Settlement process - Singapore

Listed corporate bonds:T+2
Unlisted corporate bonds:Fully negotiable between the parties (mainly T+5)
Government bonds:T+1

Settlement modes in CDP


SGX uses a single web-based system whereby securities settlement is only finalised once the intraday batch settlement or Real Time Gross Settlement (RTGS) is completed. Unless there are sufficient securities and cash positions, settlement will not occur.

This system replaces the PSMS System, Enhanced DVP, E-Hub system and Debt Clearing & Settlement System (DCSS) as of 10 December 2018.

Settlement of equities

CDP-eligible trades

The following transaction types for equities (denominated in SGD and USD) are eligible for the pre-matching within SGX-PTS WEB Front End where settlement is finalised:

  • All on-exchange trades - both free of payment and against payment
  • Off-exchange trades - both free of payment and against payment
T+0:Orders on the SGX are matched and executed by the CAS trading system.
T+0 or +1:Trade confirmations are generated automatically and sent to the executing broker, that onward delivers the confirmations to their clients for clarification of the trade details and indication of the depository agent (DA) that settles the trade.

Both Delivering and Receiving DAs need to input settlement instructions into SGX PTS-WEB for pre-matching.

There is no earmarking of security positions for trades that have been matched successfully. Trades will only be settled if cash or securities are available during the settlement run on settlement date.

Cancellations received before the market cut-off time for trades in either the “matched” or “awaiting settlement” statuses require a bilateral cancellation from the counterparties.


The settlement batch run commences at 13:30. Cash and securities settlement takes place simultaneously in the market at 15.30.

Settlement confirmations for the SGX-PTS WEB batch run are sent at 16.30.

Half-day settlement

The half-day settlement run applies to Central Depository's (CDP) half working days on Christmas Eve, New Year and Chinese New Year. The CDP has however aligned the half-day settlement with the full-day settlement timeline with batched settlement runs beginning at 13:30. There is no buy-in on half-day trading.

Partial settlement

Partial settlements are mandatory on batch settlement and linked trades but not on trades settled via Real Time Gross Settlement (RTGS).

Central counterparty

The CDP, through the process of novation, becomes counterparty to each side of the transaction as soon as the trade is matched.

Linked trades

The CDP facilitates automatic linked trades settlement by using the linkage indicator and linked reference in the instructions. The final settlement status of linked trade instructions will only be known after the batch run completes at around 15:30. A failure of a purchase settlement instruction causes the linked sale settlement instruction to fail.

Linked settlement instructions are also subject to partial settlement. If the buy trade is partially settled, the sale trade settlement instruction will not settle.

Settlement of debt securities

Settlement of unlisted corporate bonds

Unlisted corporate bonds are held in immobilised form and are settled via book-entry through authorised depositories.

Settlement of corporate bonds

Corporate bonds are settled via the SGX PTS WEB Front End system. Securities and cash are settled during the intraday batch run.

Settlement of government bonds

The selling participant initiates the sale by confirming the sale in MEPS+ and then transmits the message to the buyer by 16:30 on trade date. Upon receipt of such notification, the buyer checks the details and affirms the transaction via MEPS+.

Settlement occurs from 09:00 on settlement date on a true DVP basis. The buyer may resolve any discrepancies, errors or omissions with the seller until 17:00 on settlement date.

Securities and cash are settled on a gross basis.

Linked trades

The CDP facilitates automatic linked trades settlement of corporate bonds by using the linkage indicator and linked reference in the instructions. The final settlement status of linked trade instructions will only be known after the batch run completes at around 15:30. A failure of a purchase settlement instruction causes the linked sale settlement instruction to fail.

Linked settlement instructions are also subject to partial settlement. If the buy trade is partially settled, the sale trade settlement instruction will not settle.

Settlement risk

The settlement risk in Singapore is minimal as the majority of the trades are settled via the DVP system and cash and securities settlement takes place simultaneously.

Payment on trades that are paid outside of CDP’s system can be made by MEPS+ for SGD or bank remittances for USD. The counterparties bear the risk of non-delivery of the securities or non-payment of cash, for example, if one of the parties fails to deliver cash or securities.


Trades only settle to the extent that securities are available. If there are insufficient securities to settle the delivery trades, the instruction may not settle on the intended settlement date. SGX will then effect the buy-in from 15:30 to 17:00 on SD (T+2). Since the batch settlement is conducted earlier at 13:30, the bought-in securities are not included in time for same day settlement and are therefore settled T+1 during the settlement run on the next business day if the buy-in is successful.

Any unsettled buy-in trade is carried forward to the next business day for settlement. If the buy-in and procurement remains unsuccessful by ISD +6, cash settlement will be initiated against the seller to provide resolution of the sale trade.

