315ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Bond Market Infrastructure Diagrams,

Domestic Bond Transaction Flows, and

Cross-border Bond Transaction Flows

Part 3

ContentsASEAN+3 Bond Market Diagram ......................................................................................................................................... 320

ASEAN+3 Government Bond Market Diagram ................................................................................................................... 321

ASEAN+3 Corporate Bond Market Diagram ....................................................................................................................... 322

Brunei Darussalam (BN) ........................................................................................................................ 325

Bond Market Infrastructure Diagram ................................................................................................................................... 326

Bond Transaction Flow for Domestic Trades (proposed by ADB) ..................................................................................... 328

Profit & Redemption Payment Flow of Government Sukuk Al-Ijarah ................................................................................. 332

People’s Republic of China (CN) ............................................................................................................. 336

Bond Market Infrastructure Diagram ................................................................................................................................... 337

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 340

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 345

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 352

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 357

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 366

Hong Kong, China (HK) .......................................................................................................................... 375

Bond Market Infrastructure Diagram ................................................................................................................................... 376

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 379

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 382

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 385

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 388

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 393

Indonesia (ID) ........................................................................................................................................ 398

Bond Market Infrastructure Diagram ................................................................................................................................... 399

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 402

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 405

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 409

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 412

318 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 417

Japan (JP) ............................................................................................................................................. 423

Bond Market Infrastructure Diagram ................................................................................................................................... 424

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 427

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 433

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 436

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 439

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 444

Cambodia (KH) ...................................................................................................................................... 449

Bond Market Infrastructure Diagram ................................................................................................................................... 450

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 453

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 456

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 459

Republic of Korea (KR) ........................................................................................................................... 464

Bond Market Infrastructure Diagram ................................................................................................................................... 465

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 468

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 473

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 478

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 481

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 486

Lao PDR (LA) ......................................................................................................................................... 491

Bond Market Infrastructure Diagram ................................................................................................................................... 492

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 495

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 498

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 501

Myanmar (MM) ...................................................................................................................................... 506

Bond Market Infrastructure Diagram ................................................................................................................................... 507

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 509

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 512

Malaysia(MY) ......................................................................................................................................... 517

Bond Market Infrastructure Diagram ................................................................................................................................... 518

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 521

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 525

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 528

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 533

319ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Philippines (PH) ..................................................................................................................................... 538

Bond Market Infrastructure Diagram ................................................................................................................................... 539

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 542

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 547

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 550

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 553

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 558

Singapore (SG) ...................................................................................................................................... 563

Bond Market Infrastructure Diagram ................................................................................................................................... 564

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 567

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 570

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 573

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 576

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 581

Thailand (TH) ......................................................................................................................................... 586

Bond Market Infrastructure Diagram ................................................................................................................................... 587

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 590

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 593

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 596

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 599

Interest & Redemption Payment Flow (Corporate Bond) .................................................................................................... 605

Viet Nam (VN) ........................................................................................................................................ 611

Bond Market Infrastructure Diagram ................................................................................................................................... 612

Bond Transaction Flow for Domestic Trades (Government Bond) ..................................................................................... 615

Bond Transaction Flow for Domestic Trades (Corporate Bond) ......................................................................................... 618

Bond Transaction Flow for Foreign Investors ....................................................................................................................... 621

Interest & Redemption Payment Flow (Government Bond) ................................................................................................ 624

Interest & Redemption Payment Flow (Corporate Bond) ................................................................................................... 629

320 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

D

iagra

m o

f each E

conom

y

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

AS

EAN

+3

Bond M

ark

et

Dia

gra

m

321ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Tra

de

Tra

de

matc

h.

Cle

ar-

ing

Sett

le.

Matc

h.

Bo

nd

S

ett

le.

Cash

sett

le.

NO

TE

:E

xchang

e

Centr

al

Bank

Direct in

ters

yste

m c

onnectio

n

Ind

irect

co

nnectio

n . T

rad

e d

ata

(b

ond

sett

lem

ent

instr

uctio

ns)

are

ente

red

to

CS

D b

y a

gent

custo

dia

ns.

Exchang

e re

late

d

Centr

al

Bank r

ela

ted

Co

mm

.B

an

ks

OTC

Inte

r-b

an

kB

on

d M

ark

et

PB

OC

HV

PS

CN

AP

S

CS

DC

C

SS

E&

SZ

SE

CC

DC

CF

ETS

SS

E&

SZ

SE

CN

OTC

HK

MA

CM

U

HK

MA

CH

AT

S

HK

MA

CM

U

HK

BI

BI-

RT

GS

BI

BI-

SS

SS

ID

JA

SD

EC

PS

MS

JS

CC

BO

JB

OJ-N

ET

OTC

JA

SD

EC

PS

MS

BO

JB

OJ-N

ET

JP

OTC B

OK

BO

K-W

ire

+

KR

X

KS

DKR

X

KR

X

KR

BN

MR

EN

TA

S-

IFT

S

OTC

BN

MR

EN

TA

S-S

ST

S

BM

SE

TP

MY

BS

PP

hilP

ass

OTC

PD

TCP

DE

x

PD

Ex

eD

vP

PD

Ex

Ro

ss S

TP

F

acili

ty

BTr

BTr-

RO

SS

PD

Ex

PH

MA

SM

EP

S+

RT

GS

OTC

MA

SM

EP

S+

SG

S

SG

BO

TB

AH

TN

ET

OTC

TC

HP

TI

TS

DP

TI

TC

HP

TI

TH

BID

V

VS

D

HN

X

OTC

VN

Bru

nei

Cam

bo

dia

Lao

PD

R

Myan

mar

MM

LA

KH

BN

* This

dia

gra

m s

ho

ws e

ntities w

hic

h i

s in

vo

lved

in m

ajo

r ty

pes o

f tr

ansactio

ns.

* *

Reta

il b

ond

mark

et

is n

ot

inclu

ded

in t

his

dia

gra

m.

BM

S

OTC

IDX

KP

EI

Co

mm

erc

ial B

ank

Go

vern

ment

Go

vern

ment

rela

ted

AS

EAN

+3 G

overn

ment

Bond M

ark

et

Dia

gra

m

322 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Tra

de

Cle

aring

Bond

Sett

lem

ent

Cash

Sett

lem

ent

OT

CE

X

Y*

Centr

al

bank

Rela

ted

CS

D *

*

Centr

al

bank

money

CN

OT

C

N

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

HK

OT

CE

X

Y*

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

ID

OT

C

Y

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

JP

OT

CE

X

Y*

Exch

an

ge

Re

late

dC

SD

Centr

al

bank

money

KR

OT

C

Y*

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

MY

OT

CE

X N

Bure

au o

f T

reasu

ry,

Exchange

Rela

ted

CS

D

Centr

al

bank

money

PH

OT

C

N

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

SG

OT

C

N

Exchan

ge

Rela

ted

CS

D

Centr

al

bank

money

TH

OT

C

N

Exchan

ge

Rela

ted

CS

D

Com

mer

cia

l bank

money

VN

Note

:EX

(E

xchange)

*: C

CP

exis

ts a

n e

xchange f

unction. B

ut,

tra

nsaction v

olu

me/v

alu

e t

hro

ugh e

xchange is s

mall.

**:T

here

is a

n e

xchange r

ela

ted C

SD

But,

tra

nsaction v

olu

me/v

alu

e t

hro

ugh e

xchange is s

mall.

AS

EAN

+3 G

overn

ment

Bond M

ark

et

Dia

gra

m

323ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

AS

EAN

+3 C

orp

ora

te B

ond M

ark

et

Dia

gra

m

Tra

de

Tra

de

matc

h.

Cle

ar-

ing

Sett

le.

Matc

h.

Bo

nd

S

ett

le.

Cash

sett

le.

JA

SD

EC

PS

MS

BO

JB

OJ-N

ET

OTC

BO

KB

OK

-W

ire

+KS

D

OTC

Co

mm

erc

ial

Ba

nks

OTC

Inte

r-b

an

kB

on

d M

ark

et

PB

OC

HV

PS

CN

AP

S

OTC

HK

MA

CM

U

HK

MA

CH

AT

S

BN

MR

EN

TA

S-

IFT

S

OTC

BN

MR

EN

TA

S-S

ST

S

Co

mm

erc

ial

Banks

OTC KS

EI

C-B

ES

TP

DTC

MA

SM

EP

S+

RT

GS

OTC

BO

TB

AH

TN

ET

OTC

TC

HP

TI

TS

DP

TI

TC

HP

TI

BID

V

VS

D

HN

X/

HO

SE

CS

DC

C

PD

Ex

eD

vP

CC

DC

HK

MA

CM

U

Bru

nei

Cam

bo

dia

Lao

PD

R

Myan

mar

OTC

NO

TE

:E

xchang

e M

ark

et

Centr

al

Bank

Direct in

ters

yste

m c

onnectio

n

Ind

irect

co

nnectio

n . T

rad

e d

ata

(b

ond

sett

lem

ent

instr

uctio

ns)

are

ente

red

to

CS

D b

y a

gent

custo

dia

ns.

CD

PD

CS

S

CD

PP

SM

S

JA

SD

EC

Bo

ok E

ntr

y

Tra

nsfe

r S

yste

m

JA

SD

EC

PS

MS

SH

CH

Exchang

e re

late

d

Centr

al

Bank r

ela

ted

BS

PP

hilP

ass

OTC

PD

ExP

DE

xK

RX

KR

X

KR

X

SS

E&

SZ

SE

SS

E&

SZ

SE

CF

ETS

CN

HK

ID

JP

KR

MY

P

HS

GT

HV

NM

M L

A K

H B

N

Co

mm

erc

ial

Ba

nks

IDX

KP

EI

BM

SE

TP

BM

S

Co

mm

erc

ial B

ank

Go

vern

ment

Go

vern

ment

rela

ted

* This

dia

gra

m s

ho

ws e

ntities w

hic

h i

s in

vo

lved

in m

ajo

r ty

pes o

f tr

ansactio

ns.

* *

Reta

il b

ond

mark

et

is n

ot

inclu

ded

in t

his

dia

gra

m.

324 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Tra

de

Cle

aring

Bond

Sett

lem

ent

Cash

Sett

lem

ent

OT

CE

X

Y*

CB

and

EX

Rela

ted

CS

D

Com

mer

cia

l and

Centr

al

bank

money

CN

OT

C

N

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

HK

OT

CE

X

Y*

Exchange

Rela

ted

CS

D

Com

merc

ial b

ank

money

ID

OT

C

N

Exchange

Rela

ted

CS

D

Centr

al

bank

money

JP

OT

CE

X

Y*

Exch

an

ge

Re

late

dC

SD

Com

mer

cia

l and

Centr

al

bank

money

KR

OT

C

Y*

Centr

al

bank

Ow

ned

CS

D

Centr

al

bank

money

MY

OT

CE

X N

Exch

an

ge

Re

late

dC

SD

Centr

al

bank

money

PH

OT

C

N

Exchange

Rela

ted

CS

D

Centr

al

bank

money

SG

OT

C

N

Exch

an

ge

Re

late

dC

SD

Centr

al

bank

money

TH

OT

C

N

Exch

an

ge

Re

late

dC

SD

Com

mer

cia

l bank

money

VN

Note

: E

X (

Exchange)

*: C

CP

exis

ts a

n e

xchange f

unction. B

ut,

tra

nsaction v

olu

me/v

alu

e t

hro

ugh e

xchange is n

eglig

ibly

sm

all.

AS

EAN

+3 C

orp

ora

te B

ond M

ark

et

Dia

gra

m

325ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BruneiDarussalam (BN)

● Bond Market Infrastructure Diagram

(Government Bond)

● Bond Transaction Flow for Domestic

Trades (proposed by ADB)

● Profit & Redemption Payment Flow of

Government Sukuk Al-Ijarah

326 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m (

Gove

rnm

ent

Bond)

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

pro

posed b

y A

DB

)

3.

Pro

fit

& R

edem

ption

Paym

ent

Flo

w o

f G

ove

rnm

ent

Suku

kA

l-Ija

rah

327ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

AM

BD

AM

BD

BN

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

328 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m (

Gove

rnm

ent

Bond)

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

pro

posed b

y A

DB

)

3.

Pro

fit

& R

edem

ption

Paym

ent

Flo

w o

f G

ove

rnm

ent

Suku

kA

l-Ija

rah

329ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BN

02.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sell

Sid

eB

uy

Sid

e

1. T

rade

3.M

atc

hin

g

2.D

eliv

ery

of P

hys

ical

Cert

ific

ate

AM

BD

4. C

ash S

ett

lem

ent

5. D

eliv

ery

of P

hys

ical

Cert

ific

ate

10

3. R

egis

tration

330 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BN

02.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y sid

e tra

de

via

OT

C m

ark

et b

y te

lep

ho

ne

or

by

FA

X in

th

e fo

rm o

f p

hys

ica

l ce

rtific

ate

.2

.S

ell

sid

e d

eliv

er

ph

ysic

al c

ert

ific

ate

with

evid

en

ce

of tr

ad

e to

AM

BD

.3

.A

MB

D r

eg

iste

rs tra

de

on

bo

ok.

4.

AM

BD

m

ake

s c

ash

se

ttle

me

nt fr

om

bu

y sid

e to

se

ll sid

e.

5.

Bu

y sid

e b

rin

gs b

ack p

hys

ica

l ce

rtific

ate

fro

m A

MB

D.

OT

C M

ark

et

331ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BN

03

. P

rofi

t Paym

ent

Flo

w o

f G

overn

ment

Sukuk A

l-Ijara

h

4. P

aym

ent

Instr

uction

Bond Issuer

Sid

eC

SD

Bond H

old

er

Sid

e

MO

F(M

inis

try

of

Fin

ance)

Sukuk H

old

er

Appoin

ted

Custo

dia

nas C

SD

BN

03

. P

rofit

Pa

yme

nt

Flo

w o

f G

ove

rnm

en

t S

uku

k A

l-Ija

rah

AM

BD

as P

ayi

ng A

gent

2. P

aym

ent

appro

val

request

7. P

rofit

Paym

ent

Confirm

ation

Cash

Flo

w

Info

rmation

Flo

w

Appoin

ted S

ettle

ment B

ank

Appoin

ted

Sett

lem

ent B

ank

3P

aym

ent

appro

val

receiv

ed

1. N

otification o

f P

rofit P

aym

ent

Tax

Offic

e

5. P

rofit P

aym

ent

MO

F’s

A

ccount

Settle

ment B

ank’s

Account

Bond H

old

er’s

Account

Appoin

ted S

ett

lem

ent B

ank

6. P

rofit

Paym

ent

13

(No T

ax

for

pro

fit)

Sam

e E

ntity

332 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m (

Gove

rnm

ent

Bond)

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

pro

posed b

y A

DB

)

3.

Pro

fit

& R

edem

ption

Paym

ent

Flo

w o

f G

ove

rnm

ent

Suku

kA

l-Ija

rah

333ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

The a

ppoin

ted c

usto

dia

n n

otifies A

uto

riti M

oneta

ri B

runei D

aru

ssala

m (A

MB

D) of t

he p

rofit

paym

ent.

2.

AM

BD

, as a

payin

g a

gent,

requests

for

appro

val a

nd p

aym

ent f

rom

Min

istr

y o

f F

inance

(MO

F).

3.

MO

F a

ppro

ves p

aym

ent.

4.

AM

BD

notifies th

e a

ppoin

ted c

ash s

ett

lem

ent b

ank o

f paym

ent d

eta

ils.

5.

Appoin

ted c

ash s

ett

lem

ent b

ank tr

ansfe

rs c

ash fr

om

MO

F’s

account t

o s

ett

lem

ent b

ank’s

account.

6.

Appoin

ted c

ash s

ett

lem

ent b

ank c

redits to

sukuk h

old

ers

’ accounts

pro

fit p

aid

by M

OF.

7.

Appoin

ted c

ash s

ett

lem

ent b

ank n

otifies s

ukuk

hold

er of pro

fit paym

ent.

Pro

cess

of P

rofit P

aym

ent

BN

Pro

fit

Paym

ent

Flo

w o

f G

overn

ment

Sukuk A

l-Ijara

h

334 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BN

04

. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Sukuk A

l-ljara

h”

as s

how

n o

n P

13

of

new

one

4. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

F(M

inis

try o

f F

ina

nce

)S

uku

k H

old

er

AM

BD

as P

ayin

g A

ge

nt

2. P

aym

ent

appro

val

request

8. P

rofit

Paym

ent

Confirm

ation

Cash

Flo

w

Info

rmation

Flo

w

Appoin

ted S

ett

lem

ent B

ank

Ap

po

inte

d

Se

ttle

me

nt

Ba

nk

3P

aym

ent

appro

val

receiv

ed

1. N

otification o

f P

rofit P

aym

ent

Tax O

ffic

e

5. P

rofit

Paym

ent

MO

F’s

A

ccount

Sett

lem

ent B

ank’s

Account

Bond H

old

er’

s

Account

Ap

po

inte

d S

ettle

me

nt

Ba

nk

6. P

rofit

Paym

ent

(No

Ta

x f

or

red

em

ptio

n)

Sam

e E

ntity

7.

Dele

te

Regis

tration

Ap

po

inte

d C

usto

dia

n

as C

SD

335ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

BN

04.

Redem

pti

on F

low

of

Govern

ment

Sukuk A

l-Ijara

h

1.

Th

e a

ppo

inte

d c

usto

dia

n n

otifie

s A

uto

riti M

one

tari B

run

ei D

aru

ssa

lam

(A

MB

D) of t

he

red

em

ption

. 2

.A

MB

D, a

s a

pa

yin

g a

ge

nt,

re

qu

ests

for

ap

pro

val a

nd

paym

ent f

rom

Min

istr

y o

f F

ina

nce

(M

OF

).

3.

MO

F a

ppro

ve

s p

aym

en

t.

4.

AM

BD

no

tifie

s th

e a

ppo

inte

d c

ash

sett

lem

en

t ban

k o

f p

aym

ent d

eta

ils.

5.

App

oin

ted

ca

sh s

ett

lem

en

t ban

k tr

an

sfe

rs c

ash

(p

rin

cip

al a

nd

pro

fit)

fro

m M

OF

’s a

ccou

nt

to s

ett

lem

en

t ba

nk’s

acco

unt.

6.

App

oin

ted

ca

sh s

ett

lem

en

t ban

k c

red

its to

su

kuk h

old

ers

’ acco

un

ts p

rincip

al a

nd

pro

fit

paid

by M

OF.

7.

App

oin

ted

Cu

sto

dia

n a

s C

SD

de

lete

s s

ukuk reg

istr

atio

n.

8.

App

oin

ted

ca

sh s

ett

lem

en

t ban

k n

otifie

s s

ukuk h

old

er o

f p

rofit pa

ym

en

t.

Pro

cess

of R

edem

ptio

n

336 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

People’s Republicof China (CN)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

337ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

338 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

Ch

ina O

TC

Mark

et

Inte

r-b

ank B

ond

Ma

rke

t

PB

OC

(C

NA

PS

)

CF

ET

S &

NIF

C:

Ch

ina

Fo

reig

n E

xch

an

ge

Tra

de

Syste

m &

Na

tion

al In

terb

an

k F

un

din

g C

en

ter,

SS

E:

Sh

an

gh

ai s

tock

exch

an

ge

, SZ

SE

: S

he

nzh

en

sto

ck e

xch

an

ge

, C

CD

C: C

hin

a C

en

tra

l D

ep

osito

ry a

nd

Cle

ari

ng

Co

rpo

ratio

n, C

SD

CC

: C

hin

a S

ecu

ritie

s D

ep

osito

ry a

nd

Cle

ari

ng

Co

rpo

ratio

n, S

HC

H (

Sh

an

gh

ai C

lea

rin

g H

ou

se

), C

NA

PS

: C

hin

a N

atio

na

l A

uto

ma

tic P

aym

en

t S

yste

m,

AIT

S:

Au

tom

ate

d I

nte

rba

nk T

rad

ing

Syste

mN

ote

: C

om

me

rcia

l B

an

k C

ou

nte

r M

ark

et

is n

ot

sh

ow

n h

ere

.

CC

DC

Exc

h. M

ark

et

SS

ES

ZS

E

CF

ET

S（A

ITS）

CS

DC

C

Co

mm

. ban

ks

339ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

Ch

ina O

TC

Mark

et

Inte

r-bank B

ond M

ark

et

PB

OC

(C

NA

PS

)

CF

ET

S &

NIF

C:

Ch

ina

Fo

reig

n E

xch

an

ge

Tra

de

Syste

m &

Na

tion

al In

terb

an

k F

un

din

g C

en

ter,

SS

E:

Sh

an

gh

ai S

tock

Exch

an

ge

, SZ

SE

: S

he

nzh

en

Sto

ck E

xch

an

ge

, C

CD

C: C

hin

a C

en

tra

l De

po

sito

ry a

nd

Cle

ari

ng

Co

rpo

ratio

n,

CS

DC

C:

Ch

ina

Se

cu

ritie

s D

ep

osito

ry a

nd

Cle

ari

ng

Co

rpo

ratio

n, S

HC

H (

Sh

an

gh

ai C

lea

rin

g H

ou

se

), C

NA

PS

: C

hin

a N

atio

na

l A

uto

ma

tic P

aym

en

t S

yste

m,

AIT

S:

Au

tom

ate

d I

nte

rba

nk T

rad

ing

Syste

mN

ote

: C

om

me

rcia

l B

an

k C

ou

nte

r M

ark

et

is n

ot

sh

ow

n h

ere

.

CC

DC

Exch

. M

ark

et

SS

ES

ZS

E

CF

ET

S（A

ITS）

CS

DC

C

Co

mm

. ba

nks

SH

CH

340 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

341ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

CF

ET

S(A

ITS

)S

ell

Sid

eB

uy S

ide

1. T

rade

CC

DC（

CB

GS）

12. D

VP

Ord

er

PB

OC

（C

NA

PS）

4. S

ett

lem

ent In

str

uction

4. S

ett

lem

ent In

str

uction

2. T

rade D

ata

13.B

ond D

eliv

ery

8. S

ell

sid

e’s

Bond L

ockin

g

4. S

ett

lem

ent In

str

uction

Receiv

ing

6. S

ett

lem

ent C

ontr

act

Pro

ducin

g

5.S

ett

lem

ent In

str

uction

Matc

hin

g

7. C

ontr

act E

xecuting

on

Deliv

ery

Day

9. D

VP

Fund S

ett

lem

ent

Req

uest

14. S

ett

lem

ent

Com

ple

tion N

otice

5. S

ett

lem

ent In

str

uction

Matc

hin

g N

otice

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

14. S

ett

lem

ent

Com

ple

tion N

otice

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

5. S

ett

lem

ent In

str

uction

Matc

hin

g N

otice

9. D

VP

Fund

Sett

lem

ent R

eq

uest

12. D

VP

Fund

Sett

lem

ent N

otice

10. F

und T

ransfe

r P

rocessin

g11. F

und T

ransfe

r N

otice

11. F

und T

ransfe

r N

otice

3. T

rade D

ata

3. T

rade D

ata

342 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

1.

Sell

sid

e a

nd b

uy s

ide t

rade b

ond v

ia C

hin

a F

ore

ign E

xchange T

rade S

yste

m (

CF

ET

S).

C

FE

TS

pro

vid

es a

uto

matic tra

de

matc

hin

g function. B

ut,

most of

the b

onds a

re tra

ded b

ilate

rally

in P

RC

OT

C m

ark

et by t

ele

phone o

r som

e o

ther

ways.

T

he tra

de d

ata

are

ente

red to C

FE

TS

for

price t

ranspare

ncy.

2.

CF

ET

S s

ends t

rade d

ata

to C

hin

a C

entr

al D

epository

&C

learing C

o.,

Ltd

. (C

CD

C).

About

5%

of tr

ade d

ata

are

ente

red to

CC

DC

directly f

rom

sell

sid

e a

nd b

uy s

ide (

refe

r to

4. S

ett

lem

ent in

str

uction).

3.

CC

DC

sends t

rade d

ata

to s

ell

sid

e a

nd b

uy s

ide f

or

verification.

4.

When s

ell

sid

e a

nd b

uy s

ide r

eceiv

ed t

rade d

ata

fro

m C

CD

C,

sell

sid

e a

nd b

uy s

ide v

erify

the d

ata

. I

f th

e d

ata

are

corr

ect,

sell

sid

e a

nd b

uy s

ide s

end a

ffirm

ative m

essage t

o C

CD

C.

The m

essages a

re r

egard

ed a

s “

sett

lem

ent in

str

uctions”

to

CC

DC

.

About 5%

of tr

ades a

re d

irectly e

nte

red to C

CD

C a

fter

traded in

PR

C O

TC

Mark

et.

In

this

case,

one p

art

y (

either

sell

sid

e

or buy s

ide)

needs t

o s

end s

ett

lem

ent in

str

uction into

CC

DC

syste

m. T

he s

ett

lem

ent in

str

uction needs t

o c

onta

in f

ull

message it

em

s n

ecessary

for

the s

ett

lem

ent.

C

CD

C s

yste

m w

ill a

uto

matically

asks the o

ther

part

y to c

onfirm

. If

not,

C

CD

C d

oesn’t p

rocess s

ett

lem

ent.

Aft

er m

atc

hin

g t

he o

rder

(local m

atc

hin

g),

CC

DC

sett

les t

he tra

de in

FO

P o

r D

VP

as

requeste

d b

y c

usto

mers

.5.

CC

DC

matc

hes s

ett

lem

ent in

str

uctions fro

m s

ell

sid

e a

nd b

uy s

ide a

nd n

otifies m

atc

hed r

esult.

6.

CC

DC

pro

duces s

ett

lem

ent contr

act.

7.

On the s

ett

lem

ent day,

CC

DC

execute

s t

he s

ett

lem

ent contr

act and n

otifies t

he s

tatu

s to t

he s

ell

sid

e a

nd b

uy s

ide.

8.

CC

DC

blo

cks s

ell

sid

e’s

bond t

o s

ecure

DV

P t

ransaction.

9.

CC

DC

sends D

VP

fund s

ett

lem

ent re

quest to

People

’s B

ank o

f C

hin

a （

PB

OC）.

10.

PB

OC

execute

s f

und s

ett

lem

ent.

F

und is t

ransfe

rred fro

m b

uy s

ide’s

curr

ent account

to s

ell

sid

e’s

curr

ent account

by H

igh

Valu

e P

aym

ent S

yste

m (

HV

PS

) of C

NA

PS

.11.

PB

OC

sends f

und tra

nsfe

r notice to t

he s

ell

sid

e a

nd b

uy s

ide.

12.

PB

OC

sends D

VP

fund s

ett

lem

ent notice t

o C

CD

C.

13.

CC

DC

execute

s b

ond d

eliv

ery

(re

lease b

locked b

ond).

14.

CC

DC

sends s

ett

lem

ent com

ple

tion n

otice t

o the s

ell

sid

e a

nd b

uy s

ide.

OT

C M

ark

et

343ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

Buy S

ide

Paym

en

t B

an

ks

CS

DC

C

Mu

ltil

ate

ral N

et S

ett

lem

en

t S

yste

m(

MN

S S

yste

m)

SS

Eo

r S

ZS

ES

ell

Sid

e

1. T

rade O

rder

1. T

rade O

rder

14. S

ett

lem

ent R

eport

(Bonds &

Cash)

14. S

ett

lem

ent R

eport

(Bonds &

Cash)

6. C

leari

ng

Result

6. C

leari

ng

Result

9. A

ffir

mation o

f S

ett

lem

ent

9. A

ffir

mation o

f S

ett

lem

ent

3. N

otice o

f T

rade

3. N

otice o

f T

rade

2. T

rade M

atc

hin

g

4. T

rade D

ata

8. N

otification o

f T

rade

To B

e S

ett

led

8. N

otification o

f T

rade

To B

e S

ett

led

5. C

leari

ng

7. S

ett

lem

ent D

ata

13.B

ond S

ett

lem

ent

11. C

ash S

ett

lem

ent

12. S

ett

lem

ent R

eport

(c

ash)

10. S

ett

lem

ent D

ata

12. S

ett

lem

ent R

eport

12. S

ett

lem

ent R

eport

(c

ash)

344 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

Sh

an

gh

ai S

tock E

xch

an

ge

（S

SE）

or

Sh

en

zh

en

Sto

ck E

xch

an

ge（S

ZS

E）.

2.

SS

E/S

ZS

E m

atc

he

s o

rde

rs fro

m s

ell

sid

e a

nd

bu

y s

ide

.3

.S

SE

/SZ

SE

se

nd

s n

otic

e o

f tr

ad

e to

se

ll sid

e a

nd

bu

y s

ide

. 4

.S

SE

/SZ

SE

se

nd

s tr

ad

e d

ata

to

Ch

ina

Ce

ntr

al D

ep

osito

ry &

Cle

ari

ng

Co

., L

td.

(CS

DC

C).

5.

Cle

ari

ng

fu

nctio

n in

CS

DC

C e

xe

cu

tes c

lea

rin

g p

roce

ss.

6.

Cle

ari

ng

fu

nctio

n in

CS

DC

C s

en

ds c

lea

rin

g r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

.7

.C

lea

rin

g fu

nctio

n in

CS

DC

C s

en

ds s

ettle

me

nt

da

ta t

o C

SD

fu

nctio

n in

CS

DC

C.

8.

CS

D f

un

ctio

n in

CS

DC

C s

en

ds n

otic

e o

f tr

ad

e to

be

se

ttle

d t

o s

ell

sid

e a

nd

bu

y s

ide

.9

.S

ell

sid

e a

nd

bu

y s

ide

se

nd

aff

irm

atio

n o

f se

ttle

me

nt

to C

SD

CC

.1

0.

CS

DC

C s

en

ds s

ettle

me

nt

da

ta t

o p

aym

en

t b

an

ks.

11

.P

aym

en

t b

an

ks p

erf

orm

ca

sh

se

ttle

me

nt.

12

.P

aym

en

t b

an

ks s

en

d s

ettle

me

nt

rep

ort

s to

CS

DC

C,

se

ll sid

e a

nd

bu

y s

ide

.1

3.

CS

D f

un

ctio

n in

CS

DC

C e

xe

cu

tes b

on

d s

ettle

me

nt.

14

.C

SD

CC

se

nd

s s

ettle

me

nt

rep

ort

s (

bo

nd

s &

ca

sh）

to s

ell

sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

345ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

346 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

05.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

CF

ET

S(A

ITS

)S

ell

Sid

eB

uy S

ide

1. T

rade

CC

DC（

CB

GS）

or

SH

CH

12. D

VP

Ord

er

PB

OC

（C

NA

PS）

4. S

ett

lem

ent In

str

uction

4. S

ett

lem

ent In

str

uction

2. T

rade D

ata

13.B

ond D

eliv

ery

8. S

ell

Sid

e’s

Bond L

ockin

g

4. S

ett

lem

ent In

str

uction

Receiv

ing

6. S

ett

lem

ent C

ontr

act

Pro

ducin

g

5.S

ett

lem

ent In

str

uction

Matc

hin

g

7. C

ontr

act E

xecuting

on

Deliv

ery

Day

9. D

VP

Fund S

ett

lem

ent

Req

uest

14. S

ett

lem

ent C

om

ple

tion

Notice

5. S

ett

lem

ent In

str

uction

Matc

hin

g N

otice

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

14. S

ett

lem

ent C

om

ple

tion

Notice

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

5. S

ett

lem

ent In

str

uction

Matc

hin

g N

otice

9. D

VP

Fund

Sett

lem

ent r

eq

uest

12. D

VP

Fund

Sett

lem

ent N

otice

10. F

und T

ransfe

r P

rocessin

g11. F

und T

ransfe

r N

otice

11. F

und T

ransfe

r N

otice

3. T

rade D

ata

3. T

rade D

ata

1. T

rade

1. T

rade

2. T

rade D

ata

2. T

rade D

ata

347ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

05.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

bo

nd

via

Ch

ina

Fo

reig

n E

xch

an

ge

Tra

de

Syste

m (

CF

ET

S).

C

FE

TS

pro

vid

es

au

tom

atic

tra

de

ma

tch

ing

fu

nctio

n.

Bu

t, m

ost

of

the

bo

nd

s a

re tra

de

d b

ilate

rally

in

PR

C O

TC

ma

rke

t b

y

tele

ph

on

e o

r so

me

oth

er

wa

ys. T

he

tra

de

da

ta a

re e

nte

red

to

CF

ET

S f

or

pri

ce

tra

nsp

are

ncy.

2

.C

FE

TS

se

nd

s tr

ad

e d

ata

to

Ch

ina

Ce

ntr

al D

ep

osito

ry &

Cle

ari

ng

Co

., L

td.

(CC

DC

) o

r S

ha

ng

ha

i C

lea

rin

g H

ou

se

(S

HC

H).

CF

ET

S a

lso

se

nd

s tr

ad

e d

ata

to

se

ll sid

e a

nd

bu

y s

ide

. 3

.C

CD

C o

r S

HC

H s

en

ds tr

ad

e d

ata

to

se

ll sid

e a

nd

bu

y s

ide

fo

r ve

rifica

tion

. 4

.W

he

n s

ell

sid

e a

nd

bu

y s

ide

re

ce

ive

tra

de

da

ta f

rom

CC

DC

or

SH

CH

, se

ll sid

e a

nd

bu

y s

ide

ve

rify

the

da

ta.

If

the

da

ta a

re c

orr

ect, s

ell

sid

e a

nd

bu

y s

ide

se

nd

aff

irm

ativ

e m

essa

ge

to C

CD

C.

Th

e m

essa

ge

s a

re r

eg

ard

ed

as

“se

ttle

me

nt in

str

uctio

ns”

to C

CD

C o

r S

HC

H.

S

om

e o

f tr

ad

es a

re d

ire

ctly

en

tere

d t

o C

CD

C a

fte

r tr

ad

ed

in

PR

C O

TC

Ma

rke

t.

In t

his

ca

se

, o

ne

pa

rty (

eith

er

se

ll sid

e o

r b

uy s

ide

) n

ee

ds to

se

nd

se

ttle

me

nt

instr

uctio

n in

to C

CD

C s

yste

m. T

he

se

ttle

me

nt

instr

uctio

n

ne

ed

s to

co

nta

in fu

ll m

essa

ge

ite

ms n

ece

ssa

ry fo

r th

e s

ettle

me

nt.

CC

DC

syste

m a

uto

ma

tica

lly a

sks th

e o

the

r p

art

y to

co

nfirm

. If

no

t, C

CD

C d

oe

sn

’t p

roce

ss s

ettle

me

nt. A

fte

r m

atc

hin

g th

e o

rde

r (l

oca

l ma

tch

ing

), C

CD

C s

ettle

s t

he

tr

ad

e in

FO

P o

r D

VP

as r

eq

ue

ste

d b

y c

usto

me

rs.

5.

CC

DC

or

SH

CH

ma

tch

es s

ettle

me

nt

instr

uctio

ns f

rom

se

ll sid

e a

nd

bu

y s

ide

an

d n

otif

ies m

atc

he

d r

esu

lt.

6.

CC

DC

or

SH

CH

pro

du

ce

s s

ettle

me

nt

co

ntr

act.

7.

On

the

se

ttle

me

nt

da

y, C

CD

C o

r S

HC

H e

xe

cu

tes th

e s

ettle

me

nt

co

ntr

act a

nd

no

tifie

s th

e s

tatu

s to

se

ll sid

e a

nd

b

uy s

ide

.8

.C

CD

C o

r S

HC

H b

locks s

ell

sid

e’s

bo

nd

to

se

cu

re D

VP

tra

nsa

ctio

n.

9.

CC

DC

or

SH

CH

se

nd

s D

VP

fu

nd

se

ttle

me

nt

req

ue

st to

Pe

op

le’s

Ba

nk o

f C

hin

a （

PB

OC）

. 1

0.

PB

OC

exe

cu

tes fu

nd

se

ttle

me

nt.

Fu

nd

is tra

nsfe

rre

d fro

m b

uy s

ide

’s c

urr

en

t acco

un

t to

se

ll sid

e’s

cu

rre

nt

acco

un

t by H

igh

Va

lue

Pa

ym

en

t S

yste

m (

HV

PS

) o

f C

NA

PS

.1

1.

PB

OC

se

nd

s fu

nd

tra

nsfe

r n

otic

e t

o s

ell

sid

e a

nd

bu

y s

ide

. 1

2.

PB

OC

se

nd

s D

VP

fu

nd

se

ttle

me

nt

no

tice

to

CC

DC

or

SH

CH

.1

3.

CC

DC

or

SH

CH

exe

cu

tes b

on

d d

eliv

ery

(re

lea

se

blo

cke

d b

on

d).

14

.C

CD

C o

r S

HC

H s

en

ds s

ettle

me

nt

co

mp

letio

n n

otic

e t

o s

ell

sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

348 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

06.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

SH

CH

PB

OC

（C

NA

PS）

CF

ET

S(A

ITS

)S

ell

Sid

eB

uy S

ide

1. T

rade

2. T

rade D

ata

8. T

ransfe

r of sell

sid

e’s

bonds to

SH

CH

3. N

ovation

4.N

ett

ing

7. S

end T

rade D

ata

aft

er nett

ing

12. S

ett

lem

ent C

om

ple

tion

Notice

5. N

otice D

ata

of N

ett

ing

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

12. S

ett

lem

ent C

om

ple

tion

Notice

7. S

ett

lem

ent E

xecuting

S

tatu

s N

otice

5. N

otice D

ata

of N

ett

ing

12. F

und T

ransfe

r N

otice

12. F

und T

ransfe

r N

otice

6.A

ffir

mation

6. A

ffir

mation

10. T

ransfe

r of bonds

from

SH

CH

to b

uy s

ide

10. F

und T

ransfe

r fr

om

S

HC

H to S

ell

Sid

e

8. F

und T

ransfe

r fr

om

B

uy S

ide t

o S

HC

H

11. I

nfo

rm C

om

ple

tion

of T

ansfe

r

12. C

om

ple

ting

of

Sett

lem

ent

9. I

nfo

rm C

om

ple

tion o

f T

ransfe

r

7. D

ata

aft

er

nett

ing

by

novation

1. T

rade

1. T

rade

2. T

rade D

ata

2. T

rade D

ata

349ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

06.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

) S

HC

H

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

bo

nd

via

Ch

ina

Fo

reig

n E

xch

an

ge

Tra

de

Syste

m (

CF

ET

S).

C

FE

TS

pro

vid

es

au

tom

atic

tra

de

ma

tch

ing

fu

nctio

n.

Bu

t, m

ost

of

the

bo

nd

s a

re tra

de

d b

ilate

rally

in

Ch

ina

OT

C M

ark

et

by

tele

ph

on

e o

r so

me

oth

er

wa

ys. T

he

tra

de

da

ta a

re e

nte

red

to

CF

ET

S f

or

pri

ce

tra

nsp

are

ncy.

2

.C

FE

TS

se

nd

s tr

ad

e d

ata

to

Sh

an

gh

ai C

lea

rin

g H

ou

se

(S

HC

H)

as C

CP

& C

SD

. C

FT

ES

als

o s

en

ds tra

de

da

ta t

o

se

ll sid

e a

nd

bu

y s

ide

. 3

.S

HC

H m

ake

s n

ova

tion

.4

.S

HC

H e

xe

cu

tes n

ettin

g p

roce

ss.

5.

SH

CH

no

tifie

s s

ell

sid

e a

nd

bu

y s

ide

of

ne

ttin

g.

6.

se

ll sid

e a

nd

bu

y s

ide

aff

irm

s th

e n

ettin

g.

7.

