The National Clearing Company of Pakistan Limited (NCCPL) on Thursday announced that in order to provide further facilitation to the clearing members, settlement facility on Negotiated Deal Market (NDM) trades has been extended for T+0 settlement cycle without the involvement of payments.
Accordingly, client-to-client or client-to-proprietary trades to be executed in NDM will also be settled on T+0 settlement cycle basis through NCSS effective from Monday, April 30, as per the following mechanism:
1. Client-to-client or client-to-proprietary NDM trades on T+0 settlement cycle will be recorded at stock exchange by 01:00pm.
2. Upon execution of client-to-client or client-to-proprietary NDM trades, stock exchanges will transmit such NDM trades to NCSS as per the existing on-line mechanism by 01:00pm.
3. Settlement cycle, of such client-to-client or client-to-proprietary NDM trades, will be T+0 in NCSS.
4. Member-to-member NDM trades will not be allowed in the NDM reporting interface for T+0 settlement cycle.
5. NCSS functionality of broker-to-broker transactions on inter-exchange trades and institutional delivery system shall not be allowed on such client-to-client or client-to-proprietary NDM trades.
6. Settlement of such client-to-client or client-to-proprietary NDM trades shall be based on trade-for-trade balance order mechanism of NCSS without the pay and collect of amounts involved.
7. Settlement of client-to-client or client-to-proprietary NDM trades will be managed in NCSS through the regular account of BCM. However, no netting will be permissible across positions in NDM and any other market.
8. For the Securities settlement, NCSS shall transmit instructions to Central Depository System (eCDS) as per designated time schedule (DTS) of NCSS for the movement of securities, based on balanced orders, from the respective selling CM's CDS Account to the respective buying CM's CDS Account without the generation of money obligation.
9. In case of non or partial delivery confirmation by CDS within DTS of NCSS, such NDM trades shall not be processed further in NCSS.