Presentation on theme: "10 th ACG Cross Training Depository & Trading Linkage Singapore Exchange 3 June 2008."— Presentation transcript:
10 th ACG Cross Training Depository & Trading Linkage Singapore Exchange 3 June 2008
Agenda Objectives of Depository Linkage CDP Existing Depository Linkage An example of Depository Linkage (CDP- DTCC) Objectives of ASX-SGX Linkage ASX-SGX Linkage
Objectives of Depository Linkage Diversification of Portfolio Time to market Foster closer relationships between depositories
CDP Existing Depository Linkage Depository Trust Company (DTCC) Shenzhen Securities Registrars Company Ltd (SSRC)
CDP-DTCC Linkage 1a. Instructs to deliver shares Investor DTC Participant DTC CDP 3. Confirm credit of shares into CDP’s a/c via SWIFT 2. DTC Participant transfers shares 1b. Submit transfer request form & payment by 10.00 am on settlement date 4.Credit shares into investor’s a/c Transfer of shares into CDP
CDP-DTCC Linkage Transfer of shares out from CDP 1a. Instructs to receive shares 3. Instructs to transfer shares from CDP A/c to designated DTC participant’s A/c via SWIFT 4. DTC transfers shares into Participant’s A/c 1b. Submit transfer request form & payment by 10.00 am on settlement date 2. Earmark shares in investor’s a/c DTC Participant DTC CDP Investor 6.Debit shares into investor’s a/c 5. Confirms debit of shares from CDP’s A/c
Objectives of ASX-SGX Linkage Encourage portfolio diversification for investors Offer competitively priced trading/ settlement/custody services for cross border transactions Provide another channel for order flow to exchanges Create a revenue and profit stream for exchanges
ASX-SGX Linkage Established in December 2001 This trading link provides market participants with access to market/ on selected overseas securities trading information It allows transmission of orders through local existing trading terminals, directly into the electronic trading system of that exchange for order matching.
ASX-SGX Linkage The link also encompasses clearing and settlement of the above securities in its primary market. Securities holdings or its proxies are reflected in accounts held through custodian banks by the respective depositories. Inbound service from ASX to SGX discontinued in February 2006 Outbound service from SGX to ASX discontinued in September 2006
ASX-SGX Linkage Settlement Confirmation Delivers 1 lot Qantas Pays A$3000 Net Settlement Instruction Net Settlement with CHESS Sells 1 lot Qantas @ A$3 Buys 1 lot Qantas @ A$3 Match 1 lot Qantas trades @ A$3 Trade Details ASX SEATS SINGAPOREAUSTRALIA ASX SPV ASX Investors TRADING SGX Member SGX Link Singapore Investors CHESS CDPCDP Citibank (CHESS Participant) SETTLEMENT SGX Member Singapore Investors
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