, funded via a transfer from a third party bank, will be sent for market settlement when funding is received and confirmed by SD-1 14:30 PHT . If there is no funding by the cut-off time, Clearstream Banking will attempt to settle the trade on a best efforts basis but cannot guarantee that the trade would not fail. Clients should also note that the MT210 pre-advice is not an actual guarantee for receipt of funds.
Securities to be delivered to a counterparty must be provisioned before instructions are released to the market.
Partial settlement
No partial settlement will be accepted.
Physical certificates
Physical certificates are accepted by Clearstream Banking for dematerialisation only.
Clearstream Banking does not perform actual settlement of physical securities. In order to avoid delays in settlement when buying or selling shares via the Exchange, the certificates must be in scripless form.
The general documentary requirements for conversion from physical to scripless form are as follows:
- Endorsed stock certificate (should be endorsed by authorised signatories of the registered name on the certificate);
- Consularised and certified true copy of the company's Articles of Incorporation;
- Consularised and certified true copy of the By-laws of the company;
- Consularised and certified true copy of the resolution by the company's board of directors designating the names, business titles and specimen signatures of their authorised signatories;
- Duly accomplished specimen signature cards;
- Consularised or certified true copies of at least two (2) valid IDs of authorised signatories (for example, passport, driver's licence, Social Security ID).
Clients are advised to send an MT599 free-format message to Clearstream Banking (BIC: CEDELULL) instructing dematerialisation.
The above-mentioned documentation should be sent to the following address:
Clearstream Banking S.A. Singapore Branch
Attn: Settlements Singapore
9 Raffles Place
#55-01, Republic Plaza
Singapore 048619
The MT599 instruction should include the following wording:
"Please consider this as our instruction to convert our [...] shares of [...] from physical form to scripless form. Please debit our account [...] for the related costs."
Upon receipt of all required documentation from the client, Clearstream Banking will then proceed to instruct SCB for dematerialisation.
Dematerialisation charges are as follows:
- Cancellation fee – PHP 20.00/certificate (plus 12% VAT if transfer agent/registrar is not a bank);
- Issuance fee – PHP 100.00/certificate (plus 12% VAT if transfer agent/registrar is not a bank).
Clients will be informed of the charges that are payable and should arrange, via an MT202/MT103 instruction, for funding into Clearstream Banking's cash account 0142683771002.
The conversion process will take between one and three weeks, subject to the submission of all required instructions and documentation. Clients will be informed once the conversion is finalised.
Unlisted securities
Clients must be aware that the risks associated with holding unlisted securities include:
- No generally accepted settlement procedure;
- No standard documentation for settlement of transactions, standard certificate denomination or standard board lot; and
- No standard documentation for registration in the name of either a transferee or its agent;
and agree to hold Clearstream Banking and its custodian free and harmless from any loss arising from or incidental to any client holding in unlisted securities, unless such loss is due to the negligence of Clearstream Banking or its depository.
Back-to-back processing
Back-to-back processing is available for transactions in all dematerialised securities eligible in this market. If both the client 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. At the same time, clients must ensure that there is adequate funding in place for each of the receipt and delivery transaction. Each receipt and delivery will settle only with same day value when its corresponding funding is received.
Deadlines for the receipt of valid instructions remain unchanged for back-to-back transactions (please refer to “Settlement times”).
To benefit from this functionality, clients must ensure that their back-to-back instructions are formatted as follows, according to the connectivity medium used:
| Connectivity medium | Pool ID format | Field(s) to be used |
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 (/) character nor must it contain two consecutive slash (//) characters.
Management of failed instructions
Please refer to the Settlement Risk section of the Market Profile (Philippines) for more details. Settlement instructions which are still unmatched at the end of the third business day after the first attempted settlement date are automatically cancelled.
In the event that penalties are imposed for failed trades, clients will be notified of the charges and are obliged to ensure funding to cover the penalty fees. Clients should ensure adequate funding in their accounts by SD-1, 14:30 PHT in order to prevent failed trade settlement.
New issues settlement
Transaction settlement in new issues will, when appropriate, take place on settlement date/listing date in the local market. Funding for new issue settlements (pre-advices) must be in place by SD-1.