Entitlement Compensation Rules - Hong Kong

16.06.2011

Bonds

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:No
Restriction on custody events/transaction types:No restriction
Additional information:
Coupon payment is calculated by the paying agent based on the settled position on the Record Date. If the trade fails to settle on the Record Date, a claim can be instituted against the counterparty.
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:
Entitlements (including dividend and shares/rights) are calculated by CCASS based on the settled positions on the Record Date and directly credited to the participant’s account. If the traded position differs from the settled position on the Record Date, a claim can be instituted against the counterparty.

Note: For reverse split, consolidation and cash offer, a claim cannot be instituted against the counterparty since the corporate action is taken only on the settled position.
Service offered by CBL:Adjustment is performed based on information received from the depository.