Market Link Guide - Singapore

16.06.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect via DBS Bank Ltd, Singapore to:

  • The Central Depository (Pte) Limited (CDP).
  • Monetary Authority of Singapore (MAS).

a. CSD Regulation (EU) No 909/2014, Article 2(29).

CSD

Custodian

Name

CDP (equities and corporate bonds)

MAS (government bonds)

DBS Bank Ltd

FATCA GIIN

 Not available

UQVA39.00009.ME.702

LEI

CDP: 549300CMH3J8ASUM8N29

MAS: 54930035WQZLGC45RZ35

ATUEL7OJR5057F2PV266

Country of incorporation

Singapore

Singapore

Account type

Omnibus account

Omnibus account

Legal Account name / holder


CDP: in the name of DBS Nominees Private Ltd Clearstream Banking

MAS: in the name of DBS Bank Ltd

DBS Bank Ltd as the participant in CDP and MAS does not hold an individually segregated account for CBL at either CSD.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of payment

Yes

Settlement against payment

Yes

Eligible settlement currency: Singapore Dollar (SGD);
U.S. Dollar (USD).

Settlement against payment in central bank money account of CBL/CBL customers

Yes

CBL holds a cash account at the depository. Against payment settlement in CDP takes place on the cash account of DBS at the settlement banks.

Against payment settlement in SGD in MAS takes place on the DBS cash account in MEPS+ system of the MAS.

Bridge settlement

Yes

 
Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

Refer to the Market Profile.
Pre-matching

Yes

 
Back-to-back processing

Yes

 
Allegements

Yes

 
Automatic compensation

No

 
Registered securities

Yes

Registration takes place automatically upon settlement.

Multi Market Securities

Yes

Refer to the Multi-Market Securities Guide.
Lending and borrowing

Yes

Available only within Clearstream. Debt securities only.

Proxy voting

Yes

 
Investment Funds

Yes

Exchange Traded Funds.

Liquidity Hub Connect

Yes

 
Sale and purchase of rightsYes  
Repo services

Yes

Internal. Refer to the CmaX Product Guide.
Market restrictions

Yes

Holding restrictions apply.
FTT

No

 
Daily reconciliation

Yes

 

Moment of entry

 

CDP: The moment of entry for transfer orders (instructions for the transfer of money and securities in settlement of trades) submitted by participants is when the transfer orders are received in the pre-settlement matching system for DVP Settlement. The settlement system will only act on the transfer orders when they are matched and validated.

MAS: Payments, Singapore Government Securities and MAS Bills (SGSMB), transactions, and net cheque, Interbank GIRO (IBG) and Fast And Secure Transfers (FAST) obligations are deemed entered into the CSD system from the moment they are validated by the host system.

Irrevocability

 

CDP: Bilateral cancellation is mandatory before the settlement date’s settlement cut-off time of 12:00 SGT for matched instructions.

MAS: Unilateral cancellation is allowed prior to settlement. The transfer of funds into and out of an account of a participant, settlement of any payment obligations in CSD system or settlement and transfer of book-entry shall be final and irrevocable.

Settlement finality

CDP: Finality takes place after the night batch, once securities are transferred. 

MAS: Finality is simultaneous and real time upon confirmation of securities and cash movement. 

Legal arrangements

The below section is based on the legal opinion that was issued on 6 April 2020. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Although local law does not explicitly provide for a book entry regime, book-entry transfers of fungible securities deposited with the custodian should be upheld by a local court.

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed. Local laws and regulations do not explicitly prohibit upper tier attachment of the securities credited to the accounts. If the custodian holds the securities for CBL and its customers "on-trust", upper-tier attachment is prohibited.

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Local laws and regulations do not provide that shortfall will be borne by all relevant account holders. However, the local court may decide to allocate remaining securities on a pro rata basis.

Settlement finality in case of insolvency

Local law does not provide for restrictions on the reversals of debit or credit entries to relevant accounts and for settlement finality.