Bond Market Infrastructure Diagrams, Domestic Bond … Vol2 Part 3.pdf · 2013-05-06 · CCDC =...

i

ASEAN+3 Bond Market Guide | Volume 2 | Part 3 ASEAN+3 Bond Market Guide | Volume 2 | Part 3

Part 3Bond Market Infrastructure Diagrams, Domestic Bond Transaction Flows, and Cross-border Bond Transaction Flows

Contents

People’s Republic of China (PRC) ............................................................................................................1Figure 1. PRC Bond Market Infrastructure Diagram .......................................................................................2Figure 2. PRC Bond Transaction Flow for Domestic Trades OTC Market/DVP ................................................3

Note: Description of PRC Bond Transaction Flow for Domestic Trades OTC Market/DVP .............................4Figure 3. PRC Bond Transaction Flow for Domestic Trades Exchange Market/DVP ........................................5

Note: Description of PRC Bond Transaction Flow for Domestic Trades Exchange Market/DVP .....................6Figure 4. PRC Bond Transaction Flow for Foreign Investors OTC Market/RMB Banks ....................................7

Note: Description of PRC Bond Transaction Flow for Foreign Investors OTC Market/RMB Banks..................8Figure 5. PRC Bond Transaction Flow for Foreign Investors Exchange Market/QFII .......................................9

Note: Description of PRC Bond Transaction Flow for Foreign Investors Exchange Market/QFII ...................10

Hong Kong, China (HKG) ......................................................................................................................11Figure 1. HKG Bond Market Infrastructure Diagram ....................................................................................12Figure 2. HKG Bond Transaction Flow for Domestic Trades OTC Market/DVP.............................................13

Note: Description of HKG Bond Transaction Flow for Domestic Trades OTC Market/DVP ..........................14Figure 3. HKG Bond Transaction Flow for Foreign Investors OTC Market/DVP ............................................15

Note: Description of HKG Bond Transaction Flow for Foreign Investors OTC Market/DVP ..........................16

Indonesia (INO) ....................................................................................................................................17Figure 1. INO Bond Market Infrastructure Diagram .....................................................................................18Figure 2. INO Bond Transaction Flow for Domestic Trades OTC Market/DVP .............................................19

Note: Description of INO Bond Transaction Flow for Domestic Trades OTC Market/DVP ...........................20Figure 3. INO Bond Transaction Flow for Foreign Trades OTC Market/DVP .................................................21

Note: Description of INO Bond Transaction Flow for Foreign Trades OTC Market/DVP ..............................22

Japan (JPN) ...........................................................................................................................................23Figure 1. JPN Bond Market Infrastructure Diagram ......................................................................................24Figure 2. JPN Bond Transaction Flow for Domestic Trades OTC Market

(JGB)/DVP through Trade Matching (PSMS) ..................................................................................25Note: Description of JPN Bond Transaction Flow for Domestic Trades OTC Market

(JGB)/DVP through Trade Matching (PSMS) .............................................................................26Figure 3. JPN Bond Transaction Flow for Foreign Investors OTC Market (JGB)/DVP ....................................27

Note: Description of JPN Bond Transaction Flow for Foreign Investors OTC Market (JGB)/DVP ..................28

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ASEAN+3 Bond Market Guide | Volume 2 | Part 3

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Figure 4. JPN Bond Transaction Flow for Domestic Trades OTC Market (JGB)/DVP (New BOJ-NET) through Trade Matching (PSMS) ........................................................29

Figure 5. JPN Bond Transaction Flow OTC Market (JGB)/DVP (New BOJ-NET) through Trade Matching (PSMS) and JGBCC (1/2) .........................................................................30

Figure 5. JPN Bond Transaction Flow OTC Market (JGB)/DVP (New BOJ-NET) through Trade Matching (PSMS) and JGBCC (2/2) .........................................................................31

Note: Description of JPN Bond Transaction Flow OTC Market (JGB)/DVP (New BOJ-NET) through Trade Matching (PSMS) and JGBCC .............................................................................32

Figure 6. JPN Bond Transaction Flow OTC Market (Corporate Bonds)/DVP (BOJ-NET) through Trade Matching (PSMS) ...................................................................................................33

Figure 7. JPN Bond Transaction Flow OTC Market (JGB)/DVP other types of Trade Matching (PSMS) (1/2) ..................................................................................................................................34

Figure 7. JPN Bond Transaction Flow OTC Market (JGB)/DVP other types of Trade Matching (PSMS) (2/2) ..................................................................................................................................35

Republic of Korea (KOR) .......................................................................................................................36Figure 1. KOR Bond Market Infrastructure Diagram ....................................................................................37Figure 2. KOR Bond Transaction Flow for Domestic Trades OTC Market/DVP .............................................38

Note: Description of KOR Bond Transaction Flow for Domestic Trades OTC Market/DVP ..........................39Figure 3. KOR Bond Transaction Flow for Domestic Trades Exchange Market/DVP ......................................40Figure 4. KOR Bond Transaction Flow for Foreign Investors OTC Market/DVP ............................................41

Note: Description of KOR Bond Transaction Flow for Foreign Investors OTC Market/DVP ..........................42

Malaysia (MAL) .....................................................................................................................................43Figure 1. MAL Bond Market Infrastructure Diagram ....................................................................................44Figure 2. MAL Bond Transaction Flow for Domestic Trades OTC Market/DVP .............................................45

Note: Description of MAL Bond Transaction Flow for Domestic Trades OTC Market/DVP ..........................46Figure 3. MAL Bond Transaction Flow for Foreign Investors OTC Market/DVP ............................................47

Note: Description of MAL Bond Transaction Flow for Foreign Investors OTC Market/DVP ..........................48

Philippines (PHI) ...................................................................................................................................49Figure 1. PHI Bond Market Infrastructure Diagram ......................................................................................50Figure 2. PHI Bond Transaction Flow for Domestic Trades GSEDs Market/DVP ...........................................51

Note: Description of PHI Bond Transaction Flow for Domestic Trades GSEDs* Market/DVP ......................52Figure 3. PHI Bond Transaction Flow for Domestic Trades Non-GSEDs Market/DVP ...................................53

Note: Description of PHI Bond Transaction Flow for Domestic Trades Non-GSEDs* Market/DVP ...............54Figure 4. PHI Bond Transaction Flow for Foreign Investors OTC Market/DVP .............................................55

Note: Description of PHI Bond Transaction Flow for Foreign Investors OTC Market/DVP ...........................56

Singapore (SIN) .....................................................................................................................................57Figure 1. SIN Bond Market Infrastructure Diagram ......................................................................................58Figure 2. SIN Bond Transaction Flow for Domestic Trades OTC Market/DVP...............................................59

Note: Description of SIN Bond Transaction Flow for Domestic Trades OTC Market/DVP ...........................60Figure 3. SIN Bond Transaction Flow for Foreign Investors OTC Market/DVP ..............................................61

Note: Description of SIN Bond Transaction Flow for Foreign Investors OTC Market/DVP ...........................62

v


Thailand (THA)......................................................................................................................................63Figure 1. THA Bond Market Infrastructure Diagram ....................................................................................64Figure 2. THA Bond Transaction Flow for Domestic Trades OTC Market/DVP .............................................65

Note: Description of THA Bond Transaction Flow for Domestic Trades OTC Market/DVP ...........................66Figure 3. THA Bond Transaction Flow for Foreign Investors OTC Market/DVP ............................................67

Note: Description of THA Bond Transaction Flow for Foreign Investors OTC Market/DVP ..........................68

Viet Nam (VIE) ......................................................................................................................................69Figure 1. VIE Bond Settlement Infrastructure Diagram .................................................................................70Figure 2. VIE Business Process Flow Government Bond Market/DVP ...........................................................71

Note: Description of VIE Business Process Flow Government Bond Market/DVP (1/2) .............................72Note: Description of VIE Business Process Flow Government Bond Market/DVP (2/2) .............................73

Figure 3. VIE Business Process Flow: Revised Bond Market/DVP .................................................................74Figure 4. VIE OTC Bond Transaction Flow for Foreign Investors ...................................................................75

Note: Description of VIE OTC Bond Transaction Flow for Foreign Investors .............................................76

Bond Market Infrastructure Diagram ....................................................................................................77Figure 1. ASEAN+3 Government Bond Market Infrastructure Diagram .......................................................78

1


Peop

le’s

Repu

blic

of C

hina

(PRC

)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

2


CCDC

= C

hina

Cen

tral D

epos

itory

and

Cle

arin

g Co

rpor

atio

n; C

FETS

and

NIF

C =

Chi

na F

orei

gn E

xcha

nge

Trade

Sys

tem

and

Nat

iona

l Inte

rban

k Fu

ndin

g Ce

nter

; CN

APS

= C

hina

Nat

iona

l Aut

omat

ic Pa

ymen

t Sys

tem

; CSD

CC =

Chi

na S

ecur

ities

Dep

osito

ry a

nd C

lear

ing

Corp

orat

ion;

SHC

H =

Sha

ngha

i Cle

arin

g Ho

use;

SS

E =

Sha

ngha

i Sto

ck E

xcha

nge;

SZS

E =

She

nzhe

n St

ock

Exch

ange

;No

te: C

omm

ercia

l Ban

k Co

unte

r Mar

ket i

s no

t sho

wn h

ere.

Sour

ce: A

BMF

SF2.

Chin

a OT

C M

arke

t In

ter-b

ank

Bond

Mar

ket

CFET

S

SSEEx

chan

ge M

arke

t SZSE

CCDC

SHCH

PBOC

(CNA

PS)

Com

mer

cial b

anks

CSDC

C

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. P

RC

Bon

d M

arke

t In

fras

truc

ture

Dia

gram

3


CCDC

(CBG

S)

CFET

S

PBOC

(CNA

PS)

1. Tr

ade

10. F

und

trans

fer

proc

essin

g

4. S

ettle

men

t in

stru

ctio

n re

ceivi

ng

5. S

ettle

men

t in

stru

ctio

n m

atch

ing

6. S

ettle

men

t con

tract

pr

oduc

ing

7. C

ontra

ct e

xecu

ting

on d

elive

ry d

ay

8. S

elle

r’s b

ond

lock

ing

9. D

VP fu

nd s

ettle

men

t re

ques

t

13. B

ond

Deliv

ery

2. Tr

ade

Data

3. Tr

ade

Data

3. Tr

ade

Data

4. S

ettle

men

t ins

truct

ion

4. S

ettle

men

t ins

truct

ion

5. S

ettle

men

t ins

truct

ion

mat

chin

g no

tice

5. S

ettle

men

t ins

truct

ion

mat

chin

g no

tice

7. S

ettle

men

t exe

cutin

g st

atus

not

ice7.

Set

tlem

ent e

xecu

ting

stat

us n

otice

14. S

ettle

men

t co

mpl

etio

n no

tice

14. S

ettle

men

t co

mpl

etio

n no

tice

11. F

und

trans

fer n

otice

11. F

und

trans

fer n

otice

9. D

VP F

und

settl

emen

t req

uest

12. D

VP F

und

settl

emen

t not

ice

Selle

r

Figu

re 2

. P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es O

TC M

arke

t/D

VP

Sour

ce: A

BMF

SF2.

Buye

r

4


OTC

Mar

ket

1.

Selle

r and

buy

er tr

ade

bond

via

Chi

na F

orei

gn E

xcha

nge

Trad

e Sy

stem

(CFE

TS).

CFET

S pr

ovid

es s

ever

al tr

adin

g m

etho

ds in

clud

ing

bila

tera

l neg

otia

tion

and

Clic

k-an

d-D

eal.

In C

hina

OTC

bon

d m

arke

t, m

ost o

f tra

nsac

tions

are

con

duct

ed th

roug

h th

e el

ectro

nic

tradi

ng

plat

form

pro

vided

by

CFET

S, a

nd a

sm

all p

art o

f the

tran

sact

ions

are

con

duct

ed th

roug

h te

leph

one

or s

ome

othe

r way

s.

2.

CFET

S se

nds

trade

dat

a to

Chi

na C

entra

l Dep

osito

ry a

nd C

lear

ing

(CCD

C) o

r Sha

ngha

i Cle

arin

g Ho

use

(SHC

H).

Abou

t 5%

of t

rade

dat

a ar

e en

tere

d to

CCD

C di

rect

ly fro

m s

elle

r and

buy

er (r

efer

to 4

. Set

tlem

ent i

nstru

ctio

n).

3.

CCD

C or

SHC

H se

nds

trade

dat

a to

sel

ler a

nd b

uyer

for v

erifi

catio

n.

4.

Whe

n se

ller a

nd b

uyer

rece

ived

trade

dat

a fro

m C

CDC

or S

HCH,

sel

ler a

nd b

uyer

ver

ify th

e da

ta. I

f the

dat

a ar

e co

rrect

, sel

ler a

nd

buye

r sen

d af

firm

ative

mes

sage

to C

CDC.

The

mes

sage

s ar

e re

gard

ed a

s “s

ettle

men

t ins

truct

ions

” to

CCD

C or

SHC

H. A

bout

5%

of

trad

es a

re d

irect

ly en

tere

d to

CCD

C af

ter t

rade

d in

Chi

na O

TC M

arke

t. In

this

case

, one

par

ty (e

ither

sel

ler o

r buy

er) n

eeds

to

send

set

tlem

ent i

nstru

ctio

n in

to C

CDC

syst

em. T

he s

ettle

men

t ins

truct

ion

need

s to

con

tain

full

mes

sage

item

s ne

cess

ary

for t

he

settl

emen

t. CC

DC

syst

em a

utom

atic

ally

asks

the

othe

r par

ty to

con

firm

. If n

ot, C

CDC

does

not

pro

cess

set

tlem

ent.

Afte

r mat

chin

g th

e or

der (

loca

l mat

chin

g), C

CDC

settl

es th

e tra

de in

FOP

or D

VP a

s re

ques

ted

by c

usto

mer

s.5.

CC

DC

or S

HCH

mat

ches

set

tlem

ent i

nstru

ctio

ns fr

om th

e se

ller a

nd b

uyer

and

not

ifies

mat

ched

resu

lt.

6.

CCD

C or

SHC

H pr

oduc

es s

ettle

men

t con

tract

.7.

On

the

settl

emen

t day

, CCD

C or

SHC

H ex

ecut

es th

e se

ttlem

ent c

ontra

ct a

nd n

otifi

es th

e st

atus

to th

e se

ller a

nd b

uyer

.8.

CC

DC

or S

HCH

bloc

ks s

elle

r’s b

ond

to s

ecur

e D

VP tr

ansa

ctio

n.9.

CC

DC

or S

HCH

send

s D

VP fu

nd s

ettle

men

t req

uest

to P

eopl

e’s

Bank

of C

hina

(PBO

C).

10.

PBOC

exe

cute

s fu

nd s

ettle

men

t. Fu

nd is

tran

sfer

red

from

buy

er’s

cur

rent

acc

ount

to s

elle

r’s c

urre

nt a

ccou

nt b

y Hi

gh V

alue

Pay

men

t Sy

stem

(HVP

S) o

f CN

APS.

11.

PBOC

sen

ds fu

nd tr

ansf

er n

otic

e to

the

selle

r and

buy

er.

12.

PBOC

sen

ds D

VP fu

nd s

ettle

men

t not

ice

to C

CDC

or S

HCH.

13.

CCD

C or

SHC

H ex

ecut

es b

ond

deliv

ery

(rele

ase

bloc

ked

bond

).14

. CC

DC

or S

HCH

send

s se

ttlem

ent c

ompl

etio

n no

tice

to th

e se

ller a

nd b

uyer

. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es O

TC M

arke

t/D

VP

5


CSDC

C

Mul

tilat

eral

Net

Se

ttle

men

t Sys

tem

(MNS

Sys

tem

)

SSE

or S

ZSE

Paym

ent B

anks

2. Tr

ade

Mat

chin

g

11. C

ash

Settl

emen

t

5. C

lear

ing

7. S

ettle

men

t Dat

a

13. B

ond

Settl

emen

t

4. Tr

ade

Data

6. C

lear

ing

Resu

lt6.

Cle

arin

g Re

sult

1. Tr

ade

Data

1. Tr

ade

Data

3. N

otice

of T

rade

3. N

otice

of T

rade

9. A

ffirm

atio

n of

Se

ttlem

ent

9. A

ffirm

atio

n of

Se

ttlem

ent

8. N

otific

atio

n of

Trad

e to

be

Settl

ed8.

Not

ificat

ion

of Tr

ade

to b

e Se

ttled

14. S

ettle

men

t Rep

ort

(Bon

ds a

nd C

ash)

14. S

ettle

men

t Rep

ort

(Bon

ds a

nd C

ash)

12. S

ettle

men

t Rep

ort

(cas

h)12

. Set

tlem

ent R

epor

t (c

ash)

10. S

ettle

men

t Dat

a 12

. Set

tlem

ent R

epor

t

Selle

rBu

yer

Figu

re 3

. P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es E

xcha

nge

Mar

ket/

DVP

Sour

ce: A

BMF

SF2.

6


Exch

ange

Mar

ket

1.

The

selle

r and

buy

er tr

ade

via S

hang

hai S

tock

Exc

hang

e (S

SE) o

r She

nzhe

n St

ock

Exch

ange

(SZS

E).

2.

SSE/

SZSE

col

late

s or

ders

from

the

selle

r and

buy

er.

3.

SSE/

SZSE

sen

ds n

otic

e of

trad

e to

the

selle

r and

buy

er.

4.

SSE/

SZSE

sen

ds tr

ade

data

to C

hina

Cen

tral D

epos

itory

and

Cle

arin

g Co

rpor

atio

n (C

SDCC

).5.

Cl

earin

g fu

nctio

n in

CSD

CC e

xecu

tes

clea

ring

proc

ess.

6.

Clea

ring

func

tion

in C

SDCC

sen

ds c

lear

ing

resu

lt to

the

selle

r and

buy

er.

7.

Clea

ring

func

tion

in C

SDCC

sen

ds s

ettle

men

t dat

a to

CSD

func

tion

in C

SDCC

.8.

CS

D fu

nctio

n in

CSD

CC s

ends

not

ice

of tr

ade

to b

e se

ttled

to th

e se

ller a

nd b

uyer

.9.

Th

e se

ller a

nd b

uyer

sen

d af

firm

atio

n of

set

tlem

ent.

10.

CSD

CC s

ends

set

tlem

ent d

ata

to p

aym

ent b

anks

.11

. Pa

ymen

t ban

ks p

erfo

rm c

ash

settl

emen

t.12

. Pa

ymen

t ban

ks s

ends

set

tlem

ent r

epor

ts to

CSD

CC, s

elle

r and

buy

er.

13.

