Announcement

Singapore: Declaration of Off-exchange Trade on Equities required by Singapore Exchange

Settlement | Singapore

Reference

Code
A14073
Service level
CBL
Last Updated
21.05.2014

Effective

1 June 2014

the Singapore Exchange (SGX) requires that equity off-exchange transactions are reported daily to the exchange. This is following their recent announcement of a change in the securities fees for clearing, transfer and settlement. For avoidance of doubt, “on-exchange” trades are defined as primary and/or secondary settlements pursuant to transactions on SGX-ST. Settlements not pursuant to transactions on SGX-ST are considered as “off-exchange” trades.

In compliance with this requirement, Clearstream requires customers to declare all off-exchange trades from 1 June 2014 onwards in their MT540 (Receive Free), MT541 (Receive against Payment), MT542 (Deliver Free) and MT543 (Deliver against Payment) instructions as follows:

SWIFT: 70E::SPRO//OFF EXCHANGE TRADE

CreationOnline: Settlement Processing Narrative: OFF EXCHANGE TRADE

If the trade is not declared, it will be defaulted to on-exchange. SGX will conduct random audit checks on the trades; therefore it is very important to ensure accurate declarations. Customers with trades that are not declared as off-exchange, but deemed to be possible off-exchange trades during SGX’s audit checks, may be requested to provide the following supporting documents within three business days:

1) Client accounting system (CAS) contract number of primary (DVPT/FOPT) PSMS reference;

2) Identities of the instructing parties, SGX-ST members;

3) Clients' settlement instructions (SI) not in the settlement instructions submitted to CDP (this may include the broker informing the customer whether the executed trade is on a ‘principal’ or ‘agency’ basis, or client declarations of market-related activities).

If the above supporting documents cannot be provided, the new off-exchange fees will be applied by the central depository (CDP). The SGX has not yet announced any penalty for incorrect declarations.

Further information

For further information about our products and services, please visit www.clearstream.com or contact Clearstream Banking Customer Service or your Relationship Officer