SH

CH

se

nd

s d

ata

aft

er

ne

ttin

g t

o P

eo

ple

’s B

an

k o

f C

hin

a （

PB

OC）

. 8

.S

HC

H tra

nsfe

rs b

on

ds fro

m s

ell

sid

e a

cco

un

t to

SH

CH

wh

ile P

BO

C t

ran

sfe

rs m

on

ey f

rom

bu

y s

ide

acco

un

t to

S

HC

H.

9.

SH

CH

an

d P

BO

C i

nfo

rm c

om

ple

tion

of b

on

d a

nd

mo

ne

y tra

nsfe

r e

ach

oth

er.

10

.S

HC

H tra

nsfe

rs b

on

ds fro

m S

HC

H t

o b

uy s

ide

’s a

cco

un

t w

hile

PB

OC

tra

nsfe

rs m

on

ey f

rom

SH

CH

to

se

ll sid

e’s

a

cco

un

t.1

1.

SH

CH

an

d P

BO

C i

nfo

rm c

om

ple

tion

of b

on

d a

nd

mo

ne

y tra

nsfe

r e

ach

oth

er.

12

.S

HC

H n

otif

ies s

ell

sid

e a

nd

bu

y s

ide

of

bo

nd

se

ttle

me

nt

co

mp

letio

n w

hile

PB

OC

no

tifie

s s

ell

sid

e a

nd

bu

y s

ide

of

ca

sh

se

ttle

me

nt

co

mp

letio

n.

OT

C M

ark

et

350 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

07.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

Paym

en

t B

an

ks

CS

DC

CM

ult

ilate

ral N

et S

ett

lem

en

t S

yste

m

(MN

S S

yste

m)

SS

Eo

r S

ZS

ES

ell

Sid

eB

uy S

ide

1. T

rade O

rder

1. T

rade O

rder

14. S

ett

lem

ent R

eport

(Bonds &

Cash)

14. S

ett

lem

ent R

eport

(Bonds &

Cash)

6. C

leari

ng

Result

6. C

leari

ng

Result

9. A

ffir

mation o

f S

ett

lem

ent

9. A

ffir

mation o

f S

ett

lem

ent

3. N

otice o

f T

rade

3. N

otice o

f T

rade

2. T

rade M

atc

hin

g

4. T

rade D

ata

8. N

otification o

f T

rade to

be S

ett

led

8. N

otification o

f T

rade to

be S

ett

led

5. C

leari

ng

7. S

ett

lem

ent D

ata

13.B

ond S

ett

lem

ent

11. C

ash S

ett

lem

ent

12. S

ett

lem

ent R

eport

(c

ash)

10. S

ett

lem

ent In

str

uction

12. S

ett

lem

ent R

eport

12. S

ett

lem

ent R

eport

(c

ash)

351ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

07.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

Sh

an

gh

ai S

tock E

xch

an

ge

（S

SE）

or

S

he

nzh

en

Sto

ck E

xch

an

ge

（S

ZS

E）

.2

.S

SE

/SZ

SE

co

llate

s o

rde

rs f

rom

se

ll sid

e a

nd

bu

y s

ide

.3

.S

SE

/SZ

SE

se

nd

s n

otic

e o

f tr

ad

e to

se

ll sid

e a

nd

bu

y s

ide

. 4

.S

SE

/SZ

SE

se

nd

s tr

ad

e d

ata

to

Ch

ina

Se

cu

ritie

s D

ep

osito

ry &

Cle

ari

ng

Co

., L

td.

(CS

DC

C).

5.

Cle

ari

ng

fu

nctio

n in

CS

DC

C e

xe

cu

tes c

lea

rin

g p

roce

ss.

6.

Cle

ari

ng

fu

nctio

n in

CS

DC

C s

en

ds cle

ari

ng

re

su

lt t

o s

ell

sid

e a

nd

bu

y s

ide

.7

.C

lea

rin

g fu

nctio

n in

CS

DC

C s

en

ds s

ettle

me

nt

da

ta t

o C

SD

fu

nctio

n in

CS

DC

C.

8.

CS

D f

un

ctio

n in

CS

DC

C s

en

ds n

otic

e o

f tr

ad

e to

be

se

ttle

d t

o s

ell

sid

e a

nd

bu

y s

ide

.9

.T

he

cle

ari

ng

pa

rtic

ipa

nts

(i.e

., t

he

bu

ye

r/se

ller)

sh

all

co

nfirm

to

CS

DC

C w

hic

h o

f th

e t

rad

es s

ha

ll b

e

se

ttle

d.

10

.C

SD

CC

se

nd

s c

ash

se

ttle

me

nt

instr

uctio

ns t

o p

aym

en

t b

an

ks.

11

.P

aym

en

t b

an

ks p

erf

orm

ca

sh

se

ttle

me

nt.

12

.P

aym

en

t b

an

ks s

en

d s

ettle

me

nt

rep

ort

s to

CS

DC

C,

se

ll sid

e a

nd

bu

y s

ide

.1

3.

CS

D f

un

ctio

n in

CS

DC

C e

xe

cu

tes b

on

d s

ettle

me

nt.

14

.C

SD

CC

se

nd

s s

ettle

me

nt

rep

ort

(b

on

ds &

ca

sh）

to s

ell

sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

352 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

353ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

08.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ R

MB

Banks

As C

ash

Corr

espondent

BOC HK, RMB Settlement Banks (HK, Macau)

Se

ttle

me

nt

Ag

en

t(C

usto

dia

n)

CF

ET

S

PB

OC

CN

AP

S

Clearing Matching & Settlement

Cross-Border

CC

DC

As

ow

n

banker

Trading Cash Settlement

1T

rade O

rder

2 T

rade E

xecutio

n

3T

rade C

onfirm

atio

n4 T

rade C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

13

Settle

ment

Confirm

atio

n

15

Cash

Sta

tem

ent

14

Securitie

s S

tate

ment

8R

em

ittance o

f F

unds

12 S

ettle

ment

Confirm

atio

n

9F

undin

g o

f P

BO

C A

ccount

11 C

onfirm

atio

n o

f D

ebit/

Cre

dit

5Trade Confirmation

6A

dvic

e o

f S

ettle

ment

Deta

ils

or

Ba

nk

Au

tho

rise

d

Bro

ke

r

Optio

nal

10

Confirm

atio

n o

f S

ettle

ment

Deta

ils

354 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

08.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ R

MB

Banks

1.

Elig

ible

Institu

tio

n/R

MB

Ba

nk p

lace

s o

rde

r w

ith

Au

tho

rise

d B

roke

r o

r B

an

k

2.

Au

tho

rize

d B

roke

r o

r B

an

k, e

xe

cu

tes tr

ad

e o

n C

FT

ES

, o

r via

ph

on

e, th

en

ca

ptu

res tra

de

de

tails

in

CF

ET

S

3.

Au

tho

rize

d B

roke

r o

r B

an

k r

ece

ive

s tra

de

co

nfirm

atio

n fr

om

/via

CF

ET

S

4.

Au

tho

rize

d B

roke

r o

r B

an

k s

en

ds tra

de

co

nfirm

atio

n to

Elig

ible

Institu

tio

n/R

MB

Ba

nk

5.

Au

tho

rize

d B

roke

r o

r B

an

k s

en

ds tra

de

co

nfirm

atio

n to

Se

ttle

me

nt A

ge

nt

6.

CC

DC

se

nd

s a

dvic

e o

f se

ttle

me

nt d

eta

ils to

Se

ttle

me

nt A

ge

nt

7.

Elig

ible

Institu

tio

n/R

MB

Ba

nk in

str

ucts

Se

ttle

me

nt A

ge

nt

on

se

ttle

me

nt d

eta

ils

8.

Elig

ible

Institu

tio

n/R

MB

Ba

nk r

em

its R

MB

am

ou

nt to

Se

ttle

me

nt A

ge

nt

9.

Se

ttle

me

nt A

ge

nt f

un

ds o

wn

PB

OC

acco

un

t, in

pre

pa

ratio

n f

or

se

ttle

me

nt

10

.S

ett

lem

en

t Ag

en

t co

nfirm

s/a

ffir

ms s

ett

lem

en

t d

eta

ils v

ia C

CD

C (

fro

nt-

en

d)

syste

m

11

.U

po

n c

on

firm

atio

ns fr

om

bo

th S

ett

lem

en

t Ag

en

ts, ca

sh

se

ttle

me

nt i

s tri

gg

ere

d b

y C

CD

C a

nd

P

BO

C w

ill s

en

d a

co

nfirm

atio

n o

f d

eb

it o

r cre

dit to

th

e S

ett

lem

en

t Ag

en

t

12

.U

po

n c

on

firm

atio

ns fr

om

bo

th S

ett

lem

en

t Ag

en

ts, se

cu

ritie

s s

ett

lem

en

t is e

ffe

cte

d a

nd

CC

DC

will

se

nd

a s

ecu

ritie

s s

ett

lem

en

t co

nfirm

atio

n to

th

e S

ett

lem

en

t Ag

en

t

13

.S

ett

lem

en

t Ag

en

t se

nd

s s

ett

lem

en

t co

nfirm

atio

n to

Elig

ible

Institu

tio

n/R

MB

Ba

nk

14

.A

t en

d o

f d

ay,

Se

ttle

me

nt A

ge

nt

se

nd

s s

ecu

ritie

s s

tate

me

nt to

Elig

ible

Institu

tio

n/R

MB

Ba

nk

15

.A

t en

d o

f d

ay,

Se

ttle

me

nt A

ge

nt

se

nd

s c

ash

mo

ve

me

nt co

nfirm

atio

n/c

ash

sta

tem

en

t to

Elig

ible

In

stitu

tio

n/R

MB

Ba

nk

Trade Date Settlement Date (T+1)

355ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

09.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rsExchange M

ark

et

/ Q

FII

Cash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

De

sig

na

ted

Q

FII B

roke

r

QF

IIC

usto

dia

n

SS

Eo

r S

ZS

E

De

sig

nate

d

Pa

ym

en

t B

an

k

Clearing Matching & Settlement

Cross-Border

CS

DC

C

In c

apacity a

s

Glo

bal

Custo

dia

n

Trading Cash Settlement

2T

rade O

rder

3 T

rade E

xecutio

n

4T

rade C

onfirm

atio

n5 T

rade C

onfirm

atio

n

10

Settle

ment

Inst

ructio

n

14

Settle

ment

Confirm

11 S

ettle

ment

Inst

ructio

n

18

Cash

Sta

tem

ent

13

Settle

ment

Confirm

atio

n

16

Securitie

s S

tate

ment

17

Cash

Sta

tem

ent

8 B

ond T

ransf

er

Confirm

atio

n

12

Fundin

g v

ia N

ost

ro A

ccount

15

Confirm

atio

n o

f D

ebit/

Cre

dit

CS

DC

C

(CC

P)

1 Cash Projection Report

5Trade Confirmation

9 S

tatu

s U

pdate

or

Confirm

atio

n

(7C

orr

ectio

n o

f T

ransa

ctio

n D

eta

ils)

356 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

09.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rsExchange M

ark

et

/ Q

FII

1.

QF

II C

ust

od

ian

se

nd

ca

sh p

roje

ctio

n r

ep

ort

to

De

sig

na

ted

QF

II B

roke

r

2.

QF

II p

lace

s o

rde

r w

ith

De

sig

na

ted

QF

II B

roke

r

3.

De

sig

na

ted

QF

II B

roke

r ch

eck

s b

ala

nce

, e

xecu

tes

tra

de

on

Sh

an

gh

ai S

tock

Exc

ha

ng

e (

SS

E),

or

Sh

en

zhe

n

Sto

ck E

xch

an

ge

(S

ZS

E)

4.

De

sig

na

ted

QF

II B

roke

r re

ceiv

es

tra

de

co

nfi

rma

tio

n

5.

De

sig

na

ted

QF

II B

roke

r se

nd

s tr

ad

e c

on

firm

ati

on

to

QF

II,

an

d t

o Q

FII

Cu

sto

dia

n

6.

QF

II C

ust

od

ian

do

wn

loa

ds

Re

po

rt o

n T

rad

e O

bli

ga

tio

ns

fro

m C

SD

CC

(C

lea

rin

g f

un

ctio

n)

7.

On

ly in

th

e e

ven

t o

f a

dis

cre

pa

ncy

, Q

FII

Cu

sto

dia

n n

ee

ds

to c

on

tact

CS

DC

C

8.

CS

DC

C (

Se

ttle

me

nt

fun

ctio

n)

sen

ds

con

firm

ati

on

of

tra

nsf

er

of

bo

nd

s to

QF

II C

ust

od

ian

(o

n T

eve

nin

g)

9.

QF

II C

ust

od

ian

se

nd

s st

atu

s u

pd

ate

or

pa

rtia

l se

ttle

me

nt

con

firm

ati

on

to

Glo

ba

l Cu

sto

dia

n

10

.Q

FII

inst

ruct

s G

lob

al C

ust

od

ian

on

se

ttle

me

nt

de

tail

s

11

.G

lob

al C

ust

od

ian

in

stru

cts

QF

II C

ust

od

ian

on

se

ttle

me

nt

de

tail

s

12

.Q

FII

Cu

sto

dia

n f

un

ds

sett

lem

en

t cl

ea

rin

g r

ese

rve

acc

ou

nt

(CS

DC

C a

cco

un

t a

t P

aym

en

t B

an

k)

13

.A

fte

r ca

sh s

ett

lem

en

t d

ea

dli

ne

(in

eff

ect

co

mp

leti

on

of

tra

de

se

ttle

me

nt)

, Q

FII

Cu

sto

dia

n s

en

ds

sett

lem

en

t co

nfi

rma

tio

n t

o G

lob

al

Cu

sto

dia

n

14

.G

lob

al C

ust

od

ian

se

nd

s se

ttle

me

nt

con

firm

ati

on

to

QF

II

15

.P

aym

en

t B

an

k se

nd

s d

eb

it/c

red

it in

form

ati

on

in

fo

rm o

f ca

sh s

tate

me

nt

to Q

FII

Cu

sto

dia

n

16

.Q

FII

Cu

sto

dia

n s

en

ds

secu

riti

es

sta

tem

en

t to

Glo

ba

l Cu

sto

dia

n (

en

d o

f d

ay)

17

.Q

FII

Cu

sto

dia

n s

en

ds

cash

mo

vem

en

t co

nfi

rma

tio

n/c

ash

sta

tem

en

t to

Glo

ba

l Cu

sto

dia

n (

en

d o

f d

ay)

18

.G

lob

al C

ust

od

ian

se

nd

s ca

sh m

ove

me

nt

con

firm

ati

on

/ca

sh s

tate

me

nt

to Q

FII

(e

nd

of

da

y)

Trade Date Settlement Date

357ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

358 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

10

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

8. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

CC

DC

as C

SD

CC

DC

as P

ayin

g A

ge

nt

Sam

e E

ntity

11. I

nte

rest

Paym

ent

Confirm

ation

Cash

Flo

w

Info

rmation

Flo

w

CC

DC

as C

usto

dia

n

6. C

ash

Tra

nsfe

rM

OF

’s

Account

CC

DC

’s

Account

SB

’s A

ccount

Bond H

old

er’

s

Account

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

PB

OC

9. I

nte

rest

Paym

ent

10. I

nte

rest

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

(No

Ta

x f

or

inte

rest)

4. I

nte

rest

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

359ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

10.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

1.

Bon

d h

old

ers

se

nd in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccou

nt t

o C

hin

a C

entr

al

Dep

ository

&C

lea

ring

Co.,

Ltd

. (C

CD

C)

2.

CC

DC

req

ue

sts

inte

rest p

aym

en

t of M

inis

try o

f F

inan

ce (M

OF

).3

.M

OF

instr

ucts

CC

DC

to p

ay in

tere

sts

.4

.C

CD

C a

s c

usto

dia

n n

otifies b

on

d h

old

ers

of in

tere

st p

aym

ent.

5.

MO

F in

str

ucts

Peo

ple

’s B

ank o

f C

hin

a （

PB

OC）

to tra

nsfe

r ca

sh fo

r in

tere

st t

o C

CD

C’s

a

cco

unt.

6.

PB

OC

tran

sfe

rs c

ash

from

MO

F’s

account t

o C

CD

C’s

accoun

t.7

.P

BO

C s

en

ds p

aym

en

t confirm

ation to

CC

DC

.8

.C

CD

C in

str

ucts

PB

OC

to tra

nsfe

r cash for in

tere

st t

o c

ash s

ett

lem

ent b

an

ks’ a

cco

un

ts v

ia

CN

AP

S w

ith

de

taile

d in

str

uctions to

cre

dit b

ond

hold

ers

’ accou

nts

with in

tere

st.

.9

.P

BO

C tr

an

sfe

rs c

ash

from

CC

DC

’s a

ccount t

o c

ash s

ett

lem

ent b

anks’ a

ccoun

ts w

ith

deta

iled

instr

uctio

ns.

10.

Ca

sh

se

ttle

me

nt b

anks c

red

it b

on

d h

old

ers

’ accounts

with in

tere

sts

.1

1.

Ca

sh

se

ttle

me

nt b

anks n

otify

bond

hold

ers

of in

tere

st p

aym

en

t.

Pro

cess

of In

tere

st P

aym

ent

360 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

11.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond E

xchange M

ark

et

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

2. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

CS

DC

Ca

s C

SD

CC

DC

as P

ayin

g A

ge

nt

3. P

aym

ent

Req

uest

Cash

Flo

w

Info

rmation

Flo

w

CS

DC

Ca

s C

usto

dia

n

6. P

aym

ent

Instr

uction

7. C

ash

Tra

nsfe

rM

OF

’s

Account

CC

DC

’s

Account

CS

DC

C’s

A

ccount

Bond H

old

er’

s

Account

PB

OC

11. I

nte

rest P

aym

ent

12. I

nte

rest

Paym

ent

4. P

aym

ent

Instr

uction

8. C

onfirm

ation

9. C

onfirm

ation Ta

x O

ffic

e

(No

Ta

x f

or

inte

rest)

13. I

nte

rest

Paym

ent

Confirm

ation

5. I

nte

rest

Paym

ent

Notification

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Sam

e E

ntity

Co

mm

erc

ial B

an

k

10. P

aym

ent In

str

uction

361ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

11.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond E

xchange M

ark

et

1.

Bond h

old

ers

send in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccount t

o C

hin

a S

ecurities

Depository

and C

learing C

orp

ora

tion(C

SD

CC

).2.

CS

DC

C s

ends in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccount t

o C

hin

a C

entr

al

Depository

&C

learing C

o. L

td. (C

CD

C) as p

ayin

g a

gent.

3.

CC

DC

requests

inte

rest p

aym

ent o

f M

inis

try o

f F

inance (M

OF

).4.

MO

F in

str

ucts

CC

DC

to p

ay in

tere

sts

.5.

CS

DC

C a

s c

usto

dia

n n

otifies b

ond h

old

ers

of in

tere

st p

aym

ent.

6.

MO

F in

str

ucts

People

’s B

ank o

f C

hin

a （

PB

OC）

to tra

nsfe

r cash fr

om

MO

F’s

account t

o

CC

DC

’s a

ccount.

7.

PB

OC

transfe

rs c

ash fr

om

MO

F’s

account t

o C

CD

C’s

account.

8.

PB

OC

sends p

aym

ent c

onfirm

ation to

CC

DC

.9.

CC

DC

sends p

aym

ent c

onfirm

atio

n to

CS

DC

C.

10.

CC

DC

instr

ucts

a c

om

merc

ial b

ank to

tra

nsfe

r cash fro

m C

CD

C’s

account t

o c

ash

sett

lem

ent b

anks’ a

ccount v

ia C

NA

PS

with d

eta

iled in

str

uctions

to c

redit h

old

ers

’ accounts

with in

tere

st.

11.

Com

merc

ial b

ank tr

ansfe

rs c

ash fr

om

CC

DC

’s a

ccount C

SD

CC

’s a

ccount w

ith d

eta

iled

instr

uctions.

12.

Cash S

ett

lem

entb

anks c

redit b

ond h

old

ers

’ accounts

with in

tere

sts

.13.

Cash S

ett

lem

entb

anks n

otify

bond h

old

ers

of in

tere

st p

aym

ent.

Pro

cess

of In

tere

st P

aym

ent

362 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

12.

Redem

pti

on F

low

of

Govern

ment

Bond O

TC

Mark

et

8. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

CC

DC

as P

ayin

g A

ge

nt

Sam

e E

ntity

12. R

edem

ption

Paym

ent

Confirm

ation

Cash

Flo

w

Info

rmation

Flo

w

CC

DC

as C

usto

dia

n

6. C

ash

Tra

nsfe

rM

OF

’s

Account

CC

DC

’s

Account

SB

’s A

ccount

Bond H

old

er’

s

Account

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

PB

OC

10. R

edem

ption

Paym

ent

11. R

edem

ption

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

(No

Ta

x f

or

Inte

rest)

4. R

edem

ption

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

9.R

edem

ption

CC

DC

as C

SD

363ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

12.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

1.

Bon

d h

old

ers

se

nd in

form

atio

n in

clu

din

g d

esig

nate

d b

ank a

ccou

nt t

o C

hin

a C

entr

al

De

posito

ry &

Cle

arin

g C

o.,

Ltd

. (C

CD

C) a

s c

usto

dia

n.

2.

CC

DC

req

ue

sts

re

dem

ption

paym

ent o

f Min

istr

y o

f F

ina

nce (M

OF

).3

.M

OF

instr

ucts

CC

DC

to p

ay r

ed

em

ption

.4

.C

CD

C a

s c

usto

dia

n n

otifie

s b

on

d h

old

ers

of re

de

mp

tio

n p

aym

en

t.5

.M

OF

instr

ucts

Peo

ple

’s B

an

k o

f C

hin

a （

PB

OC）

to tra

nsfe

r ca

sh

for

red

em

ptio

n to

C

CD

C’s

acco

unt.

6.

PB

OC

tran

sfe

rs c

ash

fro

m M

OF

’s a

cco

unt t

o C

CD

C’s

acco

un

t.7

.P

BO

C s

en

ds p

aym

en

t con

firm

ation

to C

CD

C.

8.

CC

DC

instr

ucts

PB

OC

to tra

nsfe

r cash

fro

m C

CD

C’s

accou

nt t

o c

ash s

ett

lem

en

t ba

nks’

acco

unt v

ia C

NA

PS

with d

eta

iled

instr

uction

s to

cre

dit h

old

ers

’ acco

un

ts.

9.

CC

DC

ma

ke

s b

on

d red

em

ptio

n.

10.

PB

OC

tran

sfe

rs c

ash

fro

m C

CD

C’s

accou

nt t

o c

ash s

ett

lem

ent b

anks’ a

cco

un

t with

deta

iled

instr

uctio

ns.

11.

Ca

sh

se

ttle

me

nt b

anks c

red

it b

on

d h

old

ers

’ acco

unts

with

re

de

mption

.1

2.

Ca

sh

se

ttle

me

nt b

anks n

otify

bo

nd

ho

lde

rs o

f re

dem

ption

paym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

364 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

13.

Redem

pti

on F

low

of

Govern

ment

Bond E

xchange M

ark

et

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

2. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

CC

DC

as P

ayin

g A

ge

nt

3. P

aym

ent

Req

uest

Cash

Flo

w

Info

rmation

Flo

w

CS

DC

Ca

s C

usto

dia

n

6. P

aym

ent

Instr

uction

7. C

ash

Tra

nsfe

rM

OF

’s

Account

CC

DC

’s

Account

CS

DC

C’s

A

ccount

Bond H

old

er’

s

Account

PB

OC

12. R

edem

ption

Paym

ent

13. R

edem

ption

Paym

ent

4. P

aym

ent

Instr

uction

8. C

onfirm

ation

9. C

onfirm

ation

Tax O

ffic

e

(No

Ta

x f

or

Inte

rest)

14. R

edem

ption

Paym

ent

Confirm

ation

5. R

edem

ption

Paym

ent

Notification

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Sam

e E

ntity

10.R

edem

ption

CS

DC

Ca

s C

SD

Co

mm

erc

ial B

an

k

11. P

aym

ent In

str

uction

365ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

13.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond E

xchange M

ark

et

1.

Bond h

old

ers

send in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccou

nt t

o C

hin

a S

ecurities

Depository

and C

learing C

orp

ora

tion(C

SD

CC

).2.

CS

DC

C s

ends in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccoun

t to C

hin

a C

entr

al

Depository

&C

learing C

o.,

Ltd

. (C

CD

C) as p

ayin

g a

gent.

3.

CC

DC

requests

redem

ption p

aym

ent o

f Min

istr

y o

f F

inance (M

OF

).4.

MO

F in

str

ucts

CC

DC

to p

ay redem

ption.

5.

CS

DC

C a

s c

usto

dia

n n

otifies b

ond h

old

ers

of re

dem

ption p

aym

ent.

6.

MO

F in

str

ucts

People

’s B

ank o

f C

hin

a （

PB

OC）

to tra

nsfe

r cash fr

om

MO

F’s

account t

o

CC

DC

’s a

ccount.

7.

PB

OC

transfe

rs c

ash fr

om

MO

F’s

account t

o C

CD

C’s

account.

8.

PB

OC

sends p

aym

ent c

onfirm

ation to

CC

DC

.9.

CC

DC

sends p

aym

ent c

onfirm

atio

n to

CS

DC

C.

10.

CS

DC

C m

akes b

ond redem

ption.

11.

CC

DC

instr

ucts

a c

om

merc

ial b

ank to

tra

nsfe

r cash fro

m C

CD

C’s

account t

o c

ash

sett

lem

ent b

anks’ a

ccounts

via

CN

AP

S w

ith d

eta

iled in

str

uctions to

cre

dit h

old

ers

’ accounts

with redem

ption.

12.

Com

merc

ial b

ank tr

ansfe

rs c

ash fr

om

CC

DC

’s a

ccount t

o c

ash C

SD

CC

’s a

ccounts

with

deta

iled in

str

uctions.

13.

Com

merc

ial b

anks c

redit b

ond h

old

ers

’ accounts

with redem

ption.

14.

Com

merc

ial b

anks n

otify

bond h

old

ers

of re

dem

ption p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

366 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

367ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

14

. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond O

TC

Mark

et

8. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

CC

DC

/SH

CH

as C

SD

CC

DC

/SH

CH

as P

ayin

g A

ge

nt

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

.6. C

ash

Tra

nsfe

rIs

suer’

s

Account

CC

DC

/SH

CH

’s

Account

SB

’s A

ccount

Bond H

old

er’

s

Account

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

Issu

er’

s D

esig

na

ted

Ba

nk

9. I

nte

rest

Paym

ent

10. I

nte

rest

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

PB

OC

12.T

ax P

aym

ent

11. I

nte

rest

Paym

ent

Confirm

ation

CC

DC

/SH

CH

as C

usto

dia

n

4. I

nte

rest

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Bo

nd

Ho

lde

r

368 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

14.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond O

TC

Mark

et

1.

Bon

d h

old

ers

se

nd in

form

atio

n in

clu

din

g d

esig

nate

d b

ank a

ccou

nt t

o C

hin

a C

entr

al

De

pository

&C

lea

ring

Co.,

Ltd

(C

CD

C)o

r S

han

gha

i Cle

arin

g H

ouse (S

HC

H).

2.

CC

DC

or S

HC

Ha

s p

ayin

g a

ge

nt re

qu

ests

inte

rest p

aym

en

t of bo

nd is

sue

r.3

.B

on

d is

sue

r in

str

ucts

CC

DC

or S

HC

Hto

pa

y in

tere

sts

.4

.C

CD

C o

r S

HC

H a

s c

usto

dia

n n

otifie

s b

on

d h

old

ers

of in

tere

st p

aym

ent.

5.

Bon

d is

sue

r in

str

ucts

it’s

de

sig

nate

d b

ank to

tra

nsfe

r cash fro

m is

su

er’

s a

cco

un

t to

CC

DC

’s o

r S

HC

H’s

accou

nt.

6.

Th

e d

esig

nate

d b

ank tra

nsfe

rs c

ash

fro

m is

su

er’

s a

ccou

nt t

o C

CD

C’s

or S

HC

H’s

acco

unt.

7.

Th

e d

esig

nate

d b

ank s

end

s p

aym

en

t co

nfirm

atio

n to

CC

DC

or S

HC

H.

8.

CC

DC

or S

HC

H in

str

ucts

Pe

ople

’s B

ank o

f C

hin

a (P

BO

C) to

tra

nsfe

r ca

sh fro

m C

CD

C’s

o

r S

HC

H’s

accou

nt t

o c

ash s

ett

lem

en

t ba

nks’ a

ccou

nts

via

CN

AP

S.

9.

PB

OC

tran

sfe

rs c

ash

fro

m C

CD

C’s

/SH

CH

’s a

ccou

nt t

o c

ash

se

ttle

me

nt b

an

ks’ a

ccou

nts

via

CN

AP

S w

ith

instr

uction

s to

cre

dit h

old

ers

’ acco

unts

.1

0.

Ca

sh

se

ttle

me

nt b

anks c

red

it b

on

d h

old

ers

’ acco

unts

with

inte

rest.

11.

Ca

sh

se

ttle

me

nt b

anks n

otify

bo

nd

ho

lde

rs o

f in

tere

st p

aym

en

t.1

2.

Bon

d h

old

ers

pay ta

x to

tax o

ffic

e.

Pro

cess

of In

tere

st P

aym

ent

369ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

15

. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond E

xchange M

ark

et

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

CS

DC

Ca

s C

SD

CS

DC

Ca

s P

ayin

g A

ge

nt

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

.6. C

ash

Tra

nsfe

rIs

suer’

s

Account

CS

DC

C’s

Account

Bond H

old

er’

s

Account

Issu

er’

s D

esig

na

ted

Ba

nk

9.I

nte

rest

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

11.T

ax P

aym

ent

8. P

aym

ent

Instr

uction

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

10. I

nte

rest

Paym

ent

Confirm

ation

CS

DC

Ca

s C

usto

dia

n

4. I

nte

rest

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

370 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

15.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond E

xchange M

ark

et

1.

Bon

d h

old

ers

se

nd in

form

atio

n in

clu

din

g d

esig

nate

d b

ank a

ccou

nt t

o C

hin

a S

ecuritie

s

De

posito

ry a

nd

Cle

aring

Co

rpo

ratio

n(C

SD

CC

).2

.C

SD

CC

as p

ayin

g a

ge

nt re

que

sts

inte

rest p

aym

en

t of bo

nd

issue

r.3

.B

on

d is

sue

r in

str

ucts

CS

DC

C to

pa

y in

tere

sts

.4

.C

SD

CC

as c

usto

dia

n n

otifies b

ond

hold

ers

of in

tere

st p

aym

ent.

5.

Bon

d is

sue

r in

str

ucts

it’s

de

sig

nate

d b

ank to

tra

nsfe

r cash fro

m is

su

er’

s a

cco

un

t to

CS

DC

C’s

acco

un

t.6

.D

esig

na

ted

ba

nk tr

ansfe

rs c

ash

fro

m is

su

er’

s a

ccou

nt t

o C

SD

CC

’s a

cco

un

t.7

.D

esig

na

ted

ba

nk s

end

s p

aym

ent c

on

firm

atio

n to

CS

DC

C.

8.

CS

DC

C in

str

ucts

ca

sh

sett

lem

ent b

an

k to

tra

nsfe

r ca

sh

to

bon

d h

old

er’

s a

cco

unt.

9.

Ca

sh

se

ttle

me

nt b

anks c

red

it b

on

d h

old

ers

’ acco

unts

with

inte

rest d

ed

ucting

tax if

a

pp

licab

le.

10.

Ca

sh

se

ttle

me

nt b

anks n

otify

bo

nd

ho

lde

rs o

f in

tere

st p

aym

en

t.1

1.

CS

DC

C p

ays ta

x to

tax o

ffic

e.

Pro

cess

of In

tere

st P

aym

ent

371ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

16

. R

edem

pti

on F

low

of

Corp

ora

te B

ond O

TC

Mark

et

8. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

CC

DC

/SH

CH

as P

ayin

g A

ge

nt

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

.6. C

ash

Tra

nsfe

rIs

suer’

s

Account

CC

DC

/SH

CH

’s

Account

SB

’s A

ccount

Bond H

old

er’

s

Account

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

Issu

er’

s D

esig

na

ted

Ba

nk

9. R

edem

ption

Paym

ent

11. R

edem

ption

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

PB

OC

13.T

ax P

aym

ent

12. R

edem

ption

Paym

ent

Confirm

ation

CC

DC

/SH

CH

as C

usto

dia

n

4. R

edem

ption

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

Bo

nd

Ho

lde

r

CC

DC

/SH

CH

as C

SD

10.R

edem

ption

372 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

16.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond O

TC

Mark

et

1.

Bond h

old

ers

send in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccount t

o C

hin

a C

entr

al

Depository

&C

learing C

o.,

Ltd

(C

CD

C)or S

hanghai C

learing H

ouse (S

HC

H).

2.

CC

DC

or S

HC

Hre

quests

redem

ption p

aym

ent o

f bond is

suer.

3.

Bond is

suer in

str

ucts

CC

DC

or S

HC

Hto

pay redem

ption.

4.

CC

DC

or S

HC

H a

s c

usto

dia

n n

otifies b

ond h

old

ers

of re

dem

ption p

aym

ent.

5.

Bond is

suer in

str

ucts

it’s

desig

nate

d b

ank to

tra

nsfe

r cash fro

m is

suer’

s a

ccount t

o

CC

DC

’s o

r S

HC

H’s

account.

6.

Desig

nate

d b

ank tr

ansfe

rs c

ash fr

om

issuer’

s a

ccount t

o C

CD

C’s

or S

HC

H’s

account.

7.

Desig

nate

d b

ank s

ends p

aym

ent c

onfirm

ation to

CC

DC

or

SH

CH

.8.

CC

DC

or S

HC

H in

str

ucts

People

’s b

ank o

f C

hin

a (P

BO

C) to

tra

nsfe

r cash to

cash

sett

lem

ent b

anks’ a

ccount v

ia C

NA

PS

.9.

PB

OC

transfe

rs c

ash fr

om

CC

DC

’s o

r S

HC

H’s

account t

o c

ash s

ett

lem

ent b

anks’ a

ccount

via

CN

AP

S w

ith in

str

uctions to

cre

dit h

old

ers

’ accounts

.10.

CC

DC

or S

HC

H a

s C

SD

makes b

ond r

edem

ption.

11.

Cash s

ett

lem

ent b

anks c

redit b

ond h

old

ers

’ accounts

with redem

ption.

12.

Cash s

ett

lem

ent b

anks n

otify

bond h

old

ers

of re

dem

ption p

aym

ent.

13.

Bond h

old

ers

pay tax to tax o

ffic

e.

Pro

cess

of R

edem

ptio

n P

aym

ent

373ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

17

. R

edem

pti

on F

low

of

Corp

ora

te B

ond E

xchange M

ark

et

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

CS

DC

Ca

s P

ayin

g A

ge

nt

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

.6. C

ash

Tra

nsfe

rIs

suer’

s

Account

CS

DC

C’s

Account

Bond H

old

er’

s

Account

Issu

er’

s D

esig

na

ted

Ba

nk

9.R

edem

ption

Paym

ent

Tax O

ffic

e

2. P

aym

ent

Req

uest

5. P

aym

ent

Instr

uction

7. C

onfirm

ation

3. P

aym

ent

Instr

uction

12.T

ax P

aym

ent

8. P

aym

ent

Instr

uction

Ca

sh

Se

ttle

me

nt

Ba

nk(S

B)

11. R

edem

ption

Paym

ent

Confirm

ation

CS

DC

Ca

s C

usto

dia

n

4. R

edem

ption

Paym

ent

Notification

Sam

e E

ntity

1. I

nfo

rmation

Inclu

din

g D

esig

nate

d

Bank a

/c

10.R

edem

ption

CS

DC

Ca

s C

SD

374 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

CN

17.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond E

xchange M

ark

et

1.

Bond h

old

ers

send in

form

ation in

clu

din

g d

esig

nate

d b

ank a

ccount t

o C

hin

a S

ecurities

Depository

and C

learing C

orp

ora

tion(C

SD

CC

).2.

CS

DC

C a

s p

ayin

g a

gent re

quests

redem

ption p

aym

ent o

f bond is

suer.

3.

Bond is

suer in

str

ucts

CS

DC

C to

pay redem

ption.

4.

CS

DC

C n

otifies b

ond h

old

ers

of

redem

ption p

aym

ent.

5.

Bond is

suer in

str

ucts

it’s

desig

nate

d b

ank to

tra

nsfe

r cash fro

m is

suer’

s a

ccount t

o

CS

DC

C’s

account.

6.

Desig

nate

d b

ank tr

ansfe

rs c

ash fr

om

issuer’

s a

ccount t

o C

SD

CC

’s a

ccount.

7.

Desig

nate

d b

ank s

ends p

aym

ent c

onfirm

ation to

CS

DC

C.

8.

CS

DC

C in

str

ucts

cash s

ett

lem

ent b

anks to

transfe

r cash to

cash s

ett

lem

ent b

anks’

account.

9.

Cash s

ett

lem

ent b

anks tr

ansfe

r cash fr

om

CS

DC

C’s

account t

o c

ash s

ett

lem

ent b

anks’

account w

ith in

str

uctions

to c

redit h

old

ers

’ accounts

.10.

CS

DC

Cas C

SD

makes b

ond r

edem

ption.

11.

Cash s

ett

lem

ent b

anks n

otify

bond h

old

ers

of re

dem

ption p

aym

ent.

12.

CS

DC

C p

ays ta

x to tax o

ffic

e.

Pro

cess

of R

edem

ptio

n P

aym

ent

375ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Hong Kong,China (HK)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

376 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

377ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

HK

MA

–H

ong K

ong M

oneta

ry A

uth

ority

C

MU

–C

entr

al M

oneyM

ark

ets

Unit

CH

AT

S –

Cle

aring H

ouse A

uto

ma

ted T

ransfe

r S

yste

m (H

KD

, US

D, E

UR

an

d R

MB

)

OT

C m

ark

et

HK

MA

(C

HA

TS

)

HK

MA

(C

MU

)

HK

MA

(C

MU

)

378 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

HK

MA

–H

ong K

ong M

oneta

ry A

uth

ority

C

MU

–C

entr

al M

oneyM

ark

ets

Unit

CH

AT

S –

Cle

aring H

ouse A

uto

mate

d T

ransfe

r S

yste

m (H

KD

, US

D, E

UR

and R

MB

)

Note

: There

is n

o C

CP

for bonds in

Hong K

ong

OT

C m

ark

et

HK

MA

(C

HA

TS

)

HK

MA

(C

MU

)

HK

MA

(C

MU

)

379ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

380 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

HK

MA

Sell

Sid

e1. T

rade

(CM

U)

5. H

old

ing

bond

12. D

VP

Ord

er

10. S

ett

lem

ent

Confirm

ation

10. S

ett

lem

ent

Confirm

ation

(CH

AT

S)

7.C

ash S

ett

lem

ent

2. S

ett

lem

ent In

str

uction

2. S

ett

lem

ent In

str

uction

3. V

alid

ation a

nd M

atc

hin

g

10. S

ett

lem

ent R

eport

(Cash)

9. B

ond S

ett

lem

ent

4. M

atc

hin

g R

esult

4. M

atc

hin

g R

esult

6.S

ett

lem

ent d

ata

10. S

ett

lem

ent R

eport

(Cash)

8. S

ett

lem

ent R

eport

(Cash)

Buy S

ide

381ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

ove

r th

e c

ou

nte

r.2

.S

ell

sid

e a

nd

bu

y s

ide

se

nd

instr

uctio

ns to

Ce

ntr

al M

on

eym

ark

ets

Un

it(C

MU

) via

eC

MT,

SW

IFT,

Fa

x,

AF

T o

r b

y h

an

d.

Wh

en

th

ey u

se

syste

m,

bo

th s

ell

sid

e a

nd

bu

y s

ide

en

ters

tra

de

da

ta.