The price bid begins at two minimum bids above the closing price of the previous day, the current “last done” price or the current bid price in one hour preceding commencement of the buy-in, whichever is the highest. If the securities are still not obtained, SGX has the absolute discretion to raise the price bid by two minimum bids at any time throughout the buy-in until the securities are bought.

There is a penalty for failure to procure for every trade day that the trade remains outstanding until ISD +5. The delivering party is liable for the buy-in and must bear all associated costs.

SGX may accept requests for withdrawal from a buy-in if sufficient shares are available on ISD +1 for delivery to the buyer if the buy-in is unsuccessful on ISD.

After completion of buy-in, SGX publishes the list of securities bought-in (which includes individual counters).

Fees and penalties

  • CDP processing fee is SGD 75 (SGD 80.25 inclusive of GST) per buy-in contract.
  • Penalty fee of SGD 1,000 or 5% of the value of the contract, whichever is higher. If the securities are to settle a Novated Contract arising from a trade on the buy-in market, a minimum of SGD 5,000 or 10% of the contract value (whichever is higher) will be levied.

Clearing fund

The CDP, in its role as clearing house, has established a clearing fund. This fund can be used if a clearing member is unable to discharge its cash obligations to the CDP or the CDP suffers a loss as a result of liquidating a clearing member's position.

The clearing fund comprises the following:

  • Collaterised contributions from clearing members:
    Each member’s contribution is the higher of SGD 500,000 or 0.5 basis points of its past 12-month traded value (that is, buy and sell value). Total clearing member collateralised contributions are subject to minimum of SGD 40 million in aggregate.
  • CDP contribution (as defined in Rule 7.4.1):
    CDP’s contribution to the first layer. This is the higher of SGD 30 million or minimum 15% of the total clearing fund.
  • Contingent contributions from member firm: 
    Each clearing member’s contribution is computed as 0.4 basis points of its past 12-month traded value.
  • Moneys paid by an insurer under a contract of insurance (if any) entered into by CDP under Rule 7.5; and
  • Any other contributions to the clearing fund.


Since 1994, all Singapore-listed securities have been converted to the scripless system and are registered in the name of CDP. Transfer of ownership is performed through the CDP by debiting and crediting the participants’ accounts.

Physical securities

Book-entry settlement is mandatory for all immobilised securities traded at the SGX. Physical certificates cannot be used to settle a market transaction and must be deposited with the CDP when intended to be used for settlement. The registration period is approximately 28 business days for re-registration and scripless conversion. 

Depositors can withdraw securities and hold physical scrips. The certificate is registered in the name of the account holder or any person nominated by him. The withdrawal period may take approximately 14 business days.

Transfer stamp duty

A duty of 0.2% of the market value of the shares for “change of beneficial ownership" payable at the time of stamping plus 7% GST that is payable to the Singapore Inland Revenue Authority of Singapore for share certificates sent for registration. This is not applicable to securities settled on a book-entry basis.

Payment Systems

MAS Electronic Payment System (MEPS+)

All banks in Singapore are eligible to participate directly in MEPS+, the real-time gross settlement system (RTGS), in which transfer of funds is irrevocable. Market cash processing hours for MEPS+ transactions are from 9.00 a.m. to 5.30 p.m. MEPS+ does not accept payments for less than SGD 1.00.

All other foreign currency payments are done through telegraphic transfers. The processing of these payments is dependent on various market deadlines and the processing is on a continuous basis. The market deadlines and operating hours are dependent on the markets where the currencies are being paid to.

Back Valuation

According to the Bye-Laws of the Association of Banks in Singapore, a back valuation charge is payable to the receiving bank for any back valuation request. This charge comprises an administrative charge of S$200 plus interest.The interest is computed for each day of value adjustment based on the respective prevailing SGD interbank overnight mode rate (K2) plus 1%. It is market practice that back-valuation requests are accommodated if initiated within 60 calendar days from the value date of the transaction.

Continuous Linked Settlement System (CLS)

CLS is a global multi-currency settlement system that aims to eliminate foreign exchange (FX) settlement risk due to time-zone differences. The continuous linked settlement, provided by CLS bank, allows both legs of an FX trade to be settled simultaneously across the books of CSL Bank and therefore guarantees finality and irrevocability of the settlements.

Securities Market Fees

SGX revised their clearing and depository fees on 10 December 2018.  This information can be found in the website of the SGX.

Mandatory Use of Place of Trade (94B) and Transfer Type (22F)

The reporting of “on-exchange” and “off-exchange” are mandatory via the use of Place of Trade identifier (94B) and Transfer Type identifier (22F) fields. These apply to both equities and corporate bonds. However they remain as non-matching fields. CDP’s system has the capability to trace whether trades are executed on-exchange and thus, applies the relevant CDP on-exchange or off-exchange fees appropriately.