Tuesday January 17 2017
News Source: Global Exchanges
Focus: Other
Type: General
Country: Hong Kong
The Stock Exchange of Hong Kong has published an updated Information Book for Investors and Frequently Asked Questions (FAQs) regarding the Shanghai and Shenzhen Stock Connect exchanges. The information book contains information on the following:
- Investor and Participant Eligibility
- Trading Arrangements
- Clearing, Settlement and Depository Arrangements
- Clearing Risk Management
- Market Information
- Fees and Levies
- Cross-boundary Regulatory Framework
The following questions have been updated in the FAQs:
1.48.2
If a CCEP wrongly inputs the investor identification number of its client in a sale order and as a result, a sale trade is recorded in respect of an SPSA of another client but the error is discovered before stock settlement on T, can the shares in the correct SPSA be transferred to the responsible CCCP for settlement?
For example, CCEP X 33 mistakenly inputs Client A’s investor identification number in its sell order input of 10,000 Y shares on behalf of Client B and as a result, Client A’s SPSA is used for pre-trade checking and upon execution, the trade is recorded in respect of Client A’s SPSA.
If CCEP X discovers the error before stock settlement on T, can it request Client B’s Custodian Participant to transfer the correct number of shares in Client B’s SPSA to its CCASS Account (where CCEP X is the responsible Clearing Participant) or to the CCASS Account of the relevant CCCP (where CCEP X is not responsible for clearing the trade)?
2.13
How and at what time on T-day will SSE and SZSE Securities trades be settled? Will SSE and SZSE Securities trades be settled in the existing CCASS Batch Settlement Runs? Can CCCPs use Delivery Instructions (DIs) to settle their SSE and SZSE Securities trades?
2.16
Can a CCASS Participant use Settlement Instruction (SI) to transfer Connect Securities to another CCASS Participant within CCASS?
2.16A
How and at what time does money settlement of SIs in Connect Securities on a “delivery vs payment” (DvP) basis take place?
2.17
Are ATIs and STIs available for CCASS Participants to transfer Connect Securities between their own CCASS stock accounts including SSAs and SPSAs?
2.19
How can CCCPs make prepayment to release on-hold CNS allocated Connect Securities during the day?
2.20
If a CCCP has an overdue CNS short stock position in a Connect Security, can it transfer any such Connect Security to another CCASS Participant via Settlement Instructions (SI)?
2.21
If an overdue CNS short stock position in a Connect Security of a CCCP is solely caused by the delivery failure of one or more SPSAs that have sold the Connect Security (“Selling SPSAs”), what actions should be taken?
2.22
If an overdue CNS short stock position in a Connect Security of a CCCP is in part caused by an SPSA Delivery Failure of one or more Selling SPSAs and also in part caused by the CCCP’s failure to transfer sufficient shares to its Stock Clearing Account for CNS settlement, what actions should be taken?
2.34
Can Hong Kong and overseas investors exercise voting rights in respect of the Connect Securities held on their behalf at shareholders’ 50 meetings of the relevant SSE-/SZSE-listed companies through HKSCC?
3.12
What is the change to the refund mechanism of Mainland Settlement Deposit and Mainland Security Deposit (“MSTD”) and Mainland Security Deposit (“MSCD”) with netting of surplus MSCD? Please explain the daily refund mechanism of Mainland Settlement Deposit in more details.
Click here for the corresponding Information Book.
Click here for the corresponding FAQs.
Click on the link above for further details.