Pa

rtic

ipa

nts

ne

ed

to

se

nd

th

e m

essa

ge

instr

uctio

ns b

efo

re th

e c

uto

ff ti

me

(4

:00

p.m

.) o

n s

ettle

me

nt

da

y.3

.C

MU

pe

rfo

rms v

alid

atio

n a

nd

ma

tch

ing

.

4.

CM

U s

en

ds m

atc

hin

g r

esu

lt to

th

e s

ell

sid

e a

nd

bu

y s

ide

. 5

.C

MU

ho

lds th

e b

on

d.

6.

CM

U s

en

ds s

ettle

me

nt

da

ta t

o C

HA

TS

.7

.C

HA

TS

exe

cu

tes c

ash

se

ttle

me

nt. C

HA

TS

will

au

to-d

eb

it th

e b

uy s

ide

s’ R

TG

S a

cco

un

t.8

.C

HA

TS

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to

CM

U.

9.

CM

Ue

xe

cu

tes b

on

d s

ettle

me

nt.

10

.C

HA

TS

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to

th

e b

uy s

ide

an

d s

ell

sid

e r

esp

ectiv

ely

, w

hile

CM

U s

en

ds

se

cu

ritie

s s

ettle

me

nt

co

nfirm

atio

n to

th

e s

ell

sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

382 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

383ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

Buy S

ide

HK

MA

Sell

Sid

e1. T

rade

(CM

U)

5. H

old

ing

bond

12. D

VP

Ord

er

10. S

ett

lem

ent

Confirm

ation

10. S

ett

lem

ent

Confirm

ation

(CH

AT

S)

7.C

ash S

ett

lem

ent

2. S

ett

lem

ent In

str

uction

2. S

ett

lem

ent In

str

uction

3. V

alid

ation a

nd M

atc

hin

g

10. S

ett

lem

ent R

eport

(Cash)

9. B

ond S

ett

lem

ent

4. M

atc

hin

g R

esult

4. M

atc

hin

g R

esult

6.S

ett

lem

ent d

ata

10. S

ett

lem

ent R

eport

(Cash)

8. S

ett

lem

ent R

eport

(Cash)

384 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

ove

r th

e c

ou

nte

r.2

.S

ell

sid

e a

nd

bu

y s

ide

se

nd

instr

uctio

ns to

Ce

ntr

al M

on

eym

ark

ets

Un

it(C

MU

) via

eC

MT,

SW

IFT,

Fa

x,

AF

T o

r b

y h

an

d.

Wh

en

th

ey u

se

syste

m,

bo

th s

ell

sid

e a

nd

bu

y s

ide

en

ters

tra

de

da

ta.

Pa

rtic

ipa

nts

ne

ed

to

se

nd

th

e m

essa

ge

instr

uctio

ns b

efo

re th

e c

uto

ff ti

me

(4

:00

p.m

.) o

n s

ettle

me

nt

da

y.3

.C

MU

pe

rfo

rms v

alid

atio

n a

nd

ma

tch

ing

.

4.

CM

U s

en

ds m

atc

hin

g r

esu

lt to

th

e s

ell

sid

e a

nd

bu

y s

ide

. 5

.C

MU

ho

lds th

e b

on

d.

6.

CM

U s

en

ds s

ettle

me

nt

da

ta t

o C

HA

TS

.7

.C

HA

TS

exe

cu

tes c

ash

se

ttle

me

nt. C

HA

TS

will

au

to-d

eb

it th

e b

uy s

ide

s’ R

TG

S a

cco

un

t.8

.C

HA

TS

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to

CM

U.

9.

CM

U e

xe

cu

tes b

on

d s

ettle

me

nt.

10

.C

HA

TS

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to

bu

y s

ide

an

d s

ell

sid

e r

esp

ectiv

ely

, w

hile

CM

U s

en

ds s

ecu

ritie

s

se

ttle

me

nt

co

nfirm

atio

n to

th

e s

ell

sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

385ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

386 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

or

Ba

nk

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

Co

un

ter-

pa

rty

HK

MA

C

HA

TS

Clearing Matching & Settlement

Cross-Border

HK

MA

CM

U

As C

ash

Corr

espondent

Trading Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

4 T

rade C

onfirm

atio

n5

Tra

de C

onfirm

atio

n

6S

ettle

ment

Inst

ructio

n

16

Settle

ment

Confirm

7 S

ettle

ment

Inst

ructio

n

17 F

undin

g o

f T

rades

20

Cash

Sta

tem

ent

10

Matc

hin

g S

tatu

s U

pdate

15

Settle

ment

Confirm

atio

n

18

Securitie

s S

tate

ment

11

Fundin

g A

dvic

e

19

Cash

Sta

tem

ent

8C

aptu

re/U

L o

f T

ransa

ctio

n D

eta

ils

9M

atc

hin

g C

onfirm

atio

n

14

Settle

ment

Confirm

atio

n

12

Fundin

g o

f H

KM

A A

ccount

13

Confirm

atio

n o

f D

ebit/

Cre

dit

4 Trade Confirmation

387ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

1.

Fo

reig

n In

stit

utio

na

l In

ve

sto

r p

lace

s o

rde

r w

ith I

nte

rna

tion

al B

roke

r2

.In

tern

atio

na

l Bro

ke

r p

lace

s o

rde

r w

ith D

om

estic

Bro

ke

r/B

an

k3

.D

om

estic

Bro

ke

r/B

an

k tra

de

s O

TC

with

Co

un

terp

art

y (

via

ph

on

e o

r, e

.g., B

loo

mb

erg

)4

.D

om

estic

Bro

ke

r/B

an

k s

en

ds tra

de

co

nfirm

atio

n to

In

tern

atio

na

l B

roke

r5

.F

ore

ign

Instit

utio

na

l In

ve

sto

r re

ce

ive

s tr

ad

e c

on

firm

atio

n6

.F

ore

ign

Instit

utio

na

l In

ve

sto

r in

str

ucts

Glo

ba

l Cu

sto

dia

n,

on

se

cu

ritie

s s

ettle

me

nt

an

d c

ash

fu

nd

ing

d

eta

ils

7.

Glo

ba

l Cu

sto

dia

n in

str

ucts

Do

me

stic

Cu

sto

dia

n o

n s

ecu

ritie

s s

ettle

me

nt

8.

Do

me

stic

Cu

sto

dia

n c

ap

ture

s (

eC

MT

or

up

loa

d)

se

ttle

me

nt

instr

uctio

ns in

to C

MU

9.

Do

me

stic

Cu

sto

dia

n r

ece

ive

s tr

an

sa

ctio

n m

atc

hin

g c

on

firm

atio

n f

rom

CM

U,

or

sta

tus u

pd

ate

s1

0.

Do

me

stic

Cu

sto

dia

n s

en

ds m

atc

hin

g s

tatu

s u

pd

ate

to

Glo

ba

l C

usto

dia

n, e

ithe

r a

s r

ep

ort

or,

typ

ica

lly,

pe

r in

div

idu

al tr

an

sa

ctio

n1

1.

Glo

ba

l Cu

sto

dia

n a

dvis

es fu

nd

ing

de

tails

to

Do

me

stic

Cu

sto

dia

n

12

.D

om

estic

Cu

sto

dia

n e

ffe

cts

fun

din

g o

f H

KM

A a

cco

un

t via

CH

AT

S1

3.

Up

on

tra

nsfe

r o

f ca

sh

, H

KM

A s

en

ds c

ash

se

ttle

me

nt

co

nfirm

atio

n to

Do

me

stic

Cu

sto

dia

n1

4.

Up

on

tra

nsfe

r o

f b

on

ds, C

MU

se

nd

s b

on

d s

ettle

me

nt

co

nfirm

atio

n to

Do

me

stic

Cu

sto

dia

n1

5.

Do

me

stic

Cu

sto

dia

n s

en

ds s

ettle

me

nt

co

nfirm

atio

n to

Glo

ba

l C

usto

dia

n1

6.

Fo

reig

n In

stit

utio

na

l In

ve

sto

r re

ce

ive

s s

ettle

me

nt

co

nfirm

atio

n f

rom

Glo

ba

l C

usto

dia

n1

7.

Glo

ba

l Cu

sto

dia

n f

un

ds tr

ad

es in

to D

om

estic

Cu

sto

dia

n H

KD

acco

un

t, o

r in

to F

CY

no

str

o1

8.

Do

me

stic

Cu

sto

dia

n s

en

ds s

ecu

ritie

s s

tate

me

nt

to G

lob

al C

usto

dia

n (

en

d o

f d

ay)

19

.D

om

estic

Cu

sto

dia

n s

en

ds d

eb

it/cre

dit

co

nfirm

atio

n a

s c

ash

sta

tem

en

t to

Glo

ba

l Cu

sto

dia

n (

en

d o

f d

ay)

20

.G

lob

al C

usto

dia

n s

en

ds d

eb

it/cre

dit

co

nfirm

atio

n in

ca

sh

sta

tem

en

t to

Fo

reig

n I

nstit

utio

na

l In

ve

sto

r

(en

d o

f d

ay)

Trade Date T+1 Settlement Date

388 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

389ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

06

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Tre

asu

ry

De

pa

rtm

en

tB

on

d H

old

er

CM

Ua

s C

SD

HK

MA

as P

ayin

g A

ge

nt

1. P

aym

ent

Request

2. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

8. In

tere

st

Paym

ent

Confirm

ation

Acco

un

t M

an

ag

em

en

t In

stit

utio

ns

(CM

U m

em

be

r)

Sam

e E

ntity

Sam

e E

ntity

6. S

ett

lem

ent R

eport

(No T

ax P

aym

ent)

Tax O

ffic

e

4. In

tere

st

Paym

ent

TD

’s

Account

CM

U m

em

ber’

s

Account

Bond H

old

er’

s

Account

HK

MA

(CH

AT

S)

CM

U m

em

be

r7. In

tere

st

Paym

ent

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

HK

MA

’s

Account

5. In

tere

st

Paym

ent

3. N

otification o

f P

aym

ent D

eta

ils

390 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

3 d

ays b

efo

re the in

tere

st p

aym

ent d

ate

, Hong K

ong M

oneta

ry A

uth

ority

(H

KM

A),

as th

e

paym

ent a

gent,

sends in

tere

st p

aym

ent n

otification to

Tre

asury

Depart

ment.

2.

Tre

asury

Depart

ment i

nstr

ucts

HK

MA

to p

ay in

tere

st.

3.

HK

MA

sends C

oupon/D

ivid

end a

nd R

edem

ption N

otificatio

n R

eport

to C

MU

Mem

bers

one b

usin

ess d

ay b

efo

re the p

aym

ent d

ate

.4.

HK

MA

transfe

r cash fo

r in

tere

st f

rom

Tre

asury

Depart

ment’s

account t

o it

’s o

wn a

ccount.

5.

On in

tere

st p

aym

ent d

ate

, H

KM

A p

ays in

tere

st p

roceeds to a

ccount m

anagem

ent

institu

tions (C

MU

Mem

bers

) via

CH

AT

S.

6.

Upon c

om

ple

tion o

f paym

ent,

CM

U s

ends s

ett

lem

ent r

eport

s to

account m

anagem

ent

institu

tions (C

MU

Mem

bers

).7.

Account m

anagem

ent i

nstitu

tions (C

MU

Mem

bers

) subsequently

pay th

e in

tere

st

pro

ceeds to

the b

ond h

old

ers

.8.

Account m

anagem

ent i

nstitu

tions (C

MU

Mem

bers

) notifies b

ond h

old

ers

of in

tere

st

paym

ent.

Pro

cess

of In

tere

st P

aym

ent

391ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

07. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Tre

asu

ry

De

pa

rtm

en

tB

on

d H

old

er

CM

Ua

s C

SD

HK

MA

as P

ayin

g A

ge

nt

1. P

aym

ent

Request

2. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

9. R

edem

ption

Paym

ent

Confirm

ation

Acco

un

t M

an

ag

em

en

t In

stit

utio

ns

(CM

U m

em

be

r)

Sam

e E

ntity

Sam

e E

ntity

6. S

ett

lem

ent R

eport

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)7.R

edem

ption

(No T

ax P

aym

ent)

Tax O

ffic

e

4. R

edem

ption

Paym

ent

Tre

asury

’s

Account

Bond H

old

er’

s

Account

HK

MA

(CH

AT

S)

CM

U m

em

be

r8. R

edem

ption

Paym

ent

5. R

edem

ption

Paym

ent

CM

U m

em

ber’

s

Account

HK

MA

’s

Account

3. N

otification o

f P

aym

ent D

eta

ils

392 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

3 d

ays b

efo

re th

e r

ed

em

ption

paym

ent d

ate

, Hon

g K

on

g M

on

eta

ry A

uth

ority

(H

KM

A),

as

paym

ent a

ge

nt,

se

nd

s re

dem

ption

paym

ent n

otifica

tio

n to

Tre

asu

ry D

epa

rtm

ent.

2.

Tre

asury

De

pa

rtm

ent i

nstr

ucts

HK

MA

to p

ay la

st in

tere

st a

nd p

rin

cip

al.

3.

HK

MA

se

nd

s C

ou

po

n/D

ivid

end a

nd R

ede

mption

No

tificatio

n R

ep

ort

to C

MU

Mem

be

rs

one

busin

ess d

ay b

efo

re the

paym

ent d

ate

.4

.H

KM

A tr

ansfe

rs c

ash fo

r in

tere

st a

nd

red

em

ptio

n p

aym

en

t fro

m T

reasury

De

pa

rtm

en

t’s

acco

unt t

o it

’s o

wn a

ccou

nt.

5.

On re

de

mption

pa

ym

en

t date

, H

KM

A p

ays la

st in

tere

st a

nd

prin

cip

al p

rocee

ds to

accou

nt

man

age

me

nt i

nstitu

tion

s (C

MU

Me

mb

ers

) via

CH

AT

S.

6.

Up

on c

om

ple

tion

of pa

ym

en

t, C

MU

sen

ds s

ett

lem

ent r

ep

ort

s to

acco

un

t ma

nag

em

en

t in

stitu

tio

ns (C

MU

Me

mb

ers

).7

.H

KM

A a

s C

SD

ma

ke

s b

on

d r

ed

em

ptio

n.

8.

Acco

unt m

an

age

me

nt i

nstitu

tions (C

MU

Me

mb

ers

) su

bse

qu

en

tly

pay la

st in

tere

st a

nd

prin

cip

al p

rocee

ds to

bo

nd h

old

ers

.9

.A

cco

unt m

an

age

me

nt i

nstitu

tions (C

MU

Me

mb

ers

) notifie

s b

on

d h

old

ers

of re

dem

ption

p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

393ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

394 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

6. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

Bo

nd

Issu

er

Acco

un

tM

an

ag

em

en

tIn

stit

utio

n(C

MU

Me

mb

er)

HK

MA

(C

MU

)a

sC

SD

Bo

nd

Ho

lde

r

Pa

yin

gA

ge

nt

1. P

aym

ent

Notification

3. N

otification o

f E

ligib

leP

ositio

ns

4. P

aym

ent

Instr

uction

2. A

ccount

Positio

ns R

eport

.5 C

ash

Tra

nsfe

rIs

suer’

s

Account

PA

's A

ccount

CM

U m

em

ber’

s

Account

Bond H

old

er’

s

Account

Pa

yin

g A

ge

nt

CM

U M

em

be

rH

KM

A(C

HA

TS

)7. In

tere

st

Paym

ent

8. In

tere

st

Paym

ent

Sam

e E

ntity

9. In

tere

st

Paym

ent

Confirm

ation

Sam

e E

ntity

(No T

ax P

aym

ent)

Tax O

ffic

e

395ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

ge

nt no

tifies b

ond

issu

er o

f in

tere

st p

aym

ent.

2.

1 d

ay b

efo

re th

e in

tere

st p

aym

en

t da

te, C

MU

sen

ds A

cco

unt P

ositio

ns R

ep

ort

to p

ayin

g

age

nt.

3.

1 d

ay b

efo

re th

e in

tere

st p

aym

en

t da

te, C

MU

sen

ds n

otifica

tio

n o

f elig

ible

po

sitio

ns to

a

cco

un

t man

ag

em

en

t in

stitu

tions (C

MU

Me

mb

ers

).4

.O

n in

tere

st p

aym

en

t da

te, b

on

d is

su

er in

str

ucts

it’s

pa

yin

g a

gen

t to

ma

ke

inte

rest

paym

ent.

5.

Payin

g a

ge

nt tr

ansfe

rs c

ash

fro

m is

su

er’

s a

cco

un

t to it

’s o

wn

acco

un

t.6

.P

ayin

g a

ge

nt in

str

uct H

on

g K

ong

Mo

neta

ry A

uth

ority

(H

KM

A) to

pa

y in

tere

st t

o C

MU

m

em

be

rs v

ia C

HA

TS

.7

.O

n in

tere

st p

aym

en

t da

te, th

e H

KM

Atr

an

sfe

rs th

e in

tere

st p

roce

eds to

the

accou

nt

man

age

me

nt i

nstitu

tion

s (C

MU

Me

mb

ers

) via

CH

AT

S.

8.

CM

U m

em

bers

su

bseq

uen

tly p

ay th

e in

tere

st p

rocee

ds to

th

e b

on

d h

old

ers

.9

.C

MU

me

mb

ers

notifie

s b

on

d h

old

ers

of in

tere

st p

aym

ent.

Pro

cess

of In

tere

st P

aym

ent

396 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

6. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

Bo

nd

Issu

er

Acco

un

tM

an

ag

em

en

tIn

stit

utio

n(C

MU

Me

mb

er)

HK

MA

(C

MU

)a

sC

SD

Bo

nd

Ho

lde

r

Pa

yin

gA

ge

nt

1. P

aym

ent

Notification

3. N

otification o

f E

ligib

leP

ositio

ns

4. P

aym

ent

Instr

uction

2. A

ccount

Positio

ns R

eport

Issuer’

s

Account

CM

U m

em

ber’

s

Account

Bond H

old

er’

s

Account

Pa

yin

g A

ge

nt

CM

U M

em

be

rH

KM

A(C

HA

TS

)7. R

edem

ption

Paym

ent

9. R

edem

ption

Paym

ent

Sam

e E

ntity

10. R

edem

ption

Paym

ent

Confirm

ation

Sam

e E

ntity

8.R

edem

ption

.5 C

ash

Tra

nsfe

rP

A's

Account

(No T

ax P

aym

ent)

Tax O

ffic

e

397ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

HK

09 R

edem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Paym

ent a

gen

t no

tifies b

ond

issu

er o

f re

de

mp

tio

n p

aym

en

t.2

.1

da

y b

efo

re th

e re

de

mption

pa

ym

en

t date

, C

MU

sen

ds A

ccou

nt P

ositio

ns R

ep

ort

to

payin

g a

ge

nt.

3.

1 d

ay b

efo

re th

e re

de

mption

pa

ym

en

t date

, C

MU

sen

ds n

otifica

tio

n o

f elig

ible

positio

ns to

a

cco

un

t man

ag

em

en

t in

stitu

tions (C

MU

Me

mb

ers

).4

.O

n re

de

mption

pa

ym

en

t date

, b

on

d is

sue

r in

str

ucts

it’s

pa

yin

g a

ge

nt to

ma

ke

re

dem

ption

p

aym

ent.

5.

Payin

g a

ge

nt tr

ansfe

rs c

ash

fro

m is

su

er’

s a

cco

un

t to it

’s o

wn

acco

un

t.6

.P

ayin

g a

ge

nt in

str

ucts

Ho

ng

Kon

g M

one

tary

Auth

ority

(H

KM

A) to

pa

y la

st in

tere

st a

nd

p

rin

cip

al t

o C

MU

me

mb

ers

via

CH

AT

S.

7.

On

re

de

mption

pa

ym

en

t date

, H

KM

A tr

an

sfe

rs la

st i

nte

rest a

nd

prin

cip

al p

rocee

ds to

a

cco

un

t ma

na

gem

en

t institu

tio

ns (C

MU

Me

mbe

rs) via

CH

AT

S.

8.

HK

MA

as C

SD

ca

rrie

s o

ut re

dem

ptio

n.

9.

CM

U m

em

bers

su

bseq

uen

tly p

ay la

st in

tere

st a

nd

prin

cip

al p

roce

ed

s to

bo

nd

hold

ers

.1

0.

CM

U m

em

bers

notifie

s b

on

d h

old

ers

of re

dem

ptio

n p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

398 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Indonesia(ID)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

399ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

400 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

I (B

I-R

TG

S)

IDX

–In

do

nesia

n S

tock E

xchan

ge

F

ITS

-F

ixed

-Incom

e T

radin

g S

yste

m C

TP

–C

entr

aliz

ed

Tra

din

g

Pla

tfo

rm K

SE

I –In

do

nesia

n C

entr

al S

ecurities D

epository

K

PE

I –

Indo

nesia

Cle

aring a

nd g

ua

rante

e

Corp

ora

tion

BI –

Ban

k Ind

on

esia

e-B

OC

S –

Ele

ctr

onic

Bon

d C

lea

ring

Syste

m C

-BE

ST

–C

entr

al D

epositary

and

Boo

k E

ntr

y S

ett

lem

en

t

BI-

SS

SS

–B

an

k Ind

on

esia

Scriple

ss S

ecurities S

ett

lem

ent S

yste

m

KS

EI

(C-B

ES

T)

KP

EI

(e-B

OC

S)

IDX

(FIT

S)

OT

C M

ark

et

(tele

ph

on

e)

Paym

ent

Banks

BI (B

I-S

SS

S)

IDX

(C

TP

)

401ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tP

aym

en

t B

an

ks

IDX

–In

do

ne

sia

n S

tock E

xch

an

ge

FIT

S -

Fix

ed

-In

co

me

Tra

din

g S

yste

m

CT

P –

Ce

ntr

aliz

ed

Tra

din

g P

latf

orm

K

SE

I –

Ind

on

esia

n C

en

tra

l S

ecu

ritie

s

KP

EI

(e-B

OC

S)

IDX

(FIT

S)

OT

C M

ark

et

(tele

ph

on

e)

BI(

BI-

RT

GS）

KS

EI

(C-B

ES

T)

IDX

(C

TP

)

KP

EI

–In

do

ne

sia

Cle

ari

ng

an

d g

ua

ran

tee

Co

rpo

ratio

nB

I –

Ba

nk In

do

ne

sia

e-B

OC

S –

Ele

ctr

on

ic B

on

d C

lea

rin

g S

yste

m

C-B

ES

T –

Ce

ntr

al D

ep

osita

ry a

nd

Bo

ok E

ntr

y S

ettle

me

nt

402 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

403ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sell

sid

eB

uy S

ide

Sell

Sid

e/

Sell

Sid

e’s

Sub

Reg

istr

y

Buy S

ide/

Buy S

ide’s

Sub

Reg

istr

y

1.T

rade

(Tele

phone/ B

loom

berg

/ R

eute

rs)

2.P

re-S

ett

lem

ent M

atc

hin

g(T

ele

phone/ S

WIF

T)

IDX

(

CT

P)

4. C

ode N

um

beri

ng

3. O

TC

Tra

de R

eport

ing

R

eq

uir

em

ent

3. O

TC

Tra

de R

eport

ing

R

eq

uir

em

ent

5. R

eport

Refe

rence C

ode

5. R

eport

Refe

rence C

ode

BI

(BI-

SS

SS

)

7. M

atc

hin

g D

VP

9. E

arm

ark

Bond

14. B

ond S

ett

lem

ent

(BI-

RT

GS

)

11. C

ash S

ett

lem

ent

12. C

ash S

ett

lem

ent

Sta

tem

ent

12. C

ash S

ett

lem

ent

Sta

tem

ent

15. S

ett

lem

ent S

tate

ment

15. S

ett

lem

ent S

tate

ment

6. R

VP

Instr

uction

6. D

VP

Instr

uction

8. M

atc

hin

g R

esult

8. M

atc

hin

g R

esult

10. P

aym

ent

Messag

e13. I

rrevocable

Debit/

Cre

dit

404 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

OT

C M

ark

et

(Direct

Connectio

n t

o B

I-S

SS

S )

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

go

ve

rnm

en

t b

on

ds o

ve

r-th

e-c

ou

nte

r. M

ost

of

tra

de

s a

re d

on

e b

y te

lep

ho

ne

s.

2.

Bo

th s

ell

sid

e a

nd

bu

y s

ide

se

nd

pre

-se

ttle

me

nt

ma

tch

ing

instr

uctio

ns o

ve

r th

e S

WIF

T o

r p

re-m

atc

h th

e

tra

de

d d

ata

fo

r se

ttle

me

nt

ove

r th

e t

ele

ph

on

e.

Be

fore

th

e p

re-s

ettle

me

nt

ma

tch

ing

tw

o c

om

po

ne

nts

of

bo

nd

taxe

s w

hic

h a

re c

ap

ital g

ain

ta

x a

nd

inte

rest

(with

ho

ldin

g)

tax n

ee

d to

be

ca

lcu

late

d.

Pre

-se

ttle

me

nt

ma

tch

ing

is p

erf

orm

ed

via

te

lep

ho

ne

or

sw

ift.

3.

Se

ll sid

e o

r b

uy s

ide

ha

ve

to

re

po

rt t

rad

e d

ata

to

Ce

ntr

aliz

ed

Tra

din

g P

latf

orm

(C

TP

) o

f In

do

ne

sia

Sto

ck

Exch

an

ge

(ID

X)

with

in 3

0 m

inu

tes o

f tr

ad

e.

4.

IDX

pu

ts t

he

co

de

on

ea

ch

tra

de

.5

.S

ell

sid

e a

nd

bu

y s

ide

re

ce

ive

re

po

rt r

efe

ren

ce

co

de

fro

m ID

X.

6.

Se

ll sid

e a

nd

bu

y s

ide

ke

y in

th

e D

VP

an

d R

VP

in

str

uctio

ns to

BI-

SS

SS

, re

sp

ectiv

ely

.7

.B

I-S

SS

S p

erf

orm

s th

e m

atc

hin

g.

8.

BI-

SS

SS

re

po

rts th

e m

atc

hin

g r

esu

lts to

th

e s

ell

sid

e a

nd

bu

y s

ide

.9

.B

on

d is

ea

rma

rke

d to

se

cu

re th

e D

VP.

10

.P

aym

en

t m

essa

ge

fo

r D

VP

is s

en

t to

Ba

nk I

nd

on

esia

Re

al T

ime

Gro

ss S

ettle

me

nt

(BI-

RT

GS

)1

1.

Wh

en

the

fu

nd

s a

re a

va

ilab

le,

the

am

ou

nt

is d

eb

ited

fro

m th

e b

uy s

ide

’s c

ash

acco

un

t a

nd

cre

dite

d to

th

e

se

ll sid

e’s

ca

sh

acco

un

t.

12

.B

I-R

TG

S s

en

ds th

e c

ash

se

ttle

me

nt

sta

tem

en

ts t

o t

he

se

ll sid

e a

nd

bu

y s

ide

.1

3.

BI-

RT

GS

no

tifie

s th

e irr

evo

ca

ble

de

bit/

cre

dit

sta

tus t

o B

I-S

SS

S.

14

.B

I-S

SS

S c

om

ple

tes b

on

d s

ettle

me

nt.

15

.B

I-S

SS

S r

ep

ort

s th

e s

ettle

me

nt

sta

tus t

o b

oth

se

ll sid

e a

nd

bu

y s

ide

.

405ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

406 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

Sell

Sid

eB

uy S

ide

Sell

Sid

e/

Sell

Sid

e’s

Sub

Reg

istr

y

Buy S

ide/

Buy S

ide’s

Sub

Reg

istr

y

1.T

rade

(Tele

phone/ B

loom

berg

etc

.)

IDX

(C

TP

)

4. C

ode N

um

beri

ng

3. O

TC

Tra

de R

eport

ing

R

eq

uir

em

ent

3. O

TC

Tra

de R

eport

ing

R

eq

uir

em

ent

5. R

eport

Refe

rence C

ode

5. R

eport

Refe

rence C

ode

KS

EI （

C-B

ES

T)

15. S

ett

lem

ent S

tate

ment

15. S

ett

lem

ent S

tate

ment

10. B

ond S

ett

lem

ent

Instr

uction

10. B

ond S

ett

lem

ent

Instr

uction

12. M

atc

hin

g R

esult

12. M

atc

hin

g R

esult

2.P

re-S

ett

lem

ent M

atc

hin

g(C

-BE

ST

/Tele

phone e

tc.)

Paym

en

t B

an

ks

7. B

uy s

ide c

ash is

tr

ansfe

rred to

KS

EI a/c

6. C

ash T

ransfe

r In

str

uction

to K

SE

I a/c

19. C

ash a

/c In

form

ation

18. S

ell

sid

e c

ash is

tr

ansfe

rred fr

om

KS

EI a/c

to

sell

sid

e a

/c

8. C

ash P

aym

ent

Messag

e

9. C

redit b

uy s

ide a

/c

11. S

ett

lem

ent M

atc

hin

g

13. C

heck b

ala

nce o

f buy s

ide a

/c(c

ash) and

sell

sid

e a

/c (bond)

14. B

ond S

ett

lem

ent

16. C

ash W

ithdra

wal

Instr

uction fr

om

KS

EI a

/c

to s

ell

sid

e a

/c17. C

ash W

ithdra

wal

8. C

ash P

aym

ent M

essag

e

407ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

OT

C M

ark

et

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

co

rpo

rate

bo

nd

s o

ve

r-th

e-c

ou

nte

r. M

ost

of tr

ad

es a

re d

on

e b

y te

lep

ho

ne

s.

2.

Se

ll sid

e c

alc

ula

te p

relim

ina

ry v

alu

e o

f ca

pita

l g

ain

an

d a

ccru

ed

inte

rest d

uri

ng

ho

ldin

g p

eri

od

of

se

ll sid

e

bo

nd

ho

lde

r. T

he

n,

the

se

ll sid

e in

form

s s

uch

info

rma

tion

with

oth

er

tra

de

da

ta t

o b

uy s

ide

. B

uy s

ide

ca

lcu

late

with

ho

ldin

g t

ax o

n th

e a

ccru

ed

inte

rest

an

d c

ap

ital g

ain

. T

he

n,

bu

y s

ide

info

rm n

et

pa

ym

en

t va

lue

to s

ell

sid

e.

Als

o,

bo

th s

ell

sid

e a

nd

bu

y s

ide

aff

irm

tra

de

da

ta e

ach

oth

er

ove

r th

e t

ele

ph

on

e(t

rad

e c

on

firm

atio

n in

fa

x o

r e

-em

ail

form

at)

.

3.

Se

ll sid

e o

r b

uy s

ide

ha

ve

to

re

po

rt t

rad

e d

ata

to

Ce

ntr

aliz

ed

Tra

din

g P

latf

orm

(C

TP

) o

f In

do

ne

sia

Sto

ck

Exch

an

ge

(ID

X)

with

in 3

0 m

inu

tes o

f tr

ad

e d

uri

ng

th

e r

ep

ort

ing

ho

urs

de

term

ine

d b

y t

he

ID

X..

4.

IDX

pu

ts c

od

e o

n e

ach

tra

de

in o

rde

r to

se

ttle

me

nt.

5.

Se

ll sid

e a

nd

bu

y s

ide

re

ce

ive

re

po

rt r

efe

ren

ce

co

de

fro

m ID

X, ｔh

ey a

lso

re

ce

ive

evid

en

ce

of

se

cu

ritie

s

tra

nsa

ctio

n a

nd

Lis

t o

f R

ep

ort

on

Se

cu

ritie

s T

ran

sa

ctio

ns f

rom

IDX

, w

hic

h m

ay b

e d

ow

nlo

ad

ed

fro

m th

e

CT

P.

6.

In th

e c

ase

of

se

ttle

me

nt

tra

nsa

ctio

n d

on

e in

DV

P,

bu

y s

ide

se

nd

s in

str

uctio

n t

o its

ba

nk r

eg

ard

ing

ca

sh

tr

an

sfe

r fr

om

bu

y s

ide

’s c

ash

acco

un

t to

KS

EI

ca

sh

acco

un

t Acco

rdin

gly

, a

mo

un

t o

f re

mitt

an

ce

is n

o n

ee

d

to b

e e

qu

al t

o t

ran

sa

ctio

n v

alu

e,

ho

we

ve

r th

e t

ota

l a

mo

un

t a

va

ilab

le in

th

e b

uy s

ide

’s K

SE

I ca

sh

acco

un

t m

ust co

ve

r th

e t

ran

sa

ctio

n v

alu

e,

ho

we

ve

r th

e t

ota

l a

mo

un

t a

va

ilab

le in

th

e b

uy s

ide

’s K

SE

I ca

sh

acco

un

t m

ust co

ve

r th

e t

ran

sa

ctio

n v

alu

e7

.T

he

re

leva

nt

pa

ym

en

t b

an

k r

ece

ive

s c

ash

tra

nsf

er

fro

m b

uy s

ide

’sca

sh

acco

un

t in

to K

SE

I ca

sh

acco

un

t.8

.P

aym

en

t b

an

ks s

en

d c

ash

pa

ym

en

t m

essa

ge

to

KS

EI.

9.

KS

EI

cre

dits

bu

y s

ide

acco

un

t in

C-B

ES

T.1

0.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

bo

nd

se

ttle

me

nt

instr

uctio

ns to

KS

EI(

C-B

ES

T),

re

sp

ectiv

ely

. T

he

instr

uctio

n

mu

st sp

ecify w

he

the

r it

is a

DV

P (

De

live

ry V

ers

us P

aym

en

t) o

r a

DF

OP

(D

eliv

ery

Fre

e o

f P

aym

en

t)

instr

uctio

n.

408 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

OT

C M

ark

et

11

.K

SE

I p

erf

orm

s s

ettle

me

nt

ma

tch

ing

.1

2.

KS

EI

rep

ort

s m

atc

hin

g r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

,if b

oth

th

e b

on

ds a

nd

th

e c

ash

are

ava

ilab

le in

th

e

resp

ectiv

e a

cco

un

ts.

13

.F

or

DV

P in

str

uctio

n,

KS

EI

ch

ecks b

ala

nce

of

bu

y s

ide

ca

sh

acco

un

t a

nd

se

ll sid

e b

on

da

cco

un

t.1

4.

KS

EI

pe

rfo

rms b

on

d s

ettle

me

nt

at

the

tim

e d

esig

na

ted

by th

e b

uy s

ide

an

d th

e s

ell

sid

e s

ub

ject

to K

SE

I’s

bu

sin

ess h

ou

rs.

15

.K

SE

I se

nd

s s

ettle

me

nt

sta

tem

en

t to

se

ll sid

e a

nd

bu

y s

ide

.1

6.

Se

ll sid

e s

en

ds in

str

uctio

n t

o K

SE

I re

ga

rdin

g c

ash

with

dra

wa

l fr

om

se

ll sid

e’s

KS

EI

ca

sh

acco

un

t to

se

ll sid

e c

ash

acco

un

t. F

un

d t

ran

sfe

r fr

om

KS

EI

ca

sh

acco

un

t ca

n o

nly

be

do

ne

by tra

nsfe

rrin

g th

e f

un

d in

to

an

op

era

tion

al a

cco

un

t o

pe

ne

d b

y s

ell

sid

e a

t a

pa

ym

en

t b

an

k. A

mo

un

t o

f re

mitt

an

ce

is n

o n

ee

d to

be

e

qu

al t

o t

ran

sa

ctio

n v

alu

e.

17

.K

SE

I se

nd

s c

ash

with

dra

wa

l in

str

uctio

n t

o t

he

re

leva

nt

pa

ym

en

t b

an

k.

Pa

ym

en

t b

an

k p

rovid

es in

tra

da

y

facili

ty fo

r K

SE

I in

ca

se

th

ere

is n

ot

su

ffic

ien

t ca

sh

ba

lan

ce

in th

e r

ele

va

nt p

aym

en

t b

an

k.

18

.T

he

re

leva

nt

pa

ym

en

t b

an

ks tra

nsfe

r ca

sh

fro

m s

ell

sid

e’s

KS

EI

ca

sh

acco

un

t to

se

ll sid

e’s

op

era

tion

al

acco

un

t in

th

e r

ele

va

nt p

aym

en

t b

an

k.

19

.P

aym

en

t b

an

ks s

en

d c

ash

acco

un

t in

form

atio

n t

o s

ell

sid

e.

409ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

410 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

9Trade

Reporting

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

(Sub-R

egis

try)

Co

un

ter-

pa

rty

BI

BI-

RT

GS

ClearingMatching &Settlement

Cross-Border

BI

BI-

SS

SS

As C

ash

Corr

espondent

Trading

IDX

(I

BP

A)

CashSettlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

5 T

rade C

onfirm

atio

n6

Tra

de C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

23

Settle

ment

Confirm

8 a

Settle

ment

Inst

ructio

n

8 b

FX

/Fundin

g I

nst

ructio

n

16

FX

Confirm

atio

n

27

Cash

Sta

tem

ent

4Trade

Reporting

11

Pre

-Matc

hin

g S

tatu

s/T

ax I

nfo

14

Am

ended I

nst

ructio

n r

e T

ax

22

Settle

ment

Confirm

atio

n

25

Securitie

s S

tate

ment

24

Fundin

g o

f T

rades

26

Cash

Sta

tem

ent

18

Captu

re/U

L o

f T

ransa

ctio

n D

eta

ils

19

Retr

ieval of

Matc

hin

g S

tatu

s

21

Settle

ment

Confirm

atio

n

17

Fundin

g o

f B

I A

ccount

20

Confirm

atio

n o

f D

ebit/

Cre

dit

12

Request

Am

endm

ent

13

Am

ended I

nst

ructio

n

411ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

1.

Fore

ign Institu

tional

Investo

r pla

ces o

rder

with I

nte

rnational B

roker

2.

Inte

rnational B

roker/

Dom

estic I

nvesto

r pla

ces o

rder

with D

om

estic B

roker/

Bank

3.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y a

gre

e o

n O

TC

tra

de (

via

e.g

. phone o

r B

loom

berg

)4.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y r

eport

tra

de t

o ID

X (

IBP

A)

for

price d

iscovery

(w

ithin

30 m

ins

of tr

ade)

5.

Dom

estic B

roker/

Bank s

ends t

rade c

onfirm

ation t

o Inte

rnational

Bro

ker

6.

Fore

ign Institu

tional

Investo

r re

ceiv

es t

rade c

onfirm

ation

7.

Fore

ign Institu

tional

Investo

r in

str

ucts

Glo

bal C

usto

dia

n,

on s

ecurities s

ettle

ment

and c

ash/fundin

g d

eta

ils8.

Glo

bal C

usto

dia

n i

nstr

ucts

Dom

estic C

usto

dia

n/S

ub-R

egis

try on (

a)

securities s

ettle

ment

deta

ils,

(b)

FX

request

or

fundin

g

deta

ils9.

Dom

estic C

usto

dia

n/S

ub-R

egis

try re

port

s t

rade d

eta

ils t

o ID

X (

within

30 m

ins

of re

ceip

t of in

str

uction),

and o

bta

ins C

TP

num

ber.

10.

Dom

estic C

usto

dia

n/S

ub-R

egis

try pre

-matc

hes w

ith C

ounte

rpart

y (

via

phone o

r em

ail)

, C

GT

calc

ula

ted a

nd a

gre

ed

11.

Dom

estic C

usto

dia

n/S

ub-R

egis

try advis

es G

lobal

Custo

dia

n o

n r

equired a

mendm

ent

of se

ttle

ment

am

ount

for

CG

T12.

Glo

bal C

usto

dia

n r

equests

Fore

ign I

nstitu

tional

Investo

r to

am

end s

ettle

ment

am

ount

for

CG

T

13.