CSD

func

tion

in C

SDCC

exe

cute

s bo

nd s

ettle

men

t.14

. CS

DCC

sen

ds s

ettle

men

t rep

ort (

bond

s an

d ca

sh) t

o th

e se

ller a

nd b

uyer

. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es E

xcha

nge

Mar

ket/

DVP

7


5. Trade Confirmation

Sett

lem

ent

Agen

t(C

usto

dian

)CC

DC

CFET

S

PBOC

CNAP

S

As C

ash

Co

rres

pond

ent

Sett

lem

ent

Agen

t(A

utho

rized

Bro

ker)

Foreign Central Banks; RMB Settlement Banks (HKG, Macau); Overseas Participants Banks

As own banker

1. Tr

ade

Orde

r2.

Trad

e Ex

ecut

ion

4. Tr

ade

Conf

irmat

ion

3. Tr

ade

Conf

irmat

ion

Optio

nal

7. S

ettle

men

t Ins

truct

ion

6. A

dvice

of S

ettle

men

t Det

ails

Cash Settlement

Clearing Matching and Settlement

Trading

13. S

ettle

men

t Con

firm

atio

n10

. Con

firm

atio

n of

Se

ttlem

ent D

etai

ls

14. S

ecur

ities

Sta

tem

ent

12. S

ettle

men

t Con

firm

atio

n

8. R

emitt

ance

of F

unds

9. F

undi

ng o

f PBO

C Ac

coun

t

15. C

ash

Stat

emen

t11

. Con

firm

atio

n of

Deb

it/Cr

edit

Cross-Border

Figu

re 4

. P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

OTC

Mar

ket/

RM

B B

anks

Sour

ce: A

BMF

SF2.

8


Not

e: D

escr

ipti

on o

f P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

OTC

Mar

ket/

RM

B B

anks

Trad

e Da

te1.

El

igib

le In

stitu

tion/

RMB

Bank

pla

ces

orde

r with

Set

tlem

ent A

gent

(Aut

horiz

ed B

roke

r).2.

Se

ttlem

ent A

gent

, exe

cute

s tra

de o

n CF

ETS,

then

cap

ture

s tra

de d

etai

ls in

CFE

TS.

3.

Settl

emen

t Age

nt re

ceive

s tra

de c

onfir

mat

ion

from

/via

CFE

TS.

4.

Settl

emen

t Age

nt s

ends

trad

e co

nfirm

atio

n to

Elig

ible

Inst

itutio

n/RM

B Ba

nk.

5.

Settl

emen

t Age

nt s

ends

trad

e co

nfirm

atio

n to

Set

tlem

ent A

gent

(cus

todi

an).

6.

CCD

C se

nds

advic

e of

set

tlem

ent d

etai

ls se

nt d

irect

ly fro

m C

FETS

to S

ettle

men

t Age

nt.

Sett

lem

ent D

ate

(T +

1)

7.

Elig

ible

Inst

itutio

n/RM

B Ba

nk in

stru

cts

Settl

emen

t Age

nt o

n se

ttlem

ent d

etai

ls.8.

El

igib

le In

stitu

tion/

RMB

Bank

rem

its R

MB

amou

nt to

Set

tlem

ent A

gent

(cus

todi

an).

9.

Settl

emen

t Age

nt fu

nds

own

PBOC

acc

ount

, in

prep

arat

ion

for s

ettle

men

t.10

. Se

ttlem

ent A

gent

con

firm

s/af

firm

s se

ttlem

ent d

etai

ls via

CCD

C (fr

ont-e

nd) s

yste

m.

11.

Upon

con

firm

atio

ns fr

om b

oth

Settl

emen

t Age

nts,

cas

h se

ttlem

ent i

s tri

gger

ed b

y CC

DC

and

PBOC

will

send

a c

onfir

mat

ion

of d

ebit

or

cred

it to

the

Settl

emen

t Age

nt.

12.

Upon

con

firm

atio

ns fr

om b

oth

Settl

emen

t Age

nts,

sec

uriti

es s

ettle

men

t is

effe

cted

and

CCD

C wi

ll se

nd a

sec

uriti

es s

ettle

men

t co

nfirm

atio

n to

the

Settl

emen

t Age

nt.

13.

Settl

emen

t Age

nt s

ends

set

tlem

ent c

onfir

mat

ion

to E

ligib

le In

stitu

tion/

RMB

Bank

.14

. At

end

of d

ay, S

ettle

men

t Age

nt s

ends

sec

uriti

es s

tate

men

t to

Elig

ible

Inst

itutio

n/RM

B Ba

nk.

15.

At e

nd o

f day

, Set

tlem

ent A

gent

sen

ds c

ash

mov

emen

t con

firm

atio

n/ca

sh s

tate

men

t to

Elig

ible

Inst

itutio

n/RM

B Ba

nk.

Sour

ce: A

BMF

SF2.

9


QFII

Cus

todi

anGl

obal

Cu

stod

ian

CSDC

C

CSDC

C(C

CP)

SSE

or

SZS

E

Desi

gnat

ed

Paym

ent

Bank

Cash

Co

rres

pond

ent

In c

apac

ity

as G

loba

l Cu

stod

ian

Desi

gnat

ed

QFII

Brok

er

Foreign Institutional Investor (direct or Investment Manager)

2. Tr

ade

Orde

r3.

Trad

e Ex

ecut

ion

5. Tr

ade

Conf

irmat

ion

4. Tr

ade

Conf

irmat

ion

10. S

ettle

men

t In

stru

ctio

n

1. Cash Projection Report


(7. C

orre

ctio

n of

Tran

sact

ion

Deta

ils)

Cash Settlement


Trading

14. S

ettle

men

t Co

nfirm

atio

n

9. S

tatu

s Up

date

or C

onfir

mat

ion

11. S

ettle

men

t Ins

truct

ion

13. S

ettle

men

t Con

firm

atio

n

16. S

ecur

ities

Sta

tem

ent

8. B

ond

Trans

fer C

onfir

mat

ion

12. F

undi

ng v

ia N

ostro

Acc

ount

18. C

ash

Stat

emen

t17

. Cas

h St

atem

ent

15. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

6. R

epor

t on

Trade

Obli

gatio

ns

Figu

re 5

. P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

Exch

ange

Mar

ket/

QFI

I

Sour

ce: A

BMF

SF2.


10


Not

e: D

escr

ipti

on o

f P

RC

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

Exch

ange

Mar

ket/

QFI

I

Trad

e Da

te1.

QF

II Cu

stod

ian

send

s ca

sh p

roje

ctio

n re

port

to D

esig

nate

d QF

II Br

oker

.2.

QF

II pl

aces

ord

er w

ith D

esig

nate

d QF

II Br

oker

.3.

D

esig

nate

d QF

II Br

oker

che

cks

bala

nce,

exe

cute

s tra

de o

n Sh

angh

ai S

tock

Exc

hang

e (S

SE),

or S

henz

hen

Stoc

k Ex

chan

ge (S

ZSE)

.4.

D

esig

nate

d QF

II Br

oker

rece

ives

trade

con

firm

atio

n.5.

D

esig

nate

d QF

II Br

oker

sen

ds tr

ade

conf

irmat

ion

to Q

FII,

and

to Q

FII C

usto

dian

.6.

QF

II Cu

stod

ian

down

load

s Re

port

on T

rade

Obl

igat

ions

from

CSD

CC (C

lear

ing

func

tion)

.7.

On

ly in

the

even

t of a

disc

repa

ncy,

QFII

Cust

odia

n ne

eds

to c

onta

ct C

SDCC

.8.

CS

DCC

(Set

tlem

ent f

unct

ion)

sen

ds c

onfir

mat

ion

of tr

ansf

er o

f bon

ds to

QFI

I Cus

todi

an (o

n T

even

ing)

.9.

QF

II Cu

stod

ian

send

s st

atus

upd

ate

or p

artia

l set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

Sett

lem

ent D

ate

10.

QFII

inst

ruct

s Gl

obal

Cus

todi

an o

n se

ttlem

ent d

etai

ls.11

. Gl

obal

Cus

todi

an in

stru

cts

QFII

Cust

odia

n on

set

tlem

ent d

etai

ls.12

. QF

II Cu

stod

ian

fund

s se

ttlem

ent c

lear

ing

rese

rve

acco

unt (

CSD

CC a

ccou

nt a

t Pay

men

t Ban

k).

13.

Afte

r cas

h se

ttlem

ent d

eadl

ine

(in e

ffect

com

plet

ion

of tr

ade

settl

emen

t), Q

FII C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

Gl

obal

Cus

todi

an.

14.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

QFI

I.15

. Pa

ymen

t Ban

k se

nds

debi

t/cre

dit i

nfor

mat

ion

in fo

rm o

f cas

h st

atem

ent t

o QF

II Cu

stod

ian.

16.

QFII

Cust

odia

n se

nds

secu

ritie

s st

atem

ent t

o Gl

obal

Cus

todi

an (e

nd o

f day

).17

. QF

II Cu

stod

ian

send

s ca

sh m

ovem

ent c

onfir

mat

ion/

cash

sta

tem

ent t

o Gl

obal

Cus

todi

an (e

nd o

f day

).18

. Gl

obal

Cus

todi

an s

ends

cas

h m

ovem

ent c

onfir

mat

ion/

cash

sta

tem

ent t

o QF

II (e

nd o

f day

). So

urce

: ABM

F SF

2.

12


Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

OTC

Mar

ket

HKM

A-(C

MU)

HKM

A-(C

MU)

HKM

A (C

HATS

)

HKM

A-(C

MU)

net

ting

Note

: The

re is

no

CCP

for b

onds

in H

ong

Kong

, Chi

na.

CHAT

S =

Cle

arin

g Ho

use

Auto

mat

ed Tr

ansf

er S

yste

m; C

MU

= C

entra

l Mon

eym

arke

ts U

nit;

HKM

A =

Hon

g Ko

ng M

onet

ary

Auth

ority

Sour

ce: A

BMF

SF2.

Figu

re 1

. H

KG

Bon

d M

arke

t In

fras

truc

ture

Dia

gram

13


HKM

A(C

MU)

HKM

A(C

HATS

)

1. Tr

ade

8. C

ash

Settl

emen

t

3. V

alid

atio

n

and

Mat

chin

g

5. H

oldi

ng b

ond

10. B

ond

Settl

emen

t

2. S

ettle

men

t In

stru

ctio

n2.

Set

tlem

ent

Inst

ruct

ion

7. P

aym

ent

Inst

ruct

ion

11. S

ettle

men

t Co

nfirm

atio

n11

. Set

tlem

ent

Conf

irmat

ion

4. M

atch

ing

Resu

lt4.

Mat

chin

g Re

sult

11. S

ettle

men

t Rep

ort

(Cas

h)11

. Set

tlem

ent R

epor

t(C

ash)

6. S

ettle

men

t Dat

a 9.

Set

tlem

ent R

epor

t(c

ash)

Selle

rBu

yer

Figu

re 2

. H

KG

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es O

TC M

arke

t/D

VP

Sour

ce: A

BMF

SF2.

14


Not

e: D

escr

ipti

on o

f H

KG

Bon

d Tr

ansa

ctio

n Fl

ow f

or D

omes

tic

Trad

es O

TC M

arke

t/D

VP

OTC

Mar

ket

1.

Selle

r and

buy

er tr

ade

over

the

coun

ter.

2.

The

selle

r and

buy

er s

end

inst

ruct

ions

to C

entra

l Mon

eym

arke

ts U

nit (

CMU)

via

CM

T, SW

IFT,

Fax,

AFT

or b

y ha

nd. W

hen

they

use

sy

stem

, eith

er s

elle

r or b

uyer

ent

ers

trade

dat

a to

be

forw

arde

d to

the

coun

terp

art (

buye

r or s

elle

r). T

he c

ount

erpa

rt ca

n ut

ilize

the

trade

info

rmat

ion

as a

mes

sage

inst

ruct

ion

to b

e se

nt to

the

CMU.

Par

ticip

ants

nee

d to

sen

d th

e m

essa

ge in

stru

ctio

ns b

efor

e th

e cu

toff

time

(4:0

0 p.

m.)

on s

ettle

men

t day

.3.

CM

U pe

rform

s va

lidat

ion

and

mat

chin

g.

4.

CMU

send

s m

atch

ing

resu

lt to

the

selle

r and

buy

er.

5.

CMU

hold

s th

e bo

nd.

6.

CMU

send

s se

ttlem

ent d

ata

to C

HATS

.7.

Fo

r rea

l tim

e D

VP s

ettle

men

t inv

olvin

g no

n-ba

nk d

ebt s

ecur

ities

buy

er, t

he b

uyer

inst

ruct

s its

ban

k to

pay

by

send

ing

paym

ent

inst

ruct

ion

to C

HATS

.8.

CH

ATS

exec

utes

cas

h se

ttlem

ent.

9.

CHAT

S se

nds

cash

set

tlem

ent r

epor

t to

CMU.

10.

CMU

exec

utes

bon

d se

ttlem

ent.

11.

CHAT

S se

nds

cash

set

tlem

ent r

epor

t to

the

buye

r and

sel

ler r

espe

ctive

ly, w

hile

CM

U se

nds

secu

ritie

s se

ttlem

ent c

onfir

mat

ion

to

the

selle

r and

buy

er.

Sour

ce: A

BMF

SF2.

15


or B

ank

Dom

estic

Cus

todi

anGl

obal

Cu

stod

ian

Inte

rnat

iona

lBr

oker

HKM

A CM

U

Coun

ter-

part

y

HKM

A CH

ATS

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

5. Tr

ade

Conf

irmat

ion

4. Tr

ade

Conf

irmat

ion

6. S

ettle

men

t In

stru

ctio

n


8. C

aptu

re/U

L of

Tra

nsac

tion

Deta

ils

Cash Settlement


Trading

16. S

ettle

men

t Co

nfirm

atio

n

7. S

ettle

men

t Ins

truct

ion

10. M

atch

ing

Stat

us U

pdat

e

15. S

ettle

men

t Con

firm

atio

n

18. S

ecur

ities

Sta

tem

ent

9. M

atch

ing

Conf

irmat

ion

14. S

ettle

men

t Con

firm

atio

n

12. F

undi

ng o

f HKM

A Ac

coun

t

20. C

ash

Stat

emen

t19

. Cas

h St

atem

ent

17. F

undi

ng o

f Tra

des

11. F

undi

ng A

dvice

13. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

Figu

re 3

. H

KG

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

OTC

Mar

ket/

DVP

Sour

ce: A

BMF

SF2.


16


Not

e: D

escr

ipti

on o

f H

KG

Bon

d Tr

ansa

ctio

n Fl

ow f

or F

orei

gn In

vest

ors

OTC

Mar

ket/

DVP

Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r/Ban

k.3.

D

omes

tic B

roke

r/Ban

k tra

des

OTC

with

Cou

nter

party

(via

pho

ne o

r, e.

g., B

loom

berg

).4.

D

omes

tic B

roke

r/Ban

k se

nds

trade

con

firm

atio

n to

Inte

rnat

iona

l Bro

ker.

5.

Fore

ign

Inst

itutio

nal I

nves

tor r

ecei

ves

trade

con

firm

atio

n.6.

Fo

reig

n In

stitu

tiona

l Inv

esto

r ins

truct

s Gl

obal

Cus

todi

an, o

n se

curit

ies

settl

emen

t and

cas

h fu

ndin

g de

tails

.

T +

17.

Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an o

n se

curit

ies

settl

emen

t.

Sett

lem

ent D

ate

8.

Dom

estic

Cus

todi

an c

aptu

res

(eCM

T or

upl

oad)

set

tlem

ent i

nstru

ctio

ns in

to C

MU.

9.

Dom

estic

Cus

todi

an re

ceive

s tra

nsac

tion

mat

chin

g co

nfirm

atio

n fro

m C

MU,

or s

tatu

s up

date

s.10

. D

omes

tic C

usto

dian

sen

ds m

atch

ing

stat

us u

pdat

e to

Glo

bal C

usto

dian

, eith

er a

s re

port

or, t

ypic

ally,

per

indi

vidua

l tra

nsac

tion.

11.

Glob

al C

usto

dian

adv

ises

fund

ing

deta

ils to

Dom

estic

Cus

todi

an.

12.

Dom

estic

Cus

todi

an e

ffect

s fu

ndin

g of

HKM

A ac

coun

t via

CHA

TS.

13.

Upon

tran

sfer

of c

ash,

HKM

A se

nds

cash

set

tlem

ent c

onfir

mat

ion

to D

omes

tic C

usto

dian

.14

. Up

on tr

ansf

er o

f bon

ds, C

MU

send

s bo

nd s

ettle

men

t con

firm

atio

n to

Dom

estic

Cus

todi

an.

15.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

16.

Fore

ign

Inst

itutio

nal I

nves

tor r

ecei

ves

settl

emen

t con

firm

atio

n fro

m G

loba

l Cus

todi

an.

17.

Glob

al C

usto

dian

fund

s tra

des

into

Dom

estic

Cus

todi

an H

KD a

ccou

nt, o

r int

o FC

Y no

stro

.18

. D

omes

tic C

usto

dian

sen

ds s

ecur

ities

sta

tem

ent t

o Gl

obal

Cus

todi

an (e

nd o

f day

).19

. D

omes

tic C

usto

dian

sen

ds d

ebit/

cred

it co

nfirm

atio

n as

cas

h st

atem

ent t

o Gl

obal

Cus

todi

an (e

nd o

f day

).20

. Gl

obal

Cus

todi

an s

ends

deb

it/cr

edit

conf

irmat

ion

in c

ash

stat

emen

t to

Fore

ign

Inst

itutio

nal I

nves

tor (

end

of d

ay).

Sour

ce: A

BMF

SF2.

17


Indo

nesia

(IN

O)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

18


Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

BI =

Ban

k In

done

sia; B

I-SSS

S =

Ban

k In

done

sia S

crip

less

Sec

uriti

es S

ettle

men

t Sys

tem

; C-B

EST

= C

entra

l Dep

osito

ry a

nd B

ook

Entry

Set

tlem

ent;

CTP

=

Cent

raliz

ed T

radi

ng P

latfo

rm; e

-BOC

S =

Ele

ctro

nic

Bond

Cle

arin

g Sy

stem

; FITS

= F

ixed-

Inco

me

Tradi

ng S

yste

m; I

DX =

Indo

nesia

n St

ock

Exch

ange

; KPE

I =

Indo

nesia

Cle

arin

g an

d Gu

aran

tee

Corp

orat

ion;

KSE

I = In

done

sian

Cent

ral S

ecur

ities

Dep

osito

rySo

urce

: ABM

F SF

2.

