Entitlement Compensation Rules - Hong Kong
Bonds
| Market compensation basis: | Settlement Date |
| Automatic Compensation Managed by Local CSD: | No |
| Restriction on custody events/transaction types: | No restriction |
| Additional information: Coupon payment is calculated by the paying agent based on the settled position on the Record Date. If the trade fails to settle on the Record Date, a claim can be instituted against the counterparty. | |
| Service offered by CBL: | Adjustment is performed based on information received from the depository. |
Equities
| Market compensation basis: | Trade Date |
| Automatic Compensation Managed by Local CSD: | Yes. Applicable for On-Exchange trades only. |
| Restriction on custody events/transaction types: | No restriction |
| Additional information: Entitlements (including dividend and shares/rights) are calculated by CCASS based on the settled positions on the Record Date and directly credited to the participant’s account. If the traded position differs from the settled position on the Record Date, a claim can be instituted against the counterparty. Note: For reverse split, consolidation and cash offer, a claim cannot be instituted against the counterparty since the corporate action is taken only on the settled position. | |
| Service offered by CBL: | Adjustment is performed based on information received from the depository. |