The Philippines

Clearing Agents:

The Securities Clearing Corporation of the Philippines (SCCP) - is a private institution primarily set-up as a clearance and settlement agency for depository eligible trades executed in the PSE. It is responsible for establishing the liabilities between trading participants of the Exchange; synchronizing the settlement of funds and the transfer of securities; guaranteeing the settlement of trades in the event of trading participant default. SCCP assumes the role of guarantor for trading participant transactions in the exchange along with the maintenance and administration of the trade guarantee fund.

Depositories:

The Philippine Depository and Trust Company (PDTC) - provides value-added services for both retail and corporate investors including Collateral Management, Valuation Services, Securities Lending Pool and Electronic Vaulting/Safekeeping Services. These services support market products for equities and fixed-income securities.

Payment Systems:

The market deadlines for the various payment methods of local currency (Pesos) in the Philippines are as follows:

Clearing cheques 12:00
Administered by the Philippine Clearing House Corporation (PCHC) of which the transfer is subject to a three-day clearing period. Cheques received after the deadline are considered late for deposit and will start clearing the following business day.

Electronic Payment System 13:30
Commonly known as “Netting”, this system is also administered by the PCHC. Although same day value is given, there is a 24-hour clearing period from receipt of payment for these transfers. Citibank is the settlement bank and linkage to the PCHC is via a network of terminals connected to each of the member banks.

Real Time Gross Settlement (RTGS) 16:00
Payment is given same day value with no clearing period. Administered by the Bangko Sentral ng Pilipinas (BSP), transfer instructions among banks are executed via SWIFT/telex instructions. Payments received via RTGS is subject to a fee of PHP50 per transaction. Payment orders done via RTGS is subject to a fee of PHP 500 per instruction for the account of the client. Quoted charges are that of HSBC and may differ from bank to bank. Both counter-parties must agree on payment via RTGS.

Any cancellation/amendment instructions received after these deadlines shall be processed on a best efforts basis.

Overdraft Permitted: Overdrafts are not permitted