Figu

re 1

. IN

O B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am

OTC

Mar

ket (

tele

phon

e)

IDX

(CTP

)

IDX

(FITS

)

KPEI

(e-B

OCS)

KSEI

(C-B

EST)

BI (B

I-SSS

S)

BI (B

I-RTG

S)

Paym

ent B

anks

19


Figu

re 2

. IN

O B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

BI

IDX

(CTP

)

(BI-S

SSS)

(BI-R

TGS)

1. Tr

ade(

Tele

phon

e/

Bloo

mbe

rg/ R

eute

rs)

2. P

re-S

ettle

men

t M

atch

ing(

Tele

phon

e/SW

IFT)

4. C

ode

Num

berin

g

7. M

atch

ing

DVP

9. E

arm

ark

Bond

11. C

ash

Settl

emen

t

14. B

ond

Settl

emen

t

13. I

rrevo

cabl

e De

bit/C

redi

t10

. Pay

men

t M

essa

ge

3. O

TC Tr

ade

Repo

rting

Re

quire

men

t

5. R

epor

t Ref

eren

ce C

ode

3. O

TC Tr

ade

Repo

rting

Re

quire

men

t

6. D

VP In

stru

ctio

n6.

RVP

Inst

ruct

ion

15. S

ettle

men

t Sta

tem

ent

12. C

ash

Settl

emen

t St

atem

ent

15. S

ettle

men

t Sta

tem

ent

12. C

ash

Settl

emen

t St

atem

ent

5. R

epor

t Ref

eren

ce C

ode

8. M

atch

ing

Resu

lt8.

Mat

chin

g Re

sult

Selle

r

Selle

r/Se

ller’s

Sub

re

gistry

Buye

r

Buye

r/Bu

yer’s

Sub

re

gistry

Sour

ce: A

BMF

SF2.

20


Not

e: D

escr

ipti

on o

f IN

O B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

OTC

Mar

ket

1.

The

selle

r and

buy

er tr

ade

gove

rnm

ent b

onds

ove

r-the

-cou

nter

. Mos

t of t

rade

s ar

e do

ne b

y te

leph

ones

.2.

Bo

th s

elle

r and

buy

er s

end

pre-

settl

emen

t mat

chin

g in

stru

ctio

ns o

ver t

he S

WIF

T or

pre

-mat

ch th

e tra

ded

data

for s

ettle

men

t ove

r th

e te

leph

one.

Bef

ore

the

pre-

settl

emen

t mat

chin

g tw

o co

mpo

nent

s of

bon

d ta

xes

whic

h ar

e ca

pita

l gai

ns ta

x (C

GT) a

nd in

tere

st

(with

hold

ing)

tax

need

to b

e ca

lcul

ated

. Pre

-set

tlem

ent m

atch

ing

is pe

rform

ed v

ia te

leph

one

or s

wift.

3.

The

selle

r or b

uyer

hav

e to

repo

rt tra

de d

ata

to C

entra

lized

Tra

ding

Pla

tform

(CTP

) of I

ndon

esia

Sto

ck E

xcha

nge

(IDX)

with

in 3

0 m

inut

es

of tr

ade.

4.

IDX

puts

the

code

on

each

trad

e.5.

Th

e se

ller a

nd b

uyer

rece

ive re

port

refe

renc

e co

de fr

om ID

X.6.

Th

e se

ller a

nd b

uyer

key

in th

e D

VP a

nd R

VP in

stru

ctio

ns to

BI-S

SSS,

resp

ectiv

ely.

7.

BI-S

SSS

perfo

rms

the

mat

chin

g.8.

BI

-SSS

S re

ports

the

mat

chin

g re

sults

to th

e se

ller a

nd b

uyer

.9.

Bo

nd is

ear

mar

ked

to s

ecur

e th

e D

VP.

10.

Paym

ent m

essa

ge fo

r DVP

is s

ent t

o Ba

nk In

done

sia R

eal T

ime

Gros

s Se

ttlem

ent (

BI-R

TGS)

11.

Whe

n th

e fu

nds

are

avai

labl

e, th

e am

ount

is d

ebite

d fro

m th

e bu

yer’s

cas

h ac

coun

t and

cre

dite

d to

the

selle

r’s c

ash

acco

unt.

12.

BI-R

TGS

send

s th

e ca

sh s

ettle

men

t sta

tem

ents

to th

e se

ller a

nd b

uyer

.13

. BI

-RTG

S no

tifie

s th

e irr

evoc

able

deb

it/cr

edit

stat

us to

BI-S

SSS.

14.

BI-S

SSS

com

plet

es b

ond

settl

emen

t.15

. BI

-SSS

S re

ports

the

settl

emen

t sta

tus

to b

oth

selle

r and

buy

er.

Sour

ce: A

BMF

SF2.

21


or B

ank

Dom

estic

Cus

todi

an

(Sub

-Reg

istr

y)

IDX

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

BI

BI-S

SSS

Coun

ter-

part

y

BI

BI-R

TGS

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

4. Trade Reporting

9. Trade Reporting

6. Tr

ade

Conf

irmat

ion

5. Tr

ade

Conf

irmat

ion

13. A

men

ded

Inst

ruct

ion

7. S

ettle

men

t In

stru

ctio

n18

. Cap

ture

/UL

of

Trans

actio

n De

tails

4. Tr

ade R

eport

ing

10. P

re-matc

hing (o

riginal

instru

ction)

15. P

re-matc

hing (a

mended

instru

ction)

Cash Settlement


Trading

23. S

ettle

men

t Co

nfirm

atio

n

12. R

eque

st

Amen

dmen

t

8a. S

ettle

men

t Ins

truct

ion

11. P

re-M

atch

ing

Stat

us Ta

x Inf

o

14. A

men

ded

Inst

ruct

ion

re-Ta

x

22. S

ettle

men

t Con

firm

atio

n

25. S

ecur

ities

Sta

tem

ent

19. M

atch

ing

Conf

irmat

ion

21. S

ettle

men

t Con

firm

atio

n

17. F

undi

ng o

f BI A

ccou

nt

27. C

ash

Stat

emen

t26

. Cas

h St

atem

ent

24. F

undi

ng o

f Tra

des

16. F

X Co

nfirm

atio

n

8b. F

X/Fu

ndin

g In

stru

ctio

n

20. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

Figu

re 3

. IN

O B

ond

Tran

sact

ion

Flow

for

For

eign

Tra

des

OTC

Mar

ket/

DVP

Sour

ce: A

BMF

SF2.


22


Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker/D

omes

tic In

vest

or p

lace

s or

der w

ith D

omes

tic B

roke

r/Ban

k.3.

D

omes

tic B

roke

r/Ban

k an

d Co

unte

rpar

ty a

gree

on

OTC

trade

(via

e.g

. pho

ne o

r Blo

ombe

rg).

4.

Dom

estic

Bro

ker/B

ank

and

Coun

terp

arty

repo

rt tra

de to

IDX

for p

rice

disc

over

y (w

ithin

30

min

utes

of t

rade

).5.

D

omes

tic B

roke

r/Ban

k se

nds

trade

con

firm

atio

n to

Inte

rnat

iona

l Bro

ker.

6.

Fore

ign

Inst

itutio

nal I

nves

tor r

ecei

ves

trade

con

firm

atio

n.

T +

17.

Fo

reig

n In

stitu

tiona

l Inv

esto

r ins

truct

s Gl

obal

Cus

todi

an, o

n se

curit

ies

settl

emen

t and

cas

h/fu

ndin

g de

tails

.8.

Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an/S

ub-R

egist

ry o

n (a

) sec

uriti

es s

ettle

men

t det

ails,

(b) F

X re

ques

t or f

undi

ng d

etai

ls.9.

D

omes

tic C

usto

dian

/Sub

-Reg

istry

repo

rts tr

ade

deta

ils to

IDX

(with

in 3

0 m

inut

es o

f rec

eipt

of i

nstru

ctio

n), a

nd o

btai

ns C

TP n

umbe

r.10

. D

omes

tic C

usto

dian

/Sub

-Reg

istry

pre

-mat

ches

with

Cou

nter

party

(via

pho

ne o

r em

ail),

cap

ital g

ains

tax

(CGT

) cal

cula

ted

and

agre

ed.

11.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry a

dvise

s Gl

obal

Cus

todi

an o

n re

quire

d am

endm

ent o

f set

tlem

ent a

mou

nt fo

r CGT

.12

. Gl

obal

Cus

todi

an re

ques

ts F

orei

gn In

stitu

tiona

l Inv

esto

r to

amen

d se

ttlem

ent a

mou

nt fo

r CGT

.

Sett

lem

ent D

ate

13.

Fore

ign

Inst

itutio

nal I

nves

tor s

ends

am

ende

d se

ttlem

ent i

nstru

ctio

n to

Glo

bal C

usto

dian

.14

. Gl

obal

Cus

todi

an s

ends

am

ende

d se

ttlem

ent i

nstru

ctio

n to

Dom

estic

Cus

todi

an/S

ub-R

egist

ry.15

. D

omes

tic C

usto

dian

/Sub

-Reg

istry

and

Cou

nter

party

pre

-mat

ch a

gain

on

amen

ded

settl

emen

t am

ount

(via

pho

ne o

r em

ail).

16.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry c

onfir

ms

actu

al F

X am

ount

to G

loba

l Cus

todi

an.

17.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry fu

nds

its a

ccou

nt a

t BI v

ia R

TGS.

18.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry e

nter

s or

upl

oads

trad

e de

tails

into

BI-S

SSS

syst

em.

19.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry re

triev

es B

I-SSS

S m

atch

ing

stat

us.

20.

Upon

set

tling

cas

h, B

I-RTG

S se

nds

debi

t/cre

dit c

onfir

mat

ion

to D

omes

tic C

usto

dian

/Sub

-Reg

istry.

21.

Upon

set

tling

sec

uriti

es, B

I-SSS

S se

nds

settl

emen

t con

firm

atio

n fo

r sec

uriti

es to

Dom

estic

Cus

todi

an/S

ub-R

egist

ry.22

. D

omes

tic C

usto

dian

/Sub

-regi

stry

sen

ds s

ettle

men

t con

firm

atio

n to

Glo

bal C

usto

dian

.23

. Gl

obal

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to F

orei

gn In

stitu

tiona

l Inv

esto

r.24

. Gl

obal

Cus

todi

an fu

nds

acco

unt w

ith D

omes

tic C

usto

dian

/Sub

-Reg

istry.

25.

Dom

estic

Cus

todi

an/S

ub-R

egist

ry s

ends

sta

tem

ent o

f sec

uriti

es to

Glo

bal C

usto

dian

(at e

nd o

f day

).26

. D

omes

tic C

usto

dian

/Sub

-regi

stry

sen

ds d

ebit/

cred

it in

form

atio

n in

cas

h st

atem

ent (

at e

nd o

f day

).27

. Gl

obal

Cus

todi

an s

ends

deb

it/cr

edit

info

rmat

ion

in c

ash

stat

emen

t (at

end

of d

ay) t

o Fo

reig

n In

stitu

tiona

l Inv

esto

r. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f IN

O B

ond

Tran

sact

ion

Flow

for

For

eign

Tra

des

OTC

Mar

ket/

DVP

23


Japa

n (JP

N)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

24


Note

s: 1

) Cur

rent

set

tlem

ent c

ycle

is T

+3.

In A

pril

2012

, set

tlem

ent c

ycle

will

be T

+2

(JGB)

. 2) N

on fi

xed

inco

me

bond

s su

ch a

s co

nver

tible

bon

ds a

re n

ot

inclu

ded

here

.BO

J =

Ban

k of

Jap

an; J

ASDE

C =

Jap

an S

ecur

ities

Dep

osito

ry C

ente

r; JG

B =

Jap

anes

e Go

vern

men

t Bon

d; J

GBCC

= J

apan

ese

Gove

rnm

ent B

ond

Clea

ring

Corp

orat

ion;

JSCC

= Ja

pan

Secu

ritie

s Cl

earin

g Co

rpor

atio

n; O

TC =

Ove

r the

Cou

nter

; PSM

S =

Pre

-Set

tlem

ent M

atch

ing

Syst

em; T

SE =

Toky

o St

ock

Exch

ange

Sour

ce: A

BMF

SF2.

Figu

re 1

. JP

N B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Toky

o OT

C m

arke

t

JASD

EC (P

SMS)

TSE

JSCC

JGBC

C

JASD

EC(P

SMS)

JASD

EC (P

SMS)

JASD

EC

(Boo

k-En

try

Tran

sfer

Sys

tem

)BO

J (B

OJ-N

ET JG

B Se

rvic

es)

BOJ (

BOJ-

NET

Fund

s Tr

ansf

er S

yste

m)

Trans. Flow for Foreign Investors

Trans. Flow for Foreign Investors

Tran. Flow for Corporate Bond

Tran. Flow for JGB (via JGBCC)

Tran. Flow for JGB

25


Figu

re 2

. JP

N B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket

(JG

B)/

DVP

thr

ough

Tra

de

Mat

chin

g (P

SM

S)

BOJ

(BOJ

-NET

)

Secu

ritie

s se

rvic

es

DVP

RTGS

JASD

EC

(PSM

S)

1. Tr

ade

3. Tr

ade

Mat

chin

g

Stan

ding

Set

tlem

ent

Inst

ruct

ion

5. S

ettle

men

t Mat

chin

g

10. B

ond

Settl

emen

t

10. C

ash

Settl

emen

t

2. Tr

ade

repo

rt 2.

Trad

e re

port

4. N

otice

Dat

a of

Trade

Mat

chin

g St

atus

4. N

otice

Dat

a of

Trade

Mat

chin

g St

atus

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

11. N

otice

of c

redi

t to

curre

nt

acco

unt f

or D

VP

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

8–2.

Not

ice o

f DVP

Req

uest

by

Deliv

erer

of J

GB

9–1.

DVP

Req

uest

9–2.

Not

ice o

f Acc

epta

nce

of

DVP

Requ

est

11. N

otice

of D

VP S

ettle

men

t (F

und)

8–2.

Not

ice o

f Acc

epta

nce

of

DVP

Requ

est

11. N

otice

of D

VP S

ettle

men

t

11. N

otice

of D

VP S

ettle

men

t

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

6. JG

B Tra

nsfe

r Ins

truct

ion

for D

VP

8–1.

DVP

Req

uest

Selle

r

Selle

r’s

agen

t for

se

curit

ies

(Del

ivere

r of

JGB)

Selle

r’s

agen

t for

fu

nds

(Rec

eive

r of

Fund

s)

Buye

r

Buye

r’s

agen

t for

se

curit

ies

(Rec

eive

r of

JGB)

Buye

r’s

agen

t for

fu

nds

(Sen

der o

f Fu

nds)

Sour

ce: A

BMF

SF2.

26


Not

e: D

escr

ipti

on o

f JP

N B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket

(JG

B)/

DVP

thr

ough

Tr

ade

Mat

chin

g (P

SM

S)

1. T

he s

elle

r and

buy

er tr

ade

gove

rnm

ent b

ond

over

-the-

coun

ter.

2. B

oth

selle

r and

buy

er s

end

Trad

e Re

port

data

into

PSM

S (P

re-S

ettle

men

t Mat

chin

g Sy

stem

).3.

PSM

S pe

rform

s m

atch

ing.

4. P

SMS

send

s th

e N

otic

e D

ata

of T

rade

Mat

chin

g St

atus

to b

oth

sides

of t

rade

.5.

The

buy

er o

r the

sel

ler s

ends

DVP

inst

ruct

ion

to B

OJ-N

ET.

6. B

OJ-N

ET s

ends

the

Not

ice

of A

ccep

tanc

e of

JGB

Tra

nsfe

r Ins

truct

ion

for D

VP to

the

selle

r (or

the

buye

r). 7

–1.

The

selle

r ent

ers

DVP

Requ

est t

o BO

J-NE

T. 7

–2.

The

buye

r ent

ers

DVP

Requ

est t

o BO

J-NE

T (fo

r cas

h).

8–1

. BO

J-NE

T se

nds

the

Notic

e of

Acc

epta

nce

of D

VP R

eque

st to

sel

ler a

nd c

ompl

etes

set

tlem

ent.

8–2

. BO

J-NE

T se

nds

the

Notic

e of

Acc

epta

nce

of D

VP R

eque

st to

buy

er a

nd c

ompl

etes

set

tlem

ent (

for c

ash)

.

9. B

OJ-N

ET p

erfo

rms

secu

rity

and

cash

set

tlem

ent.

10.

Whe

n DV

P se

ttlem

ent c

ompl

eted

, BOJ

-NET

sen

ds th

e No

tice

of c

redi

t to

curre

nt a

ccou

nt fo

r DVP

to th

e se

ller a

nd b

uyer

. So

urce

: ABM

F SF

2.

27


or B

ank

Dom

estic

Cus

todi

an

As D

irect

Pa

rtic

ipan

t

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

BOJ-

NET

(J

GB

Serv

ices

)

Coun

ter-

part

y

PSM

S (J

ASDE

C)

BOJ-

NET

(R

TGS)

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

Trad

eEx

ecut

ion

(OTC

)

5. Tr

ade

Conf

irmat

ion

4. Tr

ade

Conf

irmat

ion

6. S

ettle

men

t In

stru

ctio

n11

. Tra

nsfe

r of I

nstru

ctio

nNo

tice

of A

ccep

tanc

e

Cash Settlement


Trading and Matching

16. S

ettle

men

t Co

nfirm

atio

n

7. S

ettle

men

t Ins

truct

ion

10. M

atch

ing

Stat

us U

pdat

e

14. S

ettle

men

t Con

firm

atio

n

17. S

ecur

ities

Sta

tem

ent

12a.

DVP

Req

uest

13a.

Set

tlem

ent C

onfir

mat

ion

DVP

Requ

est (

for c

ash)

19. C

ash

Stat

emen

t18

. Cas

h St

atem

ent

15. F

undi

ng o

f Tra

des

13b.

Con

firm

atio

n of

De

bit/C

redi

t

Cross-Border

8. S

ettlem

ent in

struc

tion

8. S

ettle

men

t ins

truct

ion

9 Re

spon

se on

Matc

hing S

tatus

Figu

re 3

. JP

N B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t (J

GB

)/D

VP

Sour

ce: A

BMF

SF2.

28


Not

e: D

escr

ipti

on o

f JP

N B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t (J

GB

)/D

VP

T+2

– Tr

ade

Date

1.

Fore

ign

Inst

itutio

nal I

nves

tor p

lace

s or

der w

ith In

tern

atio

nal B

roke

r.2.

In

tern

atio

nal B

roke

r pla

ces

orde

r with

Dom

estic

Bro

ker/B

ank.

3.

Dom

estic

Bro

ker/B

ank

trade

s OT

C wi

th C

ount

erpa

rty (v

ia p

hone

or e

.g. B

loom

berg

).4.

D

omes

tic B

roke

r/Ban

k se

nd tr

ade

conf

irmat

ion

to In

tern

atio

nal B

roke

r.5.

