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BRIEFING ON INVESTOR PARTICIPATION IN CCASS

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Funds will then be debited from or credited to the ... Investor Participant Debit Authorisations and Authorisation. to Disclose Information Form ... – PowerPoint PPT presentation

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Title: BRIEFING ON INVESTOR PARTICIPATION IN CCASS


1
INVESTOR ACCOUNT SERVICE IN CCASS
January 2005
2
Agenda
1. Background 2. Benefits 3. Functions 4. CCASS
Service Fees 5. Admission Criteria Account
Opening Procedure 6. Service Hours
2
3
Background
  • Investor Account Service in CCASS launched in
  • May 1998
  • A computerised book-entry clearing and
    settlement
  • system for transactions in securities listed
    on the Stock
  • Exchange of HK
  • Design for individual and corporate investors
    in HK
  • Accept BVI incorporated company since Dec 1999

3
4
Benefits
  • Control over the movement of shares deposited in
    CCASS
  • Receive records of shareholdings in CCASS
  • Enjoy better legal protection of shareholdings in
    CCASS

4
5
Benefits
  • Receive corporate information directly from
    listed issuers
  • Enjoy a variety of communication channels,
    including CCASS Phone System, CCASS Internet
    System and the Customer Service Centre

5
6
Functions
  • An Investor Account is a depository account for
    share
  • custody
  • Purchases and sales of stocks made by Investor
  • Participants (IP) and the resulting
    settlements will
  • continue to be handled by CCASS Broker or
  • Custodian Participants

6
7
Functions - Transaction Flow
Buy/Sell order details IP A/C No.
BROKER
IP
Input ISI
Place order
Input/Affirm ISI
AMS/3
CCASS
7
8
Functions - Stock Transfer
  • Investor Settlement Instructions (ISI) are
    used to
  • initiate stock transfer and money settlement
  • electronically through CCASS between IP and
  • Broker, Custodian, Stock Lender or
  • Stock Pledgee Participants

8
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Functions - Stock Settlement
  • The ISI will be settled upon input or
    affirmation
  • (if the input/affirmation datesettlement day,
    and
  • there is sufficient stock in the delivering
    partys
  • stock account)
  • OR
  • To be settled on the stock settlement day
  • (if the IP inputs/affirms the ISI before the
    settlement day)

9
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Functions - Money Settlement
Electronic money settlement between CCASS and
Participants
CCASS generates the following instructions for
money settlement
Electronic Payment Instruction (EPI)
Direct Debit Instruction (DDI) / Direct Credit
Instruction (DCI)
To process the money settlement of an ISI
between an IP and a Broker/ Custodian Participant
To process the money settlement between an IP
and CCASS e.g. dividend payment
10
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Functions - Money Settlement
  • Following payment options available for ISI
    transaction
  • Free of Payment (FOP)
  • Money settlement is to take place outside CCASS
  • and HKSCC is not involved
  • IP should arrange with their counterparties if
  • money settlement is required outside CCASS

11
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Functions - Money Settlement
  • Delivery versus Payment (DVP)
  • Shares settled in advance to money settlement
  • An Electronic Payment Instruction (EPI) will be
  • generated to IPs and non-IPs designated bank
    at
  • day end of the settlement day to effect the
    payment.

12
13
Functions - Money Settlement
  • Delivery versus Payment (DVP)
  • Funds will then be debited from or credited to
    the
  • IPs designated bank account through the
    overnight
  • interbank clearing process
  • Receipt of payment must be monitored by both
  • delivering and receiving parties

13
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Functions - Money Settlement
  • Realtime Delivery versus Payment (RDP)
  • Shares will be put on-hold in the delivering
  • Participants (IP or non-IP) stock account
    upon
  • affirmation
  • CCASS will generate a CHATS payment instruction
  • to the receiving Participants (IP or non-IP)
  • designated bank to effect payment

14
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Functions - Money Settlement
  • Realtime Delivery versus Payment (RDP)
  • If the payment confirmation is received from the
  • bank before 330pm, the shares will be
    delivered to
  • the receiving party (IP or non-IP)
    immediately.
  • Otherwise, the on-hold shares will be released
    back
  • to the delivering party (IP or non-IP) and
    CCASS
  • will continue the process on the next
    settlement day.

