Entitlement Compensation Rules

Bonds

Market compensation basis:		Settlement Date
Automatic Compensation Managed by Local CSD:		No
Restriction on custody events/transaction types:		No restriction
Additional information: For bonds, a “manual” claim is required. However, this is a rare situation in the Australian market, where settlement failure before Record Date for debt instruments occurs only under exceptional circumstances. In such a situation, the CBL depository proactively seeks to claim or to pay compensation if, based on Clearstream Banking’s settlement instructions, a trade is to settle cum-entitlement but where settlement actually occurs on/after the Record Date.
Service offered by CBL:		Adjustment is performed based on information received from the depository.

Market compensation basis:		Trade Date
Automatic Compensation Managed by Local CSD:		Yes
Restriction on custody events/transaction types:		No restriction
Additional information: The entitlement compensation mechanism is operated within the CHESS settlement system. Any outstanding settlement obligations for on-market trades that are matched with counterparties but fail to settle on/before Record Date are automatically adjusted for, with the entitlement obligation created for settlement upon Distribution/Payment Date.
Service offered by CBL:		Adjustment is performed based on information received from the depository.