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Article 78 The following expressions contained in these Rules shall, unless the context otherwise requires, bear the following meanings:
"Securities Registration" means the securities registration services provided by the CSDCC, where the CSDCC is entrusted by the issuer to establish and maintain a shareholder register as a form of share certificate evidencing title to securities.
"Stock Custody" means share custodial services offered by the securities company to retail investors including safekeeping of shares and management of corporate actions (e.g. collection of dividend, coupons, share entitlements, etc.) on behalf of the client.
"Stock Depository" means central depository and custodian of securities with the CSDCC, whereby the CSDCC provides safekeeping facilities for securities registered in the name of either a securities company or its clients, as well as caters for distribution of dividend, interest and other share entitlements, etc. on behalf of the beneficiary owner.
"Securities Clearing & Settlement" means clearing and settlement of securities transactions, i.e. netting of the total number of and settlement of financial obligations either delivery or payment obligations.
"Clearing" means a prescribed process under which the various obligations owed to or by a participant, as between that participant and all the other participants will be netted and converted into one net obligation owed to or by the participant.
"Settlement" involves the delivery of securities to perform contractual delivery obligations, as well as the corresponding payment of the purchase price on a netted basis.
"Nominal Holder" refers to the entity that is appointed to hold the securities as the nominee on behalf of the beneficiary owner.
"Clearing Participant" means a registered securities company or other institution admitted by the CSDCC to participant in the central clearing and settlement system.
"Central Counterparty" refers to the entity acting as a buyer to every seller and as the seller to every buyer of every trade registered with and cleared through it. The Central Counterparty serves to provide settlement guarantee.
"Delivery versus Payment" refers to a mechanism in an exchange-for-value settlement system which ensures that the final transfer of securities occurs if, and only if, the final payment for the purchase price occurs (i.e. delivery contingent on payment and vice-versa).
"Multilateral Netting" means a clearing and settlement arrangement whereby the CSDCC sets off the obligations to deliver securities or the amounts to be paid between each clearing participant to arrive at a net money position or net delivery obligation for each participant due to or from the CSDCC, and make the final settlement accordingly.
"Central Stock Clearing Account" means an account at the CSDCC used to settle the obligation for transfer of securities between the CSDCC and clearing participants under the multilateral netting arrangements.
"Central Cash Clearing Account" means an account at the CSDCC used to settle money obligations between the CSDCC and clearing participants under the multilateral netting arrangements.
"Stock Clearing Account of the Participant" means an account established in the CSDCC for each clearing participant used to make or take delivery of securities. In relation to a clearing participant involved in proprietary trading, brokerage, and asset management activities simultaneously, the Stock Clearing Account consists of two separate accounts- the Brokerage Stock Clearing Account for settlement of brokerage trading, and the Proprietary Stock Clearing Account for settlement of proprietary trading.
"Cash Clearing Account of the Participant" means an account established in the CSDCC for each clearing participant used to settle the payment obligations. In relation to a clearing participant involved in proprietary trading, brokerage, and asset management activities simultaneously, the Cash Clearing Account consists of two separate accounts- the Brokerage Cash Clearing Account for settlement of brokerage trading, and the Proprietary Cash Clearing Account for settlement of proprietary trading.
"Designated Escrow Account" means an account at the CSDCC used to hold the securities or funds until the corresponding delivery or payment is confirmed.
"Securities Disposition Account" means an account established in the CSDCC for a clearing participant used to hold the securities for which a client fails to make timely payment.
"Pledged Securities Safe Deposit Account" means the account at the CSDCC for the purpose of safekeeping of the securities or other collateral provided by clearing participants with respect to repurchase agreement.
"Securities Clearing Excess Reserve" refers to the fund deposited by a clearing participant in its Cash Clearing Account in the amount that there is sufficient to meet the liabilities of the participant to the CSDCC.
"Securities Clearing & Settlement Joint Guarantee Fund" refers to the fund contributed by all the clearing participant used to replenish the level of liquidity or to indemnify the CSDCC against losses incurred due to default by a clearing participant.
Article 79 Financial institutions other than the securities company may apply to the CSDCC for approval to engage in securities services ranging from opening of securities account at the CSDCC, securities custodial services, to securities clearing and settlement agency services in accordance with the Rules.
Article 80 All questions concerning the interpretation or application of or any other matter and revisions in connection with these Rules, shall be determined by the CSRC whose decision shall be final and binding on all parties.
Article 81 The Rules shall take effect on July 1, 2006. |