Fo

reig

n In

stitu

tiona

l Inv

esto

r rec

eive

s tra

de c

onfir

mat

ion.

6.

Fore

ign

Inst

itutio

nal I

nves

tor i

nstru

cts

Glob

al C

usto

dian

on

secu

ritie

s se

ttlem

ent d

etai

ls.7.

Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an o

n se

curit

ies

settl

emen

t det

ails.

8.

Dom

estic

Bro

ker a

nd d

omes

tic C

usto

dian

inpu

t tra

de d

etai

ls in

to P

SMS.

9.

PSM

S re

spon

ds w

ith m

atch

ing

stat

us.

10.

Dom

estic

Cus

todi

an re

ports

tran

sact

ion

stat

us u

pdat

e to

Glo

bal C

usto

dian

.

Sett

lem

ent D

ate

11.

Dom

estic

Cus

todi

an/D

irect

Par

ticip

ant s

ends

JGB

tran

sfer

inst

ruct

ion

for D

VP a

nd re

ceive

s N

otifi

catio

n of

Acc

epta

nce.

12.

Dom

estic

Cus

todi

an/D

irect

Par

ticip

ant s

end

DVP

requ

est t

o BO

J-N

ET.

13.

Dom

estic

Cus

todi

an/D

irect

Par

ticip

ant a

s re

ceive

s co

nfirm

atio

n of

DVP

set

tlem

ent.

14.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

15.

Glob

al C

usto

dian

fund

s ac

coun

t with

Dom

estic

Cus

todi

an, o

r int

o FC

Y no

stro

(bef

ore

end

of d

ay).

16.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

17.

Dom

estic

Cus

todi

an s

ends

sec

uriti

es s

tate

men

t to

Glob

al C

usto

dian

.18

. D

omes

tic C

usto

dian

sen

ds c

ash

cred

it/de

bit c

onfir

mat

ion

in c

ash

stat

emen

t to

Glob

al C

usto

dian

.19

. Gl

obal

Cus

todi

an s

ends

cre

dit/d

ebit

conf

irmat

ion

in c

ash

stat

emen

t to

Fore

ign

Inst

itutio

nal I

nves

tor.

Sour

ce: A

BMF

SF2.

29


JASD

EC

(PSM

S)

BOJ

(BOJ

-NET

)

Secu

ritie

s se

rvice

s

DVP

RTGS

1. Tr

ade

3. Tr

ade

Mat

chin

g

5. S

ettle

men

t Mat

chin

g

Stan

ding

Set

tlem

ent I

nstru

ctio

n

10. B

ond

Settl

emen

t

6. JG

B Tra

nsfe

r Ins

truct

ion

for D

VP7.

Not

ice o

f Acc

epta

nce

of JG

B Tra

nsfe

r Ins

truct

ion

for D

VP

10. C

ash

Settl

emen

t

2. Tr

ade

repo

rt 2.

Trad

e re

port

4. N

otice

Dat

a of

Trade

Mat

chin

g St

atus

4. N

otice

Dat

a of

Trade

Mat

chin

g St

atus

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

7. N

otice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

11. N

otice

of c

redi

t to

curre

nt

acco

unt f

or D

VP

11. N

otice

of D

VP S

ettle

men

t

7. N

otice

of J

GB Tr

ansf

er

Inst

ruct

ion

for D

VP8b

. Not

ice o

f DVP

Req

uest

by

Del

ivere

r of J

GB

9a. D

VP R

eque

st (f

or c

ash)

9b. N

otice

of A

ccep

tanc

e of

DV

P Re

ques

t (fo

r cas

h)

11. N

otice

of D

VP S

ettle

men

t

8b. N

otice

of A

ccep

tanc

e

of D

VP R

eque

st

11. N

otice

of D

VP S

ettle

men

t

8a. D

VP R

eque

st

Selle

r

Selle

r’s

agen

t for

se

curit

ies

(Del

ivere

r of

JGB)

Selle

r’s

agen

t for

fu

nds

(Rec

eive

r of

Fun

ds)

Buye

r

Buye

r’s

agen

t for

se

curit

ies

(Rec

eive

r of

JGB)

Buye

r’s

agen

t for

fu

nds

(Sen

der o

f Fu

nds)

Figu

re 4

. JP

N B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket

(JG

B)/

DVP

(N

ew B

OJ-

NET

)

thro

ugh

Trad

e M

atch

ing

(PS

MS

)

Sour

ce: A

BMF

SF2.

30


Figu

re 5

. JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(JG

B)/

DVP

(N

ew B

OJ-

NET

) th

roug

h Tr

ade

Mat

chin

g (P

SM

S)

and

JGB

CC

(1/

2)

JGBC

C

JASD

EC(P

SMS)

1. Tr

ade

6. A

ppro

val o

f Obl

igatio

n

8. N

ovat

ion

10. N

ettin

g

12. D

VP O

rder

3. Tr

ade

Mat

chin

g

5. M

atch

ed Tr

ade

Repo

rt

2. Tr

ade

repo

rt

PSM

SPS

MS

2. Tr

ade

repo

rt

4. N

otice

Dat

a of

Tra

de M

atch

ing

Stat

us

7. N

otice

Dat

a of

App

rova

l of

Obl

igatio

n7.

Not

ice D

ata

of A

ppro

val

of O

bliga

tion

9. N

otice

Dat

a of

Nov

atio

n9.

Not

ice D

ata

of N

ovat

ion

11. N

otice

Dat

a of

Net

ting

11. N

otice

Dat

a of

Net

ting

4. N

otice

Dat

a of

Tra

de M

atch

ing

Stat

us

Selle

rBu

yer

Sour

ce: B

ank

of Ja

pan

and

JASD

EC (m

odifie

d by

pre

sent

er).

31


JGBC

C

14

. No

tice

of A

ccep

tanc

e of

JGB

Trans

fer

Inst

ruct

ion

for D

VP

17.

Notic

e of

DVP

Set

tlem

ent

Notic

e of

DVP

Set

tlem

ent (

Fund

)

14

. No

tice

of A

ccep

tanc

e of

JGB

Trans

fer

Inst

ruct

ion

for D

VP

17.

Notic

e of

DVP

Req

uest

Notic

e of

cre

dit t

o cu

rrent

acc

ount

for D

VP13

. JGB

Tran

sfer

In

stru

ctio

n fo

r DVP

13. J

GB Tr

ansf

er

Inst

ruct

ion

for D

VP

BOJ (

BOJ-

NET)

Secu

ritie

s se

rvic

es

DVP

RTGS

14. N

otice

of A

ccep

tanc

e of

JG

B Tra

nsfe

r Ins

truct

ion

for D

VP

17. N

otice

of D

VP S

ettle

men

t

14. N

otice

of J

GB Tr

ansf

er

Inst

ruct

ion

for D

VP

15–1

. DVP

Req

uest

15–2

. Not

ice o

f Acc

epta

nce

of

DVP

Requ

est

17. N

otice

of D

VP S

ettle

men

t(F

und)

Buye

r’s

agen

t for

se

curit

ies

(Rec

eive

r of

JGB)

Buye

r’s

agen

t for

fu

nds

(Sen

der o

f Fu

nds)

14. N

otice

of A

ccep

tanc

e of

JG

B Tra

nsfe

r Ins

truct

ion

for D

VP

17. N

otice

of c

redi

t to

curre

nt

acco

unt f

or D

VP

15–2

. Not

ice o

f Acc

epta

nce

of

DVP

Req

uest

17. N

otice

of D

VP S

ettle

men

t

15–1

. DVP

Req

uest

Selle

r’s a

gent

fo

r sec

uriti

es

(Del

ivere

r of

JGB)

Selle

r’s a

gent

fo

r fun

ds

(Rec

eive

r of

Fund

s)

Figu

re 5

. JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(JG

B)/

DVP

(N

ew B

OJ-

NET

) th

roug

h Tr

ade

Mat

chin

g (P

SM

S)

and

JGB

CC

(2/

2)

16. B

ond

Settl

emen

t

16. C

ash

Settl

emen

t

Sour

ce: B

ank

of Ja

pan

(mod

ified

by p

rese

nter

).

32


Not

e: D

escr

ipti

on o

f JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(JG

B)/

DVP

(N

ew B

OJ-

NET

) th

roug

h Tr

ade

Mat

chin

g (P

SM

S)

and

JGB

CC

1.

The

sel

ler a

nd b

uyer

trad

e go

vern

men

t bon

d ov

er-th

e-co

unte

r.

2. B

oth

selle

r and

buy

er k

ey in

Trad

e Re

port

data

into

PSM

S (P

re-S

ettle

men

t Mat

chin

g Sy

stem

).

3. P

SMS

perfo

rms

trade

mat

chin

g.

4. P

SMS

send

s th

e No

tice

Data

of T

rade

Mat

chin

g St

atus

to b

oth

sides

of t

rade

.

5. P

SMS

trans

mits

the

mes

sage

of M

atch

ed Tr

ade

Repo

rt da

ta to

JGBC

C.

6. J

GBCC

mak

es a

ppro

val o

f obl

igatio

n.

7. J

GBCC

sen

ds th

e No

tice

Data

of A

ppro

val o

f Obl

igatio

n to

the

selle

r and

buy

er v

ia P

SMS.

8.

JGB

CC p

erfo

rms

the

nova

tion.

9.

JGB

CC s

ends

the

Notic

e Da

ta o

f Nov

atio

n to

the

selle

r and

buy

er v

ia P

SMS.

10

. JG

BCC

perfo

rms

the

netti

ng.

11

. JG

BCC

send

s th

e No

tice

Data

of N

ettin

g to

the

selle

r and

buy

er v

ia P

SMS.

12

. JG

BCC

com

pile

s DV

P or

der.

13

. JG

BCC

send

s th

e JG

B Tra

nsfe

r Ins

truct

ion

for D

VP to

BOJ

-NET

.

14.

BOJ-

NET

send

s th

e No

tice

of A

ccep

tanc

e of

JGB

Trans

fer I

nstru

ctio

n fo

r DVP

to th

e se

ller,

the

buye

r and

JGBC

C. 15

–1.

The

selle

r/the

buy

er e

nter

s DV

P Re

ques

t to

BOJ-

NET.

15–2

. BO

J-NE

T se

nds

the

Notic

e of

Acc

epta

nce

of D

VP R

eque

st to

the

selle

r / th

e bu

yer a

nd c

ompl

etes

set

tlem

ent.

16

. BO

J-NE

T pe

rform

s se

curit

y an

d ca

sh s

ettle

men

t.

17.

Whe

n DV

P se

ttlem

ent c

ompl

eted

, BOJ

-NET

sen

ds th

e No

tice

of D

VP s

ettle

men

t to

the

buye

r and

JGBC

C an

d BO

J-NE

T se

nds

the

Notic

e of

cre

dit t

o cu

rrent

acc

ount

for D

VP to

the

selle

r and

JGBC

C.

Sour

ce: A

BMF

SF2.

33


BOJ

(BOJ

NET

)

JASD

EC(P

SMS)

1. Tr

ade

11. C

ash

Settl

emen

t

3. Tr

ade

Mat

chin

g

5. S

ettle

men

t Mat

chin

g

7. H

oldi

ng B

onds

13. B

ond

Settl

emen

t

Stan

ding

Set

tlem

ent I

nstru

ctio

n

JASD

EC(B

ook

Entr

y Tr

ansf

er S

yste

m)

2. Tr

ade

repo

rt2.

Trad

e re

port

4. N

otice

of M

atch

ing

Stat

us

6. N

otice

of M

atch

ing

Stat

us

14. S

ettle

men

t Rep

ort

(Bon

d)

8. F

und

Settl

emen

t Dat

afo

r DVP

11. N

otice

of R

ecei

pt

Com

plet

ion

(Cas

h)

4. N

otice

of M

atch

ing

Stat

us

6. N

otice

of M

atch

ing

Stat

us

14. S

ettle

men

t Rep

ort

(Bon

d)

9. P

aym

ent R

eque

st(C

ash)

10. P

aym

ent I

nstru

ctio

n(C

ash)

12. S

ettle

men

t Rep

ort

(Cas

h)12

. Set

tlem

ent R

epor

t(C

ash)

Selle

rBu

yer

Figu

re 6

. JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(Cor

pora

te B

onds

)/D

VP (

BO

J-N

ET)

thro

ugh

Tr

ade

Mat

chin

g (P

SM

S)

Sour

ce: A

BMF

SF2.

34


Figu

re 7

. JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(JG

B)/

DVP

oth

er t

ypes

of

Trad

e M

atch

ing

(P

SM

S)

(1/2

)

JASD

EC(P

SMS)

Mat

chin

g Ty

pe :

Own

Acco

unt T

rade

(pro

per t

ype)

Mat

chin

g Ty

pe :

Thre

e-pa

rty

Cent

er M

atch

ing

1. Tr

ade

1. Tr

ade

3. Tr

ade

Mat

chin

g

2. Tr

ade

repo

rt

2. Tr

ade

repo

rt2.

Inve

stm

ent I

nstru

ctio

n

3. Tr

ade

Repo

rt Af

firm

atio

n 4.

Not

ice o

f Tra

de R

epor

t Af

firm

atio

n St

atus

4. N

otice

of M

atch

ing

Stat

us

5. In

vest

men

t Ins

truct

ion

and

Trade

Rep

ort

6. Tr

ade

Repo

rt Af

firm

atio

n 7.

Not

ice o

f Tra

de R

epor

t Af

firm

ing

Stat

us

4. N

otice

of M

atch

ing

Stat

us

Inst

itutio

nal

Inve

stor

Inve

stm

ent

Man

ager

Trust

Ban

k

Exec

utin

g Br

oker

Exec

utin

g Br

oker

JASD

EC(P

SMS)

Sour

ce: A

BMF

SF2.

35


Trust

Ban

k

Mat

chin

g Ty

pe :

Thro

ugh

1. Tr

ade

4. Tr

ade

Mat

chin

g

2. In

vest

men

t Ins

truct

ion

3. In

vest

men

t Ins

truct

ion

3. Tr

ade

Repo

rt

5. Tr

ade

Repo

rt Af

firm

atio

n 6.

Not

ice o

f Tra

de R

epor

t Af

firm

ing

Stat

us

Inve

stm

ent

Man

ager

Exec

utin

g Br

oker

2. Tr

ade

repo

rt

JASD

EC(P

SMS)

Figu

re 7

. JP

N B

ond

Tran

sact

ion

Flow

OTC

Mar

ket

(JG

B)/

DVP

oth

er t

ypes

of

Trad

e M

atch

ing

(P

SM

S)

(2/2

)

Sour

ce: A

BMF

SF2.


36


Repu

blic

of K

orea

(KO

R)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

37


BISS

= B

ond

Inst

itutio

nal

Settl

emen

t Sy

stem

; BO

K-W

ire+

= T

he B

ank

of K

orea

Fin

ancia

l W

ire N

etwo

rk;

KSD

= T

he K

orea

Sec

uriti

es D

epos

itory

; KR

X =

The

Kor

ea E

xcha

nge;

KTS

= K

RX E

lect

roni

c Tra

ding

Sys

tem

for G

over

nmen

t Bon

dsSo

urce

: ABM

F SF

2.

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. KO

R B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am OTC

Mar

ket

KRX

(KTS

)

BOK

(BOK

-Wire

+)

KRX

KSD

38


Figu

re 2

. KO

R B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

KOFI

A

FSS

(FIM

S)

BOK

(BOK

-Wire

+)

KSD

(SSS

)

5. M

atch

ing

1. Tr

ade

8. H

oldi

ng B

onds

13. B

ond

Settl

emen

t

11. C

ash

Settl

emen

t

(B-T

RiS)

3. D

isclo

sure

4. Tr

ade

Data

via

. KSD

SAF

E Sy

stem

4. Tr

ade

Data

vis

. KSD

SAF

E Sy

stem

7. S

ettle

men

t Ins

truct

ions

for D

VP

(no

need

s fo

r typ

ical f

low)

7. S

ettle

men

t Ins

truct

ions

for D

VP

(no

need

s fo

r typ

ical f

low)

6. M

atch

ing

Stat

us A

dvice

6. M

atch

ing

Stat

us A

dvice

14. S

ettle

men

t Rep

ort

(Bon

d)

12. S

ettle

men

t Rep

ort

(Cas

h)

14. S

ettle

men

t Rep

ort

(Bon

d)

12. S

ettle

men

t Rep

ort

(Cas

h)

9. S

ettle

men

t Dat

afo

r DVP

12. S

ettle

men

t Rep

ort

(Cas

h)

Selle

rBu

yer

2. R

epor

ting

Trade

det

ails

10–2

. Pay

men

t Ins

truct

ion

10–1

. Pay

men

t Req

uest

2. R

epor

ting

Trade

det

ails

Sour

ce: A

BMF

SF2.

39


Not

e: D

escr

ipti

on o

f KO

R B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

1.

The

sel

ler a

nd b

uyer

trad

e ov

er th

e co

unte

r mos

tly w

ith p

rivat

e m

esse

nger

, and

som

e tra

nsac

tions

are

don

e wi

th F

reeB

ond

prov

ided

by

KOFI

A wh

ich is

a s

uppo

rting

and

con

firm

atio

n sy

stem

for b

ond

tradi

ng.

2.

Fin

ancia

l inve

stm

ent c

ompa

nies

eng

aged

in tr

adin

g m

ust r

epor

t tra

ding

det

ails

to th

e KO

FIA

with

in 1

5 m

inut

es a

fter t

radi

ng e

xecu

tion.

Th

ey a

lso re

port

tradi

ng d

etai

ls to

FSS

via

For

eign

Inve

stm

ent M

anag

emen

t Sys

tem

(FIM

S).

3.

KOF

IA d

isclo

ses

this

info

rmat

ion

on it

s Bo

nd-Tr

ade

Repo

rt an

d In

form

atio

n Se

rvice

(B-T

Ris)

.

4. T

he s

elle

r and

buy

er s

end

trade

dat

a to

Kor

ea S

ecur

ities

Dep

osito

ry (K

SD).

5.

KSD

col

late

s tra

de d

ata

from

the

selle

r and

buy

er.

6.

KSD

sen

ds m

atch

ing

stat

us a

dvise

to th

e se

ller a

nd b

uyer

.

7. T

he s

elle

r and

buy

er s

end

settl

emen

t ins

truct

ions

for D

VP to

KSD

.

8. K

SD h

olds

bon

ds b

efor

e ca

sh s

ettle

men

t.

9. K

SD s

ends

set

tlem

ent d

ata

to B

ank

of K

orea

(BOK

). 10

–1.

The

BOK

send

s pa

ymen

t req

uest

(cas

h) to

the

buye

r. 10

–2.

The

buye

r sen

ds th

e pa

ymen

t ins

truct

ion

for D

VP to

the

BOK.

