Proposed Amendments to Dvp Rules

Appendix A

PROPOSED AMENDMENTS TO DVP RULES

RULE AMENDMENT /
9.2 Termination of Payment Facilities by the Settlement Bank
9.2.1
CDP may, at any time (without prejudice to its other rights or remedies), by notice in writing to the Principal, terminate, suspend or withhold the Principal's participation in DVP Settlement (such termination, suspension or withholding to take effect immediately upon issue of such notice unless otherwise specified in the notice) if:
(a)  CDP receives a Termination Notice from the Settlement Bank concerning the Principal pursuant to Rule 8.8.1;
(b)  CDP receives issues a SB Default Notice from tothe Clearing Bank pursuant to Rule 11.1 concerning the Settlement Bank representing the Principal;
(c)  ……
13.2 Procedure for Affirming A Block Trade
13.2.1
A Block Trade shall mean a receiving instruction that in value is equal to or exceeds the sum of S$50 million or its equivalent in any other currency or such other sum or sums as may from time to time be specified by CDP.
……
13.3 Money Settlement of A Block Trade
13.3.1
The total amount due to CDP under the Block Trade submitted by the Principal in DVP Settlement (the "Block Trade Value") shall be debited to the Principal's daily balance for the Settlement Day which is the due date for settlement of the Block Trade and shall thus be taken into account for the purposes of computing the Net Debit or Net Credit Balance of the Principal for the said Settlement Day. However, the Block Trade Value shall not be taken into account for the purposes of determining whether the Principal's Net Debit Balance exceeds the Principal Net Debit Cap.
Example 4: Assume that a Principal's Principal Net Debit Cap is $10,000,000 and the SB Net Debit Cap is $100,000,000 and the Principal wishes to submit a Block Trade which is valued at $120,000,000 on a Settlement Day. At the time prior to the submission of the Block Trade the Principal's Net Debit Balance is $8,000,000. Where the procedure mentioned in the DVP Procedures Handbook for Block Trades submission has been followed, the Principal would be allowed by CDP to submit the Block Trade and the Block Trade Value of $120,000,000would be debited to the Principal's Net Debit Balance, increasing the Net Debit Balance to $128,000,000. If the Principal does not submit any further receiving instructions for the Settlement Day, the Net Debit Balance of the Principal on the Settlement Day would be $128,000,000payable to CDP.
Example 5: Assume that the Principal in Example 4, after submitting the Block Trade, intends to submit further receiving instructions. As his Principal Net Debit Cap is $10,000,000, the Principal is restricted to submitting receiving instructions that in aggregate amounts to $2,000,000 as his Net Debit Balance prior to these further submissions is $8,000,000.
21.3 Authorised Signatories
21.3.2
At least two (2) Authorised Signatories shall be required to execute any of the prescribed forms pursuant to these DVP Rules on behalf of the Participant, or to give to CDP any of the notices, instructions, requests, demands or other communications pursuant to Rule 21.1.1.
[Rule has been deleted.]

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