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10 th ACG Cross Training Depository & Trading Linkage

Learn about depository linkage objectives, examples, and benefits. Explore ASX-SGX linkage objectives and clearing processes for efficient trading. Discover how portfolio diversification and market access are facilitated.

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10 th ACG Cross Training Depository & Trading Linkage

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  1. 10th ACG Cross Training Depository & Trading Linkage 3 June 2008 Singapore Exchange

  2. Agenda • Objectives of Depository Linkage • CDP Existing Depository Linkage • An example of Depository Linkage (CDP-DTCC) • Objectives of ASX-SGX Linkage • ASX-SGX Linkage

  3. Objectives of Depository Linkage Diversification of Portfolio Time to market Foster closer relationships between depositories

  4. CDP Existing Depository Linkage Depository Trust Company (DTCC) Shenzhen Securities Registrars Company Ltd (SSRC)

  5. CDP 1b. Submit transfer request form & payment by 10.00 am on settlement date 3. Confirm credit of shares into CDP’s a/c via SWIFT DTC Investor 4.Credit shares into investor’s a/c DTC Participant 1a. Instructs to deliver shares 2. DTC Participant transfers shares CDP-DTCC Linkage Transfer of shares into CDP

  6. CDP 1b. Submit transfer request form & payment by 10.00 am on settlement date 3. Instructs to transfer shares from CDP A/c to designated DTC participant’s A/c via SWIFT DTC Investor 2. Earmark shares in investor’s a/c 5. Confirms debit of shares from CDP’s A/c DTC Participant 4. DTC transfers shares into Participant’s A/c 1a. Instructs to receive shares CDP-DTCC Linkage Transfer of shares out from CDP 6.Debit shares into investor’s a/c

  7. 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

  8. 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.

  9. 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

  10. Sells 1 lot Qantas @ A$3 Buys 1 lot Qantas @ A$3 Singapore Investors Match 1 lot Qantas trades @ A$3 Trade Details Trade Details Net Settlement Instruction Pays A$3000 Net Settlement with CHESS Delivers 1 lot Qantas Settlement Confirmation Singapore Investors ASX-SGX Linkage AUSTRALIA SINGAPORE TRADING ASX SEATS ASX Investors SGX Link ASX SPV SGX Member CHESS SETTLEMENT C D P SGX Member Citibank (CHESS Participant)

  11. Q & A

  12. Thank You!

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