11

. BO

K ex

ecut

es c

ash

settl

emen

t.

12.

BOK

send

s se

ttlem

ent r

epor

t to

the

KSD.

13.

KSD

exec

utes

bon

d se

ttlem

ent.

14

. KS

D se

nds

settl

emen

t rep

ort t

o th

e se

ller a

nd b

uyer

. So

urce

: ABM

F SF

2.

40


Figu

re 3

. KO

R B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

Exc

hang

e M

arke

t/D

VP

FSS

(FIM

S)

KRX

(KTS

)

BOK

(BOK

-Wire

+)

KSD

(SSS

)

2. A

ckno

wled

gem

ent

of o

rder

10. S

ettle

men

t Ins

truct

ions

for D

VP

7. Ta

king

oblig

atio

n (n

ovat

ion)

(KRX

-mem

ber)

5. M

atch

ing

6. Tr

ade

Conf

irmat

ion

8. N

ettin

g

11. H

oldi

ng B

onds

15. B

ond

Settl

emen

tTh

roug

h KR

X a/

c

13. C

ash

Settl

emen

tTh

roug

h KR

X a/

c

4. Tr

ade

Orde

r4.

Trad

e Or

der

1. Tr

ansf

errin

g or

der

info

rmat

ion

16. S

ettle

men

t Rep

ort

(Bon

d)

9. S

ettle

men

t Det

ail

14. S

ettle

men

t Rep

ort

(Cas

h)

16. S

ettle

men

t Rep

ort

(Bon

d)

9. S

ettle

men

t Det

ail

14. S

ettle

men

t Rep

ort

(Cas

h)

1. Tr

ansf

errin

g or

der

info

rmat

ion

3. E

xecu

tion/

Reje

ctio

n

of o

rder

3. E

xecu

tion/

Reje

ctio

n

of o

rder

12. S

ettle

men

t Dat

a fo

r DVP

14. S

ettle

men

t Rep

ort (

Cash

)

Selle

rBu

yer

Sour

ce: A

BMF

SF2.

41


Figu

re 4

. KO

R B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

or B

ank

Dom

estic

Cus

todi

anGl

obal

Cu

stod

ian

Inte

rnat

iona

lBr

oker

KSD

Coun

ter-

part

y

KOFI

A

BOK-

Wire

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

6. Se

nding

of Tr

ade D

etails

12. A

ffirmati

on St

atus

7. Tr

ade

Conf

irmat

ion

5. Tr

ade

Conf

irmat

ion

8. S

ettle

men

t In

stru

ctio

n10

. Tra

nsm

issio

n of

Se

ttlem

ent D

etai

ls

Cash Settlement


Trading

20. S

ettle

men

t Co

nfirm

atio

n

9a. S

ettle

men

t Ins

truct

ion

13. T

rans

actio

n St

atus

Upd

ate

18. S

ettle

men

t Con

firm

atio

n

21. S

ecur

ities

Sta

tem

ent

11. A

ffirm

atio

n of

Set

tlem

ent

Deta

ils

17. S

ettle

men

t Con

firm

atio

n

15. F

undi

ng o

f BOK

Acc

ount

23. C

ash

Stat

emen

t

19. F

undi

ng o

f Tra

des

22. C

ash

Stat

emen

t

14.

FX

Conf

irmat

ion

9b. F

X/Fu

ndin

g In

stru

ctio

n

16. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

4. Trade Reporting

Sour

ce: A

BMF

SF2.


42


Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r/Ban

k.3.

D

omes

tic B

roke

r/Ban

k tra

des

OTC

with

Cou

nter

party

(via

pho

ne o

r e.g

. Blo

ombe

rg).

4.

Dom

estic

Bro

ker/B

ank

and

Coun

terp

arty

repo

rt tra

de to

KOF

IA w

ithin

15

min

utes

of t

rade

.5.

D

omes

tic B

roke

r/Ban

k se

nd tr

ade

conf

irmat

ion

to In

tern

atio

nal B

roke

r. 6.

D

omes

tic B

roke

r/Ban

k se

nds

trade

det

ails

to K

SD.

7.

Fore

ign

Inst

itutio

nal I

nves

tor r

ecei

ves

trade

con

firm

atio

n.

T+1

(SD–

1)8.

Fo

reig

n In

stitu

tiona

l Inv

esto

r ins

truct

s Gl

obal

Cus

todi

an o

n se

curit

ies

settl

emen

t det

ails,

and

FX/

fund

ing.

9.

Glob

al C

usto

dian

inst

ruct

s D

omes

tic C

usto

dian

on

(a) s

ecur

ities

set

tlem

ent d

etai

ls, a

nd (b

) FX/

fund

ing

requ

irem

ents

.10

. KS

D s

ends

Pre

limin

ary

Settl

emen

t Dat

a to

Dom

estic

Cus

todi

an, v

ia S

AFE.

11

. D

omes

tic C

usto

dian

affi

rms

settl

emen

t det

ails.

12.

KSD

sen

ds a

ffirm

atio

n st

atus

to D

omes

tic B

roke

r/Ban

k.13

. D

omes

tic C

usto

dian

repo

rts tr

ansa

ctio

n st

atus

upd

ate

to G

loba

l Cus

todi

an.

14.

Dom

estic

Cus

todi

an s

ends

FX

conf

irmat

ion

to G

loba

l Cus

todi

an.

Sett

lem

ent D

ate

15.

Dom

estic

Cus

todi

an fu

nds

BOK

acco

unt.

16.

Upon

tran

sfer

of c

ash,

BOK

sen

ds s

ettle

men

t con

firm

atio

n to

Dom

estic

Cus

todi

an.

17.

Upon

tran

sfer

of s

ecur

ities

, KSD

sen

ds s

ettle

men

t con

firm

atio

n to

Dom

estic

Cus

todi

an.

18.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

19.

Glob

al C

usto

dian

fund

s ac

coun

t with

Dom

estic

Cus

todi

an, o

r int

o FC

Y no

stro

(bef

ore

end

of d

ay).

20.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

21.

Dom

estic

Cus

todi

an s

ends

sec

uriti

es s

tate

men

t to

Glob

al C

usto

dian

.22

. D

omes

tic C

usto

dian

sen

ds c

ash

cred

it/de

bit c

onfir

mat

ion

in c

ash

stat

emen

t to

Glob

al C

usto

dian

.23

. Gl

obal

Cus

todi

an s

ends

cre

dit/d

ebit

conf

irmat

ion

in c

ash

stat

emen

t to

Fore

ign

Inst

itutio

nal I

nves

tor.

Sour

ce: A

BMF

SF2.

Not

e: D

escr

ipti

on o

f KO

R B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

43


Mal

aysia

(MA

L)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

44


BCS

= B

ursa

Cle

arin

g an

d Se

ttlem

ent S

yste

m; B

MD

= B

ursa

Mal

aysia

Dep

osito

ry; B

MS

= B

ursa

Mal

aysia

Sec

uriti

es; B

MSC

= B

ursa

Mal

aysia

Sec

uriti

es

Clea

ring;

BNM

= B

ank

Nega

ra M

alay

sia; B

TS =

Bur

sa Tr

ade

Syst

em; C

DS =

Cen

tral D

epos

itory

Sys

tem

; ETP

= E

lect

roni

c Tra

ding

Pla

tform

; IFT

S =

Inte

rban

k Fu

nds

Trans

fer S

yste

m; R

ENTA

S =

Rea

l-tim

e El

ectro

nic

Trans

fer o

f Fun

ds a

nd S

ecur

ities

; SSD

S =

Scr

iple

ss S

ecur

ities

Dep

osito

ry S

yste

mSo

urce

: ABM

F SF

2.

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. M

AL B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am OTC

Mar

ket

Burs

a M

alay

sia

(ETP

)

BMS

(BTS

)

Bank

Neg

ara

Mal

aysi

a (R

ENTA

S-IF

TS)

BMSC

(BCS

)

BMD

(CDS

)Ba

nk N

egar

a M

alay

sia

(REN

TAS-

SSDS

)

45


Figu

re 2

. M

AL B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

BNM

1. Tr

ade

(dire

ct d

ealin

g

or v

ia M

oney

Bro

kers

)

6. B

ond

Settl

emen

t

7. C

ash

Settl

emen

t

Burs

a M

alay

sia

(ETP

)

(REN

TAS-

SDSS

)

(REN

TAS-

IFTS

)

DVP

2. Tr

ade

Repo

rting

4. C

onfir

mat

ion

2. Tr

ade

Repo

rting

3. In

itiat

e Un

conf

irmed

Se

ttlem

ent A

dvice

5. A

ckno

wled

gem

ent

5. A

ckno

wled

gem

ent

8. S

ettle

men

t Com

plet

ion

Advic

e (B

ond

and

Cash

)8.

Set

tlem

ent C

ompl

etio

n Ad

vice

(Bon

d an

d Ca

sh)

Selle

rBu

yer

Sour

ce: A

BMF

SF2.

46


OTC

Mar

ket

1.

The

sel

ler a

nd b

uyer

trad

e ov

er th

e co

unte

r by

tele

phon

e (d

irect

dea

ling

or th

roug

h M

oney

Bro

ker).

95%

of b

ond

trade

s ar

e de

alt i

n OT

C m

arke

t. Co

mm

ercia

l ban

ks a

nd Is

lam

ic ba

nks

can

trade

the

bond

s.

2. A

ll tra

des

are

reco

rded

in E

lect

roni

c Tra

ding

Pla

tform

(ETP

).

3. T

he s

elle

r (or

Buy

er) i

nput

trad

e da

ta in

to R

ENTA

S as

initi

ate

unco

nfirm

ed s

ettle

men

t adv

ice.

4.

The

Buy

er (o

r Sel

ler)

conf

irms

an u

ncon

firm

ed s

ettle

men

t adv

ice u

sing

by C

onfir

mat

ion

men

u of

REN

TAS.

5.

The

sel

ler a

nd b

uyer

acc

ess

Repo

rt m

enu

of R

ENTA

S an

d co

nfirm

that

con

firm

atio

n of

loca

l mat

chin

g is

perfo

rmed

.6.

7.

On s

ettle

men

t dat

e, b

ond

and

cash

are

set

tled

on D

VP b

asis.

8.

The

sel

ler a

nd b

uyer

acc

ess

Repo

rt m

enu

of R

ENTA

S an

d co

nfirm

repo

rt of

Bon

d se

ttlem

ent a

nd c

ash

settl

emen

t. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f M

AL B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

47


Figu

re 3

. M

AL B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Sour

ce: A

BMF

SF2.

or B

ank

Dom

estic

Cus

todi

an(A

utho

rised

De

posit

ory

In

stitu

tion,

ADI

)

ETP

(B

ursa

M

alay

sia)

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

BNM

(M

y Cl

ear)

RENT

AS

SSDS

Coun

ter-

part

y

BNM

RE

NTAS

-IFTS

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

6. Tr

ade R

eport

ing

9. Pre

-matc

hing

6. Trade Reporting

5. Tr

ade

Conf

irmat

ion

4. Tr

ade

Conf

irmat

ion

7. S

ettle

men

t In

stru

ctio

n

12. C

aptu

re o

f Tra

nsac

tion

Deta

ilsan

d Ac

know

ledg

emen

t of R

ecei

pt

12. A

dvice

of U

ncon

firm

ed Tr

ade

and

Conf

irmat

ion

of Tr

ade

in S

SDS

– OR

–

Cash SettlementClearing Matching and SettlementTrading

19. S

ettle

men

t Co

nfirm

atio

n

8a. S

ettle

men

t Ins

truct

ion

10. P

re-m

atch

ing

Stat

us

17. S

ettle

men

t Con

firm

atio

n

20. S

ecur

ities

Sta

tem

ent

13. R

etrie

val o

f Mat

chin

g St

atus

15. S

ettle

men

t Con

firm

atio

n

14. F

undi

ng o

f BNM

Acc

ount

22. C

ash

Stat

emen

t21

. Cas

h St

atem

ent

18. F

undi

ng o

f Tra

des

11. F

X Co

nfirm

atio

n

8b. F

X/Fu

ndin

g In

stru

ctio

n

16. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border


48


Not

e: D

escr

ipti

on o

f M

AL B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r/Ban

k.3.

D

omes

tic B

roke

r/Ban

k an

d Co

unte

rpar

ty a

gree

s on

OTC

trad

e (v

ia e

.g.,

phon

e or

Blo

ombe

rg).

4.

Dom

estic

Bro

ker/B

ank

send

s tra

de c

onfir

mat

ion

to In

tern

atio

nal B

roke

r.5.

Fo

reig

n In

stitu

tiona

l Inv

esto

r rec

eive

s tra

de c

onfir

mat

ion.

6.

Dom

estic

Bro

ker/B

ank

and

Coun

terp

arty

cap

ture

trad

e in

ETP

, by

end

of tr

adin

g da

y.

T+1 7.

Fore

ign

Inst

itutio

nal I

nves

tor i

nstru

cts

Glob

al C

usto

dian

, on

secu

ritie

s se

ttlem

ent a

nd c

ash/

fund

ing

deta

ils.

8.

Glob

al C

usto

dian

inst

ruct

s D

omes

tic C

usto

dian

/AD

I on

(a) s

ecur

ities

set

tlem

ent d

etai

ls, (b

) FX

requ

est o

r fun

ding

det

ails.

9.

Dom

estic

Cus

todi

an/A

DI a

nd C

ount

erpa

rty p

re-m

atch

set

tlem

ent d

etai

ls, v

ia p

hone

.10

. D

omes

tic C

usto

dian

/AD

I sen

ds p

re-m

atch

ing

resu

lt in

form

atio

n (e

.g.,

miss

ing

inst

ruct

ions

) to

Glob

al C

usto

dian

.11

. D

omes

tic C

usto

dian

/AD

I pro

vides

con

firm

atio

n of

FX

book

ed (i

n ca

se o

f ear

lier F

X re

ques

t).

Sett

lem

ent D

ate

12.

Dom

estic

Cus

todi

an/A

DI c

aptu

res

settl

emen

t det

ails

into

SSD

S an

d re

ceive

s SS

DS

ackn

owle

dgm

ent o

f rec

eipt

of d

ata

(sel

ling

side)

, OR

rece

ives

alle

ged

trade

not

ice

(adv

ice

of u

ncon

firm

ed tr

ade)

from

SSD

S an

d co

nfirm

s se

ttlem

ent d

etai

ls in

SSD

S (b

uyin

g sid

e).

13.

Dom

estic

Cus

todi

an/A

DI r

etrie

ves

settl

emen

t mat

chin

g st

atus

.14

. D

omes

tic C

usto

dian

/AD

I effe

cts

fund

ing

of it

s ac

coun

t at B

ank

Neg

ara

Mal

aysia

(BN

M) v

ia R

ENTA

S (IF

TS) i

f nec

essa

ry.15

. Up

on s

ettli

ng s

ecur

ities

, SSD

S se

nds

settl

emen

t con

firm

atio

n fo

r sec

uriti

es to

Dom

estic

Cus

todi

an/A

DI.

16.

Upon

set

tling

cas

h, R

ENTA

S se

nds

debi

t/cre

dit c

onfir

mat

ion

to D

omes

tic C

usto

dian

/AD

I.17

. D

omes

tic C

usto

dian

/AD

I sen

ds s

ettle

men

t con

firm

atio

n to

Glo

bal C

usto

dian

.18

. Gl

obal

Cus

todi

an fu

nds

acco

unt w

ith D

omes

tic C

usto

dian

/AD

I (be

fore

end

of d

ay).

19.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

20.

Dom

estic

Cus

todi

an/A

DI s

ends

sta

tem

ent o

f sec

uriti

es to

Glo

bal C

usto

dian

(at e

nd o

f day

).21

. D

omes

tic C

usto

dian

/AD

I sen

ds d

ebit/

cred

it in

form

atio

n in

cas

h st

atem

ent (

at e

nd o

f day

).22

. Gl

obal

Cus

todi

an s

ends

deb

it/cr

edit

info

rmat

ion

in c

ash

stat

emen

t to

FII (

at e

nd o

f day

). So

urce

: ABM

F SF

2.

49


Phili

ppin

es (P

HI)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

50


Note

: Cas

h se

ttlem

ent b

y se

ttlem

ent b

anks

is fo

r gov

ernm

ent a

nd c

orpo

rate

bon

ds.

eDVP

= E

xpan

ded

Deliv

ery

vs. P

aym

ent S

yste

m; P

DEx

= P

hilip

pine

Dea

ling

and

Exch

ange

; PDT

C =

Phi

lippi

ne D

epos

itory

and

Tru

st C

orpo

ratio

n; P

hilP

aSS

=

Philip

pine

Pay

men

ts a

nd S

ettle

men

t Sys

tem

; RoS

S =

Reg

istry

of S

crip

less

Sec

uriti

esSo

urce

: ABM

F SF

2.

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. P

HI B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am

OTC

Mar

ket

PDEx

(Fixe

d In

com

e Tra

ding

Sys

tem

)

PDEx

(Ros

s ST

P Fa

cility

)PD

Ex (e

DVP)

Ex. M

arke

t

Bang

ko S

entr

al n

g Pi

lipin

as (P

hilP

aSS)

Bure

au o

f the

Tre

asur

y (B

Tr-Ro

SS)

PDTC

Settl

emen

t Ba

nks

51


Figu

re 2

. P

HI B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

GS

EDs

Mar

ket/

DVP

Sour

ce: A

BMF

SF2.

PDEx

Bang

ko S

entr

al n

g Pi

lipin

as

(Phi

lPaS

S)

Bure

au o

f the

Tre

asur

y(B

Tr-R

oSS)

1. N

egot

iatio

n (O

TC)

(PDE

x-Ro

SS S

TP F

acili

ty)

(FI T

radi

ng S

yste

ms)

9. H

oldi

ng B

onds

5. Tr

ade

Data

3. M

atch

ing

13. B

ond

Settl

emen

t

11. C

ash

Settl

emen

t

2. Tr

ade

Orde

r2.

Trad

e Or

der

4. M

atch

ing

Resu

lt4.

Mat

chin

g Re

sult

12. S

ettle

men

t Rep

ort

(Cas

h)

15. M

onito

r Set

tlem

ent

Stat

us

7. A

utho

rizat

ion

of S

ettle

men

t In

stru

ctio

n fo

r DVP

6. S

ettle

men

t Det

ail

6. S

ettle

men

t Det

ail

7. A

utho

rizat

ion

of S

ettle

men

t In

stru

ctio

n fo

r DVP

15. M

onito

r Set

tlem

ent

Stat

us

12. S

ettle

men

t Rep

ort

(Cas

h)

8. S

ettle

men

t Dat

a

10. S

ettle

men

t Dat

a12

. Set

tlem

ent R

epor

t (C

ash)

14. S

ettle

men

t Sta

tus

Selle

rBu

yer

52


Not

e: D

escr

ipti

on o

f P

HI B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

GS

EDs*

Mar

ket/

DVP

GSED

s1.

