Settlement MODEL Presented by Mrs Kaouther RAACH.

Settlement MODEL

AMEDA 15th MeetingFez, April 25th – 27th 2012

Presented by Mrs Kaouther RAACH

Tunisian Central Depository 2

Plan

1. Instructions2. Settlement Deadlines3. Settlement Principles

AMEDA / April 25-27, 2012


Instructions

• From Stock Exchange : On T at about 3 pm all transactions trade by trade

• From custodians (indirect participant for the stock exchange) : On T+2 obligations for each trade executed for their client or their own account.

STICODEVAM receives daily



Instructions (2/2)

• Free Of Payment Instructions • Intraday Repo between banks and

Central bank• OTC market Instructions (treasury

bonds)• Corporate Actions Instructions

STICODEVAM receives daily


5

Settlement Deadlines

T+3 : Stock Market

T, T+1, T+2 or T+3 (depending on participant’s choice) : FOP Instructions

T+1, T+2 or T+3 (depending on participant’s choice) : OTC Market

AMEDA / April 25-27, 2012 Tunisian Central Depository


Settlement Principles

STICODEVAM applies Delivery Versus Payment principle (DvP)



Settlement Principles• One Settlement Batch at the end of the day for instructions with cash

payment and FOP as : Stock exchange transactions; FoP OTC market transactions intraday repo

• Several batches per day at different hours for FoP instructions• STICODEVAM informs banks and brokers about cash to be transferred

to banks on T+2 at the end of the day at about 6 P.M • If there is no objection from banks or brokers, cash will be transferred

to central bank : one amount/per day for each bank to be debited or credited at T+3 morning at about 10 a.m in the central bank

• Central bank receives cash from STICODEVAM automatically by file (scriptural transfer) at about 10 a.m

• About 10.30 a.m , STICODEVAM sends securities statements to members



The Statement contains details about each settled instruction :

- Instruction type (FOP, Transactions, …)- Operation type,- Amount in case of a DvP instruction

If there is pending instruction, the book keeper is informed about all details


Settlement Principles


Overview

Which model : Model 1 or 2 ?- Which are the necessary preconditions that

should exist to assert which is the applied model ?

- When we can consider that it’s model 1 and not model 2?


Tunisian Central Depository 10AMEDA / April 25-27, 2012

THANK YOU Questions ?

Settlement MODEL Presented by Mrs Kaouther RAACH.

Documents

Transcript of Settlement MODEL Presented by Mrs Kaouther RAACH.