15
16
Functions - Nominee Services
  • Value-added service to our account holders
  • Deposited shares re-registered under the name of
    HKSCC Nominees Limited
  • Receive corporate information directly from
    listed issuers, e.g. annual reports and notices
  • HKSCC will collect benefit entitlements for IP
    and distribute to their stock/money accounts
    electronically

16
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Functions - Nominee Services
  • Apply for initial public offering and tender
    electronically via CCASS
  • HKSCC will send statements and provide enquiry
    function to IP about the corporate actions and
    deadlines, such as subscription, voting
    dividend election requiring their action

17
18
Functions - Short Message Services (SMS)
  • Short Message Services (SMS) include
  • Investor Settlement Instructions (ISIs)
  • Announcement summary and deadline for dividend
    election and voting instructions
  • EIPO and tender announcements
  • Rejected transactions such as Direct Debit
    Instruction

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Functions - Communicating with CCASS
  • CCASS Phone System
  • CCASS Internet System
  • Customer Service Centre

19
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Functions - CCASS Phone System
  • A CCASS Phone User ID/Password will be provided
    to each user of the Investor Account for
    accessing the CCASS Phone System
  • Can input and affirm ISIs, check account
    balances, and input instruction of initial public
    offering and corporate actions etc.

20
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Functions - CCASS Internet System
  • IP can operate their Investor accounts via
    Internet by using a self created Internet User ID
    or an e-Cert issued by Hongkong Post
  • Can input and affirm ISIs, check account
    balances, obtain statements, view circulars and
    input instruction of initial public offering and
    corporate actions etc.

21
22
Functions - Customer Service Centre
  • IP can submit instruction input requests to the
    Customer Service Centre in person as an
    alternative to the CCASS Phone System and CCASS
    Internet System

22
23
Functions - Statements
  • IP can choose to receive the following statements
    by
  • mail or view it via CCASS Internet System
  • Activity Statement details of activity done on
    the statement date
  • Monthly statement stock balance and fees
    payable for the month

23
24
CCASS Service Fees
  • Account-opening deposit 1,000 and SMS fee are
    waived until 30 June 2005
  • Fee concession within first 10 settlement days
    from account opening day

24
25
CCASS Service Fees
  • HKSCC charges IP the same fees as it charges
    other CCASS Participants (subject to adjustments
    in minimum and maximum fees, where appropriate)

25
26
CCASS Service Fees (Example)
  • Stock Custody Fee
  • 0.012 per board lot or odd lot, subject to a
    minimum
  • fee of 20 a maximum fee of 3,000 per month
  • e.g. If month-end stock balance 1,000 board
    lots
  • Custody fee for that month
  • 1,000 board lots x 0.012 1.2
  • Therefore, the Stock Custody Fee is 20

26
27
CCASS Service Fees (Example)
  • Dividend/Interest Collection Fee
  • 0.12 of the cash amount of dividend/interest,
    subject to
  • a minimum fee of 10 (or the gross amount of
    cash
  • dividend/interest if smaller than 10), and a
    maximum
  • fee of 500 per stock/debt in one currency on
    the same day
  • e.g. if the dividend 1,000
  • Dividend/Interest Collection Fee 1,000 x 0.12
  • 1.2
  • Therefore, the Dividend/Interest Collection Fee
    is 10

27
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CCASS Service Fees (Example)
  • ISI Stock Settlement Fee
  • 0.002 of the gross value for each ISI
    transaction,
  • subject to a minimum fee of 2 and a maximum
    fee
  • of 100 for each transaction
  • e.g. if the gross value 100,000
  • ISI Stock Settlement Fee
  • 100,000 x 0.002
  • 2

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Admission Criteria
Individual Investor Accounts

Joint Individual Investor Accounts
HKID Card Holders aged over 18 Up to a maximum
of 4 investors per account
HKID Card Holder aged over 18
29
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Admission Criteria
Corporate Investor Accounts
  • Corporations incorporated in HK under the HK
  • Companies Ordinance, or by any legal entity
  • incorporated in HK under HK Law
  • Overseas Corporations incorporated in the
    British
  • Virgin Islands (BVI) under the International
  • Business Companies Act (IBC Act)

30
31
Account Opening Procedure
  • For individual and joint account, applicant(s)
    can come in person to our Customer Service Centre
    or send the following documents by mail to open
    the Investor Account
  • Account Opening Form
  • Investor Participant Debit Authorisations and
    Authorisation
  • to Disclose Information Form
  • Photocopy of the Hong Kong Identity Card
  • Photocopy of the latest bank statement (or
    cheque) showing
  • the account name and number of the HK dollar
    account

31
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Service Hours For Enquiry Hotline
  • Investor Service Enquiry Hotline 2979 7000
  • Service Day Time
  • General Enquiries Daily 24 hours
  • Operator Assistance Monday Friday 900am -
    600pm
  • Saturday 900am - 100pm

32
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Service Hours For Customer Service Centre
  • Customer Service Centre
  • located at Upper Ground Floor, V-Heun Building,
  • 128-140 Queens Road Central, Hong Kong
  • Service Day Time
  • General Enquiries Monday Friday 900am -
    600pm
  • Opening of
  • Investor Account

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