CFCL Settlement – Thailand
Reference
Settlement process
Please refer to the Settlement process – Thailand for the complete information about the Settlement process.
Settlement services
Pre-matching service
The table below summarizes CFCL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CFCL's pre-matching services, see Pre-matching services for external settlement instructions.
Service offered | Method employed | Start (local time) |
TSD-eligible securities | ||
Immediate Release Flag available | Manual via telephone or secured spreadsheet exchange with custodian banks and brokers, electronic TSD matching facility called Pre Settlement Matching System (PSMS) with custodian banks and brokers. | 09:00 on SD-1 |
Connectivity medium | Instruction format |
CFC Web Portal | Tick to enable the "Immediate Release" option. |
CFC via Swift and CFC File Transfer | Field :22F::STCO/CFCL /IREL |
Procedures for domestic counterparties
Procedure for the domestic counterparty | Deadline | |
Receipt in CFCL / Delivery from CFCL | ||
Clients delivering securities to, or receiving from the Thai market must request their domestic counterparty to deliver / receive the securities from the CFCL sub-account with Standard Chartered Bank (Thai) Public Company Limited as follows: | Market deadline | |
- | Delivering / Receiving Agent: Standard Chartered Bank (Thai) Public Company Limited (BIC SCBLTHBX) | |
- | Deliverer's / Receiver's custodian: | |
- | Seller / Buyer: | |
a. Customers must inform their counterparties to include Clearstream Banking’s segregated depository account number, 3120000314422, in the Seller/Buyer Safekeeping Account field :97A::.
Allowed countervalue difference
A maximum difference in counter value of THB 800 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
Settlement transactions with Euroclear in Thai domestic securities are not possible.
Internal settlement
Internal settlement of Thai domestic securities denominated in THB is possible against THB or any other Clearstream Fund Centre-eligible currency.
Pending settlement
Clients with ISINs not impacted by pending settlement will receive settlement confirmations after 15:00 Thai time / 09:00 CET winter/ 10:00 CET summer.
After 15:00 Thai time / 09:00 CET winter/ 10:00 CET summer, clients with impacted ISINs will have the original instruction cancelled, confirmed settled quantity credited and full amount for payment of securities debited. For the positions that are still in pending settlement status, the originating defaulted selling broker has until SD+3 to deliver the remaining securities.
When the pending settlement position has resolved (that is, the originating defaulted selling broker has delivered the remaining securities), clients will be credited with the remaining quantity. If the pending settlement position is not resolved on SD+3 (that is originating defaulted selling broker cannot deliver the remaining shares) then a cash settlement will be triggered.
Note: If Clearstream Fund Centre’s depository is identified by the Thailand Clearing House (TCH) or the Thailand Securities Depository (TSD) as having no holding positions under pending settlement status (that is, not being a pending receiver), then clients will receive settlement confirmations after 14:15 Thai time / 08:15 CET winter/ 09:15 CET summer.
The TCH will trigger cash settlement on SD+3 (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 client identified as the pending receiver will receive cash settlement instead of securities.
Local shares received by Clearstream Fund Centre clients
Local shares received by Clearstream Fund Centre clients are sent out on SD+1, for conversion into foreign shares. On receipt of conversion confirmation, the holdings are booked from local shares ISIN into foreign shares ISIN.
Note: Shares pending conversion 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 client 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 client’s account.
To avoid this risk, clients 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 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. To benefit from this functionality, clients must ensure that their back-to-back instructions are formatted as described below:
Connectivity medium | Pool ID format | Field(s) to be used |
CFC via Swift and Xact File Transfer | :POOL//16xa | 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 Fund Centre shall, therefore, not be responsible for any loss, claim, liability and/or expense in relation to such turnaround transactions/back-to-back processing.
Clients 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 Fund Centre 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 medium | Field | Value |
CFC via Swift and CFC File Transfer | Field :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
Settlement instructions with domestic counterparties not settled on requested settlement date (SD) are not automatically cancelled. Clients who wish to cancel such instructions will have to send in a cancellation to do so. Otherwise, the depository shall automatically cancel the instruction which remains unmatched at the end of the 30th business day after the first attempted settlement date.