CLEARING DEPOSITORY & SETTLEMENT (CDS) AMEDA Conference Sun City October 2008
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Transcript of CLEARING DEPOSITORY & SETTLEMENT (CDS) AMEDA Conference Sun City October 2008
CLEARING DEPOSITORY & SETTLEMENT (CDS)CLEARING DEPOSITORY & SETTLEMENT (CDS)
AMEDA ConferenceSun City
October 2008
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PALESTINE SECURITIES EXCHANGEPALESTINE SECURITIES EXCHANGE
Since PSE’s first trading in 1997, market operations have been conducted within a dematerialized environment, through fully electronic systems, in accordance with the international standards.
• Services delivered by PSE:Traditional services: trading, listing, data
dissemination.Clearing and settlement through a special
department (CDS).Registry services.
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PSE LISTINGPSE LISTING
• LISTED SECURITIES CATEGORIZED IN:LISTED SECURITIES CATEGORIZED IN:
5 sectors
37 Listed Co.
• MARKET INSTRUMENTS:MARKET INSTRUMENTS:
Only Shares
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TRADINGTRADING
• REMOTE TRADINGREMOTE TRADING: – Fully dematerialized environment. – Electronic negotiation and confirmation of trades.– Trading is done through the market
intermediaries’ terminals located in their offices
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TRADINGTRADING
• CURRENT ELECTRONIC SYSTEMSCURRENT ELECTRONIC SYSTEMS
Horizon & Equator
Members can trade both for their own account
and for their clients
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PSE Core SystemsPSE Core Systems
CDS System “Equator”
OS: AS400
Provider: OMX
Location: PSE
Trading System “Horizon”
Provider: OMX
Location: PSEOS:
AI X Unix
Tightly Coupled
CDS DB & App.
Trading App.
TWS
E- Trading
Client Access
SA
Data Dissemination
Web Site
Data Dissemination Programs
Account & I nventory validation
Trading & Monitoring
Confi gure trading settings & rules
I nternet invests with already opened account
I nternet Clients
Provider: OMX
Provider: OMX
CMAPSE Brokers
PSE
PSE
Brokers
Provider: I BM
CDS Services
Listed company
HSBC
Brokers X
CMA
LAN
Internet
Leased line
VPN
PSE Core Systems
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CLEARING & SETTLEMENTCLEARING & SETTLEMENT
MAIN CHARACTERISTICS:MAIN CHARACTERISTICS:
– Rolling settlement cycle: T+3; Settlement is final and irrevocable.
– Delivery Versus Payment (DVP).
– BIS model 2: Gross Settlements of Securities Transfers Followed by Net Settlement of Funds Transfers.
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CLEARING & SETTLEMENTCLEARING & SETTLEMENT
• Participants in the settlement processParticipants in the settlement process: – Settlement bank.– Brokerage firms.– Custodians.
• 100% Settled transactions100% Settled transactions– No failure of the settlement.
• COST EFFECTIVE:COST EFFECTIVE:– No specific fees for clearing and settlement.
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CDS REGISTRYCDS REGISTRY
• REGISTRY STRUCTUREREGISTRY STRUCTURE
– Natural Individuals.– legal persons. – Joint accounts.
Securities kept in accounts opened are subject to trading.
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CDS REGISTRYCDS REGISTRY
• REAL TIME LINK BETWEEN EXCHANGE REAL TIME LINK BETWEEN EXCHANGE OPERATIONSOPERATIONS:
– Trading system Clearing settlement & registry system.
– Updating of securities holdings for each individual accounts.
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CDCDSS FFunctionsunctions
• Register: Sharebook register to maintain the details of the Beneficial Owners of Securities.
• Depository for recording.• Clearing and Settlement (Funds and Securities).• Trading Accounts.• Stock Transfers & Movements. • Pledging.• Corporate Actions. • Off floor movements:
– Inheritance.– Transfers within families.– Endowment movements.– Joint movements.
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Participants LinkageParticipants Linkage
• Electronic Services for:• Listed Companies.• Brokerage firms.• Custodian Bank.• Settlement Bank• Pledgees.• Investors.
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CDS PlansCDS Plans
• In-house Cash Settlement & Guarantee Fund.• Cash Dividend Process.• EIPO.• Automation of available end user services.