Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1.	How often, over the last twelve months, has the depository been required to:
	Change its published settlement timetable?	None. The Clearing House, SCANS, performs settlement of trades. MCD performs the role of book entry settlement.
	Extend the time of opening for settlement input by users?	Not necessary since settlement instruction is the first transaction executed each day.
	Delay start of day processing?	None.
2.	Does the depository operate real time or multiple batch processing for settlement?	An end of day book entry batch processing for securities settlement is executed. There are 2 modes of initiating settlement instruction in Central Depository System (CDS): Ordinary Transfers To have the same value date as the date the settlement instruction is entered in CDS system, ordinary transfers must be entered by the ADA by 12.30 p.m on T+2. Amendment is allowed until 3.00pm, after which only deletions are allowed. Subsequently, these Ordinary Transfers are verified by MCD from 3.00pm onwards and depositors’ accounts are updated accordingly online. The updates for all Ordinary Transfer transactions entered by our participants for the day will be completed by 8.00pm daily. Institutional Settlement Service (ISS) Instructions are entered into the system from T+1 until 4.00pm on T+2 by Trading Clearing Members (TCM's). Affirmation and confirmation by Non Trading Clearing Members (NTCM's) is allowed up to 5.00 p.m. on T+2. All the affirmed / confirmed ISS instructions are processed on-line and the settlement for these ISS instructions are completed under batch processing. Depositors' accounts are updated during this process by 9.00 a.m. on T+3. In the case of trades on the buying-in board, book entry settlement will be performed real time whilst cash settlement is next day.
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	Users are linked to CDS database by terminals on real time basis. The online features available in the CDS are: transfer requests account opening account balance enquiry deposit For Ordinary Transfer transaction, users can cancel the earlier request. Transfer forwarded to MCD for processing can either be confirmed or deleted by MCD. For ISS instruction, instruction can either be cancelled or affirmed/confirmed on-line.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	No.