Fore

ign Institu

tional

Investo

r sends a

mended s

ettle

ment

instr

uction t

o G

lobal C

usto

dia

n14.

Glo

bal C

usto

dia

n s

ends a

mended s

ettle

ment

instr

uction t

o D

om

estic C

usto

dia

n/S

ub-R

egis

try

15.

Dom

estic C

usto

dia

n/S

ub-R

egis

try and C

ounte

rpart

y p

re-m

atc

h a

gain

on a

mended s

ettle

ment

am

ount

(via

phone o

r em

ail)

16.

Dom

estic C

usto

dia

n/S

ub-R

egis

try confirm

s a

ctu

al F

X a

mount

to G

lobal C

usto

dia

n17.

Dom

estic C

usto

dia

n/S

ub-R

egis

try fu

nds its

account

at

BI via

RT

GS

18.

Dom

estic C

usto

dia

n/S

ub-R

egis

try ente

rs o

r uplo

ads t

rade d

eta

ils into

BI-

SS

SS

syste

m

19.

Dom

estic C

usto

dia

n/S

ub-R

egis

try re

trie

ves B

I-S

SS

S m

atc

hin

g s

tatu

s20.

Upon s

ettlin

g c

ash,

BI-

RT

GS

sends d

ebit/c

redit c

onfirm

ation t

o D

om

estic C

usto

dia

n/S

ub-R

egis

try

21.

Upon s

ettlin

g s

ecurities,

BI-

SS

SS

sends s

ettle

ment

confirm

ation f

or

securities t

o D

om

estic C

usto

dia

n/S

ub-R

egis

try

22.

Dom

estic C

usto

dia

n/S

ub-r

egis

try sends s

ettle

ment

confirm

ation t

o G

lobal C

usto

dia

n23.

Glo

bal C

usto

dia

n s

ends s

ettle

ment

confirm

ation t

o F

ore

ign I

nstitu

tional

Investo

r24.

Glo

bal C

usto

dia

n f

unds a

ccount

with D

om

estic C

usto

dia

n/S

ub-R

egis

try

25.

Dom

estic C

usto

dia

n/S

ub-R

egis

try sends s

tate

ment

of

securities t

o G

lobal C

usto

dia

n (

at end o

f day)

26.

Dom

estic C

usto

dia

n/S

ub-r

egis

try sends d

ebit/c

redit info

rmation i

n c

ash s

tate

ment

(at

end o

f day)

27.

Glo

bal C

usto

dia

n s

ends d

ebit/c

redit info

rmation i

n c

ash s

tate

ment

(at

end o

f day)

to F

ore

ign I

nstitu

tional In

vesto

r

Trade Date T+1 Settlement Date

412 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

413ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID06

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

BI-

SS

SS

as C

SD

2. P

aym

ent

Instr

uction

6.I

nte

rest P

aym

ent

Notice

BI

As P

ayin

g A

ge

nt

Cash

Flo

w

Info

rmation

Flo

w

BI-

SS

SS

P

art

icip

an

ts

inclu

din

g S

ub

-re

gis

trie

s

1. P

aym

ent

Info

rmation

3. In

tere

st

Paym

ent

MO

F’s

A

ccount

Part

icip

ant

/ S

ub

R

egis

try’s

A

cco

un

t

Bond H

old

er’

s

Account

BI(

BI-

RT

GS

)P

art

icip

an

t/S

ub

Re

gis

try’s

Syste

m

5. In

tere

st

Paym

ent

BI’s A

ccount

4. In

tere

st

Paym

ent

Tax O

ffic

e

7.T

ax P

aym

ent

Sam

e E

ntity

Sam

e E

ntity

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

BI(

BI-

SO

SA

)

414 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

Bank In

donesia

(B

I) n

otifies M

inis

try o

f F

inance (M

OF

) of paym

ent i

nfo

rmation.

2.

MO

F in

str

ucts

Bank In

donesia

(BI)

to p

ay in

tere

st.

3.

BI tr

ansfe

rs c

ash fo

r in

tere

st p

aym

ent f

rom

MO

F’s

account t

o B

I’s o

wn a

ccount.

4.

BI m

akes in

tere

st p

aym

ent t

o B

I-S

SS

S p

art

icip

ant i

nclu

din

g s

ub

-regis

trie

s.

5.

BI-

SS

SS

part

icip

ants

cre

dit b

ond h

old

ers

’ account w

ith in

tere

st.

6.

BI-

SS

SS

part

icip

ants

notify

bond h

old

er

of in

tere

st p

aym

ent.

7.

BI-

SS

SS

part

icip

ants

pay in

com

e ta

x to tax o

ffic

e.

※B

I-S

SS

S：

Bank I

ndonesia

Scriple

ss

Securities S

ett

lem

ent S

yste

m

Pro

cess

of In

tere

st P

aym

ent

415ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID0

7. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

BI(

BI-

RT

GS

)B

I(B

I-S

OS

A)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

BI-

SS

SS

as C

SD

2. P

aym

ent

Instr

uction

7.R

edem

ption P

aym

ent

Notice

BI

As P

ayin

g A

ge

nt

Cash

Flo

w

Info

rmation

Flo

w

BI-

SS

SS

P

art

icip

an

ts

inclu

din

g S

ub

-re

gis

trie

s

1. P

aym

ent

Info

rmation

3.R

edepm

tion

Paym

ent

MO

F’s

A

ccount

Bond H

old

er’

s

Account

Pa

rtic

ipa

nt/S

ub

Re

gis

try’s

syste

m

6.R

edem

ption

Paym

ent

4.R

edepm

tion

Paym

ent

Tax O

ffic

e

8.T

ax P

aym

ent

Sam

e E

ntity

Sam

e E

ntity

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

Part

icip

ant / S

ub

Regis

try’s

Account

BI’s A

ccount

5.R

edem

ption

416 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

BI notifies M

inis

try o

f F

inance (M

OF

) of paym

ent i

nfo

rmation.

2.

MO

F in

str

ucts

Ban

k In

do

nesia

(BI)

to p

ay r

ede

mption.

3.

BI tr

ansfe

rs c

ash fo

r re

dem

ption

paym

ent f

rom

MO

F’s

account t

o B

I’s o

wn a

ccount.

4.

BI m

akes red

em

ption p

aym

ent t

o B

I-S

SS

S p

art

icip

an

t inclu

din

g s

ub

-reg

istr

ies.

5.

BIm

akes b

on

d redem

ption

.6.

BI-

SS

SS

part

icip

ants

cre

dit b

on

d h

old

ers

’ accoun

t with rede

mption.

7.

BI-

SS

SS

part

icip

ants

no

tify

bond

ho

lder

of re

de

mption p

aym

en

t.8.

BI-

SS

SS

pa

rtic

ipan

tspay in

com

e ta

x a

nd c

apital g

ain

tax to tax o

ffic

e.

※B

I-S

SS

S：

Bank I

ndonesia

Scriple

ss

Securities S

ett

lem

ent S

yste

m

Pro

cess

of R

edem

ptio

n P

aym

ent

417ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

418 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Ho

lde

r

Tax O

ffic

e

5.D

GT

Form

s*

4. Tax D

ocs*

(DG

T F

orm

s)

14.I

nte

rest

Paym

ent

Notice

Cu

sto

dia

n

1.A

nnouncem

ent

3. O

n R

D+

1, Lis

t of

Bondhold

ers

2. O

n R

D+

1, M

em

ber

Entitlem

ent

15.I

nte

rest P

aym

ent

Confirm

ation a

nd D

GT

Bo

nd

Issu

er

KS

EI

as C

SD

Cash

Flo

w

Info

rmation

Flo

w

7. C

ash

Tra

nsfe

rIs

suer’

s

Account

KS

EI’s

Account

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

Cu

sto

dia

nK

SE

I’s P

aym

en

t B

an

ks

13.I

nte

rest

Paym

ent

16.T

ax P

aym

ent

17.T

ax

Docs

18.P

roof of Tax

Paym

ent

Sam

e E

ntity

6.O

n P

D-1

, P

aym

ent

Instr

uction

8.P

aym

ent

Confirm

ation

*only

if

the

fo

reig

n inve

sto

rs w

ou

ld lik

e t

o e

njo

y t

he t

ax t

rea

ty b

ene

fits

DG

T:

Do

uble

Ta

xatio

n C

onve

ntio

n

2. O

n R

D+

1,

Mem

ber

Entitlem

ent

KS

EI’s

Account

Bond

Hold

er’

s

Account

10.W

ithdra

wal

Instr

uction

12. C

ash

transfe

r

9.In

tere

st P

aym

ent

11. C

ash

withdra

wal

419ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Up

on

re

ce

ivin

g n

otic

e f

rom

th

e b

on

d is

su

er

on

th

e p

rop

ose

d p

aym

en

t o

f in

tere

st, K

SE

I a

nn

ou

nce

s th

e

pro

po

se

d p

aym

en

t o

f in

tere

st to

cu

sto

dia

n b

an

ks.

2.

On

re

co

rdin

g d

ate

, K

SE

I ca

lcu

late

s in

tere

st a

mo

un

t o

n b

eh

alf o

f e

ach

bo

nd

ho

lde

rs, in

clu

din

g t

ax

ob

liga

tion

. O

n r

eco

rdin

g d

ate

+1

, K

SE

I ca

rrie

s o

ut

me

mb

er

en

title

me

nt

to c

usto

dia

ns. C

usto

dia

n

info

rms th

e e

ntit

lem

en

t to

th

e b

on

d h

old

er.

3.

On

re

co

rdin

g d

ate

+1

, K

SE

I se

nd

s li

st

of

bo

nd

ho

lde

rs a

nd

re

qu

est fo

r p

aym

en

t to

bo

nd

issu

er

(at th

e

late

st 3

bu

sin

ess d

ays p

rio

r to

pa

ym

en

t d

ate

). O

n th

e o

the

r h

an

d r

em

ind

er

of

inte

rest

pa

ym

en

t co

nfirm

atio

n (

gro

ss a

mo

un

t) w

ill b

e s

en

t to

th

e b

on

d is

su

er

10

bu

sin

ess d

ay b

efo

re p

aym

en

t.

4.

Bo

nd

ho

lde

rs w

ho

wa

nt to

en

joy ta

x t

rea

ty b

en

efit

se

nd

tax d

ocs in

Do

ub

le T

axa

tion

Ag

ree

me

nt

in D

GT

fo

rms to

cu

sto

dia

n b

an

ks

for

su

bm

issio

n to

KS

EI. .

5

.C

usto

dia

ns s

en

d ta

x d

ocs in

DG

T f

orm

s to

KS

EI.

6.

No

t la

test

tha

n 1

bu

sin

ess d

ay p

rio

r to

pa

ym

en

t d

ate

(p

aym

en

t d

ate

-1

), B

on

d issu

er

mu

st

instr

ucts

on

e

of a

pp

oin

ted

KS

EI’s

pa

ym

en

t b

an

ks tra

nsfe

r in

tere

st

pa

ym

en

t to

KS

EI’s

acco

un

t. A

mo

un

t is

gro

ss

be

fore

tax.

7.

Pa

ym

en

t b

an

k tra

nsfe

rs c

ash

to

KS

EI’s

acco

un

t.

8.

Pa

ym

en

t b

an

k s

en

ds c

on

firm

atio

n o

f ca

sh

tra

nsfe

r to

KS

EI.

9.

KS

EI

pro

ce

sse

s in

tere

st

pa

ym

en

t to

bo

nd

ho

lde

rs a

cco

un

t in

C-B

ES

T.

10

.C

usto

dia

ns in

pu

t ca

sh

with

dra

wa

l in

str

uctio

n to

KS

EI.

11

.K

SE

I se

nd

s in

str

uctio

n t

o t

ran

sfe

r in

tere

st

pa

ym

en

t (n

et

of ta

x)

fro

m K

SE

I’s a

cco

un

t to

re

leva

nt

cu

sto

dia

n’s

acco

un

t.

12

.P

aym

en

t b

an

k tra

nsfe

rs c

ash

fro

m K

SE

I’s a

cco

un

t to

cu

sto

dia

ns’ a

cco

un

ts.

Pro

cess

of In

tere

st P

aym

ent

(1/2

)

420 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

13

.C

usto

dia

ns c

red

it to

bo

nd

ho

lde

r’s a

cco

un

ts w

ith in

tere

st p

aid

by K

SE

I’s p

aym

en

t b

an

k.

14

.C

usto

dia

ns n

otif

y b

on

d h

old

ers

of

inte

rest p

aym

en

t..

15

.K

SE

I su

bm

its in

tere

st

pa

ym

en

t co

nfirm

atio

n a

nd

DG

T f

orm

to

th

e b

on

ds is

su

er.

16

.K

SE

I a

s p

ayin

g a

ge

nt

pa

ys ta

x t

o t

ax o

ffic

e th

rou

gh

pa

ym

en

t b

an

k.

17

.B

on

d is

su

er

rep

ort

s a

nd

se

nd

s ta

x d

ocs to

ta

x o

ffic

e.

18

.Ta

x o

ffic

e c

lari

fie

s a

nd

pro

of ta

x p

aym

en

t to

Bo

nd

issu

er

.

NO

TE

: F

ore

ign

inve

sto

rs w

ho

are

no

t d

om

icile

d o

r w

ho

do

no

t w

ish

to

en

joy t

rea

ty b

en

efits

, a

re n

ot

req

uir

ed

to

su

bm

it a

ny ta

x d

ocu

me

nt.

Pro

cess

of In

tere

st P

aym

ent

(2/2

)

421ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Ho

lde

r

Tax O

ffic

e

5. D

GT

Form

s*

4. Tax d

ocs*

(DG

T F

orm

s)

14.R

edem

ption

Paym

ent

Notice

Cu

sto

dia

n

1.A

nnouncem

ent

3. O

n R

D+

1 L

ist of

Bondhold

ers

2. on R

D+

1,

Mem

ber

Entitlem

ent

15. R

edem

ption p

aym

ent

confirm

ation a

nd D

GT

Form

s

Bo

nd

Issu

er

KS

EI

as C

SD

Cash

Flo

w

Info

rmation

Flo

w

7. C

ash

Tra

nsfe

rIs

suer’

s

Account

KS

EI’s

Account

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

Cu

sto

dia

nK

SE

I’s P

aym

en

t B

an

ks

12. C

ash t

ransfe

r13.R

edem

ption

Paym

ent

16.T

ax P

aym

ent

17.T

ax

Docs

18.P

roof of ta

x

paym

ent

Sam

e E

ntity

6.O

n P

D -

1, P

aym

ent

Instr

uction

11. C

ash

withdra

wal

8.P

aym

ent

Confirm

ation

*only

if th

e fore

ign investo

rs w

ould

lik

e t

o e

njo

y t

he tax t

reaty

benefits

DG

T:

Double

Taxation C

onvention

2. O

n R

D+

1,

Mem

ber

Entitlem

ent

KS

EI’s

Account

Bond

Hold

er’s

Account

10.w

ithdra

wa

l Instr

uction

9.R

edem

ption

422 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

ID09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Upon r

eceiv

ing n

otice f

rom

the b

ond issuer

on the p

roposed r

edem

ption p

aym

ent,

KS

EI

announces p

aym

ent to

custo

dia

n b

anks.

2.

On record

ing d

ate

, K

SE

I calc

ula

tes r

edem

ption a

mount

on b

ehalf o

f each b

ond h

old

ers

, in

clu

din

g t

ax o

blig

ation.

On

record

ing d

ate

+ 1

, K

SE

I carr

ies o

ut m

em

ber

entitlem

ent to

custo

dia

ns. C

usto

dia

n info

rms the e

ntitlem

ent to

the b

ond

hold

er.

3.

On record

ing d

ate

+ 1

, K

SE

I sends lis

t of bond h

old

ers

and r

equest

for paym

ent

to the b

ond issuer

(at th

e la

test 3

busin

ess d

ays p

rior

to p

aym

ent date

). O

n t

he o

ther

hand, re

min

der

of re

dem

ption p

aym

ent confirm

ation (

gro

ss a

mount)

is

sent to

the b

ond issuer

10 b

usin

ess d

ay b

efo

re.

4.

Bond h

old

ers

who w

ant

to e

njo

y tax tre

aty

benefit send

tax d

ocs in D

ouble

Taxation A

gre

em

ent in

DG

T f

orm

s to

custo

dia

n b

anks f

or

subm

issio

n t

o K

SE

I.

5.

Custo

dia

ns s

end t

ax d

ocs in D

GT

form

s to K

SE

I.6.

Not la

test th

an 1

busin

ess d

ay p

rior

to p

aym

ent date

(P

aym

ent date

–1),

Bond issuer

instr

ucts

one o

f appoin

ted K

SE

I’s

paym

ent banks t

o tra

nsfe

r c

ash f

or

redem

ption p

aym

ent to

KS

EI’s a

ccount.

Am

ount is

gro

ss b

efo

re tax.

7.

Paym

ent bank t

ransfe

rs c

ash t

o K

SE

I’s a

ccount.

8.

Paym

ent bank s

ends c

onfirm

ation o

f cash t

ransfe

r to

KS

EI.

9.

KS

EI pro

cesses r

edem

ption in

C-B

ES

T.

10.

Custo

dia

ns in

put

cash w

ithdra

wal in

str

uction.

11.

KS

EI sends instr

uction to t

ransfe

r princip

al and la

st

inte

rest paym

ent (n

et of ta

x)

from

KS

EI’s a

ccount

to r

ele

vant

custo

dia

n’s

account.

12.

Paym

ent bank t

ransfe

rs c

ash f

rom

KS

EI’s a

ccount t

o c

usto

dia

ns’ accounts

13.

Custo

dia

ns c

redit t

o b

ondhold

er’

s a

ccounts

with r

edem

ption a

nd last

inte

rest paym

ent paid

by K

SE

I’s p

aym

ent bank.

14.

Custo

dia

ns n

otify

bond h

old

ers

of re

dem

ption a

nd la

st

inte

rest paym

ent.

15.

KS

EI subm

its r

edem

ption p

aym

ent confirm

ation a

nd D

GT

form

to the b

onds is

suer.

16.

KS

EI as a

payin

g a

gent pays t

ax to tax o

ffic

e thro

ugh p

aym

ent bank.

17.

Bond is

suer

report

s a

nd s

ends t

ax d

ocum

ents

to t

ax o

ffic

e.

18.

Tax o

ffic

e c

larifies a

nd p

roofs

tax p

aym

ent to

Bond I

ssuer.

Pro

cess

of R

edem

ptio

n P

aym

ent

423ASEAN+3 Bond Market Guide | Volume 3 | Part 3

Japan(JP)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

424 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

425ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

JA

SD

EC

(P

SM

S)

JS

CC

BO

J(B

OJ-N

ET

JG

B S

erv

ices)

BO

J (

BO

J-N

ET

Fu

nd

s T

ran

sfe

r S

yste

m)

BO

J: B

ank

of Ja

pan

JASD

EC: Ja

pan S

ecu

rities

Deposi

tory

Cente

r, I

nc.

TS

ETokyo O

TC

mark

et

JA

SD

EC

(P

SM

S)

Trans. Flow for JGB

Tras. Flow for

JGB (via PSMS)

Trans. Flow for Foreign Investors

JGB:

Japanese

Gove

rnm

ent

Bond

OTC:

Ove

r th

e C

ounte

r

PSM

S: Pre

-Sett

lem

ent

Matc

hin

g S

yste

m

TSE:

Toky

o S

tock

Exc

hange

426 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

JA

SD

EC

(P

SM

S)

JA

SD

EC

(B

ook-E

ntr

y T

ran

sfe

r S

yste

m)

BO

J (

BO

J-N

ET

Fu

nd

s T

ran

sfe

r S

yste

m)

BO

J: B

an

k o

f Ja

pa

nJA

SD

EC

: Ja

pa

n S

ecu

ritie

s D

ep

osito

ry C

en

ter,

In

c.

TS

E

No

te1

: N

on

fix

ed

inco

me

bo

nd

s s

uch

as c

on

ve

rtib

le b

on

ds a

re n

ot

inclu

de

d h

ere

.

Tokyo O

TC

mark

et

JA

SD

EC

(P

SM

S)

Trans. Flow for Foreign Investors

Tran. Flow for Corporate Bond

OT

C: O

ve

r th

e C

ou

nte

rP

SM

S:

Pre

-Se

ttle

me

nt

Ma

tch

ing

Syste

mT

SE

: To

kyo

Sto

ck E

xch

an

ge

427ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

428 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades O

TC

Mark

et

(JG

B)

/ D

VP

thro

ugh T

rade M

atc

hin

g

(PS

MS

)

Buy S

ide’s

Ag

ent

for F

unds

Sell

Sid

eB

uy S

ide

JA

SD

EC

(PS

MS

)

1. T

rade

2. T

rade r

eport

3. T

rade M

atc

hin

g

4. N

otice D

ata

of

Tra

de M

atc

hin

g S

tatu

s4. N

otice D

ata

of

Tra

de M

atc

hin

g S

tatu

s

2. T

rade r

eport

Sell

Sid

e’s

Ag

ent fo

r S

ecuri

ties

Buy S

ide’s

Ag

ent

for S

ecuri

ties

Sell

Sid

e’s

Ag

ent

for F

unds

7. N

otice o

f A

ccepta

nce o

f JG

B

Tra

nsfe

r In

str

uction fo

r D

VP

7. N

otice o

f A

ccepta

nce o

f JG

B

Tra

nsfe

r In

str

uction fo

r D

VP

8-1

. DV

P R

eq

uest

7. N

otice o

f JG

B T

ransfe

r In

str

uction fo

r D

VP

8-2

. Notice o

f A

ccepta

nce

of D

VP

Req

uest

9-2

. Notice o

f A

ccepta

nce

of D

VP

Req

uest

11. N

otice o

f C

redit to C

urr

ent

Account f

or

DV

P

11. N

otice o

f D

VP

Sett

lem

ent

10. N

otice o

f D

VP

Sett

lem

ent

11. N

otice o

f D

VP

S

ett

lem

ent

BO

J

(BO

J-N

ET

)

9-1

. DV

P R

eq

uest

(Deliv

ere

rof

JG

B)

(Receiv

erof

Funds)

10. C

ash S

ett

lem

ent

10. B

ond S

ett

lem

ent

DV

P

Securi

ties

Serv

ices

RT

GS

(Receiv

erof

JG

B)

(Sender

of

Funds)

5. S

ett

lem

ent M

atc

hin

g

Sta

ndin

g S

ettle

ment

Inst

ructio

n

6. J

GB

Tra

nsfe

r In

str

uction

7. N

otice o

f A

ccepta

nce o

f JG

B T

ransfe

r In

str

uction fo

r D

VP

8-2

. Notice o

f D

VP

Req

uest b

y

Deliv

ere

r of JG

B

429ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP03.

Govern

ment

Tra

nsacti

on F

low

for

Dom

esti

c T

rades O

TC

Mark

et

(JG

B)

/ D

VP

thro

ugh T

rade M

atc

hin

g

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

go

ve

rnm

en

t b

on

d o

ve

r-th

e-c

ou

nte

r.

2.

Bo

th s

ell

sid

e a

nd

bu

y s

ide

se

nd

tra

de

re

po

rt to

Ja

pa

n S

ecu

ritie

s D

ep

osito

ry C

en

ter,

In

c.(

JA

SD

EC

).

3.

JA

SD

EC

pe

rfo

rms tr

ad

e m

atc

hin

g.

4.

JA

SD

EC

no

tifie

s b

oth

se

ll sid

e a

nd

bu

y s

ide

of tr

ad

e m

atc

hin

g s

tatu

s.

5.

JA

SD

EC

pe

rfo

rms s

ettle

me

nt

ma

tch

ing

with

Sta

nd

ing

Se

ttle

me

nt

Instr

uctio

n(S

SI)

ge

ne

rate

d b

y P

re-S

ett

lem

ent

Matc

hin

g S

yste

m(P

SM

S).

6.

JA

SD

EC

se

nd

s J

GB

tra

nsfe

r in

str

uctio

n t

o B

an

k o

f Ja

pa

n(B

OJ).

7.

BO

J n

otif

ies J

AS

DE

C,

se

ll sid

e a

nd

bu

y s

ide

of

acce

pta

nce

of

instr

uctio

n.

8-1

.Se

ll sid

e e

nte

rs D

VP

re

qu

est to

BO

J.

8-2

.BO

J n

otif

ies s

ell

sid

e a

nd

bu

y s

ide

of

acce

pta

nce

of

instr

uctio

n.

9-1

.Bu

y s

ide

en

ters

DV

P r

eq

ue

st to

BO

J.

9-2

.BO

J n

otif

ies b

uy s

ide

of

acce

pta

nce

of

instr

uctio

n.

10

.B

OJ p

erf

orm

s b

on

d a

nd

ca

sh

se

ttle

me

nt.

11.

Wh

en

DV

P s

ettle

me

nt

co

mp

lete

d,

BO

J n

otif

ies s

ell

sid

e a

nd

bu

y s

ide

of

bo

nd

an

d c

ash

se

ttle

me

nt.

OT

C M

ark

et

430 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades O

TC

Mark

et

(JG

B)

/ D

VP

(N

ew

BO

J-N

ET)

thro

ugh

Tra

de M

atc

hin

g (

PS

MS

) and J

SC

C

Selle

rB

uyer

JA

SD

EC

(PS

MS

)

1. T

rade

2. T

rade r

eport

3. T

rade M

atc

hin

g4. N

otice D

ata

of

Tra

de M

atc

hin

g S

tatu

s

4. N

otice D

ata

of

Tra

de M

atc

hin

g S

tatu

s

2. T

rade r

eport

5. M

atc

hed T

rade R

eport

PS

MS

PS

MS

JS

CC

6. A

ppro

val of

Oblig

atio

n

8. N

ovatio

n

10. N

ettin

g

7. N

otic

e D

ata

of

Appro

val

of O

blig

atio

n

7. N

otic

e D

ata

of

Appro

val

of O

blig

atio

n

12. D

VP

Ord

er

9. N

otic

e D

ata

of

Novatio

n

11. N

otic

e D

ata

of

Nettin

g

9. N

otic

e D

ata

of

Novatio

n

11. N

otic

e D

ata

of

Nettin

g

Sourc

e: B

ank o

f Japan a

nd J

AS

DE

C (

modifie

d b

y p

resente

r)

431ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JJP

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades O

TC

Mark

et

(JG

B)

/ D

VP

(N

ew

BO

J-N

ET)

th

rough T

rade M

atc

hin

g (

PS

MS

) and J

SC

C

Selle

r’s a

gent f

or

securi

ties

Buyer’

s a

gent f

or

securi

ties

Selle

r’s a

gent f

or

funds

Buyer’

s a

gent f

or

funds

14. N

otice o

f A

ccepta

nce o

f JG

B

Tra

nsfe

r In

str

uction fo

r D

VP

14. N

otice o

f A

ccepta

nce o

f JG

B

Tra

nsfe

r In

str

uction fo

r D

VP

15-1

. DV

P R

eq

uest

14. N

otice o

f JG

B T

ransfe

r In

str

uction fo

r D

VP

14.

No

tice

of

Accepta

nce

of

JG

BT

ran

sfer

Inst

ructio

nfo

rD

VP

16-1

. Notice o

f A

ccepta

nce o

f D

VP

R

eq

uest

16-2

. Notice o

f A

ccepta

nce o

f D

VP

R

eq

uest (

for cash)

16-1

.N

otic

eof

Accepta

nce

of

DV

PR

equest

17. N

otice o

f cre

dit to c

urr

ent

account f

or D

VP

17. N

otice o

f D

VP

Sett

lem

ent

17. N

otic

e o

f D

VP

Settle

ment

17. N

otice o

f D

VP

Sett

lem

ent

17. N

otice o

f D

VP

Sett

lem

ent

(Fund)

13.

JG

BT

ransf

er

Inst

ruction

for

DV

P13.

JG

BT

ransf

er

Inst

ructio

nfo

rD

VP

（F

orR

eceiv

er

of

JG

B）

JS

CC

（F

orD

eliv

ere

rofJG

B）

BO

J (

BO

J-N

ET

)

14.

Notice

of

Accepta

nce

of

JG

BT

ran

sfer

Inst

ructio

nfo

rD

VP

（F

orR

eceiv

er

of

JG

B）

16-2

Report

of

Accepta

nce

of

DV

PR

equest

17. N

otic

e o

f D

VP

Settle

ment

（F

orD

eliv

ere

rofJG

B）

15-2

. DV

P R

eq

uest (

for

cash)

(Deliv

ere

rof

JG

B)

(Receiv

erof

Funds)

(Receiv

erof

JG

B)

(Sender

of

Funds)

16. C

ash S

ett

lem

ent

16. B

ond S

ett

lem

ent

DV

P

Securi

ties

serv

ices

RT

GS

Sourc

e: B

ank o

f Japan (

modifie

d b

y p

resente

r)

432 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP04.

Govern

ment

Tra

nsacti

on F

low

for

Dom

esti

c T

rades O

TC

Mark

et

(JG

B)

/ D

VP

(N

ew

BO

J-N

ET)

thro

ugh

Tra

de M

atc

hin

g (

PS

MS

) and J

SC

C

1.

The s

elle

r and b

uyer

trade g

overn

ment bond o

ver-

the-c

ounte

r.

2.

Both

selle

r and b

uyer

send T

rade R

eport

data

into

PS

MS

(P

re-S

ett

lem

ent M

atc

hin

g S

yste

m).

3.

PS

MS

perf

orm

s tra

de m

atc

hin

g.

4.

PS

MS

sends t

he N

otice D

ata

of Tra

de M

atc

hin

g S

tatu

s to b

oth

sid

es o

f tr

ade.

5.

PS

MS

tra

nsm

its the m

essage o

f M

atc

hed T

rade R

eport

data

to J

SC

C.

6.

JS

CC

makes a

ppro

val of oblig

ation.

7.

JS

CC

sends the N

otice D

ata

of A

ppro

val of O

blig

ation t

o t

he s

elle

r and b

uyer

via

PS

MS

.

8.

JS

CC

perf

orm

s the n

ovation.

9.

JS

CC

sends the N

otice D

ata

of N

ovation t

o the s

elle

r and b

uyer

via

PS

MS

.

10.

JS

CC

perf

orm

s the n

ett

ing.

11.

JS

CC

sends the N

otice D

ata

of N

ett

ing t

o the s

elle

r and b

uyer

via

PS

MS

.

12.

JS

CC

com

pile

s D

VP

ord

er.

13.

JS

CC

sends the J

GB

Tra

nsfe

r In

str

uction for

DV

P t

o B

OJ-N

ET.

14.

BO

J-N

ET

sends t

he N

otice o

f A

ccepta

nce o

f JG

B T

ransfe

r In

str

uction for D

VP

to the s

elle

r, t

he b

uyer

and J

SC

C.

15-1

.The s

elle

r ente

rs D

VP

Request

to B

OJ-N

ET.

15-2

.The b

uyer

ente

rs D

VP

Request

to B

OJ-N

ET.

(for

cash)

16-1

.BO

J-N

ET

sends t

he N

otice o

f A

ccepta

nce o

f D

VP

Request

to s

elle

r and c

om

ple

tes s

ett

lem

ent.

16-2

.BO

J-N

ET

sends t

he N

otice o

f A

ccepta

nce o

f D

VP

Request

to b

uyer

and c

om

ple

tes s

ett

lem

ent.

(fo

r cash)

17.

When D

VP

sett

lem

ent com

ple

ted, B

OJ-N

ET

sends the N

otice o

f cre

dit t

o c

urr

ent account fo

r D

VP

to t

he s

elle

r, b

uyer

and J

SC

C.

OT

C M

ark

et

433ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

434 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP05.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

Buy S

ide

JA

SD

EC

(Bo

ok

En

try

Tra

nsfe

r S

yste

m)

Sell

Sid

e1. T

rade

2. T

rade R

eport

4. N

otice o

f M

atc

hin

g

Sta

tus

4. N

otice o

f M

atc

hin

g

Sta

tus

2. T

rade R

eport

(PS

MS

)

13.B

ond S

ett

lem

ent

12.S

ett

lem

ent R

eport

(Cash)

12. S

ett

lem

ent R

eport

(Cash)

14. S

ett

lem

ent R

eport

(Bond)

BO

J(B

OJ

NE

T)

11.C

ash S

ett

lem

ent

7. H

old

ing

Bonds

8.F

und S

ett

lem

ent D

ata

for D

VP

12. N

otice o

f R

eceip

t C

om

ple

tion (

Cash)

3. T

rade M

atc

hin

g

5. S

ett

lem

ent M

atc

hin

g

9. P

aym

ent R

eq

uest

(Cash)

10. P

aym

ent In

str

uction

(Cash)

6. N

otice o

f M

atc

hin

g

Sta

tus

6. N

otice o

f M

atc

hin

g

Sta

tus

14. S

ett

lem

ent R

eport

(Bond)

SS

I

435ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP05.

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

co

rpo

rate

bo

nd

s o

ve

r-th

e-c

ou

nte

r.2

.B

oth

se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

de

re

po

rt to

Ja

pa

n S

ecu

ritie

s D

ep

osito

ry C

en

ter,

In

c.(

JA

SD

EC

).3

.JA

SD

EC

pe

rfo

rms tr

ad

e m

atc

hin

g.

4.

JA

SD

EC

no

tifie

s b

oth

se

ll sid

e a

nd

bu

y s

ide

of tr

ad

e m

atc

hin

g s

tatu

s.

5.

JA

SD

EC

pe

rfo

rms s

ettle

me

nt

ma

tch

ing

with

Sta

nd

ing

Se

ttle

me

nt

Instr

uctio

n(S

SI)

ge

ne

rate

d b

y P

re-

Sett

lem

ent

Matc

hin

g S

yste

m(P

SM

S).

6.

JA

SD

EC

no

tifie

s s

ell

sid

e a

nd

bu

y s

ide

of

se

ttle

me

nt

ma

tch

ing

sta

tus.

7.

JA

SD

EC

ho

lds b

on

ds w

ith it’s

bo

ok-e

ntr

y tr

an

sfe

r syste

m.

8.

JA

SD

EC

se

nd

s fu

nd

se

ttle

me

nt

da

ta f

or

DV

P t

o B

an

k o

f Ja

pa

n(B

OJ).

9.

BO

J s

en

ds p

aym

en

t re

qu

est to

bu

y s

ide

.1

0.

Bu

y s

ide

se

nd

s p

aym

en

t in

str

uctio

n to

BO

J.

11

.B

OJ e

xe

cu

tes c

ash

se

ttle

me

nt.

12

.B

OJ n

otif

ies s

ell

sid

e, b

uy s

ide

an

d J

AS

DE

C o

f ca

sh

re

ce

ipt co

mp

letio

n.

13

.JA

SD

EC

exe

cu

tes b

on

d s

ettle

me

nt.

14

.JA

SD

EC

se

nd

s b

on

d s

ettle

me

nt

rep

ort

to

se

ll sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

436 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

437ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP06.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

(JG

B)

/ D

VP

or

Ba

nk

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

As D

ire

ct

Pa

rtic

ipa

nt

BO

J-

NE

T

(RT

GS

)

Clearing Matching & Settlement

Cross-Border

BO

J-N

ET

(J

GB

S

erv

ice

s)

As C

ash

Corr

espondent

Trading & Matching Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n2

Tra

de O

rder

4 T

rade C

onfirm

atio

n5 T

rade C

onfirm

atio

n

6S

ettle

ment

Inst

ructio

n

16

Settle

ment

Confirm

7 S

ettle

ment

Inst

ructio

n

19

Cash

Sta

tem

ent

10

Tra

nsa

ctio

n S

tatu

s U

pdate

14

Settle

ment

Confirm

atio

n

17

Securitie

s S

tate

ment

15

Fundin

g o

f T

rades

18

Cash

Sta

tem

ent

12a

DV

P R

equest

13a

Settle

ment

Confirm

atio

n

12b

DV

P R

equest

13b

Confirm

atio

n o

f D

ebit/

Cre

dit

11a

Notif

icatio

n o

f D

VP

Settle

ment

and A

ccepta

nce

PS

MS

(J

AS

DE

C)

Co

un

ter-

pa

rty

11b

Notif

icatio

n o

f D

VP

Settle

ment

and A

ccepta

nce

Tra

de

E

xe

cu

tio

n

(OT

C)

438 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP06.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

(JG

B)

/ D

VP

1.

Fo

reig

n In

stit

utio

na

l In

ve

sto

r p

lace

s o

rde

r w

ith I

nte

rna

tion

al B

roke

r2

.In

tern

atio

na

l Bro

ke

r p

lace

s o

rde

r w

ith D

om

estic

Bro

ke

r/B

an

k3

.D

om

estic

Bro

ke

r/B

an

k tra

de

s O

TC

with

Co

un

terp

art

y (

via

ph

on

e o

r e

.g.

Blo

om

be

rg)

4.

Do

me

stic

Bro

ke

r/B

an

k s

en

d tra

de

co

nfirm

atio

n to

In

tern

atio

na

l B

roke

r 5

.F

ore

ign

Instit

utio

na

l In

ve

sto

r re

ce

ive

s tr

ad

e c

on

firm

atio

n6

.F

ore

ign

Instit

utio

na

l In

ve

sto

r in

str

ucts

Glo

ba

l Cu

sto

dia

n o

n s

ecu

ritie

s s

ettle

me

nt

de

tails

7.

Glo

ba

l Cu

sto

dia

n in

str

ucts

Do

me

stic

Cu

sto

dia

n o

n s

ecu

ritie

s s

ettle

me

nt

de

tails

8.

Do

me

stic

Bro

ke

r a

nd

do

me

stic

Cu

sto

dia

n in

pu

t tr

ad

e d

eta

ils in

to P

SM

S9

.P

SM

S r

esp

on

ds w

ith m

atc

hin

g s

tatu

s1

0.

Do

me

stic

Cu

sto

dia

n r

ep

ort

s tra

nsa

ctio

n s

tatu

s u

pd

ate

to

Glo

ba

l Cu

sto

dia

n

11

.D

om

estic

Cu

sto

dia

n/D

ire

ct P

art

icip

an

t re

ce

ive

No

tific

atio

n o

f D

VP

Se

ttle

me

nt

an

d A

cce

pta

nce

fro

m

BO

J-N

ET

12

.D

om

estic

Cu

sto

dia

n/D

ire

ct P

art

icip

an

t se

nd

DV

P r

eq

ue

st to

BO

J-N

ET

13

.D

om

estic

Cu

sto

dia

n/D

ire

ct P

art

icip

an

t a

s w

ell

as J

SC

C r

ece

ive

co

nfirm

atio

n o

f D

VP

se

ttle

me

nt

14

.D

om

estic

Cu

sto

dia

n s

en

ds s

ettle

me

nt

co

nfirm

atio

n to

Glo

ba

l C

usto

dia

n1

5.

Glo

ba

l Cu

sto

dia

n f

un

ds a

cco

un

t w

ith D

om

estic

Cu

sto

dia

n, o

r in

to F

CY

no

str

o(b

efo

re e

nd

of

da

y)

16

.G

lob

al C

usto

dia

n s

en

ds s

ettle

me

nt

co

nfirm

atio

n to

Fo

reig

n In

stit

utio

na

l In

ve

sto

r1

7.

Do

me

stic

Cu

sto

dia

n s

en

ds s

ecu

ritie

s s

tate

me

nt

to G

lob

al C

usto

dia

n1

8.

Do

me

stic

Cu

sto

dia

n s

en

ds c

ash

cre

dit/

de

bit

co

nfirm

atio

n in

ca

sh

sta

tem

en

t to

Glo

ba

l C

usto

dia

n1

9.