In

OTC

mar

ket,

the

selle

r and

buy

er n

egot

iate

bef

ore

they

inpu

t the

trad

e da

ta to

PD

Ex. T

his

proc

ess

is om

itted

in th

e Ex

chan

ge M

arke

t.2.

Th

e se

ller a

nd b

uyer

trad

e via

PD

Ex(F

I Tra

ding

Sys

tem

). 3.

PD

Ex(F

I Tra

ding

Sys

tem

) mat

ches

ord

er o

r rec

ords

neg

otia

ted

deal

s be

twee

n bu

yer a

nd s

elle

r.4.

PD

Ex(F

I Tra

ding

Sys

tem

) sen

ds m

atch

ing

resu

lt to

the

selle

r and

buy

er.

5.

PDEx

(FI T

radi

ng S

yste

m) s

ends

trad

e da

ta to

PD

Ex(P

DEx

-RoS

S ST

P Fa

cilit

y).

6.

PDEx

(PD

Ex-R

oSS

STP

Faci

lity)

sen

ds s

ettle

men

t det

ail t

o th

e se

ller a

nd b

uyer

.7.

Th

e se

ller a

nd b

uyer

aut

horiz

e th

e se

ttlem

ent i

nstru

ctio

n fo

r DVP

.8.

PD

Ex(P

DEx

-RoS

S ST

P Fa

cilit

y) s

ends

set

tlem

ent d

ata

to B

urea

u of

the

Trea

sury

Reg

istry

of S

crip

less

Sec

uriti

es (B

Tr-Ro

SS).

9.

BTr-R

oSS

hold

s bo

nds

befo

re c

ash

settl

emen

t.10

. BT

r-RoS

S se

nds

settl

emen

t dat

a to

Ban

gko

Sent

ral n

g Pi

lipin

as (B

SP).

11.

BSP

exec

utes

cas

h se

ttlem

ent.

12.

BSP

send

s ca

sh s

ettle

men

t rep

ort t

o se

ller,

buye

r and

BTr-

RoSS

.13

. BT

r-Ros

s ex

ecut

es b

ond

settl

emen

t. 14

. BT

r-Ros

s se

nds

bond

set

tlem

ent s

tatu

s to

PD

Ex-R

oSS

STP

Faci

lity.

15.

The

selle

r and

the

buye

r can

mon

itor

settl

emen

t sta

tus

via P

DEx

-RoS

S ST

P Fa

cilit

y.

*GSE

D =

Gov

ernm

ent S

ecur

ities

Elig

ible

Dea

ler

Sour

ce: A

BMF

SF2.

53


PDEx

Bang

ko S

entr

al n

g Pi

lipin

as (P

hilP

aSS)

PDTC

(BTr

-RoS

S)

1. N

egot

iatio

n (O

TC)

(eDV

P Sy

stem

)

(FI T

radi

ng S

yste

ms)

10. E

arm

arke

d Bo

nds

5. Tr

ade

Data

3. M

atch

ing

13. S

ettle

men

t In

stru

ctio

n

14. B

ond

Settl

emen

t

11. C

ash

Settl

emen

t

2. Tr

ade

Orde

r2.

Trad

e Or

der

4. M

atch

ing

Resu

lt4.

Mat

chin

g Re

sult

16. B

ond

Settl

emen

t St

atus

6. S

ettle

men

t Det

ail

6. S

ettle

men

t Det

ail

7. A

utho

rizat

ion

of

Settl

emen

t Ins

truct

ion

fo

r DVP

7. A

utho

rizat

ion

of

Settl

emen

t Ins

truct

ion

fo

r DVP

16. B

ond

Settl

emen

t St

atus

12. C

ash

Settl

emen

t Re

port

12. C

ash

Settl

emen

t Re

port

14. S

ettle

men

t Rep

ort

(Bon

d)14

. Set

tlem

ent R

epor

t(B

ond)

8. E

arm

arke

d In

stru

ctio

n

12. C

ash

Settl

emen

t Re

port

9. C

ash

Settl

emen

t In

stru

ctio

n

15. S

ettle

men

t St

atus

Selle

rBu

yer

Figu

re 3

. P

HI B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

Non

-GS

EDs

Mar

ket/

DVP

Sour

ce: A

BMF

SF2.

54


Not

e: D

escr

ipti

on o

f P

HI B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

Non

-GS

EDs*

Mar

ket/

DVP

Non-

GSED

s1.

In

OTC

mar

ket,

the

selle

r and

buy

er n

egot

iate

bef

ore

they

inpu

t the

trad

e da

ta to

PD

Ex. T

his

proc

ess

is om

itted

in th

e

Exch

ange

Mar

ket.

2.

The

selle

r and

buy

er tr

ade

via P

DEx

(FI T

radi

ng S

yste

m).

3.

PDEx

(FI T

radi

ng S

yste

m) a

utom

atic

ally

mat

ches

ord

ers

from

sel

ler a

nd b

uyer

. 4.

PD

Ex (F

I Tra

ding

Sys

tem

) sen

ds m

atch

ing

resu

lts to

the

selle

r and

buy

er.

5.

PDEx

(FI T

radi

ng S

yste

m) s

ends

trad

e da

ta to

PD

Ex (e

DVP

Sys

tem

).6.

PD

Ex (e

DVP

Sys

tem

) sen

ds s

ettle

men

t det

ails

to th

e se

ller a

nd b

uyer

.7.

Th

e se

ller a

nd b

uyer

aut

horiz

e th

e se

ttlem

ent i

nstru

ctio

n fo

r DVP

.8.

PD

Ex (e

DVP

Sys

tem

) sen

ds e

arm

arke

d in

stru

ctio

n to

PD

TC.

9.

PDEx

(eD

VP S

yste

m) s

ends

cas

h se

ttlem

ent

inst

ruct

ion

to B

SP.

10.

PDTC

and

BTr-

RoSS

hol

ds b

onds

bef

ore

cash

set

tlem

ent.

PDTC

act

s as

sub

-regi

stry.

11

. BS

P ex

ecut

es c

ash

settl

emen

t.12

. BS

P se

nds

cash

set

tlem

ent r

epor

t to

the

selle

r, bu

yer,

and

PDEx

(eD

VP S

yste

m).

13.

PDEx

(eD

VP S

yste

m) s

ends

set

tlem

ent i

nstru

ctio

n to

Phi

lippi

ne D

epos

itory

and

Tru

st C

orp

(PD

TC) a

nd B

Tr-Ro

SS.

14.

PDTC

and

BTr-

RoSS

exe

cute

s bo

nd s

ettle

men

t.15

. PD

TC a

nd B

Tr-Ro

SS s

ends

set

tlem

ent s

tatu

s to

PD

Ex (e

DVP

Sys

tem

).16

. PD

Ex (e

DVP

Sys

tem

) sen

ds b

ond

settl

emen

t sta

tus

to th

e se

ller a

nd b

uyer

. *G

SED

= G

over

nmen

t Sec

uriti

es E

ligib

le D

eale

r So

urce

: ABM

F SF

2.

55


Figu

re 4

. P

HI B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

or B

ank

Dom

estic

Cus

todi

an(A

utho

rised

De

posit

ory

In

stitu

tion,

ADI

)

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

BTr

ROSS

Coun

ter-

part

y

PDEx

(FI)

BSP

PhilP

aSS

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

6. Tr

ade

Conf

irmat

ion

5. Tr

ade

Conf

irmat

ion

4. Tr

ade

Repo

rting

/Cap

ture

7. S

ettle

men

t In

stru

ctio

n10

. Cap

ture

/UL

of

Trans

actio

n De

tails

9. Pre

-matc

hing


20. S

ettle

men

t Co

nfirm

atio

n

8. S

ettle

men

t Ins

truct

ion

12. P

re-m

atch

ing

Stat

us

18. S

ettle

men

t Con

firm

atio

n

22. S

ecur

ities

Sta

tem

ent

11. R

etrie

val o

f Mat

chin

g St

atus

17. S

ettle

men

t Con

firm

atio

n

15. F

undi

ng o

f BSP

Acc

ount

24. C

ash

Stat

emen

t

23. C

ash

Stat

emen

t

21. I

ssue

of B

SRD

19. F

undi

ng o

f Acc

ount

14. F

X Co

nfirm

atio

n

13. F

X In

stru

ctio

n

16. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

Sour

ce: A

BMF

SF2.


56


Not

e: D

escr

ipti

on o

f P

HI B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r/GSE

D.

3.

Dom

estic

Bro

ker o

r Dea

ler t

rade

s OT

C wi

th C

ount

erpa

rty.

4.

Dom

estic

Bro

ker o

r Dea

ler c

aptu

res

trade

in P

DEx

sys

tem

, for

pric

e di

scov

ery,

with

in 1

0 m

inut

es.

5.

Inte

rnat

iona

l Bro

ker r

ecei

ves

trade

con

firm

atio

n.6.

Fo

reig

n In

stitu

tiona

l Inv

esto

r rec

eive

s tra

de c

onfir

mat

ion.

T+1 7.

Fore

ign

Inst

itutio

nal I

nves

tor i

nstru

cts

Glob

al C

usto

dian

, on

secu

ritie

s se

ttlem

ent a

nd F

X/ca

sh fu

ndin

g de

tails

.8.

Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an o

n se

curit

ies

settl

emen

t det

ails.

9.

Dom

estic

Cus

todi

an c

ondu

cts

phon

e pr

e-m

atch

ing

with

Cou

nter

party

or c

usto

dian

of c

ount

erpa

rty.

Sett

lem

ent D

ate

10.

Dom

estic

Cus

todi

an e

nter

s se

ttlem

ent d

ata

into

BTr-

RoSS

.11

. D

omes

tic C

usto

dian

retri

eves

tran

sact

ion

mat

chin

g st

atus

.12

. D

omes

tic C

usto

dian

repo

rts m

atch

ing

stat

us u

pdat

e to

Glo

bal C

usto

dian

.13

. Gl

obal

Cus

todi

an s

ends

FX

inst

ruct

ion

for p

roje

cted

fund

ing

requ

irem

ents

.14

. D

omes

tic C

usto

dian

sen

ds F

X co

nfirm

atio

n.15

. D

omes

tic C

usto

dian

fund

s BS

P ac

coun

ts, v

ia P

hilP

ASS

(RTG

S) if

nec

essa

ry.16

. Up

on tr

ansf

er o

f cas

h (a

fter p

rom

ptin

g fro

m B

Tr-Ro

SS),

PhilP

aSS

send

s ca

sh s

ettle

men

t con

firm

atio

n to

Dom

estic

Cus

todi

an.

17.

Upon

con

firm

atio

n of

cas

h se

ttlem

ent,

BTr-R

oSS

effe

cts

bond

set

tlem

ent,

send

s co

nfirm

atio

n to

Dom

estic

Cus

todi

an.

18.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

19.

Glob

al C

usto

dian

fund

s ac

coun

t with

Dom

estic

Cus

todi

an in

PHP

, or i

nto

FCY

nost

ro (b

efor

e en

d of

day

). 20

. Gl

obal

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to F

orei

gn In

stitu

tiona

l Inv

esto

r.21

. D

omes

tic C

usto

dian

issu

es B

SRD

(Ban

gko

Sent

ral R

emitt

ance

Doc

umen

t), c

ertif

ying

FCY

inflo

w fo

r abi

lity

to re

patri

ate

at la

ter s

tage

wi

thou

t con

sider

atio

n of

FX

limita

tions

.22

. D

omes

tic C

usto

dian

sen

ds s

ecur

ities

sta

tem

ent t

o Gl

obal

Cus

todi

an.

23.

Dom

estic

Cus

todi

an s

ends

deb

it/cr

edit

conf

irmat

ions

, in

form

of c

ash

stat

emen

t, to

Glo

bal C

usto

dian

.24

. Gl

obal

Cus

todi

an s

ends

cas

h st

atem

ent t

o Fo

reig

n In

stitu

tiona

l Inv

esto

r. So

urce

: ABM

F SF

2.

57


Sing

apor

e (S

IN)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

58


CDP

= C

entra

l Dep

osito

ry (P

te.)

Ltd.

; DCS

S =

Deb

t Sec

uriti

es C

lear

ing

and

Settl

emen

t Sys

tem

; MAS

= M

onet

ary

Auth

ority

of S

inga

pore

; MEP

S+ =

MAS

El

ectro

nic

Paym

ent S

yste

m; S

GX =

Sin

gapo

re E

xcha

nge

Ltd.

Sour

ce: A

BMF

SF2.

Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. S

IN B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am

OTC

Mar

ket

MAS

(MEP

S+ R

TGS)

MAS

(MEP

S+ S

GS)

SGX

CDP

(DCS

S)

59


Figu

re 2

. S

IN B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

MAS

(MEP

S Pl

us)

(MEP

S Pl

us S

GS)

1. Tr

ade

2. Tr

ade

Mat

chin

g

10. C

ash

Settl

emen

t

5. M

atch

ing

7. D

VP O

rder

8. H

oldi

ng B

onds

12. B

ond

Settl

emen

t

9. S

ettle

men

t Dat

afo

r DVP

11. S

ettle

men

t Re

port

(Cas

h)

3. D

elive

ry

Inst

ruct

ion

6. N

otice

of S

ettle

men

t M

atch

ing

Stat

us

4. R

ecei

pt

Inst

ruct

ion

6. N

otice

of S

ettle

men

t M

atch

ing

Stat

us

13. S

ettle

men

t Rep

ort

(Bon

d)13

. Set

tlem

ent R

epor

t(B

ond)

11. S

ettle

men

t Rep

ort

(Cas

h)11

. Set

tlem

ent R

epor

t(C

ash)

Selle

rBu

yer

Sour

ce: A

BMF

SF2.

60


1.

SGS

(Sin

gapo

re g

over

nmen

t sec

uriti

es) i

s do

ne o

n an

ove

r-the

-cou

nter

bas

is.2.

Tr

ades

are

mat

ched

am

ong

selle

r and

buy

er.

3.

The

bond

sel

ler s

ends

the

agre

ed tr

ade

inst

ruct

ion

to M

EPS+

SGS

.4.

Th

e bo

nd b

uyer

sen

ds th

e ag

reed

trad

e in

stru

ctio

n to

MEP

S+ S

GS.

5.

MEP

S+ S

GS p

erfo

rms

bond

mat

chin

g.6.

M

EPS+

SGS

sen

ds th

e no

tice

of b

ond

mat

chin

g st

atus

to s

elle

r and

buy

er.

7.

MEP

S Pl

us B

ook-

entry

cle

arin

g sy

stem

cre

ates

the

DVP

ord

er.

8.

Whe

n th

e se

ller’s

SGS

acc

ount

has

suf

ficie

nt S

GS, t

he S

GS a

re e

arm

arke

d fo

r tra

nsfe

r to

the

buye

r.9.

Se

ttlem

ent d

ata

for D

VP is

sen

t to

MEP

S+ R

TGS.

10.

Whe

n th

e fu

nds

are

avai

labl

e, th

e am

ount

is d

ebite

d fro

m th

e bu

yer’s

RTG

S ac

coun

t and

cre

dite

d to

the

selle

r’s R

TGS

acco

unt.

11.

MEP

S+ R

TGS

simul

tane

ously

MEP

S+ S

GS to

tran

sfer

the

secu

ritie

s an

d re

port

the

cash

set

tlem

ent s

tatu

s to

bot

h sid

es o

f the

trad

e.12

. M

EPS+

SGS

tran

sfer

s th

e bo

nds

to th

e bu

yer’s

acc

ount

.13

. M

EPS+

SGS

repo

rts th

e se

ttlem

ent s

tatu

s to

bot

h se

ller a

nd b

uyer

. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f S

IN B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

61


or B

ank

Dom

estic

Cus

todi

anGl

obal

Cu

stod

ian

Inte

rnat

iona

lBr

oker

MAS

(M

EPS

+SG

S)

Coun

ter-

part

y

MAS

(M

EPS

+RT

GS)

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n5.

Trad

e Co

nfirm

atio

n

4. Tr

ade

Conf

irmat

ion

6. S

ettle

men

t In

stru

ctio

n

10. C

aptu

re o

f Set

tlem

ent D

etai

ls

8. Pre

-matc

hing


17. S

ettle

men

t Co

nfirm

atio

n

7. S

ettle

men

t Ins

truct

ion

15. S

ettle

men

t Con

firm

atio

n

18. S

ecur

ities

Sta

tem

ent

9. Tr

ansa

ctio

n St

atus

Upd

ate

11. S

ettle

men

t Sta

tus

Upda

te

14. S

ettle

men

t Con

firm

atio

n

12. F

undi

ng o

f MAS

Acc

ount

20. C

ash

Stat

emen

t19

. Cas

h St

atem

ent

16. F

undi

ng o

f Tra

des

13. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

Figu

re 3

. S

IN B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Sour

ce: A

BMF

SF2.


62


Not

e: D

escr

ipti

on o

f S

IN B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r or B

ank.

3.

Dom

estic

Bro

ker/B

ank

trade

s OT

C wi

th C

ount

erpa

rty (v

ia p

hone

, Blo

ombe

rg).

4.

Dom

estic

Bro

ker/B

ank

send

s tra

de c

onfir

mat

ion

to In

tern

atio

nal B

roke

r.5.

Fo

reig

n In

stitu

tiona

l Inv

esto

r rec

eive

s tra

de c

onfir

mat

ion.

Sett

lem

ent D

ate/

T+1

6.

Fore

ign

Inst

itutio

nal I

nves

tor i

nstru

cts

Glob

al C

usto

dian

on

secu

ritie

s se

ttlem

ent d

etai

ls an

d fu

ndin

g de

tails

.7.

Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an o

n se

curit

ies

settl

emen

t det

ails.

8.

D

omes

tic C

usto

dian

and

Cou

nter

party

pre

-mat

ch s

ettle

men

t det

ails,

via

pho

ne.

9.

Dom

estic

Cus

todi

an p

rovid

es re

sult

of p

re-m

atch

ing

to G

loba

l Cus

todi

an.

10.

Dom

estic

Cus

todi

an tr

ansm

its s

ettle

men

t det

ails

to M

EPS+

SGS

.11

. D

omes

tic C

usto

dian

mon

itors

set

tlem

ent s

tatu

s up

date

s (o

nlin

e).

12.

Dom

estic

Cus

todi

an fu

nds

MAS

acc

ount

via

MEP

S+ R

TGS.

13.

Upon

tran

sfer

of c

ash,

deb

it/cr

edit

conf

irmat

ion

from

MEP

S+ R

TGS.

14.

