Entitlement Compensation Rules - Australia
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. | |
Equities
| 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. | |