Glo

ba

l Cu

sto

dia

n s

en

ds c

red

it/d

eb

it co

nfirm

atio

n in

ca

sh

sta

tem

en

t to

Fo

reig

n I

nstit

utio

na

l In

ve

sto

r

T+2 ~ Trade Date Settlement Date

439ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

440 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP07

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

MO

F

AM

I(A

ccount

Managem

ent

Institu

tion)

BO

Ja

sC

SD

Bo

nd

Ho

lde

r

BO

Ja

sP

ayin

gA

ge

nt

1.P

aym

ent

Request

2.A

ppro

val

7. N

otification o

f P

aym

ent D

eta

ils (

Sett

led)

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

3. N

otification o

f P

aym

ent D

eta

ils (

Estim

ate

d)

4. N

otification o

f P

aym

ent D

eta

ils (

Fin

al)

Cash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

5. Tra

nsfe

rC

ash

MO

F’s

A

ccount

AM

I’s A

ccount

Bond H

old

er’

s

Account

BO

J(B

OJ-N

ET

)A

cco

un

t M

an

ag

em

en

t In

stit

utio

n

8. In

tere

st

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

10.T

ax P

aym

ent

(Incom

e T

ax)

11.Tax P

aym

ent

(Local T

ax)

9.I

nte

rest P

aym

ent

Notice

BO

J’s

A

ccount

6. In

tere

st

Paym

ent

441ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP07.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

Ban

k o

f Jap

an

(B

OJ) a

s a

payin

g a

ge

nt send

s requ

est o

f in

tere

st p

aym

en

t to M

inis

try o

f F

inance (M

OF

).

2.

MO

F a

ppro

ves requ

est o

f in

tere

st p

aym

ent f

rom

BO

J.

3.

BO

J a

s a

payin

g a

gent no

tifies e

stim

ate

d d

eta

ils o

f in

tere

st p

aym

ent t

o a

ccou

nt

man

age

ment i

nstitu

tion

s. S

ince B

OJ a

lso functions a

s C

SD

of go

vern

ment b

ond

, no

confirm

ation is

necessary

befo

re th

is p

rocess.

4.

BO

J a

s a

payin

g a

gent no

tifies fi

na

l deta

ils o

f in

tere

st p

aym

ent t

o a

ccou

nt m

ana

gem

en

t in

stitu

tions.

5.

BO

J a

s a

payin

g a

gent t

ransfe

rs c

ash fo

r in

tere

st p

aym

ent f

rom

MO

F’s

account t

o B

OJ’s

account.

6.

BO

J a

s a

payin

g a

gent m

akes in

tere

st p

aym

en

ts, d

ed

ucting in

com

e ta

x if

app

licab

le, t

o

account m

an

ag

em

ent i

nstitu

tions v

ia B

OJ-N

ET.

7.

BO

J a

s a

payin

g a

gent no

tifies d

eta

ils o

f a s

ett

led in

tere

st p

aym

ent

to a

ccoun

t m

an

age

ment i

nstitu

tion

s.8.

Account m

an

age

ment i

nstitu

tions c

redit to

bo

ndh

old

er’

s a

ccounts

with in

tere

st p

aid

by

BO

J, d

educting lo

cal t

ax if

applic

able

.9.

Account m

an

age

ment i

nstitu

tions n

otifies b

ond

hold

ers

of in

tere

st p

aym

ent.

10.

BO

J a

s a

payin

g a

gent pa

ys in

com

e ta

x to tax o

ffic

e v

ia B

OJ’s

accoun

t, if

it’s

app

licab

le.

11.

Account m

an

age

ment i

nstitu

tions p

ay lo

cal t

ax to tax o

ffic

e if

applic

able

.

Pro

cess

of In

tere

st P

aym

ent

442 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP08. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

MO

F

AM

I(A

ccount

Managem

ent

Institu

tion)

BO

Ja

sC

SD

Bo

nd

Ho

lde

r

BO

Ja

sP

ayin

gA

ge

nt

1.P

aym

ent

Request

2.A

ppro

val

8. N

otification o

f P

aym

ent D

eta

ils (

Sett

led)

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

3. N

otification o

f P

aym

ent D

eta

ils (

Estim

ate

d)

4. N

otification o

f P

aym

ent D

eta

ils (

Fin

al)

Cash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

AM

I’s A

ccount

Bond H

old

er’

s

Account

BO

J(B

OJ-N

ET

)A

cco

un

t M

an

ag

em

en

t In

stit

utio

n

9. R

edem

ption

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

12.Tax P

aym

ent (L

ocal Tax)

10.R

edem

ption P

aym

ent

Notice

7.R

edem

ption

(DV

P)

5. R

edem

ption

Paym

ent

11.T

ax P

aym

ent (I

ncom

e T

ax)

BO

J’s

A

ccount

6. R

edem

ption

Paym

ent

MO

F’s

A

ccount

443ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP08.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

Ban

k o

f Jap

an

(B

OJ) a

s a

payin

g a

ge

nt se

nd

s re

qu

est o

f re

dem

ption

an

d la

st in

tere

st

paym

ent t

o M

inis

try o

f F

ina

nce

(M

OF

).

2.

MO

F a

ppro

ves re

qu

est o

f re

dem

ption

and

last in

tere

st p

aym

en

t fro

m B

OJ.

3.

BO

J a

s a

pa

yin

g a

ge

nt no

tifie

s e

stim

ate

d d

eta

ils o

f re

de

mp

tio

n a

nd la

st in

tere

st p

aym

ent

to a

cco

un

t ma

nag

em

ent i

nstitu

tion

s. S

ince

BO

J a

lso

fu

nctio

ns a

s C

SD

of g

overn

me

nt

bon

d, n

o c

on

firm

atio

n is

nece

ssary

be

fore

this

pro

ce

ss.

4.

BO

J a

s a

pa

yin

g a

ge

nt n

otifie

s fi

na

l deta

ils o

f re

de

mp

tio

n a

nd la

st in

tere

st p

aym

en

t to

acco

un

t man

ag

em

en

t in

stitu

tions.

5.

BO

J a

s a

pa

yin

g a

ge

nt t

ransfe

rs c

ash

for

red

em

ptio

n p

aym

ent f

rom

MO

F’s

acco

un

t to

B

OJ’s

acco

un

t.6

.B

OJ a

s a

pa

yin

g a

ge

nt m

ake

s re

de

mption

an

d la

st in

tere

st p

aym

en

ts, d

ed

uctin

g in

co

me

tax if

ap

plic

ab

le, t

o a

ccou

nt m

ana

ge

men

t in

stitu

tio

ns

via

BO

J-N

ET.

7.

BO

J a

s C

SD

makes b

ond

red

em

ptio

n.

8.

BO

J a

s a

pa

yin

g a

ge

nt no

tifie

s d

eta

ils o

f a

se

ttle

d re

dem

ptio

n a

nd

last in

tere

st p

aym

en

t to

acco

un

t ma

nag

em

ent i

nstitu

tion

s.

9.

Acco

unt m

an

age

me

nt i

nstitu

tions c

red

it to

bo

ndh

old

er’

s a

cco

unts

with

re

de

mptio

n a

nd

la

st i

nte

rest p

aid

by B

OJ, de

ducting

loca

l ta

x if

ap

plic

able

.1

0.

Acco

unt m

an

age

me

nt i

nstitu

tions n

otifie

s b

ond

ho

lde

rs o

f re

de

mp

tio

n a

nd la

st in

tere

st

paym

ent.

11.

BO

J a

s a

pa

yin

g a

ge

nt pa

ys in

com

e ta

x to ta

x o

ffic

e v

ia B

OJ’s

acco

un

t, if

it’s

app

licab

le.

12.

Acco

unt m

an

age

me

nt i

nstitu

tions p

ay lo

ca

l ta

x to

ta

x o

ffic

e if

ap

plic

able

.

Pro

cess

of R

edem

ptio

n P

aym

ent

444 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

445ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP09.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

JA

SD

EC

1.P

aym

ent

Request

2.P

aym

ent

Instr

uction

4.B

ond H

old

er’

s T

ax

Sta

tus D

ata3.B

ond H

old

er’

s T

ax

Sta

tus D

ata

5.P

aym

ent

Request

6.A

ppro

val

Pa

yin

gA

ge

nt

AM

I(A

ccount

Managem

ent

Institu

tion)

Cash

Flo

w

Info

rmation

Flo

w

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

11.I

nte

rest P

aym

ent

Notice

Tax O

ffic

e

7. C

ash

Tra

nsfe

rIs

suer’

s

Account

PA

's A

ccount

AM

I’s A

ccount

Bond H

old

er’

s

Account

Pa

yin

g A

ge

nt

AM

IB

OJ(B

OJ-N

ET

)9. In

tere

st

Paym

ent

10. In

tere

st

Paym

ent

12.T

ax P

aym

ent

(Incom

e T

ax)

13.Tax P

aym

ent (L

ocal Tax)

Sam

e E

ntity

Sam

e E

ntity

8.I

nstr

uction for

cash tra

nsfe

r

446 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP09.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

ge

nt se

nd

s p

aym

ent r

eq

uest of in

tere

st t

o b

on

d is

sue

r.

2.

Bon

d is

sue

r in

str

ucts

payin

g a

ge

nt to

pay in

tere

st.

3

.B

on

d h

old

ers

se

nd th

eir ta

x s

tatu

s d

ata

to

accou

nt m

ana

ge

men

t in

stitu

tio

ns(A

MIs

).4

.A

MIs

of bo

nd h

old

ers

se

nd

th

e tax s

tatu

s d

ata

of bo

ndh

old

ers

to J

apa

n S

ecuritie

s

De

pository

Cen

ter,

Inc. (

JA

SD

EC

).5

.JA

SD

EC

sen

ds p

aym

ent r

equ

est o

f in

tere

st t

o p

ayin

g a

ge

nt.

6.

Payin

g a

ge

nt ap

pro

ve

s re

qu

est f

rom

JA

SD

EC

.7

.P

ayin

g a

gent tr

ansfe

rs c

ash fo

r in

tere

st p

aym

ent fr

om

issu

er’s a

cco

unt to

it’s

ow

n a

cco

un

t.8

.P

ayin

g a

ge

nt in

str

ucts

BO

J to

tra

nsfe

r cash to

AM

Is.

9.

BO

Jm

ake

s in

tere

st p

aym

ents

, de

du

cting

inco

me

tax if

ap

plic

able

, to

accou

nt

man

age

me

nt i

nstitu

tions

via

BO

J-N

ET.

10.

AM

Is c

redit to

bo

ndh

old

er’

s a

ccou

nts

with

inte

rest p

aid

by p

ayin

g a

gen

t, d

edu

ctin

g lo

cal

tax if

ap

plic

ab

le.

11.

AM

Is n

otifie

s b

on

d h

old

ers

of in

tere

st p

aym

en

t.1

2.

Payin

g a

ge

nt pa

ys in

co

me

tax to ta

x o

ffic

e v

ia it

’s o

wn a

cco

unt,

if ta

x is

app

licab

le.

13.

Acco

unt m

an

age

me

nt i

nstitu

tions p

ay lo

ca

l ta

x to

ta

x o

ffic

e if

ap

plic

able

.

Pro

cess

of In

tere

st P

aym

ent

447ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP10.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

JA

SD

EC

1.P

aym

ent

Request

2.P

aym

ent

Instr

uction

4.B

ond H

old

er’

s T

ax

Sta

tus D

ata3.B

ond H

old

er’

s T

ax

Sta

tus D

ata

5.P

aym

ent

Request

6.A

ppro

val

Pa

yin

gA

ge

nt

AM

I(A

ccount

Managem

ent

Institu

tion)

Cash

Flo

w

Info

rmation

Flo

w

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

rS

ide

14.R

edem

ption P

aym

ent

Notice

Sam

e E

ntity

Sam

e E

ntity

8.I

nstr

uction for

cash tra

nsfe

r

10.R

edem

ptio

n

11.D

ele

te B

ond

Regis

tratio

n

Tax O

ffic

e

7. C

ash

Tra

nsfe

rIs

suer’

s

Account

PA

's A

ccount

AM

I’s A

ccount

Bond H

old

er’

s

Account

Pa

yin

g A

ge

nt

AM

IB

OJ(B

OJ-N

ET

) 9. R

edem

ption

Paym

ent

12. R

edem

ption

Paym

ent

13.T

ax P

aym

ent

(Incom

e T

ax)

15.Tax P

aym

ent (L

ocal Tax)

448 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

JP10.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

gent sends p

aym

ent r

equest of re

dem

ption to

bond is

suer.

2.

Bond is

suer in

str

ucts

payin

g a

gent to

pay redem

ption.

3.

Bond h

old

ers

send their tax s

tatu

s d

ata

to a

ccount m

anagem

ent i

nstitu

tions(A

MIs

).4.

AM

Is o

f bond h

old

ers

send tax s

tatu

s d

ata

of bondhold

ers

to J

AS

DE

C.

5.

JA

SD

EC

sends p

aym

ent r

equest o

f re

dem

ption to

payin

g a

gent.

6.

Payin

g a

gent appro

ves request f

rom

JA

SD

EC

.7.

Payin

g a

gent tr

ansfe

r cash for

redem

ption p

aym

ent f

rom

issuer’

s a

ccount t

o it

’s o

wn a

ccount.

8.

Payin

g a

gent in

str

ucts

BO

J to

tra

nsfe

r cash , d

educting in

com

e ta

x if

applic

able

, to A

MIs

’ accounts

.9.

BO

Jm

akes redem

ption p

aym

ents

to A

MIs

via

BO

J-N

ET.

10.

JA

SD

EC

makes b

ond redem

ption.

11.

Payin

g a

gent dele

tes b

ond r

egis

tration.

12.

AM

Is c

redit to

bondhold

er’

s a

ccounts

with redem

ption p

aid

by p

ayin

g a

gent,

deducting lo

cal

tax if

applic

able

.13.

Payin

g a

gent pays in

com

e ta

x to the tax o

ffic

e v

ia it

’s o

wn a

ccount,

if tax is

applic

able

.14.

AM

Is n

otifies b

ond h

old

ers

of re

dem

ption p

aym

ent.

15.

Account m

anagem

ent i

nstitu

tions p

ay lo

cal t

ax to tax o

ffic

e if

applic

able

.

Pro

cess

of R

edem

ptio

n P

aym

ent

449ASEAN+3 Bond Market Guide | Volume 3 | Part 3

Cambodia(KH)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Interest & Redemption Payment Flow (Government Bond)

5. Interest & Redemption Payment Flow (Corporate Bond)

450 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

451ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

NB

C

NB

C（B

ES）

NBC:

National Bank

of Cam

bodia

BES: Book

Entr

y Sys

tem

452 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

(Po

st)

Tra

de m

atc

h

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

CS

X

(CS

D)

NB

C

CSX:

Cam

bodia

Secu

rities

Exc

hange

NBC:

National Bank

of Cam

bodia

CSD

: Cam

bodia

n S

ecu

rities

Deposi

tory

CS

X

CS

X (

CS

D)

453ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

454 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sell

Sid

eB

uy S

ide

1. T

rade

3.M

atc

hin

g

2.D

eliv

ery

of T

ransfe

r F

orm

NB

C

5. C

ash S

ett

lem

ent

4. S

ale

/Purc

hase A

dvic

e4. S

ale

/Purc

hase A

dvic

e

(BE

S)

3. R

eg

istr

ation

455ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

OT

C m

ark

et

2.

NB

C r

ece

ive

s T

ran

sfe

r F

orm

fo

r G

ove

rnm

en

t S

ecu

ritie

s w

ith s

ign

atu

re o

f se

ll sid

e a

nd

bu

y s

ide

.3

.N

BC

re

gis

ters

the

tra

de

in

form

atio

n in

Bo

ok E

ntr

y S

yste

m (

BE

S).

4.

NB

C s

en

ds S

ale

/Pu

rch

ase

ad

vic

es to

se

ll sid

e a

nd

bu

y s

ide

. 5

.N

BC

ca

rrie

s o

ut

ca

sh

se

ttle

me

nt.

OT

C M

ark

et

456 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

457ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

CS

X(C

SD

))

Sell

Sid

eS

ecuri

ties

Com

pany

Buy S

ide

Securi

ties

Com

pany

NB

C

6. N

ett

ing

Result

6. N

ett

ing

Result

9. C

ash S

ett

lem

ent

10. S

ett

lem

ent R

eport

8. S

ett

lem

ent D

ata

7. H

old

ing

Bonds

11. B

onds S

ett

lem

ent

Sell

Sid

e’s

Corr

espondin

g

Bank

Buy S

ide’s

Corr

espondin

g

Bank

1. T

rade O

rder

1. T

rade O

rder

2. M

atc

hin

g

3. T

rade c

onfirm

ation

4. T

akin

g O

blig

ation

(novation)

5. N

ett

ing

12. S

ett

lem

ent R

eport

(Bond &

Cash)

12. S

ett

lem

ent R

eport

(Bond &

Cash)

458 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

en

ter

tra

din

g o

rde

r in

to t

he

CS

X t

rad

ing

syste

m.

2.

CS

X p

erf

orm

s m

atc

hin

g.

3.

CS

X m

ake

s tra

de

co

nfirm

atio

n.

4.

CS

X t

ake

s o

blig

atio

n (

no

va

tion

) fo

r C

SX

me

mb

ers

. 5

.C

SX

pe

rfo

rms n

ettin

g.

6

.C

SX

se

nd

s d

eta

il o

f n

ettin

g r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

via

syste

m.

7.

CS

X c

he

cks a

va

ilab

ility

an

d h

old

s s

ecu

ritie

s.

8.

CS

X s

en

ds s

ettle

me

nt

da

ta t

o N

BC

au

tom

atic

ally

via

FT

P.

9.

NB

C e

xe

cu

tes c

ash

se

ttle

me

nt.

10

.N

BC

no

tice

s c

ash

se

ttle

me

nt

co

nfirm

atio

n t

o C

SX

.1

1.

NB

C r

ele

ase

s h

eld

se

cu

ritie

s a

nd

exe

cu

tes s

ecu

ritie

s d

eliv

ery

.1

2.

CS

X s

en

ds s

ettle

me

nt

rep

ort

to

se

ll sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

459ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

460 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

05

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

ME

F(M

inis

try o

f E

co

no

my a

nd

F

ina

nce

)

Bo

nd

Ho

lde

r

NB

C(G

SM

A)

Cash

Flo

w

Info

rmation

Flo

w

Co

mm

erc

ial B

an

k(S

ub

scri

be

r)

Tax O

ffic

e

NB

C’s

A

ccount

Com

merc

ial B

ank’s

Account

Bond H

old

er’

s

Account

NB

C5. In

tere

st

Paym

ent

Sam

e E

ntity

Tre

asury

Account

3. In

tere

st

Paym

ent

2. In

tere

st

Paym

ent

Co

mm

erc

ial B

an

ks

NB

C

4. N

otification o

f P

aym

ent D

eta

il

Sam

e E

ntity

6. In

tere

st

Paym

ent

Confirm

ation

1. D

ebit O

rder

of Tre

asury

A

ccount

Sam

e E

ntity

461ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

05.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

ME

F p

rovid

es o

rder

of d

ebit to

NB

C in

ad

va

nce

of in

tere

st p

aym

en

t da

te.

2.

On p

aym

en

t date

, N

BC

de

bits in

tere

st p

aym

en

t am

ou

nt f

rom

Tre

asu

ry A

cco

un

t fo

llow

ing

o

rder o

f d

eb

it b

y M

EF

an

d c

red

it it

to

it’s

ow

n a

ccou

nt.

3

.N

BC

tra

nsfe

rs c

ash

for in

tere

st p

aym

en

t to c

om

me

rcia

l ba

nk’s

acco

un

t via

NB

C C

lea

ring

H

ou

se

.4

.N

BC

se

nd

s le

tte

r o

f n

otifica

tion

for in

tere

st p

aym

en

t to s

ubscribe

r.5

.C

om

me

rcia

l ba

nk c

redits in

tere

st a

mou

nt t

o it

s c

lien

t’s a

cco

unt

in th

e c

ase

tha

t b

ond

is

held

by the

clie

nt.

6.

Co

mm

erc

ial b

ank n

otifie

s b

on

d h

old

ers

of in

tere

st p

aym

en

t.

Pro

cess

of In

tere

st P

aym

ent

462 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

06

. R

edem

pti

on F

low

of

Govern

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

ME

F(M

inis

try o

f E

co

no

my a

nd

F

ina

nce

)

Bo

nd

Ho

lde

r

NB

C(G

SM

A)

Cash

Flo

w

Info

rmation

Flo

w

Co

mm

erc

ial B

an

k(S

ub

scri

be

r)

Tax O

ffic

e

NB

C’s

A

ccount

Com

merc

ial B

ank’s

Account

Bond H

old

er’

s

Account

NB

C6. R

edem

ption

Paym

ent

Sam

e E

ntity

Tre

asury

A

ccount

3. R

edem

ption

Paym

ent

2. R

edem

ption

Paym

ent

Co

mm

erc

ial B

an

ks

NB

C

4. N

otification o

f P

aym

ent D

eta

il

Sam

e E

ntity

Sam

e E

ntity

7. R

edem

ption

Confirm

ation

1. D

ebit O

rder

of Tre

asury

A

ccount

5.R

edem

ption

463ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KH

06.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

ME

F p

rovid

es o

rde

r of de

bit to N

BC

in a

dva

nce

of re

de

mp

tio

n d

ue d

ate

.2

.O

n d

ue

date

, N

BC

deb

its re

de

mp

tio

n p

aym

en

t am

oun

t fro

m T

reasu

ry A

cco

unt

follo

win

g

ord

er o

f d

eb

it b

y M

EF

an

d c

red

it it

to

it’s

ow

n a

ccou

nt.

3

.N

BC

tra

nsfe

rs c

ash

for re

de

mp

tio

n to

co

mm

erc

ial b

ank’s

acco

un

t via

NB

C C

lea

rin

g

Ho

use

.4

.N

BC

se

nd

s le

tte

r o

f n

otifica

tion

for re

de

mp

tio

n to

su

bscrib

er.

5.

NB

C m

ake

s b

on

d re

de

mp

tio

n.

6.

Co

mm

erc

ial b

ank c

redits re

de

mp

tio

n p

aym

en

t to

its c

lien

t’s a

cco

unt

in th

e c

ase

that bo

nd

is h

eld

by the

clie

nt.

7.

Co

mm

erc

ial b

ank n

otifie

s b

on

d h

old

ers

of re

de

mption

.

Pro

cess

of R

edem

ptio

n P

aym

ent

464 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

Republic ofKorea (KR)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

465ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

466 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

KR

XO

TC

mark

et

KS

D(K

SD

SA

FE

+)

KR

X

KS

D(K

SD

SA

FE

+)

BO

K(B

OK

-Wir

e+) or

Ban

k

O

TC

: O

ver

the C

ounte

r

KR

X :

Kore

a E

xchange

K

SD

: K

ore

a S

ecurities D

epository

K

SD

SA

FE

+ :

the n

am

e o

f K

SD

’s S

yste

m(S

AF

E : S

peedy, A

ccura

te, F

aithfu

l, E

ffic

ient)

Settlement detail

Settlement detail

BO

K

B

OK

: B

ank o

f K

ore

a

BO

K W

ire+

: the n

am

e o

f B

OK

’s S

yste

m

Bank :

Com

merc

ial B

ank

467ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

KR

XO

TC

mark

et

KS

D(K

SD

SA

FE

+)

KR

X

KS

D(K

SD

SA

FE

+)

BO

K(B

OK

Wir

e+)

or

Ban

k

O

TC

: O

ver

the C

ounte

r

KR

X :

Kore

a E

xchange

K

SD

: K

ore

a S

ecurities D

epository

K

SD

SA

FE

+ :

the n

am

e o

f K

SD

’s S

yste

m(S

AF

E : S

peedy, A

ccura

te, F

aithfu

l, E

ffic

ient)

B

OK

: B

ank o

f K

ore

a

BO

K W

ire+

: the n

am

e o

f B

OK

’s S

yste

m

Bank :

Com

merc

ial B

ank

Settlement detail

Settlement detail

Ban

k

468 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

469ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

Buy S

ide

KO

FIA

Sell

Sid

e1. T

rade

4. T

rade D

ata

3. T

rade M

atc

hin

g

6. M

atc

hin

g S

tatu

s A

dvic

e6. M

atc

hin

g S

tatu

s A

dvic

e

4. T

rade D

ata

KS

D(S

AF

E+

)

5. M

atc

hin

g

13.B

ond S

ett

lem

ent

12.S

ett

lem

ent R

eport

(Cash)

12. S

ett

lem

ent R

eport

(Cash)

14. S

ett

lem

ent R

eport

(Bond)

14. S

ett

lem

ent R

eport

(Bond)

BO

K(B

OK

-Wir

e+

)

11.C

ash S

ett

lem

ent

7. S

ett

lem

ent In

str

uctions fo

r D

VP

(no n

eeds f

or

typic

al f

low

)

9 S

ett

lem

ent D

ata

for D

VP8

. Hold

ing

Bonds

12. S

ett

lem

ent R

eport

(C

ash)

7. S

ett

lem

ent In

str

uctions fo

r D

VP

(no n

eeds f

or

typic

al f

low

)

(B-T

RiS

)

2. R

eport

ing

Tra

de d

eta

ils2. R

eport

ing

Tra

de d

eta

ils

3. D

isclo

sure

FS

S(F

IMS

)

10-1

.Paym

ent R

eq

uest

10-2

.Paym

ent I

nstr

uction

470 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

ove

r th

e c

ou

nte

r m

ostly

with

pri

va

te m

esse

ng

er,

an

d s

om

e t

ran

sa

ctio

ns a

re

do

ne

with

Fre

eB

on

dp

rovid

ed

by K

OF

IA w

hic

h is

a s

up

po

rtin

g a

nd

co

nfirm

atio

n s

yste

m

for

bo

nd

tra

din

g.

2.

Fin

an

cia

l in

ve

stm

en

t co

mp

an

ies e

ng

ag

ed

in t

rad

ing

mu

st

rep

ort

tra

din

g d

eta

ils t

o K

OF

IA w

ithin

15

min

ute

s

aft

er

tra

din

g e

xe

cu

tion

. T

he

y a

lso

re

po

rt tra

din

g d

eta

ils t

o F

SS

via

Fo

reig

n In

ve

stm

en

t M

an

ag

em

en

t S

yste

m(F

IMS

).3

.K

OF

IA d

isclo

se

s th

is in

form

atio

n o

n it

s B

on

d-T

rad

e R

ep

ort

& I

nfo

rma

tion

Se

rvic

e (

B-T

ris).

4.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

de

da

ta t

o K

ore

a S

ecu

ritie

s D

ep

osito

ry (

KS

D).

5

.K

SD

co

llate

s tra

de

da

ta f

rom

th

e s

ell

sid

e a

nd

bu

y s

ide

. 6

.K

SD

se

nd

s m

atc

hin

g s

tatu

s a

dvis

e to

th

e s

ell

sid

e a

nd

bu

y s

ide

.7

.S

ell

sid

e a

nd

bu

y s

ide

se

nd

s s

ettle

me

nt

instr

uctio

ns f

or

DV

P t

o K

SD

. 8

.K

SD

ho

lds b

on

ds b

efo

re c

ash

se

ttle

me

nt.

9.

KS

D s

en

ds s

ettle

me

nt

da

ta t

o B

an

k o

f K

ore

a (

BO

K).

1

0-1

.Th

e B

OK

se

nd

s p

aym

en

t re

qu

est(

ca

sh

) to

th

e b

uy s

ide

.1

0-2

. Th

e b

uy s

ide

se

nd

s th

e p

aym

en

t in

str

uctio

n f

or

DV

P t

o B

OK

.1

1.

BO

K e

xe

cu

tes c

ash

se

ttle

me

nt.

12

.B

OK

se

nd

s s

ettle

me

nt

rep

ort

to

se

ll sid

e,

the

bu

y s

ide

an

d K

SD

. 1

3.

KS

D e

xe

cu

tes b

on

d s

ettle

me

nt.

14

.K

SD

se

nd

s s

ettle

me

nt

rep

ort

to

se

ll sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

471ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

Buy S

ide

Sell

Sid

e

KR

X (

KT

S)

1. T

rade O

rder

6. S

ett

lem

ent D

eta

il6. S

ett

lem

ent D

eta

il

1. T

rade O

rder

KS

D(S

AF

E+

)

2. M

atc

hin

g

11.S

ett

lem

ent R

eport

(Cash)

11. S

ett

lem

ent R

eport

(Cash)

13. S

ett

lem

ent R

eport

(Bond)

13. S

ett

lem

ent R

eport

(Bond)

BO

K(B

OK

-Wir

e+

)

10.C

ash S

ett

lem

ent

Thro

ug

h K

RX

a/c

9. S

ett

lem

ent D

ata

for D

VP

8. H

old

ing

Bonds

11. S

ett

lem

ent

Report

(cash)

5. N

ett

ing

12. B

ond S

ett

lem

ent

Thro

ug

h K

RX

a/c

7. S

ett

lem

ent In

str

uctions fo

r D

VP

3. T

rade C

onfirm

ation

4. T

akin

g O

blig

ation

(novation) (K

RX

-mem

ber)

472 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

1.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

de

ord

er

to K

ore

a E

xch

an

ge

(KR

X).

2.

KR

X p

erf

orm

s m

atc

hin

g.

3.

KR

X m

ake

s tra

de

co

nfirm

atio

n.

4.

KR

X t

ake

s o

blig

atio

n (

no

va

tion

) fo

r K

RX

me

mb

ers

.5

.K

RX

pe

rfo

rms n

ettin

g.

6.

KR

X s

en

ds s

ettle

me

nt

de

tails

to

se

ll sid

e a

nd

bu

y s

ide

.7

.K

RX

se

nd

s s

ettle

me

nt

instr

uctio

n f

or

DV

P t

o K

ore

a S

ecu

rity

De

po

sito

ry(K

SD

).8

.K

SD

ho

lds b

on

ds b

efo

re c

ash

se

ttle

me

nt.

9.

KS

D s

en

ds s

ettle

me

nt

da

ta t

o B

an

k o

f K

ore

a (

BO

K).

1

0.

BO

K e

xe

cu

tes c

ash

se

ttle

me

nt.

11

.B

OK

se

nd

s s

ettle

me

nt

rep

ort

(ca

sh

) to

se

ll sid

e, th

e b

uy s

ide

an

d K

SD

. 1

2.

KS

D e

xe

cu

tes b

on

d s

ettle

me

nt

thro

ug

h K

RX

acco

un

t.1

3.

KS

D s

en

ds s

ettle

me

nt

rep

ort

to

se

ll sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

473ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

474 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

05.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

157

Buy S

ide

Sell

Sid

e

KO

FIA

7. T

rade D

ata

3. T

rade M

atc

hin

g

9. M

atc

hin

g S

tatu

s A

dvic

e9. M

atc

hin

g S

tatu

s A

dvic

e

7. T

rade D

ata

KS

D(S

AF

E+

)

8. M

atc

hin

g

15.B

ond S

ett

lem

ent

14.S

ett

lem

ent R

eport

(Cash)

14. S

ett

lem

ent R

eport

(Cash)

16. S

ett

lem

ent R

eport

(Bond)

16. S

ett

lem

ent R

eport

(Bond)

BO

K(B

OK

-Wir

e+

)

13.C

ash S

ett

lem

ent

10. S

ett

lem

ent In

str

uctions fo

r D

VP

(no n

eeds f

or

typic

al f

low

)

12 S

ett

lem

ent D

ata

for D

VP1

1. H

old

ing

Bonds

14. S

ett

lem

ent R

eport

(C

ash)

10 S

ett

lem

ent In

str

uctions fo

r D

VP

(no n

eeds f

or

typic

al f

low

)

(B-T

RiS

)

5. R

eport

ing

Tra

de d

eta

ils5. R

eport

ing

Tra

de d

eta

ils6. D

isclo

sure

FS

S(F

IMS

)

2. A

cknow

ledg

em

ent o

f ord

er

1.T

ransfe

ing

ord

er

info

rmation

3.E

xecution/ R

eje

ction o

f ord

er

1.T

ransfe

ing

ord

er

info

rmation

3.E

xecution/ R

eje

ction o

f ord

er

(Fre

eB

on

d)

4. T

rade

475ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

05.

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

If th

e c

lien

t is

a f

ore

ign

inve

sto

r, th

e s

ell

sid

e a

nd

/or

the

bu

y s

ide

of

se

cu

ritie

s c

om

pa

nie

s tra

nsfe

r o

rde

r in

form

atio

n to

Fin

an

cia

l S

up

erv

iso

ry S

erv

ice

(FS

S)

via

Fo

reig

n I

nve

stm

en

t M

an

ag

em

en

t S

yste

m(F

IMS

).2

.F

SS

ackn

ow

led

ge

s o

r re

jects

ord

er.

3.

If h

old

ing

s is

en

ou

gh

, F

SS

tra

nsfe

rs o

rde

r in

form

atio

n to

th

e s

ell

sid

e a

nd

/or

the

bu

y s

ide

of

se

cu

ritie

s

co

mp

an

ies a

nd

Ko

rea

Exch

an

ge

.4

.T

he

se

ll a

nd

bu

y tra

de

ove

r th

e c

ou

nte

r w

ith a

fo

rma

lize

d b

on

d tra

din

g s

yste

m,

wh

ose

na

me

is F

ree

Bo

nd

.5

.B

oth

th

e s

ell

an

d b

uy m

ust

rep

ort

tra

din

g d

eta

ils t

o t

he

KO

FIA

with

in 1

5 m

inu

tes a

fte

r tr

ad

ing

exe

cu

tion

.6

.K

OF

IA d

isclo

se

s th

is in

form

atio

n o

n it

s B

on

d-T

rad

e R

ep

ort

an

d In

form

atio

n S

erv

ice

(B-T

rIS

).7

.T

he

se

ll sid

e a

nd

Bu

y s

ide

se

nd

tra

de

da

ta t

o K

SD

.8

.K

SD

co

llate

s tra

de

da

ta f

rom

th

e s

elle

r a

nd

bu

ye

r.9

.K

SD

se

nd

s m

atc

hin

g s

tatu

s a

dvis

e to

th

e s

ell

sid

e a

nd

bu

y s

ide

.1

0.

Th

e s

ell

sid

e a

nd

bu

y s

ide

se

nd

se

ttle

me

nt

instr

uctio

ns f

or

DV

P t

o K

SD

.1

1.

KS

D h

old

s b

on

ds b

efo

re c

ash

se

ttle

me

nt.

12

.K

SD

se

nd

s s

ettle

me

nt

da

ta t

o B

OK

.1

3.

BO

K e

xe

cu

tes c

ash

se

ttle

me

nt.

14

.B

OK

se

nd

s s

ettle

me

nt

rep

ort

to

th

e s

ell

sid

e,

bu

y s

ide

an

d K

SD

.1

5.

KS

D e

xe

cu

tes b

on

d s

ettle

me

nt.

16

.K

SD

se

nd

s s

ettle

me

nt

rep

ort

to

th

e s

ell

sid

e a

nd

bu

y s

ide

.

OT

C M

ark

et

476 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

06.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

Buy S

ide

Sell

Sid

e

1. T

rade O

rder

1. T

rade O

rder

6. S

ett

lem

ent D

eta

il6. S

ett

lem

ent D

eta

il

2. M

atc

hin

g

3. T

rade c

onfirm

ation

4. T

akin

g O

blig

ation

(novation) (K

RX

-mem

ber)

5. N

ett

ing

7. S

ett

lem

ent In

str

uctions fo

r D

VP

8. H

old

ing

Bonds

9. B

ond S

ett

lem

ent T

hro

ug

h

KR

X a

/c

9. C

ash

Sett

lem

ent T

hro

ug

h

KR

X a

/c

10. S

ett

lem

ent R

eport

(Bond &

Cash)

10. S

ett

lem

ent R

eport

(Bond &

Cash)

KR

X (

Extu

re)

KS

D (

SA

FE

+)

Com

merc

ial B

anks

(DV

P)

7.S

ett

lem

ent I

nstr

uction fo

r D

VP

477ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

06.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades (

Exchange)

1.

Sell

sid

e a

nd b

uy s

ide s

end tra

de o

rder

to K

ore

a E

xchange(K

RX

).

2.

KR

X p

erf

orm

s m

atc

hin

g.

3.

KR

X m

akes tr

ade c

onfirm

ation.

4.

KR

X ta

kes o

blig

ation (novation) fo

r K

RX

mem

bers

.

5.

KR

X p

erf

orm

s n

ett

ing.

6.

KR

X s

ends s

ett

lem

ent d

eta

ils to

sell

sid

e a

nd b

uy s

ide

7.

KR

X s

ends s

ett

lem

ent i

nstr

uctio

n fo

r D

VP

to K

ore

a S

ecurity

Depository

(KS

D).

8.

KS

D h

old

s b

onds b

efo

re c

ash s

ett

lem

ent.

9.

KS

D e

xecute

s b

ond &

cash s

ett

lem

ent f

or D

VP

thro

ugh K

RX

account.

10.

KS

D s

ends s

ett

lem

ent r

eport

to s

ell

sid

e a

nd b

uy s

ide.

Exc

hange M

ark

et

478 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

479ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

07.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

Co

un

ter-

pa

rty

BO

K

BO

K-W

ire

Clearing Matching & Settlement

Cross-Border

KS

D

As C

ash

Corr

espondent

Trading

KO

FIA

Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

5 T

rade C

onfirm

atio

n7

Tra

de C

onfirm

atio

n

8S

ettle

ment

Inst

ructio

n

20

Settle

ment

Confirm

9 a

Settle

ment

Inst

ructio

n

9 b

FX

/Fundin

g I

nst

ructio

n

14

FX

Confirm

atio

n

23

Cash

Sta

tem

ent

4Trade

Reporting

13

Tra

nsa

ctio

n S

tatu

s U

pdate

18

Settle

ment

Confirm

atio

n

21

Securitie

s S

tate

ment

19

Fundin

g o

f T

rades

22

Cash

Sta

tem

ent

10

Tra

nsm

issi

on o

f S

ettle

ment

Deta

ils

17

Settle

ment

Confirm

atio

n

15

Fundin

g o

f B

oK

Account

16

Confirm

atio

n o

f D

ebit/

Cre

dit

11

Aff

irm

atio

n o

f S

ettle

ment

Deta

ils

6S

endin

g o

f

Tra

de D

eta

ils

12

Aff

irm

atio

n

Sta

tus

480 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

07.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

1.

Fore

ign Institu

tional In

vesto

r pla

ces o

rder

with I

nte

rnational B

roker

2.

Inte

rnational B

roker

pla

ces o

rder

with D

om

estic B

roker/

Bank

3.

Dom

estic B

roker/

Bank tra

des O

TC

with C

ounte

rpart

y (

via

phone o

r e.g

. B

loom

berg

)4.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y r

eport

tra

de to K

OF

IA w

ithin

15 m

inute

s o

f tr

ade

5.

Dom

estic B

roker/

Bank s

end t

rade c

onfirm

ation to Inte

rnational B

roker

6.

Dom

estic B

roker/

Bank s

ends t

rade d

eta

ils t

o K

SD

7.

Fore

ign Institu

tional In

vesto

r re

ceiv

es t

rade c

onfirm

ation

8.

Fore

ign Institu

tional In

vesto

r in

str

ucts

Glo

bal C

usto

dia

n o

n s

ecurities s

ett

lem

ent deta

ils,

and F

X/f

undin

g9.

Glo

bal C

usto

dia

n instr

ucts

Dom

estic C

usto

dia

n o

n (

a)

securities s

ett

lem

ent deta

ils,

and (

b)

FX

/fundin

g r

equirem

ents

10.

KS

D s

ends P

relim

inary

Sett

lem

ent D

ata

to D

om

estic C

usto

dia

n,

via

SA

FE

11.

Dom

estic C

usto

dia

n a

ffirm

s s

ett

lem

ent deta

ils12.