Upon

tran

sfer

of s

ecur

ities

, set

tlem

ent c

onfir

mat

ion

from

MAS

, via

MEP

S+ S

GS.

15.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

16.

Glob

al C

usto

dian

fund

s SG

D a

ccou

nt w

ith D

omes

tic C

usto

dian

, or F

CY n

ostro

(bef

ore

end

of d

ay).

17.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

18.

Dom

estic

Cus

todi

an s

ends

sec

uriti

es s

tate

men

t to

Glob

al C

usto

dian

.19

. D

omes

tic C

usto

dian

sen

ds d

ebit/

cred

it co

nfirm

atio

ns a

s ca

sh s

tate

men

t to

Glob

al C

usto

dian

.20

. Gl

obal

Cus

todi

an s

ends

cas

h st

atem

ent t

o Fo

reig

n In

stitu

tiona

l Inv

esto

r. So

urce

: ABM

F SF

2.

63


Thai

land

(TH

A)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

64


Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Figu

re 1

. TH

A B

ond

Mar

ket

Infr

astr

uctu

re D

iagr

am

BAHT

NET

= T

he B

ank

of T

haila

nd A

utom

ated

High

-val

ue T

rans

fer

Netw

ork;

BEX

= T

he B

ond

Elec

troni

c Ex

chan

ge (

The

Stoc

k Ex

chan

ge o

f Th

aila

nd);

MNS

= M

ultil

ater

al N

ettin

g Sy

stem

; SET

= S

tock

Exc

hang

e of

Tha

iland

; PTI

= P

ost T

rade

Inte

grat

ion

(The

Sto

ck E

xcha

nge

of T

haila

nd);

TCH

= T

haila

nd C

lear

ing

Hous

e (T

he S

tock

Exc

hang

e of

Tha

iland

); TS

D =

Tha

iland

Sec

uriti

es D

epos

itory

(The

Sto

ck E

xcha

nge

of T

haila

nd)

Sour

ce: A

BMF

SF2.

OTC

Mar

ket

TCH

(PTI)

BOT

(BAH

TNET

)

TSD

(PTI)

SET

(BEX

) TCH

PTI (

MNS

)

65


Figu

re 2

. TH

A B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

TCH

TSD

BOT

(BAH

TNET

)

(PTI

)

1. Tr

ade

7. C

ash

Settl

emen

t

3. M

atch

ing

5. H

oldi

ng B

onds

9. B

ond

Settl

emen

t

6. S

ettle

men

t Det

ails

8. P

aym

ent R

espo

nse

Mes

sage

2. Tr

ade

Data

4. M

atch

ing

Resu

lts

2. Tr

ade

Data

4. M

atch

ing

Resu

lts

10. S

ettle

men

t Rep

ort

(Bon

d)10

. Set

tlem

ent R

epor

t(B

ond)

8. C

onfir

mat

ion

of C

redi

t (C

ash)

8. C

onfir

mat

ion

of D

ebit

(C

ash)

Selle

r

Selle

r’sBa

nk

Buye

r

Buye

r’sBa

nk

Sour

ce: A

BMF

SF2.

66


Not

e: D

escr

ipti

on o

f TH

A B

ond

Tran

sact

ion

Flow

for

Dom

esti

c Tr

ades

OTC

Mar

ket/

DVP

OTC

Mar

ket

1.

Selle

r and

buy

er tr

ade

via O

TC m

arke

t.2.

Se

ller a

nd b

uyer

sen

d th

e tra

nsac

tion

deta

ils to

TCH

via

PTI

Sys

tem

.3.

TC

H m

atch

es tr

ade

data

from

sel

ler a

nd b

uyer

.4.

TC

H se

nds

mat

chin

g re

sults

to s

elle

r and

buy

er v

ia P

TI S

yste

m.

5.

TCH

send

s se

ttlem

ent d

etai

ls to

TSD

. Th

en, T

SD c

heck

s av

aila

bilit

y an

d bl

ocks

sec

uriti

es in

mem

ber a

ccou

nt.

6.

TSD

sen

ds c

ash

settl

emen

t det

ails

to B

OT.

7.

BOT

exec

utes

cas

h se

ttlem

ent.

8.

BOT

send

s ca

sh s

ettle

men

t con

firm

atio

n to

sel

ler,

buye

r and

TSD

.9.

TS

D re

leas

es b

lock

ed a

nd e

xecu

tes

secu

ritie

s de

liver

y.10

. TS

D s

ends

set

tlem

ent r

epor

ts to

sel

ler,

buye

r and

TCH

via

PTI

Sys

tem

. So

urce

: ABM

F SF

2.

67


Figu

re 3

. TH

A B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

or B

ank

Dom

estic

Cus

todi

an

Thai

BM

ABa

nk o

fTh

aila

nd

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

TSD

PTI

Coun

ter-

part

y

BOT

BA

HTNE

T

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Br

oker


1. Tr

ade

Orde

r2.

Trad

e Or

der

3. A

gree

men

t on

Trade

an

d Co

nfirm

atio

n

4. Trade Reporting

6. Tr

ade

Conf

irmat

ion

5. Tr

ade

Conf

irmat

ion

7. S

ettle

men

t In

stru

ctio

n12

. Cap

ture

of T

rans

actio

n De

tails

4. Tr

ade R

eport

ing

9. Pre

-matc

hing

Cash SettlementClearing Matching and Settlement

Trading

25. S

ettle

men

t Co

nfirm

atio

n

15. R

eque

st U

se

of B

alan

ce

8a. S

ettle

men

t Ins

truct

ion

23. R

epor

t NRB

S Ba

lanc

es

10. P

re-M

atch

ing

Stat

us

14. F

undi

ng R

epor

t

26. S

ecur

ities

Sta

tem

ent

22. S

ettle

men

t Con

firm

atio

n

13. M

atch

ing

Stat

us

21. S

ettle

men

t Con

firm

atio

n

19. F

undi

ng o

f BOT

Acc

ount

28. C

ash

Stat

emen

t27

. Cas

h St

atem

ent

24. F

undi

ng o

f Tra

des

11. F

X Co

nfirm

atio

n

18. F

X Co

nfirm

atio

n

17. F

X In

stru

ctio

n

16. F

X In

stru

ctio

n

8b. F

X/Fu

ndin

g In

stru

ctio

n

20. C

onfir

mat

ion

of D

ebit/

Cred

it

Cross-Border

Sour

ce: A

BMF

SF2.


68


Not

e: D

escr

ipti

on o

f TH

A B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s O

TC M

arke

t/D

VP

Trad

e Da

te1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r pla

ces

orde

r with

Inte

rnat

iona

l Bro

ker.

2.

Inte

rnat

iona

l Bro

ker p

lace

s or

der w

ith D

omes

tic B

roke

r/Ban

k.3.

D

omes

tic B

roke

r/Ban

k tra

des

OTC

with

Cou

nter

party

(via

pho

ne o

r Blo

ombe

rg).

4.

Dom

estic

Bro

ker/B

ank

and

Coun

terp

arty

repo

rt tra

de to

Tha

i BM

A wi

thin

30

min

utes

of t

rade

(web

inpu

t or,

e.g.

, via

Blo

ombe

rg).

5.

Dom

estic

Bro

ker/B

ank

send

s tra

de c

onfir

mat

ion

to In

tern

atio

nal B

roke

r. 6.

Fo

reig

n In

stitu

tiona

l Inv

esto

r rec

eive

s tra

de c

onfir

mat

ion.

T+1 7.

Fore

ign

Inst

itutio

nal I

nves

tor i

nstru

cts

Glob

al C

usto

dian

on

secu

ritie

s se

ttlem

ent a

nd c

ash/

fund

ing

deta

ils.

8.

Glob

al C

usto

dian

inst

ruct

s D

omes

tic C

usto

dian

on

(a) s

ecur

ities

set

tlem

ent d

etai

ls, (b

) FX

requ

est o

r fun

ding

det

ails.

9.

D

omes

tic C

usto

dian

pre

-mat

ches

with

Cou

nter

party

, typ

ical

ly via

pho

ne.

10.

Dom

estic

Cus

todi

an s

ends

pre

-mat

chin

g re

sults

to G

loba

l Cus

todi

an.

11.

Dom

estic

Cus

todi

an s

ends

FX

conf

irmat

ion

to G

loba

l Cus

todi

an.

Sett

lem

ent D

ate

12.

Dom

estic

Cus

todi

an c

aptu

res

settl

emen

t det

ails

in P

TI.

13.

Dom

estic

Cus

todi

an re

triev

es m

atch

ing

resu

lts, v

ia T

SD te

rmin

al.

14.

Dom

estic

Cus

todi

an s

ends

fund

ing

repo

rt to

Glo

bal C

usto

dian

.15

. Gl

obal

Cus

todi

an s

ends

, if s

o re

quire

d, re

ques

t to

use

THB

bala

nce

to F

orei

gn In

stitu

tiona

l Inv

esto

r.16

. Fo

reig

n In

stitu

tiona

l Inv

esto

r sen

ds, i

f so

requ

ired,

FX

inst

ruct

ion

(or a

dditi

onal

sec

uriti

es p

urch

ase

trade

) to

Glob

al C

usto

dian

.17

. Gl

obal

Cus

todi

an, i

f so

requ

ired,

sen

ds F

X in

stru

ctio

n to

Dom

estic

Cus

todi

an, a

s FX

ban

k.18

. D

omes

tic C

usto

dian

, as

FX b

ank,

con

firm

s FX

dea

l.19

. D

omes

tic C

usto

dian

fund

s cl

earin

g ac

coun

t at B

ank

of T

haila

nd.

20.

Upon

cas

h se

ttlem

ent/t

rans

fer,

BAHT

NET

sen

ds c

redi

t/deb

it co

nfirm

atio

n to

Dom

estic

Cus

todi

an (a

s BA

HTN

ET p

artic

ipan

t).21

. Up

on c

ash

settl

emen

t con

firm

atio

n, T

CH/T

SD tr

ansf

ers

secu

ritie

s an

d se

nds

settl

emen

t con

firm

atio

n to

Dom

estic

Cus

todi

an.

22.

Dom

estic

Cus

todi

an s

ends

set

tlem

ent c

onfir

mat

ion

to G

loba

l Cus

todi

an.

23.

Dom

estic

Cus

todi

an re

ports

clie

nts’

NRB

S ac

coun

t bal

ance

s to

Ban

k of

Tha

iland

(prio

r to

end

of d

ay).

24.

Glob

al C

usto

dian

fund

s ac

coun

t with

Dom

estic

Cus

todi

an d

irect

ly, o

r int

o FC

Y no

stro

acc

ount

(by

end

of d

ay).

25.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

26.

Dom

estic

Cus

todi

an s

ends

sta

tem

ent o

f sec

uriti

es to

Glo

bal C

usto

dian

(end

of d

ay).

27.

Dom

estic

Cus

todi

an s

ends

cas

h cr

edit/

debi

t inf

orm

atio

n in

cas

h st

atem

ent t

o Gl

obal

Cus

todi

an (e

nd o

f day

).28

. Gl

obal

Cus

todi

an s

ends

cas

h cr

edit/

debi

t inf

orm

atio

n to

FII

in c

ash

stat

emen

t (en

d of

day

). So

urce

: ABM

F SF

2.

69


Vie

t Nam

(VIE

)

Bond

Mar

ket I

nfra

stru

ctur

es

and

Bond

Tra

nsac

tion

Flow

70


Tradi

ng

Trade

mat

chin

g

CCP

Settl

emen

t mat

chin

g

Bond

set

tlem

ent

Cash

set

tlem

ent

Note

: Def

initi

on o

f tra

de d

ate

is di

ffere

nt fr

om o

ther

cou

ntrie

s in

Vie

t Nam

sin

ce tr

ade

date

is re

gard

ed a

s th

e da

te w

hen

secu

ritie

s ar

e tra

ded

on s

tock

exc

hang

e (in

cas

e of

list

ed s

ecur

ities

) or

da

te w

hen

trad

ed d

ata

are

ente

red

to H

NX s

yste

m

(in c

ase

of tr

ade

regis

tere

d se

curit

ies)

. But

, act

ual t

rade

is a

gree

d on

OT

C m

arke

t bef

ore

the

date

.BI

DV =

Ban

k fo

r Inv

estm

ent a

nd D

evel

opm

ent o

f Vie

tnam

; HOS

E =

Ho

Chi M

inh

Stoc

k Ex

chan

ge; H

NX =

The

Han

oi S

tock

Exc

hang

e; V

SD =

Vie

tnam

Sec

uriti

es

Depo

sitor

ySo

urce

: ABM

F SF

2.

Figu

re 1

. VI

E B

ond

Set

tlem

ent

Infr

astr

uctu

re D

iagr

am

OTC

Mar

ket

HNX

BIDV

VSD

HOSE

71


Figu

re 2

. VI

E B

usin

ess

Pro

cess

Flo

w G

over

nmen

t B

ond

Mar

ket/

DVP

VSD

BIDV

HNX

1. Tr

ade

7. M

akin

g no

tice

of m

ultil

ater

al n

ettin

g

and

settl

emen

t

13. B

alan

ce re

port

of m

embe

r’s d

epos

it ac

coun

t

12. C

heck

ing

cash

bal

ance

on

mem

ber’s

dep

osit

acco

unt

16. R

epor

t on

cash

rem

ittan

ce fo

r mul

tilat

eral

net

ting

and

paym

ent

14. T

rans

ferri

ng th

e m

oney

from

Mem

ber’s

dep

osit

acco

unt t

o M

embe

r’s c

ash

acco

unt

18.,

21.,

24. R

epor

t on

fund

tran

sfer

for m

ultil

ater

al n

ettin

g an

d pa

ymen

t

17. T

rans

ferri

ng m

oney

from

Mem

ber’s

cas

h ac

coun

t to

VSD’

s de

posit

acc

ount

24. S

umm

ary

repo

rt on

cle

arin

g an

d pa

ymen

t for

cas

h

20. T

rans

ferri

ng m

oney

from

VSD

’s de

posit

acc

ount

to M

embe

r’s c

ash

acco

unt

23. A

lloca

ting

amou

nt fr

om M

embe

r’s c

ash

acco

unt t

o M

embe

r’s d

epos

it ac

coun

t

19. D

elive

ring

secu

ritie

s fro

m M

embe

r’s a

ccou

nt to

VS

D’s

acco

unt

11. S

umm

ary

repo

rt on

sec

uriti

es m

ultil

ater

al n

ettin

g an

d se

ttlem

ent

22. D

elive

ring

secu

ritie

s fro

m V

SD’s

acco

unt t

o M

embe

r’s a

ccou

nt25

. Allo

catin

g se

curit

ies

from

Mem

ber’s

acc

ount

for

clear

ing

to th

ose

acco

unt f

or tr

adin

g

15. D

elive

ring

secu

ritie

s fro

m M

embe

r’s a

ccou

nts

pend

ing

for s

ettle

men

t int

o th

ose

acco

unts

for C

lear

ing

and

Settl

emen

t

3. M

atch

ing

5. Tr

ansa

ctio

n Re

sult

9. S

umm

ary

notic

e of

cas

h m

ultil

ater

al

netti

ng a

nd p

aym

ent

2. Tr

ade

inst

ruct

ion

2. Tr

ade

inst

ruct

ion

4. M

atch

ing

resu

lt4.

Mat

chin

g re

sult

6. S

endi

ng R

epor

t6.

Sen

ding

Rep

ort

8. N

otice

of c

ash

and

secu

ritie

s m

ultil

ater

al n

ettin

g an

d se

ttlem

ent

8. N

otice

of c

ash/

secu

ritie

s m

ultil

ater

al n

ettin

g an

d se

ttlem

ent

10. N

otice

of t

rans

actio

n re

sults

con

firm

atio

n 10

. Not

ice o

f tra

nsac

tion

resu

lts c

onfir

mat

ion

Selle

rBu

yer

Sour

ce: A

BMF

SF2.

72


Not

e: D

escr

ipti

on o

f VI

E B

usin

ess

Pro

cess

Flo

w G

over

nmen

t B

ond

Mar

ket/

DVP

(1

/2)

OTC

Mar

ket

1.

The

selle

r and

buy

er e

xecu

te b

ond

trade

s via

dire

ct n

egot

iatio

n m

etho

ds. T

rade

is e

xecu

ted

befo

re tr

adin

g da

y, be

caus

e tra

ding

day

is

the

day

when

the

selle

r and

buy

er in

put t

he in

stru

ctio

n in

to th

e sy

stem

. 2.

Bo

th th

e se

ller a

nd b

uyer

inpu

t tra

de in

stru

ctio

n in

to th

e ex

chan

ge s

yste

m o

f HN

X.3.

Af

ter i

nput

ting,

the

exch

ange

sys

tem

aut

omat

ical

ly m

atch

es th

e tra

de in

stru

ctio

ns.

4.

Trad

ing

resu

lt is

conf

irmed

to th

e se

ller a

nd b

uyer

.5.

Ea

ch e

xcha

nge

mar

ket s

ends

tran

sact

ion

resu

lt to

VSD

. VSD

che

cks

bond

hol

ding

info

rmat

ion

of d

epos

itory

mem

ber’s

clie

nts.

6.

VSD

mak

es a

nd s

ends

repo

rts to

mem

bers

incl

udin

g: S

umm

ary

notic

e of

tran

sact

ion

resu

lts; N

otic

e of

acc

ount

s la

ckin

g se

curit

ies

for s

ettle

men

t; an

d N

otic

e of

upd

atin

g in

vest

or’s

info

rmat

ion.

Afte

r rec

eivin

g th

e re

port,

mem

bers

che

ck th

eir t

rans

actio

ns.

7.

From

14:

30 to

15:

30, V

SD m

akes

not

ice

of m

ultil

ater

al n

ettin

g an

d se

ttlem

ent.

8.

From

15:

30 to

16:

00, V

SD s

ends

to e

ach

mem

ber “

Not

ice

of c

ash

mul

tilat

eral

net

ting

and

paym

ent”

and

“N

otic

e of

sec

uriti

es

mul

tilat

eral

net

ting

and

settl

emen

t”.

9.

From

15:

30 to

16:

00, V

SD s

ends

to th

e se

ttlem

ent b

ank:

“Su

mm

ary

notic

e of

cas

h m

ultil

ater

al n

ettin

g an

d pa

ymen

t” F

rom

16:

00

to 1

6:30

, VSD

sen

ds to

the

settl

emen

t ban

k in

the

form

of f

iles

via a

line

bet

ween

VSD

and

the

settl

emen

t ban

k. A

fter s

ucce

ssfu

lly

send

ing

expo

rted

file,

VSD

info

rms

the

resu

lt to

the

settl

emen

t ban

k.10

. By

8:3

0 of

the

settl

emen

t day

(T+

1), m

embe

rs s

end

“Not

ice

of tr

ansa

ctio

n re

sult

conf

irmat

ion”

and

erro

r cor

rect

ion

prop

osal

(if

any

) to

VSD

. If V

SD fa

ils to

rece

ive “

Not

ice

of tr

ansa

ctio

n re

sult

conf

irmat

ion”

from

mem

bers

, all

trans

actio

ns s

hall

be d

eem

ed

exac

t and

con

firm

ed.

