Stock and money positions of all Exchange Trades and Clearing Agency Transactions are required to be settled on T+2 day whereas stock positions of China Connect Securities Trades are settled on T day. SI transactions are settled on the settlement day stipulated by both Participants. Securities settlement is effected either by scheduled daily batch settlement runs or immediate on-line transfer by the input of Delivery Instructions (DIs). Provided that there are sufficient stocks in the stock account of the delivering Participants, settlement of ISIs will be immediately effected on the settlement day specified by the brokers or custodians which are CCASS Participants once the Investor Participants make the affirmation. Otherwise, the ISI transactions will be settled by multiple batch settlement-runs or the input of DIs.
ESSCS provides money settlement services for all transactions settled on a Delivery Versus Payment (DVP) basis, where payment will follow delivery of securities in CCASS. Trades settled under the CNS system are always on a DVP basis. For Isolated Trades, SI and ISI transactions, participants can choose to settle them on a DVP or Free of Payment (FOP) basis. For transactions settled on a FOP basis, participants make their money settlement outside CCASS without involving HKSCC. Participants can also elect to settle SI and ISI transactions on a Realtime Delivery Versus Payment (RDP) basis. Under the RDP system, shares are delivered to the stock account of paying Participant upon receipt of payment confirmation from Hong Kong Interbank Clearing Limited (HKICL).
EXM Capital Securities Clearing Services (ECSCS), as a securities settlement system (“SSS”) operator, provides securities transfer/settlement and payment processing services to Participants via the Central Clearing and Settlement System (CCASS) for securities transactions such as:.
Continuous Net Settlement (CNS)
Trades settled under the Continuous Net Settlement (CNS) System: Exchange Trades and Clearing Agency Transactions for global market and Securities Trades for Institutional investors that ECSCS acts as the Central Counterparty (CCP) to Participants;
Isolated Trade (IT) System
Trades settled under the Isolated Trade (IT) System: Exchange Trades that are isolated for settlement by Participants at the time of the transaction or by ECSCS for risk management purposes. ECSCS does not act as the CCP to Participants for IT trades.
Settlement Instructions (SIs)
securities transfers in CCASS between two Participants (other than Investor Participants) via SI transaction. ECSCS facilitates but does not act as CCP to the Participants for SI transactions; and
Investor Settlement Instructions (ISIs)
Investor Settlement Instructions (ISIs): securities transfers in CCASS between an Investor Participant and a Participant (except other Investor Participants) via ISI transaction.