KS

D s

ends a

ffirm

ation s

tatu

s to D

om

estic B

roker/

Bank

13.

Dom

estic C

usto

dia

n r

eport

s tra

nsaction s

tatu

s u

pdate

to G

lobal C

usto

dia

n14.

Dom

estic C

usto

dia

n s

ends F

X c

onfirm

ation to G

lobal C

usto

dia

n15.

Dom

estic C

usto

dia

n f

unds B

OK

account

16.

Upon tra

nsfe

r of

cash, B

OK

sends s

ett

lem

ent confirm

ation t

o D

om

estic C

usto

dia

n17.

Upon tra

nsfe

r of

securities, K

SD

sends s

ett

lem

ent confirm

ation to D

om

estic C

usto

dia

n18.

Dom

estic C

usto

dia

n s

ends s

ett

lem

ent confirm

ation t

o G

lobal C

usto

dia

n19.

Glo

bal C

usto

dia

n f

unds a

ccount w

ith D

om

estic C

usto

dia

n,

or

into

FC

Y n

ostr

o(b

efo

re e

nd o

f day)

20.

Glo

bal C

usto

dia

n s

ends s

ett

lem

ent confirm

ation to F

ore

ign I

nstitu

tional In

vesto

r21.

Dom

estic C

usto

dia

n s

ends s

ecurities s

tate

ment to

Glo

bal C

usto

dia

n22.

Dom

estic C

usto

dia

n s

ends c

ash c

redit/d

ebit c

onfirm

ation in

cash s

tate

ment to

Glo

bal C

usto

dia

n23.

Glo

bal C

usto

dia

n s

ends c

redit/d

ebit c

onfirm

ation in

cash s

tate

ment to

Fore

ign I

nstitu

tional I

nvesto

r

Trade Date T+1 (SD-1) Settlement Date

481ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

482 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

08

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

KS

D

Re

gis

tra

r(B

OK

)

KS

D’s

P

art

icip

an

t

Tax O

ffic

e

Cash

Flo

w

Info

rmation

Flo

w

8. Tax P

aym

ent (f

or

Resid

ents

)9. Tax P

aym

ent (

for N

on-r

esid

ents

)

3. In

tere

st

Paym

ent

BO

KA

ccount

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

BO

K(B

OK

-Wir

e+

)C

usto

dia

n

7.I

nte

rest P

aym

ent

Notice

1.I

nte

rest P

aym

ent Lis

t N

otification 6

. In

tere

st

Paym

ent

(net)

Sam

e E

ntity

(Entr

ust In

tere

st

Paym

ent B

usin

ess)

KS

D’s

A

ccount

2. In

put &

Request

the

Inte

rest via

BO

K

Term

inal

5. In

tere

st

Paym

ent (n

et)

KS

D

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

Sam

e E

ntity

4. P

aym

ent

Instr

uction

483ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

08.

Inte

rest

Paym

ent

Flo

w G

overn

ment

Bond

1.

Kore

a S

ecurities D

ep

osito

ry(K

SD

) no

tifie

s K

SD

part

icip

an

ts o

f in

tere

st p

aym

ent l

ist.

2.

KS

D in

pu

ts a

nd re

qu

est th

e in

tere

st v

ia B

ok te

rmin

al.

3.

BO

K m

akes in

tere

st p

aym

en

t to B

OK

accou

nt o

f K

SD

. 4

.K

SD

withh

old

s in

com

e ta

x o

n r

eceiv

ing

inte

rest a

nd

se

nd

s p

aym

ent i

nstr

uctio

n to

BO

K.

5.

BO

K tra

nsfe

rs in

tere

st f

rom

BO

K a

ccou

nt o

f K

SD

to K

SD

part

icip

ant.

6.

KS

D p

art

icip

ants

ma

ke in

tere

st p

aym

ents

to b

ond

ho

lde

rs.

7.

KS

D’s

part

icip

an

ts n

otify

bon

d h

old

ers

of in

tere

st p

aym

en

t.8

.K

SD

’ pa

ys ta

x fo

r re

sid

en

ts to

tax o

ffic

e.

9.

KS

D’s

pa

rtic

ipan

ts p

ay ta

x fo

r no

n-r

esid

en

ts to

ta

x o

ffic

e.

Pro

cess

of In

tere

st P

aym

ent

484 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

09

. R

edem

pti

on F

low

of

Govern

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

KS

D

Re

gis

tra

r(B

OK

)

KS

D’s

P

art

icip

an

t

Tax O

ffic

e

Cash

Flo

w

Info

rmation

Flo

w

10. Tax P

aym

ent (f

or

Resid

ents

)11. Tax P

aym

ent

(fo

r N

on-r

esid

ents

)

3. R

edem

ption

Paym

ent

BO

KA

ccount

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

BO

K(B

OK

-Wir

e+

)C

usto

dia

n

7.R

edem

ption N

otice

1.R

edem

ption L

ist

Notification

Sam

e E

ntity

6. R

edem

ption

Paym

ent

(net)

Sam

e E

ntity

(Entr

ust R

edem

ption

Paym

ent B

usin

ess)

KS

D’s

A

ccount

2. In

put &

Request

Redem

ption v

ia B

OK

Term

inal

5. R

edem

ption

Paym

ent (n

et)

8.

Redem

ption

9. D

ele

te B

ond

Regis

tration

KS

D

Sam

e E

ntity

(No C

onfirm

ation

Necessary

)

4. P

aym

ent

Instr

uction

485ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

09.

Redem

pti

on F

low

Govern

ment

Bond

1.

Kore

a S

ecurities D

ep

osito

ry(K

SD

) n

otifies K

SD

pa

rtic

ipa

nts

of re

de

mp

tio

n p

aym

en

t lis

t.2

.K

SD

inpu

ts a

nd re

qu

est th

e r

ed

em

ption

via

Bo

k te

rmin

al.

3.

BO

K m

ake

s re

de

mption

pa

ym

ent t

o B

OK

acco

un

t of K

SD

. 4

.K

SD

withh

old

s in

com

e ta

x o

n r

eceiv

ing

princip

al a

nd s

end

s p

aym

en

t in

str

uction

to B

OK

.5

.B

OK

tra

nsfe

rs re

de

mp

tion

pa

ym

en

t fro

m B

OK

acco

unt o

f K

SD

to

KS

D p

art

icip

ant.

6.

KS

D p

art

icip

ants

ma

ke

re

de

mp

tio

n p

aym

en

ts to

bo

nd

hold

ers

.7

.K

SD

’s p

art

icip

an

ts n

otify

bon

d h

old

ers

of

red

em

ption

paym

ent.

8.

KS

D m

ake

s b

on

d r

ed

em

ptio

n.

9.

BO

K d

ele

tes th

e r

eg

istr

atio

n o

f re

dee

med

bo

nd.

10.

KS

D’ p

ays ta

x fo

r re

sid

en

ts to

ta

x o

ffic

e.

11.

KS

D’s

pa

rtic

ipan

ts p

ay ta

x fo

r no

n-r

esid

en

ts to

ta

x o

ffic

e.

Pro

cess

of R

edem

ptio

n

486 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

487ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

10

. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

3. N

otification

Via

KF

TC

KS

D’s

Ba

nk

6. P

aym

ent

Instr

uction

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Pa

ym

en

tB

an

kK

SD

’s

Pa

rtic

ipa

nt

Tax O

ffic

e

Cash

Flo

w

Info

rmation

Flo

w

13. Tax P

aym

ent (

for

resid

ents

)14. Tax P

aym

ent (f

or

non-r

esid

ents

)

5. In

tere

st

Paym

ent

BO

K(B

OK

-Wir

e+

)C

usto

dia

n

12.I

nte

rest P

aym

ent

Notice

Sam

e E

ntity

11. In

tere

st

Paym

ent

Sam

e E

ntity

Pa

ym

en

t B

an

k7. In

tere

st

Paym

ent

9. In

tere

st

Paym

ent

(net)

Issuer’

s

Account

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

KS

D’s

Account

Paym

ent

Bank's

A

ccount

4. F

und p

aym

ent

(deposit in

tere

st)

Sam

e E

ntity

KS

D

10. In

tere

st

Paym

ent

Notification

KS

D’s

Ba

nk

8. P

aym

ent

In

str

uction

2. B

ondhold

ers

-lis

t

1. N

otification o

f B

ond

Hold

er’

s in

form

ation

488 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

10.

Inte

rest

Paym

ent

Flo

w C

orp

ora

te B

ond

1.

Kore

a S

ecu

rities D

ep

osito

ry(K

SD

)’s

pa

rtic

ipan

ts n

otifies K

SD

of in

form

ation

of b

on

d

hold

ers

.2

.K

SD

se

nd

s K

SD

’s b

an

k o

f b

on

dho

lders

-lis

t.3

.K

SD

’s b

ank

notifies is

su

er’

s p

aym

ent b

an

k o

f in

tere

st p

aym

en

t via

KO

RE

A F

INA

NC

IAL

TE

LE

CO

MM

UN

ICA

TIO

NS

& C

LE

AR

ING

S IN

ST

ITU

TE

(K

FT

C).

4.

A b

on

d is

su

er m

akes fu

nd p

aym

en

t for

inte

rest t

o a

pa

ym

en

t ban

k.

5.

Paym

ent B

ank e

xe

cu

tes in

tere

st p

aym

en

t fro

m is

su

er’

s a

ccou

nt t

o it

’s a

cco

unt.

6.

Paym

en

t ba

nk in

str

ucts

BO

K to p

ay in

tere

st f

rom

pa

ym

en

t ba

nk’s

acco

unt t

o K

SD

s’

Ban

k’s

accou

nt.

7.

BO

K e

xecu

tes in

tere

st p

aym

en

t fro

m p

aym

en

t ba

nks’ a

cco

un

t to K

SD

’s a

ccou

nt.

8.

KS

D in

str

ucts

KS

D’s

ba

nk to

pa

y in

tere

st t

o c

usto

dia

ns(K

SD

pa

rtic

ipan

ts)’

accou

nt.

9.

KS

D’s

ba

nk e

xe

cu

tes in

tere

st p

aym

en

t fro

m K

SD

’s a

ccou

nt t

o c

usto

dia

ns(K

SD

p

art

icip

ants

)’ a

ccou

nt ,

de

du

ctin

g in

com

e tax if

app

licab

le.

10.

KS

D n

otifie

s it

’s p

art

icip

an

ts o

f in

tere

st p

aym

en

t.1

1.

Cu

sto

dia

n (K

SD

’s p

art

icip

ants

) cre

dit b

ond

hold

ers

’ accou

nts

with in

tere

st p

aid

by is

sue

r,

ded

uctin

g ta

x if

app

licab

le..

12.

Cu

sto

dia

n (K

SD

’s p

art

icip

ants

) n

otify

bon

d h

old

ers

of in

tere

st p

aym

ent.

13.

KS

D’s

ban

k p

ays tax for

resid

en

ts to

ta

x o

ffic

e.

14.

KS

D’s

pa

rtic

ipan

ts p

ay ta

x fo

r no

n-r

esid

ents

to ta

x o

ffic

e.

Pro

cess

of In

tere

st P

aym

ent

489ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

11

. R

edem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Pa

ym

en

tB

an

kK

SD

’s

Pa

rtic

ipa

nt

Tax O

ffic

e

Cash

Flo

w

Info

rmation

Flo

w

11. R

edem

ption

Paym

ent

Notification

14. Tax P

aym

ent (f

or

resid

ents

)15. Tax P

aym

ent (f

or

non-r

esid

ents

)

5. R

edem

tion

Paym

ent

Cu

sto

dia

n

13.R

edem

ption P

aym

ent

Notice

1. N

otification o

f B

ond

Hold

er’

s in

form

ation

Sam

e E

ntity

12. R

edem

ption

Paym

ent

Sam

e E

ntity

Pa

ym

en

t B

an

k

Issuer’

s

Account

Bond H

old

er’

s

Account

4. F

und p

aym

ent

(deposit p

rincip

al)

BO

K(B

OK

-Wir

e+

)

7. R

edem

ption

Paym

ent

9. R

edem

ption

Paym

ent

(net)

KS

D’s

Account

Sam

e E

ntity

KS

D

KS

D’s

Ba

nk

8. P

aym

ent

In

str

uction

2. B

ondhold

ers

-lis

t

Paym

ent

Bank's

A

ccount

Part

icip

ant’s

Account

10.

Redem

ption

KS

D’s

Ba

nk

6. P

aym

ent

In

str

uction

3. N

otification

Via

KF

TC

490 ASEAN+3 Bond Market Guide | Volume 3 | Part 3

KR

11.

Redem

pti

on P

aym

ent

Flo

w C

orp

ora

te B

ond

1.

Kore

a S

ecurities D

ep

osito

ry(K

SD

)’s

pa

rtic

ipan

ts n

otifies K

SD

of in

form

ation

of b

on

d

hold

ers

.2

.K

SD

se

nd

s K

SD

’s B

an

k o

f b

on

dho

lders

-lis

t.3

.K

SD

’s b

ank

notifie

s is

su

er’

s p

aym

ent b

an

k o

f re

de

mp

tio

n p

aym

en

t via

KO

RE

A

FIN

AN

CIA

L T

ELE

CO

MM

UN

ICA

TIO

NS

& C

LE

AR

ING

S IN

ST

ITU

TE

(K

FT

C).

4.

A b

on

d is

su

er m

ake

s fu

nd

pa

ym

en

t for

red

em

ption

to a

pa

ym

en

t ban

k.

5.

Paym

ent B

ank e

xe

cu

tes re

de

mption

pa

ym

en

t fro

m is

su

er’

s a

ccou

nt t

o it

’s a

cco

unt.

6.

Paym

ent B

ank in

str

ucts

BO

K to

pa

y r

ede

mption

fro

m p

aym

en

t ba

nk’s

accou

nt t

o K

SD

’s

acco

un

t.7

.B

OK

execu

tes re

de

mption

pa

ym

en

t fro

m p

aym

en

t ba

nks’ a

cco

un

t to

KS

D’s

acco

unt.

8.

KS

D in

str

ucts

KS

D’s

Ban

k to

pa

y re

dem

ption

to c

usto

dia

ns(K

SD

pa

rtic

ipants

)’ a

ccou

nt.

9.

KS

D’s

ba

nk e

xe

cu

tes re

de

mp

tio

n p

aym

en

t fro

m K

SD

’s a

ccou

nt t

o c

usto

dia

ns(K

SD

p

art

icip

ants

)’ a

ccou

nt, d

ed

uctin

g ta

x if

app

lica

ble

..1

0.

KS

D m

ake

s b

on

d r

ed

em

ptio

n.

11.

KS

D n

otifies it

’s p

art

icip

an

ts o

f re

de

mption

pa

ym

ent.

12.

Cu

sto

dia

n (K

SD

’s p

art

icip

ants

) cre

dit b

on

d h

old

ers

’ accou

nts

with red

em

ption

paid

by

issu

er,

ded

uctin

g ta

x if

ap

plic

able

.1

3.

Cu

sto

dia

n (K

SD

’s p

art

icip

ants

) n

otify

bon

d h

old

ers

of re

de

mp

tio

n p

aym

ent.

14.

KS

D’s

Ba

nk p

ays tax fo

r re

sid

en

ts to

ta

x o

ffic

e.

15.

KS

D’s

pa

rtic

ipan

ts p

ay ta

x fo

r no

n-r

esid

en

ts to

ta

x o

ffic

e.

Pro

cess

of R

edem

ptio

n P

aym

ent

491ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Lao PDR(LA)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Interest & Redemption Payment Flow (Government Bond)

5. Interest & Redemption Payment Flow (Corporate Bond)

492 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

493ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

BO

L

BO

L

BO

L: B

ank

of La

o P

DR

494 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

(Po

st)

Tra

de m

atc

h

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

LSX

(Bo

ok

En

try

Sy

ste

m)

BO

L

LSX:

Lao S

ecu

rities

Exc

hange

BO

L: B

ank

of La

o P

DR

LSX

LSX

495ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

496 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sell

Sid

eB

uy S

ide

1. T

rade

3.M

atc

hin

g

2.D

eliv

ery

of P

hysic

al

Cert

ific

ate

BO

L

4. C

ash S

ett

lem

ent

5. D

eliv

ery

of P

hysic

al

Cert

ific

ate

3. R

eg

istr

ation

497ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

OT

C m

ark

et

by te

lep

ho

ne

or

by F

AX

in

th

e f

orm

of

ph

ysic

al c

ert

ific

ate

.2

.S

ell

sid

e d

eliv

er

ph

ysic

al c

ert

ific

ate

with

evid

en

ce

of

tra

de

to

BO

L.

3.

BO

L r

eg

iste

rs tra

de

on

bo

ok.

4.

BO

L

ma

ke

s c

ash

se

ttle

me

nt

fro

m b

uy s

ide

to

se

ll sid

e.

5.

Bu

y s

ide

bri

ng

s b

ack B

OL p

hysic

al c

ert

ific

ate

fro

m B

OL

.

OT

C M

ark

et

498 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

499ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

LS

XS

ell

Sid

eS

ecuri

ties

Com

pany

Buy S

ide

Securi

ties

Com

pany

BO

L

6. N

ett

ing

Results

6. N

ett

ing

Results

9. C

ash S

ett

lem

ent

10. S

ett

lem

ent R

eport

8. S

ett

lem

ent D

ata

7. H

old

ing

Bonds

11. B

onds S

ett

lem

ent

Sell

Sid

e’s

Corr

espondin

g

Bank

Buy S

ide’s

Corr

espondin

g

Bank

1. T

rade O

rder

2. M

atc

hin

g

3. T

rade c

onfirm

ation

4. T

akin

g O

blig

ation

(novation)

5. N

ett

ing

12. S

ett

lem

ent R

eport

(Bond &

Cash)

12. S

ett

lem

ent R

eport

(Bond &

Cash)

1. T

rade O

rder

500 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

de

ord

er

to L

SX

.2

.L

SX

pe

rfo

rms m

atc

hin

g.

3.

LS

X m

ake

s tra

de

co

nfirm

atio

n.

4.

LS

X t

ake

s o

blig

atio

n (

no

va

tion

) fo

r L

SX

me

mb

ers

. 5

.L

SX

pe

rfo

rms n

ettin

g.

6

.L

SX

se

nd

de

tails

of

ne

ttin

g r

esu

lts to

se

ll sid

e a

nd

bu

y s

ide

via

syste

m.

7.

LS

X c

he

cks a

va

ilab

ility

an

d h

old

s s

ecu

ritie

s.

8.

LS

X s

en

ds s

ettle

me

nt

da

ta t

o B

OL a

uto

ma

tica

lly v

ia F

TP.

9.

BO

L e

xe

cu

tes c

ash

se

ttle

me

nt.

10

.B

OL n

otic

es c

ash

se

ttle

me

nt

co

nfirm

atio

n to

LS

X.

11

.L

SX

re

lea

se

s h

eld

se

cu

ritie

s a

nd

exe

cu

tes s

ecu

ritie

s d

eliv

ery

.1

2.

LS

X s

en

ds s

ettle

me

nt

rep

ort

to

se

ll sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

501ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

502 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA05.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

F(M

inis

try o

f F

ina

nce

)B

on

d H

old

er

BO

L4. R

eport

of

Advance

Inte

rest

Paym

ent

Cash

Flo

w

Info

rmation

Flo

w

Co

mm

erc

ial B

an

k(o

rig

ina

l bo

nd

h

old

er)

5. A

ppro

val of

Advance

Inte

rest

Paym

ent

Tax O

ffic

e

BO

L’s

A

ccount

Com

merc

ial B

ank’s

Account

Bond H

old

er’

s

Account

BO

L1. In

tere

st

Paym

ent

Sam

e E

ntity

MO

F’s

A

ccount

3. In

tere

st

Paym

ent

6. In

tere

st

Paym

ent

Co

mm

erc

ial B

an

ks

BO

L2. N

otification o

f A

dvance Inte

rest

Paym

ent

Sam

e E

ntity

503ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA05.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

Com

merc

ial b

anks, w

hic

h a

re o

rigin

ally

allo

cate

d T

-bill

s, m

ake in

tere

st p

aym

ent i

n

advance t

o b

ond h

old

ers

deducting in

com

e ta

x if

applic

able

on b

ehalf o

f M

OF

on in

tere

st

paym

ent d

ate

. 2.

The c

om

merc

ial b

anks report

to B

OL the a

dvance in

tere

st p

aym

ents

they m

ade o

n b

ehalf

of M

OF.

3.

BO

L reim

burs

es th

e a

dvance p

aym

ent t

o c

om

merc

ial b

anks o

n b

ehalf o

f M

OF.

4.

BO

L n

otifies M

OF

of t

he a

dvance in

tere

st p

aym

ent m

ade b

y c

om

merc

ial b

anks o

n a

quart

erly b

asis

thro

ugh a

report

, and r

equests

MO

F to

pay the a

mount.

5.

MO

F reconcile

s th

e p

aym

ent d

eta

ils w

ith B

OL b

efo

re m

akin

g p

aym

ents

, and a

ppro

ve to

pay th

e a

mount t

o B

OL.

6.

MO

F p

ays the in

tere

st a

mount to

BO

L.

7.

Com

merc

ial b

anks

pays in

com

e ta

x to the tax o

ffic

e v

ia it

’s o

wn a

ccount,

if tax is

applic

able

.

Pro

cess

of In

tere

st P

aym

ent

504 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA06. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Cash

Flo

w

Info

rmation

Flo

w

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

F(M

inis

try o

f F

ina

nce

)B

on

d H

old

er

BO

L

4. R

eport

of

Advance

Redem

ption

Paym

ent

Co

mm

erc

ial B

an

k(o

rig

ina

l bo

nd

h

old

er)

5. A

ppro

val of

Advance R

edem

ption

Paym

ent

Tax O

ffic

e

BO

L’s

A

ccount

Com

merc

ial B

ank’s

Account

Bond H

old

er’

s

Account

BO

L1. R

edem

ption

Paym

ent

Sam

e E

ntity

MO

F’s

A

ccount

3. R

edem

ption

Paym

ent

7. R

edem

ption

Paym

ent

Co

mm

erc

ial B

an

ks

BO

L

6. R

edem

ption o

f B

onds

2. N

otification o

f A

dvance R

edem

ption

Paym

ent

Sam

e E

ntity

505ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

LA06.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

Com

merc

ial b

anks, w

ho a

re o

rigin

ally

allo

cate

d T

-bill

s,

pay the a

mount f

or

redem

ption

and in

tere

st p

aym

ent i

n a

dvance to

bond h

old

ers

deducting in

com

e ta

x if

applic

able

on

behalf o

f M

OF

on the redem

ption d

ate

. 2.

Com

merc

ial b

anks a

sk B

OL to p

ay the a

mount f

or

redem

ption.

3.

BO

L m

akes th

e p

aym

ent t

o c

om

merc

ial b

anks o

n b

ehalf o

f M

OF.

4.

BO

L n

otifies M

OF

of th

e a

dvance redem

ption m

ade b

y c

om

merc

ial b

anks, a

nd requests

M

OF

to p

ay the a

mount.

5.

MO

F reconcile

s th

e p

aym

ent d

eta

ils w

ith B

OL b

efo

re m

akin

g p

aym

ents

, and a

ppro

ve to

pay th

e a

mount t

o B

OL.

6.

BO

L p

erf

orm

s redem

ption.

7.

MO

F m

akes reim

burs

em

ent f

or th

e p

aym

ent t

o B

OL follo

win

g th

e p

resenta

tion o

f th

e

lett

er.

8.

Com

merc

ial b

anks

pays in

com

e ta

x to the tax o

ffic

e v

ia it

’s o

wn a

ccount,

if tax is

applic

able

.

Pro

cess

of R

edem

ptio

n P

aym

ent

506 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Myanmar(MM)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Interest & Redemption Payment Flow (Government Bond)

507ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

508 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

ME

B, M

SE

C

MEB:

Mya

nm

a E

co

no

mic

Ba

nk

MSEC:

Mya

nm

ar

Se

cu

ritie

s E

xch

an

ge

Ce

ntr

e

ME

B, M

SE

C

509ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

510 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

02.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sell

Sid

e(B

ank)

Buy S

ide

Sale

s A

gent (M

EB

,MS

EC

))

CB

M

9. R

eg

istr

ation

4. D

eliv

ery

of P

hysic

al

Cert

ific

ate

4. P

aym

ent w

ith C

heck

(in th

e c

ase S

ale

s A

gent is

M

SE

C)

7. D

eliv

er

of P

hysic

al

Cert

ific

ate

8. R

eport

Ow

ners

hip

C

hang

e

7. D

eliv

ery

of P

aid

Check

(in th

e c

ase S

ale

s A

gent is

M

SE

C)

3. T

rade

1. B

ond I

nfo

rmation

2. F

indin

g a

Buyer

5. T

ransfe

r of O

wners

hip

MS

EC

Tra

de

1. B

ond I

nfo

rmation

3. T

rade D

ata

6. E

ndors

em

ent on c

heck

from

buy s

ide(M

SE

C)

or

Cash S

ett

lem

ent (M

EB

)

3. T

rade D

ata

511ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

02.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Sell

sid

e in

form

s C

BM

and M

SE

C o

f bond in

form

ation s

uch a

s the face v

alu

e, m

atu

rity

date

and

num

bers

of bonds w

hic

h th

ey w

ant to

sell.

2.

MS

EC

finds a

buy s

ide w

ho a

ccepts

the p

rice (quote

driven tra

de) fo

r tr

ade.

3.

MS

EC

report

s to

CB

M a

bout th

e s

ale

s o

f bond d

irectly o

r via

.M

EB

.4.

If b

uyer

and s

elle

r agre

e the p

rice, t

he s

elle

r brings p

hysic

al c

ert

ific

ate

to M

SE

C o

r M

EB

with

the s

ignatu

re o

n the b

ack o

f bond c

ert

ific

ate

by a

uth

orized p

ers

on to tra

nsfe

r th

e o

wners

hip

. T

he b

uyer m

akes c

heck w

hen s

ale

s a

gent is

MS

EC

.5.

Tra

nsfe

r of ow

ners

hip

is d

one b

y s

ale

s a

gent (M

EB

or

ME

SE

C).

6.

ME

B c

onducts

account t

ransfe

r or

MS

EC

makes e

ndors

em

ent o

n c

heck.

7.

Bond c

ert

ific

ate

is d

eliv

ere

d to

buyer.

Paid

check is

deliv

ere

d to

selle

r (o

nly

when s

ale

agent is

M

SE

C).

8.

Aft

er bond tra

din

g, M

SE

C report

s to C

BM

about th

e c

hangin

g o

f bond o

wners

hip

.9.

CB

M m

akes regis

tration.

OT

C M

ark

et

Note

: T

he f

low

in t

he p

revio

us p

age s

how

s f

rom

tra

de to s

ett

lem

ent betw

een b

anks in

OT

C m

ark

et.

M

SE

C q

uote

s b

onds o

f sell

sid

e (

bank)

and s

ell

them

to b

uy s

ide (

bank)

as s

ole

inte

rmedia

ry (

securities c

om

pany)

in O

TC

mark

et.

Regard

ing r

eta

il in

vesto

rs,

ME

B a

nd M

SE

C a

re the inte

rmedia

ry b

etw

een s

elle

r and b

uyer

of T

-bond.

512 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t)B

on

d)

3.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

513ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

03

. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

F(M

inis

try o

f F

ina

nce

)In

ve

sto

r

CB

M a

s P

A

Cash

Flo

w

Info

rmation

Flo

w

ME

B a

nd

CS

D

Pre

cip

itan

ts

(ba

nks)

Tax O

ffic

e

ME

B a

nd C

SD

part

icip

ants

Investo

r’s

Account

CB

M

Re

ve

nu

e

De

pa

rtm

en

t A

cco

un

t

3. In

tere

st P

aym

ent

ME

B a

nd

CS

D p

art

icip

an

ts

CB

M

4. N

otification o

f P

aym

ent D

eta

il

Sam

e E

ntity

Deliv

ery

of

coupon

Sam

e E

ntity

5. In

tere

st

Paym

ent

Sam

e E

ntity

1.P

aym

ent

Request

2.A

ppro

val

No w

ithhold

ing t

ax

514 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

03.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

CB

M s

end p

aym

ent r

equest t

o M

OF.

2.

MO

F a

ppro

ves it

.3.

CB

M p

ays in

tere

sts

to b

anks (C

SD

part

icip

ants

inclu

din

g M

EB

) by d

ebitin

g R

evenue

Depart

ment A

ccount a

nd c

reditin

g it

to the b

anks’ a

ccount.

4.

CB

M s

ends le

tter of notification fo

r in

tere

st p

aym

ent t

o b

anks in

clu

din

g M

EB

. (B

anks

bring c

oupons to

CB

M e

xcept f

or

ME

B.)

5.

ME

B tr

ansfe

rs c

ash fo

r in

tere

st p

aym

ent t

o in

vesto

r’s a

ccounts

upon receip

t of coupons.

Pro

cess

of In

tere

st P

aym

ent

Note

: T

here

is n

o w

ithhold

ing t

ax for

govern

ment bonds.

515ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

04

. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

F(M

inis

try o

f F

ina

nce

)In

ve

sto

r

CB

M a

s P

A

Cash

Flo

w

Info

rmation

Flo

w

ME

B a

nd

CS

D

Pre

cip

itan

ts

(ba

nks)

Tax O

ffic

e

ME

B a

nd C

SD

part

icip

ants

Investo

r’s

Account

CB

M

Revenue

Depart

ment

Account

3. R

edem

ption P

aym

ent

ME

B a

nd

CS

D p

art

icip

an

ts

CB

M

4. N

otification o

f P

aym

ent D

eta

il

Sam

e E

ntity

Deliv

ery

of

cert

ific

ate

s

Sam

e E

ntity

5. R

edem

ption

Paym

ent

Sam

e E

ntity

To b

e c

onfirm

ed

1.P

aym

ent

Request

2.A

ppro

val

(3. R

edem

ption)

516 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MM

04.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

CB

M s

end

pa

ym

en

t re

qu

est t

o M

OF.

2.

MO

F a

ppro

ves it

.3

.C

BM

pa

ys in

tere

sts

to b

anks (C

SD

pa

rtic

ipa

nts

inclu

din

g M

EB

) b

y d

ebitin

g R

eve

nue

D

ep

art

me

nt A

cco

un

t and

cre

ditin

g it

to

th

e b

anks’ a

cco

un

t. C

BM

ma

ke

s re

de

mption

.4

.C

BM

se

nd

s le

tte

r o

f n

otification

for re

de

mption

pa

ym

en

t to

ban

ks in

clu

din

g M

EB

. (B

anks

brin

g c

irtifica

tes

to C

BM

exce

pt f

or

ME

B.)

5.

ME

B tr

an

sfe

rs c

ash fo

r re

dem

ption

paym

ent t

o in

vesto

r’s a

ccou

nts

upo

n re

ce

ipt o

f ce

rtific

ate

s.

Pro

cess

of In

tere

st P

aym

ent

517ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Malaysia(MY)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

518 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

519ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

ET

P –

Ele

ctr

onic

Tra

din

g P

latf

orm

BN

M -

Bank N

egara

Mala

ysia

RE

NT

AS

–R

eal-tim

e E

lectr

onic

Tra

nsfe

r of F

unds a

nd S

ecurities

BM

S –

Burs

a M

ala

ysia

Securities

BT

S –

Burs

a T

rade S

yste

m

BM

SC

–B

urs

a M

ala

ysia

Securities C

learing

BC

S –

Burs

a C

learing &

Sett

lem

ent S

yste

mS

ST

S –

Scriple

ss

Securities T

radin

g S

yste

m

BM

D –

Burs

a M

ala

ysia

Depository

C

DS

–C

entr

al D

epository

Syste

m

IFT

S –

Inte

rbank F

unds T

ransfe

r S

yste

m

BN

M (

RE

NT

AS

-SS

TS

)

BN

M (R

EN

TA

S-I

FT

S)

BM

D(C

DS

)

Bu

rsa

Ma

laysia

(E

TP

)

BM

SC

(B

CS

)

BM

S(B

TS

)

520 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

t

OT

C M

ark

et

ET

P –

Ele

ctr

onic

Tra

din

g P

latf

orm

BN

M -

Bank N

egara

Mala

ysia

RE

NT

AS

–R

eal-tim

e E

lectr

onic

Tra

nsfe

r of F

unds a

nd S

ecurities

BM

S –

Burs

a M

ala

ysia

Securities

BT

S –

Burs

a T

rade S

yste

m

BM

SC

–B

urs

a M

ala

ysia

Securities C

learing

BC

S –

Burs

a C

learing &

Sett

lem

ent S

yste

mS

ST

S –

Scriple

ss

Securities T

radin

g S

yste

m

BM

D –

Burs

a M

ala

ysia

Depository

C

DS

–C

entr

al D

epository

Syste

m

IFT

S –

Inte

rbank F

unds T

ransfe

r S

yste

m

BN

M (

RE

NT

AS

-SS

TS

)

BN

M (R

EN

TA

S-I

FT

S)

BM

D(C

DS

)

Bu

rsa

Ma

laysia

(E

TP

)

BM

SC

(B

CS

)

BM

S(B

TS

)

521ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

522 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

Buy S

ide

Sell

Sid

e1. T

rade (

dir

ect d

ealin

g

or via

Money B

rokers

)

5. A

cknow

ledg

em

ent

2. T

rade R

eport

ing

RE

NT

AS

7. C

ash S

ett

lem

ent

4. C

onfirm

ation

6. B

ond S

ett

lem

ent

5. A

cknow

ledg

em

ent

3. I

nitia

te U

nconfirm

ed

Sett

lem

ent A

dvic

e

ET

P2. T

rade R

eport

ing

DV

P

8. S

ett

lem

ent C

om

ple

tion

Advic

e (B

ond &

Cash)

8. S

ett

lem

ent C

om

ple

tion

Advic

e (B

ond &

Cash)

(RE

NT

AS

-SS

TS

)

(RE

NT

AS

-IF

TS

)

523ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades (

OTC

)

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

ove

r th

e c

ou

nte

r b

y te

lep

ho

ne

(d

ire

ct d

ea

ling

or

thro

ug

h M

on

ey B

roke

r). 9

5%

o

f b

on

d tra

de

s a

re d

ea

lt in

OT

C m

ark

et. C

om

me

rcia

l b

an

ks a

nd

Isla

mic

ba

nks c

an

tra

de

bo

nd

s.

2.

All

tra

de

s a

re r

eco

rde

d in

Ele

ctr

on

ic T

rad

ing

Pla

tfo

rm (

ET

P).

3.

Se

ll sid

e (

or

bu

y s

ide

) in

pu

ts t

rad

e d

ata

in

to R

EN

TA

S a

s in

itia

te u

nco

nfirm

ed

se

ttle

me

nt

ad

vic

e.

4.

Bu

y s

ide

(o

r se

ll sid

e)

co

nfirm

s a

n u

nco

nfirm

ed

se

ttle

me

nt

ad

vic

e u

sin

g b

y c

on

firm

atio

n m

en

u o

f R

EN

TA

S.

5.

Se

ll sid

e a

nd

bu

y s

ide

acce

ss r

ep

ort

me

nu

of R

EN

TA

S a

nd

co

nfirm

s th

at

co

nfirm

atio

n o

f lo

ca

l ma

tch

ing

is

pe

rfo

rme

d.

6.7

O

n s

ettle

me

nt

da

te,

bo

nd

an

d c

ash

are

se

ttle

d o

n D

VP

ba

sis

.8

.S

ell

sid

e a

nd

bu

y s

ide

acce

ss R

ep

ort

me

nu

of

RE

NTA

S a

nd

co

nfirm

s r

ep

ort

of

bo

nd

se

ttle

me

nt

an

d c

ash

se

ttle

me

nt.

OT

C M

ark

et

524 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY04.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

(Au

tho

rise

d

De

po

sito

ry

Instit

utio

n, A

DI)

Co

un

ter-

pa

rty

BN

MR

EN

TA

S-

IFT

S

Clearing Matching & Settlement

Cross-Border

BN

M

( MyC

lear)

RE

NT

AS

S

ST

S

As C

ash

Corr

espondent

Trading

ET

P

(Burs

a

Mala

ysia

)

Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

4 T

rade C

onfirm

atio

n5

Tra

de C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

19

Settle

ment

Confirm

8 a

Settle

ment

Inst

ructio

n

8 b

FX

/Fundin

g I

nst

ructio

n

11

FX

Confirm

atio

n

22

Cash

Sta

tem

ent

6Trade

Reporting

10

Pre

-Matc

hin

g S

tatu

s

17

Settle

ment

Confirm

atio

n

20

Securitie

s S

tate

ment

18

Fundin

g o

f T

rades

21

Cash

Sta

tem

ent

12

Captu

re o

f T

ransa

ctio

n D

eta

ils

& A

cknow

ledgem

ent

of

Receip

t

13

Retr

ieval of

Matc

hin

g S

tatu

s

15

Settle

ment

Confirm

atio

n

14

Fundin

g o

f B

NM

Account

16

Confirm

atio

n o

f D

ebit/

Cre

dit

12

Advic

e o

f unconfirm

ed T

rade

& C

onfirm

atio

n o

f T

rade in S

ST

S

-O

R -

525ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

526 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

(Au

tho

rise

d

De

po

sito

ry

Instit

utio

n, A

DI)

Co

un

ter-

pa

rty

BN

MR

EN

TA

S-

IFT

S

Clearing Matching & Settlement

Cross-Border

BN

M

( MyC

lear)

RE

NT

AS

S

ST

S

As C

ash

Corr

espondent

Trading

ET

P

(Burs

a

Mala

ysia

)

Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

4 T

rade C

onfirm

atio

n5

Tra

de C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

19

Settle

ment

Confirm

8 a

Settle

ment

Inst

ructio

n

8 b

FX

/Fundin

g I

nst

ructio

n

11

FX

Confirm

atio

n

22

Cash

Sta

tem

ent

6Trade

Reporting

10

Pre

-Matc

hin

g S

tatu

s

17

Settle

ment

Confirm

atio

n

20

Securitie

s S

tate

ment

18

Fundin

g o

f T

rades

21

Cash

Sta

tem

ent

12

Captu

re o

f T

ransa

ctio

n D

eta

ils

& A

cknow

ledgem

ent

of

Receip

t

13

Retr

ieval of

Matc

hin

g S

tatu

s

15

Settle

ment

Confirm

atio

n

14

Fundin

g o

f B

NM

Account

16

Confirm

atio

n o

f D

ebit/

Cre

dit

12

Advic

e o

f unconfirm

ed T

rade

& C

onfirm

atio

n o

f T

rade in S

ST

S

-O

R -

MY05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

527ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

1.

Fore

ign Institu

tional In

vesto

r pla

ces o

rder

with I

nte

rnational B

roker

2.

Inte

rnational B

roker/

Dom

estic Investo

r pla

ces o

rder

with D

om

estic B

roker/

Bank

3.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y a

gre

e o

n O

TC

tra

de (

via

e.g

. phone o

r B

loom

berg

)4.

Dom

estic B

roker/

Bank s

ends t

rade c

onfirm

ation to Inte

rnational B

roker

5.

Fore

ign Institu

tional In

vesto

r re

ceiv

es t

rade c

onfirm

ation

6.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y c

aptu

re tra

de in

ET

P,

by e

nd o

f tr

adin

g d

ay

7.

Fore

ign Institu

tional In

vesto

r in

str

ucts

Glo

bal C

usto

dia

n,

on s

ecurities s

ett

lem

ent and c

ash/f

undin

g d

eta

ils8.

Glo

bal C

usto

dia

n instr

ucts

Dom

estic C

usto

dia

n/A

DI

on (

a)

securities s

ett

lem

ent deta

ils,

(b)

FX

request

or

fundin

g

deta

ils (

sin

ce 3

rd P

art

y F

X p

ossib

le)

9.