11.

VSD

mak

es a

nd fi

les

“sum

mar

y re

port

on s

ecur

ities

mul

tilat

eral

net

ting

and

settl

emen

t.”

12.

From

11:

00 to

11:

30, B

IDV

chec

ks c

ash

bala

nce

on m

embe

r’s d

epos

it ac

coun

t for

cle

arin

g an

d se

ttlem

ent

(to e

nsur

e se

ttlem

ent f

or s

ecur

ities

tran

sact

ions

in li

ne w

ith V

SD’s

not

ice)

.13

. BI

DV

send

s th

e ba

lanc

e re

port

of m

embe

r’s d

epos

it ac

coun

t for

cle

arin

g an

d se

ttlem

ent t

o VS

D.

14.

From

13:

00 to

14:

00, b

ased

on

the

paym

ent d

ocum

ents

, BID

V au

tom

atic

ally

trans

fers

the

paya

ble

amou

nt fr

om m

embe

r’s

depo

sit a

ccou

nt fo

r cle

arin

g an

d se

ttlem

ent (

brok

erag

e ac

coun

t and

/or p

ropr

ieta

ry a

ccou

nt) t

o th

eir c

ash

acco

unt f

or c

lear

ing

and

settl

emen

t.15

. Ba

sed

on th

e pa

ymen

t doc

umen

ts, V

SD a

utom

atic

ally

deliv

ers

secu

ritie

s fro

m m

embe

r’s s

ecur

ities

acc

ount

s pe

ndin

g fo

r set

tlem

ent

(bro

kera

ge a

ccou

nt a

nd/o

r pro

prie

tary

acc

ount

) int

o m

embe

r’s s

ecur

ities

acc

ount

s fo

r cle

arin

g an

d se

ttlem

ent o

pene

d at

VSD

.16

. BI

DV

send

s fil

es a

nd d

ocum

ents

to V

SD “

Repo

rt on

cas

h re

mitt

ance

for m

ultil

ater

al n

ettin

g an

d pa

ymen

t” fr

om m

embe

r’s d

epos

it ac

coun

t for

cle

arin

g an

d se

ttlem

ent t

o m

embe

r’s c

ash

acco

unt f

or c

lear

ing

and

settl

emen

t.17

. Fr

om 1

4:00

to 1

4:30

, bas

ed o

n th

e pa

ymen

t doc

umen

t, BI

DV

trans

fers

mon

ey (n

et a

ccou

nt p

ayab

le) f

rom

mem

ber’s

cas

h ac

coun

t fo

r cle

arin

g an

d se

ttlem

ent t

o VS

D’s

cas

h ac

coun

t for

cle

arin

g an

d se

ttlem

ent.

18.

BID

V se

nds

files

and

doc

umen

ts to

VSD

“Re

port

on fu

nd tr

ansf

er fo

r mul

tilat

eral

net

ting

and

paym

ent”

– fr

om m

embe

r’s c

ash

acco

unt f

or c

lear

ing

and

settl

emen

t to

VSD

’s d

epos

it ac

coun

ts fo

r cle

arin

g an

d se

ttlem

ent.

19.

Base

d on

the

fund

tran

sfer

repo

rt by

BID

V, V

SD d

elive

rs s

ecur

ities

(tot

al n

et v

olum

e re

ceiva

ble)

from

sel

ling

mem

ber’s

sec

uriti

es

acco

unt f

or c

lear

ing

and

settl

emen

t to

VSD

’s s

ecur

ities

acc

ount

s fo

r cle

arin

g an

d se

ttlem

ent.

VSD

and

BID

V ch

eck

and

com

pare

th

e ba

lanc

e in

VSD

’s s

ecur

ities

acc

ount

for c

lear

ing

and

settl

emen

t and

VSD

’s d

epos

it ac

coun

t for

cle

arin

g an

d se

ttlem

ent w

ith th

e pa

ymen

t doc

umen

ts.

73


20.

From

14:

30 to

14:

45, b

ased

on

the

paym

ent d

ocum

ents

, BID

V au

tom

atic

ally

trans

fers

mon

ey (t

otal

net

val

ue re

ceiva

ble)

from

VS

D’s

dep

osit

acco

unt f

or c

lear

ing

and

settl

emen

t to

sellin

g m

embe

r’s c

ash

acco

unts

for c

lear

ing

and

settl

emen

t.21

. BI

DV

send

s fil

es a

nd d

ocum

ents

to V

SD’s

“Re

port

on fu

nd tr

ansf

er fo

r mul

tilat

eral

net

ting

and

paym

ent”

– fr

om V

SD’s

dep

osit

acco

unt f

or c

lear

ing

and

settl

emen

t to

mem

ber’s

cas

h ac

coun

ts fo

r cle

arin

g an

d se

ttlem

ent.

22.

Base

d on

the

fund

tran

sfer

repo

rt by

BID

V, V

SD d

elive

rs s

ecur

ities

(tot

al n

et v

olum

e re

ceiva

ble)

from

VSD

’s s

ecur

ities

acc

ount

for

clea

ring

and

settl

emen

t to

buyin

g m

embe

r’s s

ecur

ities

acc

ount

s fo

r cle

arin

g an

d se

ttlem

ent.

23.

From

14:

45 to

15:

00, b

ased

on

the

paym

ent d

ocum

ents

, the

BID

V au

tom

atic

ally

allo

cate

s re

spec

tive

amou

nt fr

om m

embe

r’s c

ash

acco

unts

for c

lear

ing

and

settl

emen

t to

mem

ber’s

dep

osit

acco

unt f

or c

lear

ing

and

settl

emen

t (br

oker

age

acco

unt o

r/and

pro

prie

tary

ac

coun

t) at

the

BID

V.24

. BI

DV

send

s fil

es a

nd d

ocum

ents

to V

SD “

Repo

rt on

fund

tran

sfer

for m

ultil

ater

al n

ettin

g an

d pa

ymen

t” fr

om m

embe

r’s c

ash

acco

unts

for c

lear

ing

and

settl

emen

t to

mem

ber’s

dep

osit

acco

unt f

or c

lear

ing

and

settl

emen

t and

“Su

mm

ary

repo

rt on

cle

arin

g an

d pa

ymen

t for

cas

h”.

25.

Purs

uant

to th

e fu

nd tr

ansf

er re

port

by th

e BI

DV,

VSD

allo

cate

s th

e re

spec

tive

secu

ritie

s fro

m m

embe

r’s s

ecur

ities

acc

ount

s fo

r cl

earin

g an

d se

ttlem

ent t

o m

embe

r’s s

ecur

ities

acc

ount

s fo

r tra

ding

(bro

kera

ge a

ccou

nts

and/

or p

ropr

ieta

ry a

ccou

nts)

. So

urce

: ABM

F SF

2.

Not

e: D

escr

ipti

on o

f VI

E B

usin

ess

Pro

cess

Flo

w G

over

nmen

t B

ond

Mar

ket/

DVP

(2

/2)

74


VSD

BIDV

HNX

2. M

atch

ing

4. Tr

ade

data

5. B

lock

ing

bond

s

12. C

ash

Settl

emen

t

12. B

ond

settl

emen

t

1. Tr

ade

orde

r1.

Trad

e or

der

10. T

rans

fer o

f Fun

ds

3. M

atch

ing

resu

lts3.

Mat

chin

g re

sult

6. S

umm

ary

notic

e of

tran

sact

ion

resu

lts a

nd o

ther

s6.

Sum

mar

y no

tice

of tr

ansa

ctio

n re

sults

and

oth

ers

7. N

otice

of c

ash/

secu

ritie

s m

ultil

ater

al n

ettin

g an

d pa

ymen

t/or

Notic

e of

trad

e by

trad

e pa

ymen

t of

secu

ritie

s/ca

sh w

ith U

SD b

onds

7. N

otice

of c

ash/

secu

ritie

s m

ultil

ater

al n

ettin

g an

d pa

ymen

t/or

Notic

e of

trad

e by

trad

e pa

ymen

t of

secu

ritie

s/ca

sh w

ith U

SD b

onds

8. N

otice

of t

rans

actio

n re

sult

conf

irmat

ion

(and

trad

ing

amen

dmen

t doc

umen

ts if

any

)

8. N

otice

of t

rans

actio

n re

sult

conf

irmat

ion

(and

trad

ing

amen

dmen

t doc

umen

ts if

any

)

9. S

umm

ary

notic

e of

cas

h m

ultil

ater

al n

ettin

g an

d pa

ymen

t/or

Sum

mar

y no

tice

of tr

ade

by tr

ade

paym

ent o

f cas

h wi

th U

SD b

onds

11. N

otice

of l

ist o

f mem

bers

who

ar

e in

def

ault

of c

ash

(if a

ny)

Selle

rBu

yer

Note

: Thi

s Tra

nsac

tion

Flow

sim

plifie

s th

e flo

wcha

rt of

the

prev

ious

pag

e.So

urce

: ABM

F SF

2.

Figu

re 3

. VI

E B

usin

ess

Pro

cess

Flo

w:

Rev

ised

Bon

d M

arke

t/D

VP

75


Dom

estic

Cus

todi

an

Glob

al

Cust

odia

n

Inte

rnat

iona

lBr

oker

VSD

Coun

ter-

part

y

HNX

(eBo

nd)

BIDV

As F

X Ba

nk

As C

ash

Co

rres

pond

ent

As C

ash

Corr

espo

nden

t

Dom

estic

Ba

nk

Dom

estic

Br

oker


3. Tr

ade

Orde

r4.

Trad

e Or

der

5. A

gree

men

t on

Trade

an

d Si

gnin

g of

Con

tract

12. Balance Enquiry


7. Tr

ade

Conf

irmat

ion

6. Tr

ade

Conf

irmat

ion

13. C

aptu

re Tr

ade

Deta

ils

11. R

elay

of T

rade

Det

ails

9. S

ettle

men

t In

stru

ctio

n14

. Set

tlem

ent R

epor

t

Cash Settlement

Transaction result

Clearing and Settlement

Trading

24. S

ettle

men

t Co

nfirm

atio

n

10. S

ettle

men

t Ins

truct

ion

16. M

atch

ing/

Stat

us U

pdat

e

22. S

ettle

men

t Con

firm

atio

n

25. S

ecur

ities

Sta

tem

ent

(15.

Cor

rect

ion

of

Trans

actio

n De

tails

)

20. R

etrie

val o

f Se

ttlem

ent C

onfir

mat

ion

19. F

undi

ng o

f BID

V Ac

coun

t

27. C

ash

Stat

emen

t26

. Cas

h St

atem

ent

23. F

undi

ng o

f Tra

des

17. F

X Co

nfirm

atio

n18

. FX

Conf

irmat

ion

2. F

X/Fu

ndin

g In

stru

ctio

n1.

FX/

Fund

ing

Inst

ruct

ion

21. R

etrie

val o

f Deb

it/Cr

edit

Info

rmat

ion

Cross-Border

Figu

re 4

. VI

E O

TC B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s

Sour

ce: A

BMF

SF2.


76


T-1 1.

Fo

reig

n In

stitu

tiona

l Inv

esto

r sen

ds F

X/fu

ndin

g in

stru

ctio

n to

Glo

bal C

usto

dian

(for

pla

nned

bon

d tra

des)

.2.

Gl

obal

Cus

todi

an s

ends

FX/

fund

ing

inst

ruct

ion

to D

omes

tic C

usto

dian

(to

ensu

re ti

mel

y av

aila

bilit

y of

VN

D).

3.

Fore

ign

Inst

itutio

nal I

nves

tor p

lace

s or

der w

ith In

tern

atio

nal B

roke

r.4.

In

tern

atio

nal B

roke

r pla

ces

orde

r, ty

pica

lly w

ith D

omes

tic B

ank.

5.

Dom

estic

Bro

ker/B

ank

trade

s OT

C wi

th C

ount

erpa

rty (v

ia p

hone

), bo

th p

artie

s sig

ns tr

ade

agre

emen

t (co

ntra

ct).

6.

Dom

estic

Bro

ker/B

ank

send

s tra

de c

onfir

mat

ion

to In

tern

atio

nal B

roke

r.7.

In

tern

atio

nal B

roke

r sen

ds tr

ade

conf

irmat

ion

to F

orei

gn In

stitu

tiona

l Inv

esto

r.8.

D

omes

tic B

ank

send

s tra

de c

onfir

mat

ion

to D

omes

tic C

usto

dian

.9.

Fo

reig

n In

stitu

tiona

l Inv

esto

r sen

ds s

ecur

ities

set

tlem

ent i

nstru

ctio

n to

Glo

bal C

usto

dian

.10

. Gl

obal

Cus

todi

an in

stru

cts

Dom

estic

Cus

todi

an o

n se

curit

ies

settl

emen

t det

ails.

11.

Dom

estic

Ban

k re

lays

trad

e de

tails

to D

omes

tic B

roke

r (as

HN

X m

embe

r) fo

r tra

de c

aptu

re.

Trad

e Da

te12

. D

omes

tic B

roke

r che

cks

avai

labl

e fu

nds/

bond

s wi

th D

omes

tic C

usto

dian

.13

. D

omes

tic B

roke

r cap

ture

s tra

de d

etai

ls on

HN

X, ty

pica

lly v

ia e

Bond

fron

t-end

sys

tem

.14

. VS

D p

rovid

es S

ettle

men

t Rep

ort t

o D

omes

tic C

usto

dian

( at

end

of “

Trad

e D

ate”

).15

. On

ly in

the

even

t of a

disc

repa

ncy,

does

Dom

estic

Cus

todi

an n

eed

to c

onta

ct V

SD (h

ence

das

hed

arro

w).

16.

Dom

estic

Cus

todi

an p

rovid

es s

ettle

men

t/mat

chin

g st

atus

to G

loba

l Cus

todi

an.

17.

Dom

estic

Cus

todi

an s

ends

FX

conf

irmat

ion

to G

loba

l Cus

todi

an.

18.

Glob

al C

usto

dian

sen

ds F

X co

nfirm

atio

n to

Inve

stor

.19

. D

omes

tic C

usto

dian

effe

cts

fund

ing

of B

IDV

acco

unt.

20.

Afte

r set

tlem

ent d

eadl

ine,

Dom

estic

Cus

todi

an re

triev

es s

ettle

men

t con

firm

atio

n fro

m V

SD (h

ardc

opy,

or o

nlin

e).

Sett

lem

ent D

ate/

T+1

21.

Afte

r set

tlem

ent d

eadl

ine,

Dom

estic

Cus

todi

an re

triev

es c

ash

debi

t/cre

dit c

onfir

mat

ions

from

BID

V (h

ardc

opy)

.22

. D

omes

tic C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

Glo

bal C

usto

dian

.23

. Gl

obal

Cus

todi

an e

ffect

s fu

ndin

g of

acc

ount

with

Dom

estic

Cus

todi

an, o

r int

o FC

Y no

stro

acc

ount

(bef

ore

end

of d

ay).

24.

Glob

al C

usto

dian

sen

ds s

ettle

men

t con

firm

atio

n to

For

eign

Inst

itutio

nal I

nves

tor.

25.

Dom

estic

Cus

todi

an s

ends

sec

uriti

es s

tate

men

t to

Glob

al C

usto

dian

.26

. D

omes

tic C

usto

dian

sen

ds d

ebit/

cred

it in

form

atio

n in

cas

h st

atem

ent t

o Gl

obal

Cus

todi

an.

27.

Glob

al C

usto

dian

sen

ds c

ash

stat

emen

t to

Fore

ign

Inst

itutio

nal I

nves

tor.

Sour

ce: A

BMF

SF2.

Not

e: D

escr

ipti

on o

f VI

E O

TC B

ond

Tran

sact

ion

Flow

for

For

eign

Inve

stor

s

77


Bond

Mar

ket I

nfra

stru

ctur

e D

iagr

am

78


Figu

re 1

. AS

EAN

+3

Gov

ernm

ent

Bon

d M

arke

t In

fras

truc

ture

Dia

gram

Trad

e

Trad

e m

atch

ing

CCP

Sett

lem

ent

mat

chin

g

Bond

se

ttle

men

t

Cash

se

ttle

men

t

Viet

Nam

OTC

VSD

KSD

CCDC

CSDC

C

PDTC

PDEx

Ross

STP

Facil

ity

BTBT

r-ROS

S

PDEx

eDVP

JASD

ECPS

MS

JASD

ECPS

MS

CFET

SHK

MA

CMU

TCH

PTI

TSD

PTI

HNX

BIDV

Com

mer

cial

Bank

BOT

BAHT

NET

MAS

MEP

S+

RTGS

BSP

PhilP

ass

BOK

BOK-

Wire

+BO

JBO

J-NE

TBI

BI-R

TGS

HKM

ACH

ATS

PBOC

HVPS

CN

APS

BOJ

BOJ-

NET

BNM

RENT

AS-

IFTS

TCH

PTI

BMS

ETP

Toky

oOT

CM

anila

OTC

PRC

OTC

Inte

r-ban

kBo

nd M

arke

t

Thai

land

OTC

Indo

nesia

OTC

Mal

aysia

OTC

MAS

MEP

S+ S

GSBN

MRE

NTAS

-SSD

S

BIBI

-SSS

S

HKM

ACM

U

Hong

Kon

gOT

CSe

oul

OTC

KRX

SSE

and

SZSE

BRU,

CAM

, LAO

, MYA

VIE

MAL

SIN

JPN

PRC

THA

KOR

HKG

PHI

INO

Brun

ei

Daru

ssal

amCa

mbo

dia

Lao

PDR

Mya

nmar

(Net

ting)

Note

:

Exch

ange

Mar

ket

Dire

ct in

ters

yste

m c

onne

ctio

n

Ce

ntra

l Ban

k

In

dire

ct c

onne

ctio

n. Tr

ade

data

(bon

d se

ttlem

ent i

nstru

ctio

ns) a

re e

nter

ed to

CSD

by

agen

t cus

todi

ans.

Com

mer

cial B

ank

Sour

ce:

ABM

F SF

2.

KRX

JGBC

C

PDEx

PDEx

Sing

apor

eOT

C

Bond Market Infrastructure Diagrams, Domestic Bond … Vol2 Part 3.pdf · 2013-05-06 · CCDC =...

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Transcript of Bond Market Infrastructure Diagrams, Domestic Bond … Vol2 Part 3.pdf · 2013-05-06 · CCDC =...