Dom

estic C

usto

dia

n/A

DI

and C

ounte

rpart

y p

re-m

atc

h s

ett

lem

ent deta

ils, via

phone

10.

Dom

estic C

usto

dia

n/A

DI

sends p

re-m

atc

hin

g r

esult in

form

ation (

e.g

. m

issin

g instr

uctions)

to G

lobal C

usto

dia

n11.

Dom

estic C

usto

dia

n/A

DI

pro

vid

es c

onfirm

ation o

f F

X b

ooked (

in c

ase o

f earlie

r F

X r

equest)

12.

Dom

estic C

usto

dia

n/A

DI

captu

res s

ett

lem

ent deta

ils into

SS

TS

and r

eceiv

es S

ST

S a

cknow

ledgm

ent

of re

ceip

t of

data

(selli

ng s

ide),

OR

receiv

es a

lleged t

rade n

otice (

advic

e o

f unconfirm

ed tra

de)

from

SS

TS

and c

onfirm

s

sett

lem

ent deta

ils in S

ST

S (

buyin

g s

ide)

13.

Dom

estic C

usto

dia

n/A

DI

retr

ieves s

ett

lem

ent m

atc

hin

g s

tatu

s14.

Dom

estic C

usto

dia

n/A

DI

eff

ects

fundin

g o

f its a

ccount at

Bank N

egara

Mala

ysia

(B

NM

) via

RE

NTA

S (

IFT

S)

if

necessary

15.

Upon s

ett

ling s

ecurities, S

ST

S s

ends s

ett

lem

ent confirm

ation for

securities t

o D

om

estic C

usto

dia

n/A

DI

16.

Upon s

ett

ling c

ash, R

EN

TA

S s

ends d

ebit/c

redit c

onfirm

ation to D

om

estic C

usto

dia

n/A

DI

17.

Dom

estic C

usto

dia

n/A

DI

sends s

ett

lem

ent confirm

ation t

o G

lobal C

usto

dia

n18.

Glo

bal C

usto

dia

n f

unds a

ccount w

ith D

om

estic C

usto

dia

n/A

DI

(befo

re e

nd o

f day)

19.

Glo

bal C

usto

dia

n s

ends s

ends

sett

lem

ent confirm

ation to F

ore

ign I

nstitu

tional In

vesto

r20.

Dom

estic C

usto

dia

n/A

DI

sends s

tate

ment of securities t

o G

lobal C

usto

dia

n (

at end o

f day)

21.

Dom

estic C

usto

dia

n/S

ub-r

egis

try s

ends d

ebit/c

redit in

form

ation in

cash s

tate

ment (a

t end o

f day)

22.

Glo

bal C

usto

dia

n s

ends s

ends

debit/c

redit in

form

ation in

cash s

tate

ment to

FII

(at end o

f day)

Trade Date T+1 Settlement Date

528 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

529ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY0

6. B

ond T

ransacti

on F

low

for

Fore

ign Investo

rs

OTC

Mark

et

/ D

VP

(No

Ta

x D

ata

N

ece

ssa

ry)

(No

Ta

x D

ata

N

ece

ssa

ry)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

BN

M

(RE

NT

AS

-SS

TS

)a

s C

SD

Tax O

ffic

e

Au

tho

rize

d

De

po

sito

ry

Instit

utio

n(A

DI)

Cash

Flo

w

Info

rmation

Flo

w

4. In

tere

st P

aym

ent

MO

F’s

A

ccount

AD

I’s A

ccount

Bond H

old

er’

s

Account

BN

M (

RE

NT

AS

-IF

TS

)A

DI

5. In

tere

st

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

6.I

nte

rest P

aym

ent

Notice

(No T

ax f

or

Inte

rest)

(No T

ax f

or

Inte

rest)

BN

M

as P

ayin

g A

ge

nt

2. P

aym

ent

Instr

uction

Fa

cili

ty A

ge

nt

1. D

ebit

Notification

3. P

aym

ent

Instr

uction

530 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

On in

tere

st p

aym

en

t da

y, R

EN

TA

S s

en

ds D

ebit N

otification

s to

Facili

ty A

ge

nts

(FA

s) o

n

the a

ctu

al a

mo

unt of in

tere

st p

roce

eds to

be

pa

id to P

ayin

g A

ge

nt.

2.

MO

F in

str

ucts

FA

sto

ma

ke

red

em

ptio

n p

aym

ent.

3.

FA

s s

end

pa

ym

en

t instr

uctio

n to

Payin

g A

ge

nt.

4.

BN

M e

xecute

s in

tere

st p

aym

ent f

rom

MO

F’s

accou

nt t

o A

uth

orized

De

po

sitory

In

stitu

tion

s(A

DIs

)’ a

cco

unts

.5

.A

DIs

cre

dit to

bo

nd

ho

lde

r’s a

cco

un

ts w

ith in

tere

st p

aid

by M

OF.

6.

AD

Isn

otify

bo

nd h

old

ers

of in

tere

st p

aym

en

t.

Pro

cess

of In

tere

st P

aym

ent

531ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY0

7. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

(No

Ta

x D

ata

N

ece

ssa

ry)

(No

Ta

x D

ata

N

ece

ssa

ry)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

BN

M

as P

ayin

g A

ge

nt

Au

tho

rize

d

De

po

sito

ry

Instit

utio

n(A

DI)

2. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

4. R

edem

ption P

aym

ent

MO

F’s

A

ccount

AD

I’s A

ccount

Bond H

old

er’

s

Account

BN

M (

RE

NT

AS

-IF

TS

)A

DI

6. R

edem

ption

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

7.R

edem

ption P

aym

ent

Notice

(No T

ax f

or

Inte

rest)

(No T

ax f

or

Inte

rest)

BN

M

(RE

NT

AS

-SS

TS

)

5.R

edem

ption

Tax O

ffic

e

Fa

cili

ty A

ge

nt

1. D

ebit

Notification

3. P

aym

ent

Instr

uction

532 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

On re

de

mption

pa

ym

en

t day,

RE

NTA

S s

en

ds D

ebit N

otifica

tion

s to

Facili

ty A

gen

ts(F

As)

on th

e a

ctu

al a

mou

nt o

f p

rocee

ds to

be p

aid

to P

ayin

g A

ge

nt.

2.

MO

F in

str

ucts

FA

sto

ma

ke

red

em

ptio

n p

aym

ent.

3.

FA

s s

end

pa

ym

en

t instr

uctio

n to

Payin

g A

ge

nt.

4.

BN

M e

xecute

s red

em

ptio

n p

aym

ent f

rom

MO

F’s

acco

unt t

o A

uth

orized

De

po

sitory

In

stitu

tion

s(A

DIs

)’ a

cco

unts

.5

.B

NM

as C

SD

ma

ke

s b

on

d r

ed

em

ptio

n.

6.

AD

Is c

red

it to

bo

nd

hold

er’

s a

cco

un

ts w

ith

last i

nte

rest a

nd p

rin

cip

al p

aid

by M

OF.

7.

AD

Isn

otify

bo

nd h

old

ers

of re

de

mp

tio

n p

aym

en

t.

No

te: I

t is

su

pp

osed

that re

de

mp

tio

n a

lways in

vo

lve

s la

st i

nte

rest p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

533ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

534 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY08. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

Pa

yin

g A

ge

nt

(No

Ta

x D

ata

N

ece

ssa

ry)

(No

Ta

x D

ata

N

ece

ssa

ry)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

BN

M

(RE

NT

AS

-SS

TS

)a

s C

SD

Pa

yin

g A

ge

nt

Au

tho

rize

d

De

po

sito

ry

Instit

utio

n(A

DI)

2. P

aym

en

tIn

str

uctio

n

1. P

aym

en

tR

eq

ue

st

Cash

Flo

w

Info

rmation

Flo

w

220

3. In

tere

st

Paym

ent

Bond H

old

er’

s

Account

BN

M (

RE

NT

AS

-IF

TS

)A

DI

6. In

tere

st

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

7.I

nte

rest P

aym

ent

Notice

(No T

ax f

or

Inte

rest)

(No T

ax f

or

Inte

rest)

Tax O

ffic

e

5. In

tere

st

Paym

ent

4. P

aym

ent

Instr

uction

Issuer’

s

Account

AD

I’s A

ccount

PA

's A

ccount

535ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

ge

nt re

qu

ests

inte

rest p

aym

ent t

o b

on

d is

su

er.

2.

Bon

d is

sue

r in

str

ucts

payin

g a

ge

ntto

ma

ke in

tere

st p

aym

ent.

3.

Payin

g a

ge

nt tr

an

sfe

rs in

tere

st f

rom

issu

er’

s a

cco

unt t

o it

’s a

cco

un

t.4

.P

ayin

g a

ge

nt in

str

ucts

Ba

nk N

ega

ra M

ala

ysia

(B

NM

) to

tra

nsfe

r ca

sh

from

it’s

acco

un

t to

Auth

orized

De

po

sitory

Institu

tion

s(A

DIs

)’ a

cco

un

ts v

ia R

EN

TA

S-I

FT

S.

5.

BN

M tr

ansfe

rs c

ash

fro

m p

ayin

g a

ge

nt’s a

ccou

nt t

o A

uth

orized

De

posito

ry

Institu

tion

s(A

DIs

)’ a

cco

unts

.6

.A

DIs

cre

dit to

bo

nd

hold

er’

s a

cco

un

ts w

ith

inte

rest p

aid

by b

on

d is

sue

r.7

.A

DIs

notify

bo

nd h

old

ers

of in

tere

st p

aym

en

t.

Pro

cess

of In

tere

st P

aym

ent

536 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY09. R

edem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Sa

me

En

tity

(No

Co

nfirm

atio

n

Ne

ce

ssa

ry)

(No

Ta

x D

ata

N

ece

ssa

ry)

(No

Ta

x D

ata

N

ece

ssa

ry)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Pa

yin

g A

ge

nt

Au

tho

rize

d

De

po

sito

ry

Instit

utio

n(A

DI)

2. P

aym

en

tIn

str

uctio

n

1. P

aym

en

tR

eq

ue

st

Cash

Flo

w

Info

rmation

Flo

w

Sam

e E

ntity

Sam

e E

ntity

8.R

edem

ption P

aym

ent

Notice

BN

M

(RE

NT

AS

-SS

TS

)

6.R

edem

ption

4. P

aym

ent

Instr

uction

Pa

yin

g A

ge

nt

3. R

edem

ption

Paym

ent

Bond H

old

er’

s

Account

BN

M (

RE

NT

AS

-IF

TS

)A

DI

7. R

edem

ption

Paym

ent

(No T

ax f

or

Inte

rest)

(No T

ax f

or

Inte

rest)

Tax O

ffic

e

5. R

edem

ption P

aym

ent

Issuer’

s

Account

AD

I’s A

ccount

PA

's A

ccount

537ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

MY09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

ge

nt re

qu

ests

red

em

ptio

n p

aym

en

t to

bo

nd

issu

er.

2.

Bon

d is

sue

r in

str

ucts

payin

g a

ge

ntto

ma

ke red

em

ptio

n p

aym

en

t.3

.P

ayin

g a

ge

nt tr

an

sfe

rs la

st i

nte

rest a

nd

prin

cip

al f

rom

issu

er’

s a

ccou

nt t

o it

’s a

ccou

nt.

4.

Payin

g a

gen

t in

str

ucts

Ban

k N

eg

ara

Ma

laysia

(B

NM

) to

tra

nsfe

r ca

sh

fro

m it

’s a

ccou

nt t

o

Auth

orized

De

po

sitory

Institu

tion

s(A

DIs

)’ a

cco

un

ts v

ia R

EN

TA

S-I

FT

S.

5.

BN

M tr

ansfe

rs c

ash

fro

m p

ayin

g a

ge

nt’s a

ccou

nt t

o A

uth

orized

De

posito

ry

Institu

tion

s(A

DIs

)’ a

cco

unts

. 6

.B

NM

as C

SD

ma

ke

s b

on

d r

ed

em

ptio

n.

7.

AD

Is c

red

it to

bo

nd

hold

er’

s a

cco

un

ts w

ith

last i

nte

rest a

nd p

rin

cip

al p

aid

by b

ond

issu

er.

8.

AD

Isn

otify

bo

nd h

old

ers

of re

de

mp

tio

n p

aym

en

t.

No

te: I

t is

su

pp

osed

that re

de

mp

tio

n a

lways in

vo

lve

s la

st i

nte

rest p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

538 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Philippines(PH)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

539ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

540 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

SP

(P

hilP

aS

S)

PD

Ex –

Phili

pp

ine

Dea

ling

& E

xch

ang

ee

DvP

–E

xp

an

de

d D

eliv

ery

vs. P

aym

en

t Syste

m P

DT

C –

Phili

pp

ine

Dep

osito

ry &

Tru

st C

orp

ora

tio

nR

oS

S –

Re

gis

try o

f S

crip

less S

ecu

rities B

SP

-B

an

gko

Sen

tra

l ng

Pili

pin

as

PhilP

aS

S –

Phili

pp

ine

Pa

ym

en

ts a

nd

Sett

lem

ent S

yste

m

Ca

sh

se

ttle

me

nt b

y s

ett

lem

ent b

an

ks is

fo

r g

ove

rnm

ent a

nd c

orp

ora

te b

on

ds.

Bu

rea

u o

f T

rea

su

ry

(BT

r-R

oS

S)

PD

Ex

(Ro

ss S

TP

Fa

cili

ty)

PD

TC

OT

C m

ark

et

Ex. m

rkt

PD

Ex (F

ixe

d In

co

me

Tra

din

g S

yste

m)

Se

ttle

.ba

nksP

DE

x(e

DvP

)

541ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

SP

(P

hilP

aS

S)

PD

Ex –

Phili

ppin

e D

ealin

g &

Exchange

eD

vP

–E

xpanded D

eliv

ery

vs. P

aym

ent S

yste

m P

DT

C –

Phili

ppin

e D

epository

& T

rust C

orp

ora

tion

RoS

S –

Regis

try o

f S

criple

ss S

ecurities B

SP

-B

angko S

entr

al n

g P

ilipin

as

PhilP

aS

S –

Phili

ppin

e P

aym

ents

and S

ett

lem

ent S

yste

m

Cash

sett

lem

ent b

y s

ett

lem

ent b

anks is

for govern

ment a

nd c

orp

ora

te b

onds.

PD

TC

De

po

sito

ry

OT

C (

qu

ote

-dri

ve

n)

PD

Ex (F

ixe

d In

co

me

Tra

din

g S

yste

m)

Se

ttle

.b

an

ks

Exch

an

ge

(o

rde

r-d

rive

n)

PD

Ex (

Cle

ari

ng

syste

m)

542 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

1.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

543ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades G

SED

s M

ark

et

/ D

VP

229

PD

Eｘ

Sell

Sid

eB

uy S

ide

Bure

au o

f T

reasury

(BT

r-R

oS

S)

9. H

old

ing

Bonds

12. S

ett

lem

ent R

eport

(Cash)

12. S

ett

lem

ent R

eport

(Cash)

.9. F

und S

ett

lem

ent

6. S

ett

lem

ent D

eta

il6. S

ett

lem

ent D

eta

il

3. M

atc

hin

g

2. T

rade O

rder

2. T

rade O

rder

(FI T

radin

g S

yste

ms)

(PD

Ex-R

oS

S S

TP

Facili

ty)

7. A

uth

ori

zation o

f S

ett

lem

ent

Instr

uction F

or D

VP

7. A

uth

ori

zation o

f S

ett

lem

ent

Instr

uction fo

r D

VP

4. M

atc

hin

g R

esult

4. M

atc

hin

g R

esult

BS

P (

PhilP

aS

S)

11.C

ash S

ett

lem

ent

10. S

ett

lem

ent D

ata

12. S

ett

lem

ent

Report

(C

ash)

13. B

ond S

ett

lem

ent

5. T

rade D

ata

1. N

eg

otiation (

OT

C)

8. S

ett

lem

ent D

ata

14. S

ett

lem

ent S

tatu

s

15. M

onitor

Sett

lem

ent

Sta

tus

15. M

onitor

Sett

lem

ent

Sta

tus*G

SE

D: G

overn

ment

Securities E

ligib

le D

eale

r

544 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades G

SED

s M

ark

et

/ D

VP

1.

In O

TC

ma

rke

t, t

he

se

ll sid

e a

nd

bu

y s

ide

ne

go

tiate

be

fore

the

y in

pu

t th

e t

rad

e d

ata

to

PD

Ex.

Th

is

pro

ce

ss is

om

itte

d i

n t

he

Exch

an

ge

Ma

rke

t.2

.S

ell

sid

e a

nd

bu

y s

ide

tra

de

via

PD

Ex(F

I T

rad

ing

Syste

m).

3

.P

DE

x(F

I T

rad

ing

Syste

m)

ma

tch

es o

rde

r o

r re

co

rds n

eg

otia

ted

de

als

be

twe

en

se

ll sid

e a

nd

bu

y s

ide

.4

.P

DE

x(F

I T

rad

ing

Syste

m)

se

nd

s m

atc

hin

g r

esu

lt to

th

e s

ell

sid

e a

nd

bu

y s

ide

. 5

.P

DE

x(F

I T

rad

ing

Syste

m)

se

nd

s tra

de

da

ta t

o P

DE

x(P

DE

x-R

oS

S S

TP

Fa

cili

ty).

6.

PD

Ex(P

DE

x-R

oS

S S

TP

Fa

cili

ty)

se

nd

s s

ettle

me

nt

de

tail

to t

he

se

ll sid

e a

nd

bu

y s

ide

.7

.S

ell

sid

e a

nd

bu

y s

ide

au

tho

rize

th

e s

ettle

me

nt

instr

uctio

n f

or

DV

P.

8.

PD

Ex(P

DE

x-R

oS

S S

TP

Fa

cili

ty)

se

nd

s s

ettle

me

nt

da

ta t

o B

ure

au

of T

rea

su

ry R

eg

istr

y o

f S

cri

ple

ss

Se

cu

ritie

s(B

Tr-

Ro

SS

).9

.B

Tr-

Ro

SS

ho

lds b

on

ds b

efo

re c

ash

se

ttle

me

nt.

10

.B

Tr-

Ro

SS

se

nd

s s

ettle

me

nt

da

ta t

o B

an

gko

Se

ntr

al n

g P

ilip

ina

s（B

SP）.

11

.B

SP

exe

cu

tes c

ash

se

ttle

me

nt.

12

.B

SP

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to s

ell

sid

e,

bu

y s

ide

an

d B

Tr-

Ro

SS

.1

3.

BT

r-R

oss e

xe

cu

tes b

on

d s

ettle

me

nt.

14

.B

Tr-

Ro

ss s

en

ds b

on

d s

ettle

me

nt

sta

tus t

o P

DE

x-R

oS

S S

TP

Fa

cili

ty.

15

.S

ell

sid

e a

nd

bu

y s

ide

ca

n m

on

itor

se

ttle

me

nt

sta

tus v

ia P

DE

x-R

oS

S S

TP

Fa

cili

ty.

Exc

hange M

ark

et-

GS

ED

s

*GS

ED

: G

overn

ment

Securities E

ligib

le D

eale

r

545ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades n

on-G

SED

s M

ark

et

/ D

VP

231

PD

EX

Sell

Sid

eB

uy S

ide

13. C

ash S

ett

lem

ent

Report

13. C

ash S

ett

lem

ent

Report

.9. F

und S

ett

lem

ent

6. S

ett

lem

ent D

eta

il6. S

ett

lem

ent D

eta

il

3. M

atc

hin

g

2. T

rade O

rder

2. T

rade O

rder

(FI T

radin

g S

yste

ms)

(eD

VP

Syste

m)

7. A

uth

ori

zation o

f S

ett

lem

ent I

nstr

uctions

For

DV

P

7. A

uth

ori

zation o

f S

ett

lem

ent I

nstr

uctions

for D

VP

4. M

atc

hin

g R

esults

4. M

atc

hin

g R

esults

BS

P(P

hilP

aS

S)

12.C

ash S

ett

lem

ent

PD

TC

(PD

TC

Depository

)

11. E

arm

ark

ed B

onds

15. B

ond S

ett

lem

ent

12. C

ash S

ett

lem

ent R

eport

15. S

ett

lem

ent R

eport

(Bond)

15. S

ett

lem

ent R

eport

(Bond)

14. S

ett

lem

ent

instr

uction

1. N

eg

otiation (

OT

C)

9. E

arm

ark

ed

Instr

uction

5. T

rade D

ata 16. S

ett

lem

ent

Sta

tus

17. B

ond S

ett

lem

ent

Sta

tus

*GS

ED

: G

overn

ment

Securities E

ligib

le D

eale

r

17. B

ond S

ett

lem

ent

Sta

tus

10. C

ash S

ett

lem

ent

Instr

uction

8. C

heck c

ash

bala

nce

546 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

04.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades n

on-G

SED

s M

ark

et

/ D

VP

1.

In O

TC

ma

rke

t, s

ell

sid

e a

nd

bu

y s

ide

ne

go

tiate

be

fore

th

ey in

pu

t th

e t

rad

e d

ata

to

PD

Ex.

Th

is p

roce

ss is

o

mitt

ed

in

th

e E

xch

an

ge

Ma

rke

t.2

.S

ell

sid

e a

nd

bu

y s

ide

tra

de

via

PD

Ex (

FI T

rad

ing

Syste

m).

3

.P

DE

x (

FI

Tra

din

g S

yste

m)

co

llate

s o

rde

rs f

rom

se

ll sid

e a

nd

bu

y s

ide

. 4

.P

DE

x (

FI

Tra

din

g S

yste

m)

se

nd

s m

atc

hin

g r

esu

lts to

se

ll sid

e a

nd

bu

y s

ide

. 5

.P

DE

x (

FI

Tra

din

g S

yste

m)

se

nd

s tr

ad

e d

ata

to

PD

Ex (

eD

VP

Syste

m).

6.

PD

Ex (

eD

VP

Syste

m)

se

nd

s s

ettle

me

nt

de

tails

to

se

ll sid

e a

nd

bu

y s

ide

.7

.S

ell

sid

e a

nd

bu

y s

ide

au

tho

rize

se

ttle

me

nt

instr

uctio

n f

or

DV

P.

8.

Ch

eck c

ash

ba

lan

ce

of

bu

y s

ide

in P

hilP

ass

9.

PD

Ex (

eD

VP

Syste

m)

se

nd

s e

arm

ark

ed

instr

uctio

n to

Ph

ilip

pin

e D

ep

osito

ry &

Tru

st

Co

rp (

PD

TC

).1

0.

PD

Ex (

eD

VP

Syste

m)

se

nd

s c

ash

se

ttle

me

nt

instr

uctio

n t

o B

SP.

11

.P

DT

C h

old

s b

on

ds b

efo

re c

ash

se

ttle

me

nt.

PD

TC

acts

as s

ub

-re

gis

try.

1

2.

BS

P e

xe

cu

tes c

ash

se

ttle

me

nt.

13

.B

SP

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to s

ell

sid

e,

bu

y s

ide

, a

nd

PD

Ex(e

DV

P S

yste

m)

. 1

4.

PD

Ex (

eD

VP

Syste

m)

se

nd

s s

ettle

me

nt

instr

uctio

n t

o P

DT

C.

15

.P

DT

C e

xe

cu

tes b

on

d s

ettle

me

nt.

16

.P

DT

C s

en

ds s

ettle

me

nt

sta

tus t

o P

DE

x (

eD

VP

Syste

m).

17

.P

DE

x (

eD

VP

Syste

m)

se

nd

s b

on

d s

ettle

me

nt

sta

tus t

o s

ell

sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et-

Non G

SE

Ds

*GS

ED

: G

overn

ment

Securities E

ligib

le D

eale

r

547ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

548 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

05 C

orp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

Buy S

ide

PD

EX

Sell

Sid

e

6. S

ett

lem

ent D

eta

il6. S

ett

lem

ent D

eta

il

3. M

atc

hin

g

2. T

rade O

rder

2. T

rade O

rder

(FI T

radin

g S

yste

ms)

(eD

VP

Syste

m)

7. A

uth

ori

zation o

f S

ett

lem

ent I

nstr

uctions

for D

VP

7. A

uth

ori

zation o

f S

ett

lem

ent I

nstr

uctions

for D

VP

4. M

atc

hin

g R

esults

4. M

atc

hin

g R

esults

1. N

eg

otiation (

OT

C)

5. T

rade D

ata

13. C

ash S

ett

lem

ent

Report

13. C

ash S

ett

lem

ent

Report

.9. F

und S

ett

lem

ent

BS

P(P

hilP

aS

S)

12.C

ash S

ett

lem

ent

PD

TC

(PD

TC

Depository

)

11. E

arm

ark

ed B

onds

15. B

ond S

ett

lem

ent

12. C

ash S

ett

lem

ent R

eport

15. S

ett

lem

ent R

eport

(Bond)

15. S

ett

lem

ent R

eport

(Bond)

14. S

ett

lem

ent

instr

uction

9. E

arm

ark

ed

Instr

uction

16. S

ett

lem

ent

Sta

tus

17. B

ond S

ett

lem

ent

Sta

tus

17. B

ond S

ett

lem

ent

Sta

tus

10. C

ash S

ett

lem

ent

Instr

uction

8. C

heck c

ash

bala

nce

549ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

05.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

In O

TC

ma

rke

t, s

ell

sid

e a

nd

bu

y s

ide

ne

go

tiate

be

fore

th

ey in

pu

t th

e t

rad

e d

ata

to

PD

Ex.

Th

is p

roce

ss is

o

mitt

ed

in

th

e E

xch

an

ge

Ma

rke

t.2

.S

ell

sid

e a

nd

bu

y s

ide

tra

de

via

PD

Ex(F

I T

rad

ing

Syste

m).

3

.P

DE

x(F

I T

rad

ing

Syste

m)

co

llate

s o

rde

rs fro

m s

ell

sid

e a

nd

bu

y s

ide

. 4

.P

DE

x(F

I T

rad

ing

Syste

m)

se

nd

s m

atc

hin

g r

esu

lts to

se

ll sid

e a

nd

bu

y s

ide

. 5

.P

DE

x(F

I T

rad

ing

Syste

m)

se

nd

s tra

de

da

ta t

o P

DE

x(e

DV

P S

yste

m).

6.

PD

Ex(e

DV

P S

yste

m)

se

nd

s s

ettle

me

nt

de

tails

to

se

ll sid

e a

nd

bu

y s

ide

.7

.se

ll sid

e a

nd

bu

y s

ide

au

tho

rize

se

ttle

me

nt

instr

uctio

n f

or

DV

P.

8.

Ch

eck c

ash

ba

lan

ce

of

bu

y s

ide

in P

hilP

ass

9.

PD

Ex(e

DV

P S

yste

m)

se

nd

s e

arm

ark

ed

instr

uctio

n t

o P

hili

pp

ine

De

po

sito

ry &

Tru

st C

orp

(PD

TC

).1

0.

PD

Ex(e

DV

P S

yste

m)

se

nd

s c

ash

se

ttle

me

nt

in

str

uctio

n to

BS

P.

11

.P

DT

C h

old

s b

on

ds b

efo

re c

ash

se

ttle

me

nt.

PD

TC

acts

as s

ub

-re

gis

try.

1

2.

BS

P e

xe

cu

tes c

ash

se

ttle

me

nt.

13

.B

SP

se

nd

s c

ash

se

ttle

me

nt

rep

ort

to s

ell

sid

e,

bu

y s

ide

, a

nd

PD

Ex(e

DV

P S

yste

m)

. 1

4.

PD

Ex(e

DV

P S

yste

m)

se

nd

s s

ettle

me

nt

instr

uctio

n to

PD

TC

.1

5.

PD

TC

exe

cu

tes b

on

d s

ettle

me

nt.

16

.P

DT

C s

en

ds s

ettle

me

nt

sta

tus t

o P

DE

x(e

DV

P S

yste

m)

.1

7.

PD

Ex(e

DV

P S

yste

m)

se

nd

s b

on

d s

ettle

me

nt

sta

tus to

se

ll sid

e a

nd

bu

y s

ide

.

Exc

hange M

ark

et

550 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

551ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

06 O

TC

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

BS

PP

hilP

aS

S

Clearing Matching & Settlement

Cross-Border

BT

rR

OS

S

As C

ash

Corr

espondent

Trading Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

5 T

rade C

onfirm

atio

n6

Tra

de C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

20

Settle

ment

Confirm

8 S

ettle

ment

Inst

ructio

n

13 F

X Inst

ructio

n

14

FX

Confirm

atio

n

24

Cash

Sta

tem

ent

12

Pre

-Matc

hin

g S

tatu

s

18

Settle

ment

Confirm

atio

n

22

Securitie

s S

tate

ment

19

Fundin

g o

f A

ccount

23

Cash

Sta

tem

ent

10

Captu

re/U

L o

f T

ransa

ctio

n D

eta

ils

11 R

etr

ieval of

Matc

hin

g S

tatu

s

17

Settle

ment

Confirm

atio

n

15

Fundin

g o

f B

SP

Account

16

Confirm

atio

n o

f D

ebit/

Cre

dit

4T

rade R

eport

ing/C

aptu

re

Co

un

ter-

pa

rty

PD

EX

(FI)

21

Issu

e o

f B

SR

D

552 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

06.

OTC

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

1.

Fore

ign Institu

tional In

vesto

r pla

ces o

rder

with I

nte

rnational B

roker

2.

Inte

rnational B

roker

pla

ces o

rder

with D

om

estic B

roker/

GS

ED

3.

Dom

estic B

roker

or

Deale

r tr

ades O

TC

with C

ounte

rpart

y4.

Dom

estic B

roker

or

Deale

r captu

res tra

de in

PD

Ex

syste

m, fo

r price d

iscovery

, w

ithin

10 m

ins

5.

Inte

rnational B

roker

receiv

es tra

de c

onfirm

ation

6.

Fore

ign Institu

tional In

vesto

r re

ceiv

es t

rade c

onfirm

ation

7.

Fore

ign Institu

tional In

vesto

r in

str

ucts

Glo

bal C

usto

dia

n,

on s

ecurities s

ett

lem

ent and F

X/c

ash f

undin

g d

eta

ils8.

Glo

bal C

usto

dia

n instr

ucts

Dom

estic C

usto

dia

n o

n s

ecurities s

ett

lem

ent deta

ils9.

Dom

estic C

usto

dia

n c

onducts

phone p

re-m

atc

hin

g w

ith C

ounte

rpart

yor

custo

dia

n o

f counte

rpart

y

10.

Dom

estic C

usto

dia

n e

nte

rs s

ett

lem

ent data

into

RoS

S(t

ypic

ally

via

3rd

Part

y fro

nt-

end)

11.

Dom

estic C

usto

dia

n r

etr

ieves tra

nsaction m

atc

hin

g s

tatu

s12.

Dom

estic C

usto

dia

n r

eport

s m

atc

hin

g s

tatu

s u

pdate

to G

lobal C

usto

dia

n13.

Glo

bal C

usto

dia

n s

ends F

X instr

uction f

or

pro

jecte

d fundin

g r

equirem

ents

14.

Dom

estic C

usto

dia

n s

ends F

X c

onfirm

ation

15.

Dom

estic C

usto

dia

n f

unds B

SP

accounts

, via

PhilP

AS

S(R

TG

S)

if n

ecessary

16.

Upon tra

nsfe

r of

cash (

aft

er

pro

mpting fro

m R

oS

S),

PhilP

aS

Ssends c

ash s

ett

lem

ent confirm

ation t

o D

om

estic

Custo

dia

n17.

Upon c

onfirm

ation o

f cash s

ett

lem

ent,

RoS

Seff

ects

bond s

ett

lem

ent,

sends c

onfirm

ation t

o D

om

estic C

usto

dia

n18.

Dom

estic C

usto

dia

n s

ends s

ett

lem

ent confirm

ation t

o G

lobal C

usto

dia

n19.

Glo

bal C

usto

dia

n f

unds a

ccount w

ith D

om

estic C

usto

dia

n in P

HP,

or

into

FC

Y n

ostr

o(b

efo

re e

nd o

f day)

20.

Glo

bal C

usto

dia

n s

ends s

ett

lem

ent confirm

ation to F

ore

ign I

nstitu

tional In

vesto

r21.

Dom

estic C

usto

dia

n issues B

SR

D (

Bangko

Sentr

alR

egis

tration D

ocum

ent)

, fo

r capital re

patr

iate

and/o

r re

mitta

nce o

f in

tere

st paym

ent

22.

Dom

estic C

usto

dia

n s

ends s

ecurities s

tate

ment to

Glo

bal C

usto

dia

n23.

Dom

estic C

usto

dia

n s

ends d

ebit/c

redit c

onfirm

ations, in

form

of

cash s

tate

ment,

to G

lobal C

usto

dia

n24.

Glo

bal C

usto

dia

n s

ends c

ash s

tate

ment to

Fore

ign I

nstitu

tional I

nvesto

r

Trade Date T+1 Settlement Date

553ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

554 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

07 Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

BSP: Banko S

entr

al ng P

hilip

inas

RD

DA:

Regula

r D

em

and D

eposi

t Acc

ount

CSA:

Cash

Sett

lem

ent Acc

ount

BTr:

Bure

au o

f th

e T

reasury

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

BT

rB

on

d H

old

er

BT

r: R

oS

S

Tax O

ffic

e

4.I

nte

rest P

aym

ent

Notice (

only

PD

TC

and

custo

dia

ns)

RO

SS

Pa

rtic

ipa

nts

(QI, R

eta

il, P

DT

C

an

d C

usto

dia

n)

5.T

ax P

aym

ent

( book-e

ntr

y thro

ugh journ

al e

ntr

y V

oucher

: by g

overn

ment re

venue in

tern

al accounting s

yste

m)

1. P

aym

ent

Instr

uction

Cash

Flo

w

Info

rmation

Flo

w

2. I

nte

rest P

aym

ent

thro

ugh R

DD

A

(net）

BTr’

s

RO

SS

part

icip

ant/

Sett

lem

ent B

ank

RO

SS

Part

icip

ants

’ CS

A/

Bond H

old

ers

’ a/c

BS

PR

OS

S p

art

icip

an

t/S

ettle

me

nt

Ba

nk

Sam

e E

ntity

3. In

tere

st

Paym

ent

Sam

e E

ntity

BT

r

Sam

e E

ntity

Sam

e E

ntity

revis

ed

555ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

07.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

BTr

instr

ucts

BS

P to

make in

tere

st p

aym

ent

2.

BS

P e

xe

cute

s in

tere

st p

aym

ent f

rom

BT

r’s

RD

DA

(R

eg

ula

r D

em

an

d D

ep

osit A

ccou

nt)

to

RO

SS

Pa

rtic

ipan

ts’ o

r th

eir s

ett

lem

ent b

anks’ R

DD

A, d

ed

ucting

tax if

ap

plic

able

.3

.S

ett

lem

ent B

an

ks c

red

it C

SA

(C

ash S

ett

lem

en

t Acco

unt)

of R

OS

S p

art

icip

ants

wh

ich

do

n

ot ha

ve

RD

DA

in B

SP

. R

OS

S p

art

icip

ants

wh

ich

ho

ld R

DD

A in

BS

P c

redit in

tere

st

paym

ent t

o b

on

d h

old

ers

’ accou

nts

.4

.C

usto

dia

ns

(whic

h a

re R

OS

S p

art

icip

an

ts w

ith R

DD

A in

BS

P) no

tify

bon

d h

old

ers

of

inte

rest p

aym

en

t5

.B

Ts P

ays W

HT

to

the

ta

x o

ffic

e. (

Cu

sto

dia

ns

ha

ve

two

type

s o

f a

cco

unt T

axab

le a

nd

Ta

x-

exem

pt)

100

% fo

r Ta

xa

ble

an

d 0

% fo

r Ta

x-e

xe

mp

t.

Note

: F

ollo

win

gs a

re s

om

e n

ote

on t

ax in

Phili

ppin

es.

RO

SS

0%

or

20%

Except m

ulti c

urr

ency R

TB

($or

Euro

)0%

(TE

I: T

ax e

xem

pt entity

), 1

0%

(FC

DU

: fo

reig

n c

urr

ency d

educta

ble

unit),

and 2

0%

(QII

).

Tax tra

ckin

g s

yste

m P

DE

xsyste

m a

ttached to R

OS

SB

Tr

is n

ow

enhancin

g T

ax T

rackin

g S

yste

m to c

over

all

coupon b

earing d

om

estic g

overn

ment bond (

pla

nnin

g t

o s

tart

opera

tion

by 2

013 J

anuary

)

QI;

qualif

ied investo

rs)

: B

anks,

insura

nce c

om

panie

s, tr

ust com

panie

s,

investm

ent com

panie

s, socia

l securities in

stitu

tions

(pensio

n funds),

inte

rnational b

anks,

fore

ign a

nd local govern

ment,

Pro

cess

of In

tere

st P

aym

ent

556 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

08 R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Ho

lde

r

Cash

Flo

w

Info

rmation

Flo

w

BT

r

BT

r: R

oS

SS

am

e E

ntity

Sam

e E

ntity

2.R

edem

ption

RO

SS

Pa

rtic

ipa

nts

(QI, R

eta

il, P

DT

C

an

d C

usto

dia

n)

1. P

aym

ent

Instr

uction

BT

r

Sam

e E

ntity

BTr:

Bure

au o

f th

e T

reasury

Tax O

ffic

e

5.T

ax P

aym

ent

( book-e

ntr

y thro

ugh journ

al e

ntr

y V

oucher

: by g

overn

ment re

venue in

tern

al accounting s

yste

m)

2. R

edem

ption a

nd

last In

tere

st P

aym

ent

thro

ugh R

DD

A

(net）

BTr’

s

RO

SS

part

icip

ant/

Sett

lem

ent B

ank

RO

SS

Part

icip

ants

’ CS

A/

Bond H

old

ers

’ a/c

BS

PR

OS

S p

art

icip

an

t/S

ettle

me

nt

Ba

nk

3. R

ed.

& I

nt.

P

aym

ent

BSP: Banko S

entr

al ng P

hilip

inas

RD

DA:

Regula

r D

em

and D

eposi

t Acc

ount

CSA: Cash

Sett

lem

ent Acc

ount

4.R

ed &

Int.

Paym

ent

Notice (

only

PD

TC

and

custo

dia

ns)

revis

ed

557ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

08.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

BTr

instr

ucts

BS

P to

make red

em

ptio

n p

aym

en

t.2

.B

SP

exe

cute

s red

em

ptio

n p

aym

en

t with

last In

tere

st p

aym

en

t to

RO

SS

part

icip

ants

’ R

DD

A (R

egu

lar D

em

an

d D

ep

osit A

ccou

nt)

or S

ett

lem

ent B

an

ks’ R

DD

A if

RO

SS

p

art

icip

ants

do n

ot h

ave R

DD

A.

Reg

ard

ing

last i

nte

rest p

aym

ent,

tax is

ded

ucte

d, i

f a

pp

licab

le.

Bo

nd is

dele

ted

fro

m B

Tr

RO

SS

syste

m (R

ede

mptio

n)

3.

Sett

lem

ent B

an

ks c

red

it C

SA

(C

ash S

ett

lem

en

t Acco

unt)

of R

OS

S p

art

icip

ants

wh

ich

do

n

ot h

ave

RD

DA

in B

SP

. R

OS

S p

art

icip

an

ts w

hic

h h

old

RD

DA

in B

SP

cre

dit p

rincip

al a

nd

in

tere

st (

net)

pa

ym

en

t to

bo

nd

ho

lders

’ accou

nts

.4

.C

usto

dia

ns

(whic

h a

re R

OS

S p

art

icip

an

ts w

ith

RD

DA

in B

SP

) n

otify

bo

nd h

old

ers

of

red

em

ption

with in

tere

st p

aym

ent

5.

BTs

Pays W

HT

of la

st in

tere

st t

o the

ta

x o

ffic

e. (

Cu

sto

dia

ns h

ave

two

type

s o

f a

cco

un

t Ta

xab

le a

nd

Ta

x-e

xe

mp

t) 1

00%

for

Taxab

le a

nd 0

% fo

r Ta

x-e

xe

mp

t.

No

te: L

ast i

nte

rest i

s p

aid

with red

em

ptio

n.

Pro

cess

of R

edem

ptio

n P

aym

ent

558 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

559ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

09

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Tax O

ffic

e

2. P

aym

ent

Instr

uction

8.R

edem

ption P

aym

ent

Notice (

to b

e c

onfirm

ed)

4.T

ax P

aym

ent

Issu

er’

sB

an

k

PD

TC :

Phili

ppin

e D

eposi

tory

& T

rust

Corp

.

1.A

dvis

e o

f R

edem

ption P

aym

ent

and W

ithhold

ing T

ax A

mount

PhilP

aSS :

Phili

ppin

e P

aym

ents

& S

ett

lem

ent

Sys

tem

5.P

aym

ent In

str

uction

Cash

Flo

w

Info

rmation

Flo

w

Sam

e E

ntity

6.D

ele

te

Bond R

egis

tration

PD

TC

3. C

ash

Tra

nsfe

rIs

suer’

s

Account

PD

TC

’s A

ccount

Issu

er’

s B

an

kB

SP

6. R

edem

ption &

In

tere

st P

aym

ent

(net)

PD

TC

Pa

rtic

ipa

nts

(QI, R

eta

il, a

nd

C

usto

dia

n)

PD

TC

part

icip

ant/

Sett

lem

ent B

ank

PD

TC

Part

icip

ants

’ CS

A/

Bond H

old

ers

’ a/c

PD

TC

pa

rtic

ipa

nt/S

ettle

me

nt

Ba

nk

7. R

ed.

&

inte

r.

Paym

ent

Sam

e E

ntity

560 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Phili

pp

ine

De

posito

ry &

Tru

st C

orp

(P

DT

C) a

dvis

es is

sue

r of re

de

mp

tio

n p

aym

en

t an

d

last i

nte

rest p

aym

ent.

Reg

ard

ing

last i

nte

rest p

aym

ent,

info

rmation

on

with

ho

ldin

g ta

x

am

ou

nt b

ased

on

lis

t o

f bo

nd h

old

ers

is n

otifie

d.

2.

Bon

d is

sue

r in

str

ucts

it’s

Pa

yin

g A

gen

cy (Is

su

er’

s B

an

k) to

make

re

de

mp

tio

n a

nd la

st

inte

rest p

aym

en

t.

3.

Issu

er’

s ba

nk tr

ansfe

rs c

ash fo

r re

dem

ptio

n p

aym

en

t an

d n

et a

mou

nt of la

st in

tere

st

paym

ent t

o P

DT

C’s

acco

unt.

Reg

ard

ing la

st i

nte

rest p

aym

ent,

WH

T is

ded

ucte

d b

efo

re

paym

ent i

f a

pp

licab

le.

4.

Issu

er p

ays ta

x to ta

x o

ffic

e if

app

licab

le.

5.

PD

TC

instr

ucts

BS

P to

tra

nsfe

r ca

sh

from

it’s

RD

DA

to P

DT

C p

art

icip

ants

RD

DA

or

Sett

lem

ent B

an

k’s

RD

DA

if P

DT

C p

art

icip

an

t do

es n

ot h

ave

RD

DA

in B

SP

via

Phili

ppin

e

Paym

ents

& S

ett

lem

en

t Syste

m (P

hilP

aS

S).

At t

he

sa

me

tim

e, P

DT

C m

ake

s b

on

d

red

em

ption

. 6

.C

usto

dia

ns

(PD

TC

part

icip

ants

wh

ich

ho

ld R

DD

A in

BS

P) cre

dit b

ond

ho

lder’

s a

ccou

nts

w

ith

last in

tere

st a

nd p

rin

cip

al.

7.

Cu

sto

dia

ns

notify

bo

nd h

old

ers

of re

dem

ptio

n p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

561ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

10

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Tax O

ffic

e

2. P

aym

ent

Instr

uction

9.R

edem

ption P

aym

ent

Notice

4.T

ax P

aym

ent

Issu

er’

sB

an

k

PD

TC :

Phili

ppin

e D

eposi

tory

& T

rust

Corp

.

1.A

dvis

e o

f R

edem

ption P

aym

ent

and W

ithhold

ing T

ax A

mount

PhilP

aSS :

Phili

ppin

e P

aym

ents

& S

ett

lem

ent

Sys

tem

5.P

aym

ent In

str

uction

Cash

Flo

w

Info

rmation

Flo

w

Sam

e E

ntity

6.D

ele

te

Bond R

egis

tration

PD

TC

3. C

ash

Tra

nsfe

rIs

suer’

s

Account

PD

TC

’s A

ccount

Issu

er’

s B

an

kB

SP

6. R

edem

ption &

In

tere

st P

aym

ent

(net)

PD

TC

Pa

rtic

ipa

nts

(QI, R

eta

il, a

nd

C

usto

dia

n)

PD

TC

part

icip

ant/

Sett

lem

ent B

ank

PD

TC

Part

icip

ants

’ CS

A/

Bond H

old

ers

’ a/c

PD

TC

pa

rtic

ipa

nt/S

ettle

me

nt

Ba

nk

7. R

ed.

&

inte

r.

Paym

ent

Sam

e E

ntity

8.I

nte

rest

Paym

ent

Notice

8.I

nte

rest

Paym

ent

Notice

562 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

PH

10.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Phili

pp

ine

De

posito

ry &

Tru

st C

orp

(P

DT

C) , in

its c

ap

acity a

s a

re

gis

try,

ad

vis

es is

su

er of

red

em

ption

paym

ent a

nd la

st in

tere

st p

aym

en

t. R

ega

rdin

g la

st i

nte

rest p

aym

ent,

in

form

atio

n o

n w

ith

hold

ing

tax a

mo

un

t ba

se

d o

n lis

t o

f b

on

d h

old

ers

is n

otified

. 2

.B

on

d is

sue

r in

str

ucts

it’s

Pa

yin

g A

gen

cy (Is

su

er’

s B

an

k) to

ma

ke

re

de

mp

tio

n a

nd la

st

inte

rest p

aym

en

t.

3.

Issu

er’

s ba

nk tr

ansfe

rs c

ash fo

r re

dem

ptio

n p

aym

en

t an

d n

et a

mou

nt of la

st in

tere

st

paym

ent t

o P

DT

C’s

acco

unt.

Reg

ard

ing la

st i

nte

rest p

aym

ent,

WH

T is

ded

ucte

d b

efo

re

paym

ent i

f a

pp

licab

le.

4.

Issu

er p

ays ta

x to ta

x o

ffic

e if

app

licab

le.

5.

PD

TC

(o

r th

e Issu

er’

s p

ayin

g b

ank) in

str

ucts

BS

P t

o p

ay re

dem

ption

and

last in

tere

st

fro

m P

DT

C’s

(o

r Is

su

er pa

yin

g b

an

k’s

) a

cco

unt t

o b

on

dh

old

er’

s R

DD

A o

r th

e R

DD

A o

f th

e

Sett

lem

ent B

an

ks d

esig

na

ted

by b

on

dho

lders

. 6

.B

SP

exe

cute

s red

em

ptio

n/inte

rest

pa

ym

en

t an

d, w

he

re a

pp

lica

ble

, th

e d

esig

nate

d

Sett

lem

ent B

an

k c

red

its th

e a

cco

un

ts o

f th

e b

on

dh

old

ers

up

on c

heckin

g th

at i

ts B

SP

R

DD

A h

as b

ee

n c

red

ite

d.

7.

Cu

sto

dia

ns

hold

ing

RD

DA

in B

SP

re

ce

ive

s re

dem

ptio

n/in

tere

st p

aym

en

t in

to th

eir R

DD

A

acco

unts

and

make

corr

esp

on

din

g c

red

its to

acco

unts

of th

eir c

lient-

bo

nd

ho

lders

. 8

.P

DT

C, a

s re

gis

try,

no

tifies a

ll re

gis

tere

d b

ond

hold

ers

of th

e r

ed

em

ptio

n/inte

rest

pa

ym

en

t,

inclu

din

g c

usto

dia

ns.

9.

Cu

sto

dia

ns

als

o n

otify

its c

lient-

bo

nd

ho

lde

rs o

f re

de

mp

tion

/in

tere

st p

aym

ent.

10.

PD

TC

syste

m m

ark

s th

e b

ond

as m

atu

red

.

Pro

cess

of R

edem

ptio

n P

aym

ent

563ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Singapore(SG)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

564 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

565ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tM

AS

(M

EP

S+

RT

GS

)

SG

X –

Sin

gap

ore

Exc

han

ge L

td.,

CD

P –

Cen

tral D

ep

ository

(P

te.)

Ltd

,M

AS

-M

on

eta

ry A

uth

ori

ty o

f S

ing

ap

ore

DC

SS

–D

eb

t S

ecu

rities C

leari

ng

an

d S

ettle

men

t S

yste

m

ME

PS

+ –

MA

S E

lectr

on

ic P

aym

en

t S

yste

m

CD

P(D

CS

S)

SG

X

MA

S(M

EP

S+

SG

S)

OT

C M

ark

et

566 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tM

AS

(M

EP

S+

RT

GS

)

SG

X –

Sin

gap

ore

Exc

han

ge L

td.,

CD

P –

Cen

tral D

ep

ository

(P

te.)

Ltd

,M

AS

-M

on

eta

ry A

uth

ori

ty o

f S

ing

ap

ore

DC

SS

–D

eb

t S

ecu

rities C

leari

ng

an

d S

ettle

men

t S

yste

m

ME

PS

+ –

MA

S E

lectr

on

ic P

aym

en

t S

yste

m

Inte

rdeale

r M

ark

et

（O

TC）

SG

X-S

T（e

xch

an

ge）

CD

P（C

lea

rin

g H

ou

se）

CD

P（S

ettle

me

nt）

-PS

MS

(DC

SS

)C

DP

(S

ettle

me

nt)

–P

SM

S

(DV

PT

/FO

PT

)

CD

P（D

ep

osito

ry）

567ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

568 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

Buy S

ide

MA

S

(ME

PS

Plu

s S

GS

)

Sell

Sid

e1. T

rade

4. R

eceip

t In

str

uction

6. N

otice o

f S

ett

lem

ent

Matc

hin

g S

tatu

s

3. D

eliv

ery

Instr

uction

5. M

atc

hin

g

12.B

ond S

ett

lem

ent

12. D

VP

Ord

er

11.S

ett

lem

ent R

eport

(Cash)

11. S

ett

lem

ent R

eport

(Cash)

13. S

ett

lem

ent R

eport

(Bond)

13. S

ett

lem

ent R

eport

(Bond)

(ME

PS

Plu

sR

TG

S)

10.C

ash S

ett

lem

ent

9. S

ett

lem

ent D

ata

for D

VP

8. H

old

ing

Bonds

11. S

ett

lem

ent

Report

(C

ash)

2. T

rade M

atc

hin

g

6. N

otice o

f S

ett

lem

ent

Matc

hin

g S

tatu

s

7. D

VP

Ord

er

569ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Sin

gapore

govern

ment s

ecurities (S

GS

)is

tra

ded o

n o

ver-

the-c

ounte

r basis

.

2.

Tra

des a

re m

atc

hed a

mong s

ell

sid

e a

nd b

uy s

ide.

3.

Sell

sid

e s

ends th

e a

gre

ed tra

de in

str

uction to

ME

PS

+ S

GS

.

4.

Buy

sid

e s

ends th

e a

gre

ed tra

de in

str

uction to

ME

PS

+ S

GS

.

5.

ME

PS

+ S

GS

perf

orm

s b

ond m

atc

hin

g.

6.

ME

PS

+ S

GS

sends the n

otice o

f bond m

atc

hin

g s

tatu

s to

sell

sid

e a

nd b

uy s

ide.

7.

ME

PS

+ S

GS

cre

ate

s th

e D

VP

ord

er.

8.

When s

ell

sid

e’s

SG

S a

ccount h

as s

uff

icie

nt S

GS

, the S

GS

are

earm

ark

ed fo

r tr

ansfe

r to

buy s

ide.

9.

Sett

lem

ent d

ata

for

DV

P is

sent to

ME

PS

+ R

TG

S.

10.

When fu

nds a

re a

vaila

ble

, am

ount i

s d

ebited fro

m b

uy s

ide’s

RT

GS

account a

nd c

redited to

sell

sid

e’s

RT

GS

account.

11.

ME

PS

+ R

TG

S s

imultaneousl

y M

EP

S+

SG

S to

tra

nsfe

r securities a

nd report

s c

ash

sett

lem

ent s

tatu

s to

both

sid

es o

f tr

ade.

12.

ME

PS

+S

GS

tra

nsfe

r bonds to b

uy s

ide’s

account.

13.

ME

PS

+S

GS

report

s s

ett

lem

ent s

tatu

s to

both

sell

sid

e a

nd b

uy s

ide.

OT

C M

ark

et

570 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

571ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

Sett

lem

ent B

ank

CD

P

MA

S

DC

SS

(Deb

t S

ecu

riti

es

Cle

ari

ng

an

d S

ett

lem

en

t S

yste

m )

Deliv

eri

ng

D

epository

Ag

ent

Receiv

ing

D

epository

Ag

ent

1. O

TC

Tra

de

2. S

ett

lem

ent In

str

uction

5. S

tatu

s

2. S

ett

lem

ent In

str

uction

9.T

ransfe

r B

ond

8.S

ett

lem

ent R

eport

(Money)

8. S

ett

lem

ent R

eport

(Money)

10. S

ett

lem

ent

Confirm

ation

10. S

ett

lem

ent

Confirm

ation

(ME

PS

Plu

s)

7.C

ash S

ett

lem

ent

8. C

ash S

ett

lem

ent

Confirm

ation

4. E

arm

ark

Bonds

5. S

tatu

s

PS

MS

(Pre

-sett

lem

en

t M

atc

hin

g S

yste

m)

3. M

atc

h S

ett

lem

ent

Instr

uction

6. M

oney S

ett

lem

ent

Instr

uction

6. M

oney S

ett

lem

ent

Instr

uction

Sett

lem

ent B

ank

Selli

ng

Clie

nt

Buyin

g C

lient

3. S

ett

lem

ent In

str

uction

572 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

co

rpo

rate

bo

nd

ove

r-th

e c

ou

nte

r.

2.

Bo

th s

ell

sid

e a

nd

bu

y s

ide

se

nd

se

ttle

me

nt

instr

uctio

ns in

to P

SM

S (

Pre

-Se

ttle

me

nt

Ma

tch

ing

Syste

m).

3.

PS

MS

ma

tch

es s

ettle

me

nt

instr

uctio

ns a

nd

se

nd

s s

ettle

me

nt

instr

uctio

n t

o D

eb

t S

ecu

ritie

s C

lea

rin

g a

nd

S

ettle

me

nt

Syste

m(D

CS

S).

4.

CD

P (

DC

SS

) h

old

s b

on

ds o

n b

oo

k e

ntr

y s

yste

m.

CD

P (

De

po

sito

ry)

ea

rma

rks th

e b

on

ds in

se

ll sid

e’s

a

cco

un

t fo

r d

eliv

ery

.

5.

PS

MS

se

nd

s s

ettle

me

nt

instr

uctio

ns s

tatu

s b

ack to

de

po

sito

ry a

ge

nts

of

bo

th s

ide

s o

f tr

ad

e.

6.

Bo

th s

ide

s o

f se

ttle

me

nt

ba

nks s

en

d m

on

ey s

ettle

me

nt

instr

uctio

n t

o R

TG

S s

yste

m in

Ce

ntr

al B

an

k (

MA

S

Ele

ctr

on

ic P

aym

en

t S

yste

m –

ME

PS

).

7.

Ca

sh

se

ttle

me

nt

take

s p

lace

in R

TG

S s

yste

m in

ME

PS

.

8.

MA

S s

en

d c

on

firm

atio

n o

f ca

sh

se

ttle

me

nt

to C

DP

(D

CS

S)

an

d b

oth

sid

es o

f se

ttle

me

nt

ba

nks.

9.

Bo

nd

tra

nsfe

r e

ffe

cte

d in

DC

SS

.

10

.D

CS

S s

en

ds b

on

d s

ettle

me

nt

co

nfirm

atio

n to

de

po

sito

ry a

ge

nts

of

bo

th s

ide

s o

f tr

ad

e.

OT

C M

ark

et

Assu

mp

tion

: T

his

ap

plie

s to

SG

D-d

en

om

ina

ted

bo

nd

s w

hic

h a

re s

afe

-ke

ep

in C

DP

(D

ep

osito

ry).

P

aym

en

t ta

ke

s p

lace

in c

en

tra

l ba

nk S

GD

acco

un

ts (

kn

ow

n a

s M

EP

S)

on

RT

GS

mo

de

.

573ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

574 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

05 B

ond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

Co

un

ter-

pa

rty

MA

S(M

EP

S+

RT

GS

)

Clearing Matching & Settlement

Cross-Border

MA

S

(ME

PS

+S

GS

)

As C

ash

Corr

espondent

Trading Cash Settlement

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

4 T

rade C

onfirm

atio

n5

Tra

de C

onfirm

atio

n

6S

ettle

ment

Inst

ructio

n

17

Settle

ment

Confirm

7 S

ettle

ment

Inst

ructio

n

20

Cash

Sta

tem

ent

9T

ransa

ctio

n S

tatu

s U

pdate

15

Settle

ment

Confirm

atio

n

18

Securitie

s S

tate

ment

16

Fundin

g o

f T

rades

19

Cash

Sta

tem

ent

10

Captu

re o

f S

ettle

ment

Deta

ils

14

Settle

ment

Confirm

atio

n

12

Fundin

g o

f M

AS

Account

13

Confirm

atio

n o

f D

ebit/

Cre

dit

11

Settle

ment

Sta

tus

Update

575ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

05.

OTC

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

1.

Fo

reig

n In

stit

utio

na

l In

ve

sto

r p

lace

s o

rde

r w

ith I

nte

rna

tion

al B

roke

r2

.In

tern

atio

na

l Bro

ke

r p

lace

s o

rde

r w

ith D

om

estic

Bro

ke

r o

r B

an

k3

.D

om

estic

Bro

ke

r/B

an

k tra

de

s O

TC

with

Co

un

terp

art

y (

via

ph

on

e,

Blo

om

be

rg)

4.

Do

me

stic

Bro

ke

r/B

an

k s

en

ds tra

de

co

nfirm

atio

n to

In

tern

atio

na

l B

roke

r5

.F

ore

ign

Instit

utio

na

l In

ve

sto

r re

ce

ive

s tr

ad

e c

on

firm

atio

n

6.

Fo

reig

n In

stit

utio

na

l In

ve

sto

r in

str

ucts

Glo

ba

l Cu

sto

dia

n o

n s

ecu

ritie

s s

ettle

me

nt

de

tails

an

d f

un

din

g

de

tails

7.

Glo

ba

l Cu

sto

dia

n in

str

ucts

Do

me

stic

Cu

sto

dia

n o

n s

ecu

ritie

s s

ettle

me

nt

de

tails

8

.D

om

estic

Cu

sto

dia

n a

nd

Co

un

terp

art

y p

re-m

atc

h s

ettle

me

nt

de

tails

, via

ph

on

e9

.D

om

estic

Cu

sto

dia

n p

rovid

es r

esu

lt o

f p

re-m

atc

hin

g to

Glo

ba

l C

usto

dia

n1

0.

Do

me

stic

Cu

sto

dia

n tra

nsm

its s

ettle

me

nt

de

tails

to

ME

PS

+ S

GS

.1

1.

Do

me

stic

Cu

sto

dia

n m

on

itors

se

ttle

me

nt

sta

tus u

pd

ate

s (

on

line

)1

2.

Do

me

stic

Cu

sto

dia

n f

un

ds M

AS

acco

un

t via

ME

PS

+ R

TG

S.

13

.U

po

n tr

an

sfe

r o

f ca

sh

, d

eb

it/cre

dit

co

nfirm

atio

n f

rom

ME

PS

+ R

TG

S.

14

.U

po

n tr

an

sfe

r o

f se

cu

ritie

s, se

ttle

me

nt

co

nfirm

atio

n f

rom

MA

S,

via

ME

PS

+1

5.

Up

on

tra

nsfe

r o

f se

cu

ritie

s, se

ttle

me

nt

co

nfirm

atio

n f

rom

ME

PS

+ S

GS

.1

6.

Glo

ba

l Cu

sto

dia

n f

un

ds S

GD

acco

un

t w

ith D

om

estic

Cu

sto

dia

n, o

r F

CY

no

str

o(b

efo

re e

nd

of d

ay)

17

.G

lob

al C

usto

dia

n s

en

ds s

ettle

me

nt

co

nfirm

atio

n to

Fo

reig

n In

stit

utio

na

l In

ve

sto

r1

8.

Do

me

stic

Cu

sto

dia

n s

en

ds s

ecu

ritie

s s

tate

me

nt

to G

lob

al In

ve

sto

r1

9.

Do

me

stic

Cu

sto

dia

n s

en

ds d

eb

it/cre

dit

co

nfirm

atio

ns a

s c

ash

sta

tem

en

t to

Glo

ba

l C

usto

dia

n2

0.

Glo

ba

l Cu

sto

dia

n s

en

ds c

ash

sta

tem

en

t to

Fo

reig

n In

stit

utio

na

l In

ve

sto

r

Trade Date Settlement Date / T+1

576 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

577ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

06. In

tere

st

Paym

ent

Flo

w o

f G

overn

ment

Bond

Sam

e E

ntity

(No c

onfirm

ation

necessary

)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

1. P

aym

ent

Request

4.N

otification o

f P

aym

ent D

eta

ils

9.I

nte

rest P

aym

ent

Notice

7.T

ax P

aym

ent

(Incom

e T

ax)

Cu

sto

dia

nM

AS

as P

ayin

g A

ge

nt

10.T

ax P

aym

ent

(Local T

ax)

2. F

und

Request

MA

Sa

s C

SD

6.N

otification o

f P

aym

ent D

eta

ils

3. Tax S

tatu

s

Data

Cash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

5. In

tere

st P

aym

ent

MO

F’s

A

ccount

Custo

dia

n’s

Account

Bond H

old

er’

s

Account

MA

S (

ME

PS

+)

Cu

sto

dia

n8. In

tere

st

Paym

ent

Sam

e E

ntity

Sam

e E

ntity

578 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

Moneta

ry A

uth

ority

of S

ingap

ore

(MA

S) as p

aym

ent a

gent re

quests

Min

istr

y o

f F

ina

nce

(MO

F) fo

r in

tere

st p

aym

ent.

2.

MO

F a

ppro

ves request o

f in

tere

st p

aym

ent f

rom

MA

S.

3.

Custo

dia

ns

send ta

x s

tatu

s d

ata

to M

AS

.4.

MA

S n

otifies c

usto

dia

ns o

f pa

ym

en

t deta

ils.

5.

MA

S a

s p

aym

ent a

gent execute

s in

tere

st p

aym

ent f

rom

MO

F’s

account t

o c

usto

dia

ns’

account

via

ME

PS

+, d

ed

ucting ta

x if

applic

able

.6.

MA

S n

otifies c

usto

dia

ns o

f pa

ym

en

t deta

ils a

gain

. 7.

MA

S a

s p

ayin

g a

gent pays in

com

e ta

x to tax o

ffic

e if

applic

able

. 8.

Custo

dia

ns

cre

dit b

ond h

old

ers

’ accou

nts

with in

tere

st p

aid

by M

OF.

9.

Custo

dia

ns

notify

bond h

old

ers

of in

tere

st p

aym

ent.

10.

Custo

dia

ns

pay lo

cal t

ax to tax o

ffic

e if

app

licab

le.

Note

: No d

iffe

rence b

etw

een n

on-r

esid

en

ts a

nd d

om

estic in

vesto

rs e

xcept a

ccount i

s tag

ged

as

“non-r

esid

ent”

for w

ithho

ldin

g ta

x p

urp

oses.

For

SG

Scoupon

paym

ents

within

ME

PS

+S

GS

,M

EP

S+

SG

Sauto

matic

ally

calc

ula

tes

the

coupon

paym

ent

at

the

beg

innin

gof

the

ex-d

ate

acc

ord

ing

toth

ecoupon

rate

and

coupon

freq

uenc

yofth

esecurities

and

the

mem

bers

’hold

ings.T

he

ex-d

ate

peri

od,

coupon

paym

ent

date

,coupon

pay

ment

rate

and

coupon

paym

ent

freq

uency

are

speci

fied

for

each

SG

Sis

sue

inM

EP

S+

SG

Sat

the

start

and

ME

PS

+S

GS

will

derive

the

rest

of

the

coupon

paym

ent

schedule

accord

ing

ly.

On

the

coupon

paym

ent

date

,M

EP

S+

SG

Sauto

matic

ally

pays

the

calc

ula

ted

coupon

am

ounts

toth

ehold

er

(as

at

ex-d

ate

)of

the

SG

Sby

debitin

gth

eM

AS

’M

EP

S+

RT

GS

acc

ount

and

cre

diti

ng

the

cus

todia

n’s

ME

PS

+R

TG

Sac

count.

For

all

outs

tandin

g(a

sat

ex-

date

)in

terb

ank

repo

transac

tions

inM

EP

S+

SG

S,

the

revers

ein

tere

stam

ounts

will

als

obe

auto

matic

ally

debited

from

the

orig

inalre

ceiv

ing

mem

ber’s

acc

ount

(ie

the

receiv

ing

mem

ber

for

the

openin

gle

gof

the

transaction)and

cre

dited

toth

eori

gin

ald

eliv

eri

ng

mem

ber’

saccount.

Pro

cess

of In

tere

st P

aym

ent

579ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

07. R

edem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Sam

e E

ntity

(No c

onfirm

ation

necessary

)

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

MO

FB

on

d H

old

er

1. P

aym

ent

Request

4.N

otification o

f P

aym

ent D

eta

ils

8.T

ax P

aym

ent

(Incom

e T

ax)

Cu

sto

dia

nM

AS

as P

ayin

g A

ge

nt

11.T

ax P

aym

ent (L

ocal Tax)

2. F

und

Request

6.N

otification o

f P

aym

ent D

eta

ils

3. Tax S

tatu

s

Data

Cash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

5. R

edem

ption P

aym

ent

MO

F’s

A

ccount

Custo

dia

n’s

Account

Bond H

old

er’

s

Account

MA

S (

ME

PS

+)

Cu

sto

dia

n9.R

edem

ption

Paym

ent

MA

Sa

s C

SD

7.R

edem

ption

10.R

edem

ption

Paym

ent

Notice

Sam

e E

ntity

Sam

e E

ntity

580 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

MA

S (M

on

eta

ry A

uth

ority

of S

inga

pore

) a

s p

aym

ent a

gen

t re

que

sts

Min

istr

y o

f F

ina

nce

(MO

F) fo

r re

dem

ptio

n p

aym

ent.

2.

MO

F a

ppro

ves re

qu

est o

f re

dem

ption

paym

ent f

rom

MA

S.

3.

Cu

sto

dia

ns

se

nd

tax s

tatu

s d

ata

to

MA

S.

4.

MA

S n

otifies c

usto

dia

ns o

f pa

ym

en

t deta

ils.

5.

MA

S a

s p

aym

en

t age

nt e

xecute

s red

em

ptio

n p

aym

ent f

rom

MO

F’s

acco

unt t

o c

usto

dia

ns’

acco

un

t via

ME

PS

+, d

ed

uctin

g ta

x if

ap

plic

able

.6

.M

AS

notifie

s c

usto

dia

ns o

f pa

ym

en

t deta

ils a

gain

.

7.

MA

S a

s C

SD

make

s b

ond

red

em

ptio

n.

8.

MA

S a

s a

pa

yin

g a

ge

nt pa

ys in

co

me

tax to ta

x o

ffic

e if

ap

plic

ab

le.

9.

Cu

sto

dia

ns

cre

dit b

on

d-h

old

ers

’ bank a

ccou

nts

with la

st in

tere

st a

nd p

rin

cip

al p

aid

by

MA

S, d

ed

uctin

g lo

ca

l tax if

ap

plic

ab

le.

10.

Cu

sto

dia

ns

notify

bon

d h

old

ers

of

red

em

ption

paym

ent.

11.

Cu

sto

dia

ns

pay lo

cal t

ax to

ta

x o

ffic

e if

app

licab

le.

No

te: R

ede

mptio

n a

lwa

ys in

vo

lve

s la

st i

nte

rest p

aym

en

t.

Pro

cess

of R

edem

ptio

n P

aym

ent

581ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

582 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

08. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

CD

P

8. P

aym

ent

Request

Pa

yin

g A

ge

nt

Cu

sto

dia

n

2. F

und

Request

5.P

aym

ent

Request

4.B

ondhold

ers

’Tax S

tatu

s

Cash

Flo

w

Info

rmation

Flo

w

Pa

yin

g A

ge

nt

Issuer’

s

Account

MA

S(M

EP

S+

)

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

Cu

sto

dia

n10. In

tere

st

Paym

ent

12.T

ax P

aym

ent

(Incom

e T

ax)

13.T

ax P

aym

ent

(Local T

ax)

Tax O

ffic

e

Sam

e E

ntity

Sam

e E

ntity

11.I

nte

rest

Paym

ent

Notice

CD

P’s

A

ccount

PA

's

Account

3. In

tere

st

Paym

ent

6. P

aym

ent

Request

1. P

aym

ent

Request

7. In

tere

st

Paym

ent

9. In

tere

st

Paym

ent

583ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

ge

nt send

s p

aym

ent r

eq

uest of in

tere

st t

o b

ond is

sue

r.2.

Bon

d is

sue

r sends fun

d reque

st t

o the p

ayin

g a

gen

t.3.

Payin

g a

ge

nt tr

ansfe

rs c

ash fr

om

issuer’

s a

ccoun

t to o

wn a

ccou

nt.

4.

Custo

dia

ns

of b

ond

ho

lders

sen

d tax s

tatu

s to

CD

P.

5.

CD

P s

end

s p

aym

ent r

eq

ue

st t

o p

ayin

g a

gen

t.6.

Payin

g a

ge

nt in

str

ucts

MA

S to

money tr

an

sfe

r re

que

ste

d fr

om

CD

P.

7.

MA

S e

xecute

s in

tere

st p

aym

ent f

rom

pa

yin

g a

ge

nt’s a

ccoun

t to C

DP

’s a

ccount v

ia

ME

PS

+, d

educting

incom

e ta

x if

ap

plic

able

.8.

CD

P in

str

ucts

MA

S to

paym

ent r

equest.

9.

MA

S e

xecute

s in

tere

st p

aym

ent f

rom

CD

P’s

account t

o c

usto

dia

ns a

ccount v

ia M

EP

S+

.10.

Custo

dia

ns

cre

dit b

on

d h

old

ers

’ accou

nts

with in

tere

st p

aym

en

ts, d

edu

cting lo

cal t

ax if

app

licab

le.

11.

Custo

dia

ns

notify

bo

nd h

old

ers

of in

tere

st p

aym

ent.

12.

Payin

g a

ge

nt pa

ys in

com

e ta

x to tax o

ffic

e.

13.

Custo

dia

ns

pay lo

cal t

ax to tax o

ffic

e.

Note

: N

o d

iffe

rence b

etw

een n

on-r

esid

ents

and d

om

estic in

vesto

rs e

xcept th

at account

is t

agged a

s “

non-r

esid

ent”

for

withhold

ing t

ax p

urp

oses.

Assum

ption: C

DP

is t

he c

entr

al d

epository

for

the c

orp

ora

te b

ond (

Issuer C

SD

).

Bond h

old

ers

manage their b

onds thro

ugh

custo

dia

ns.

Pro

cess

of In

tere

st P

aym

ent

584 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

6. P

aym

ent

Request

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

CD

P

Pa

yin

g A

ge

nt

Cu

sto

dia

n

2. F

und

Request

5.P

aym

ent

Request

4.B

ondhold

ers

’Tax S

tatu

s

Cash

Flo

w

Info

rmation

Flo

w

Pa

yin

g A

ge

nt

Issuer’

s

Account

MA

S(M

EP

S+

)

Custo

dia

n’s

A

ccount

Bond H

old

er’

s

Account

Cu

sto

dia

n13. R

edem

ption

Paym

ent

15.T

ax P

aym

ent

(Incom

e T

ax)

16.T

ax P

aym

ent

(Local T

ax)

Tax O

ffic

e

Sam

e E

ntity

Sam

e E

ntity

14.R

edem

ption

Paym

ent

Notice

CD

P’s

A

ccount

PA

's

Account

3. R

edem

ption

Paym

ent

1. P

aym

ent

Request

7. R

edem

ption

Paym

ent

9. R

edem

ption

Paym

ent

10.R

edem

ption

11.D

ele

te

Bond R

egis

tration

12.N

otice o

f R

edem

ption

8. P

aym

ent

Request

585ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

SG

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Payin

g a

gent sends p

aym

ent r

equest of re

dem

ption to

the b

ond is

suer.

2.

Bond is

suer sends fund request t

o the p

ayin

g a

gent.

3.

Payin

g a

gent tr

ansfe

rs c

ash fr

om

issuer’

s a

ccount t

o o

wn a

ccount.

4.

Custo

dia

ns

of b

ond h

old

ers

send tax s

tatu

s to

CD

P.

5.

CD

P s

ends p

aym

ent r

equest t

o p

ayin

g a

gent.

6.

Payin

g a

gent in

str

ucts

MA

S to

money tr

ansfe

r re

queste

d fr

om

CD

P.

7.

MA

S e

xecute

s redem

ption p

aym

ent f

rom

payin

g a

gent’s a

ccount t

o C

DP

’s a

ccount v

ia

ME

PS

+, d

educting in

com

e ta

x if

applic

able

.8.

CD

P in

str

ucts

MA

S to

paym

ent r

equest.

9.

MA

S e

xecute

s redem

ption p

aym

ent f

rom

CD

P’s

account t

o c

usto

dia

ns a

ccount v

ia

ME

PS

+.

10.

CD

P m

akes b

ond redem

ption.

11.

Payin

g a

gent dele

tes b

ond r

egis

tration.

12.

Payin

g a

gent notifies c

usto

dia

ns o

f redem

ption.

13.

Custo

dia

ns

cre

dit b

ond h

old

ers

’ accounts

with la

st in

tere

st a

nd p

rincip

al, d

educting lo

cal

tax if

applic

able

. 14.

Custo

dia

ns

notify

bond h

old

ers

of re

dem

ption p

aym

ent.

15.

Payin

g a

gent pays in

com

e ta

x to tax o

ffic

e.

16.

Custo

dia

ns

pay lo

cal t

ax to tax o

ffic

e.

Note

: N

o d

iffe

rence b

etw

een n

on-r

esid

ents

and d

om

estic in

vesto

rs e

xcept th

at account

is t

agged a

s “

non-r

esid

ent”

for

withhold

ing t

ax p

urp

oses.

Assum

ption: C

DP

is t

he c

entr

al d

epository

for

the c

orp

ora

te b

ond (

Issuer C

SD

).

Bond h

old

ers

manage their b

onds thro

ugh

custo

dia

ns.

Pro

cess

of R

edem

ptio

n P

aym

ent

586 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Thailand(TH)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

587ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

588 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

h.

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

OT

(B

AH

TN

ET

)

TS

D

（P

TI)

SE

T(B

EX

)

TC

HP

TI (M

NS

)

BE

X –

Th

e B

on

d E

lectr

on

ic E

xch

an

ge

(T

he

Sto

ck E

xch

an

ge

of

Th

aila

nd

)

SE

T –

Sto

ck E

xch

an

ge

of T

ha

ilan

dB

OT

–B

an

k o

f T

ha

ilan

dP

TI

–P

ost

Tra

de

In

teg

ratio

n (

Th

e S

tock E

xch

an

ge

of

Th

aila

nd

)T

SD

–T

ha

ilan

d S

ecu

ritie

s D

ep

osito

ry (

Th

e S

tock E

xch

an

ge

of

Th

aila

nd

)T

CH

–T

ha

ilan

d C

lea

rin

g H

ou

se

(T

he

Sto

ck E

xch

an

ge

of T

ha

ilan

d)

BA

HT

NE

T –

Th

e B

an

k o

f T

ha

ilan

d A

uto

ma

ted

Hig

h-v

alu

e T

ran

sfe

r N

etw

ork

M

NS

–M

ulti

late

ral

Ne

ttin

g S

yste

m

OT

C M

ark

et

589ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

h.

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

OT

(B

AH

TN

ET

)

BE

X –

Th

e B

on

d E

lectr

on

ic E

xch

an

ge

(T

he

Sto

ck E

xch

an

ge

of

Th

aila

nd

)

SE

T –

Sto

ck E

xch

an

ge

of T

ha

ilan

dB

OT

–B

an

k o

f T

ha

ilan

dP

TI

–P

ost

Tra

de

In

teg

ratio

n (

Th

e S

tock E

xch

an

ge

of

Th

aila

nd

)T

SD

–T

ha

ilan

d S

ecu

ritie

s D

ep

osito

ry (

Th

e S

tock E

xch

an

ge

of

Th

aila

nd

)T

CH

–T

ha

ilan

d C

lea

rin

g H

ou

se

(T

he

Sto

ck E

xch

an

ge

of T

ha

ilan

d)

BA

HT

NE

T –

Th

e B

an

k o

f T

ha

ilan

d A

uto

ma

ted

Hig

h-v

alu

e T

ran

sfe

r N

etw

ork

M

NS

–M

ulti

late

ral

Ne

ttin

g S

yste

m

TS

D

(PT

I)

SE

T(B

EX

)

TC

HP

TI (M

NS

)

OT

C M

ark

et

590 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

591ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

TS

D

TS

D

(PT

I)

Sell

Sid

eB

uy S

ide

1. T

rade

3.M

atc

hin

g

2.T

rade D

ata

2.T

rade D

ata

BO

T（

BA

HT

NE

T ）

4. M

atc

hin

g R

esults

4. M

atc

hin

g R

esults

7. C

ash S

ett

lem

ent

8. C

onfirm

ation o

f C

redit

(Cash)

8. C

onfirm

ation o

f D

ebit

(Cash)

8. P

aym

ent R

esponse

Messag

e6. S

ett

lem

ent D

eta

ils

10. S

ett

lem

ent R

eport

(Bond)

10. S

ett

lem

ent R

eport

(Bond)

5. H

old

ing

Bonds

9. B

onds S

ett

lem

ent

Sell

Sid

e’s

Bank

Buy S

ide’s

Bank

592 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

OT

C m

ark

et.

2.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

nsa

ctio

n d

eta

ils t

oT

SD

via

PT

I S

yste

m.

3.

TS

D m

atc

he

s tra

de

da

ta f

rom

se

ll sid

e a

nd

bu

y s

ide

.4

.T

SD

se

nd

s m

atc

hin

g r

esu

lts to

se

ll sid

e a

nd

bu

y s

ide

via

PT

I S

yste

m.

5.

TS

D c

he

cks a

va

ilab

ility

an

d b

locks s

ecu

ritie

s in

me

mb

ers

’ acco

un

t.6

.T

SD

se

nd

s c

ash

se

ttle

me

nt

de

tails

to

BO

T.7

.B

OT

exe

cu

tes c

ash

se

ttle

me

nt.

8.

BO

T s

en

ds c

ash

se

ttle

me

nt

co

nfirm

atio

n to

se

ll sid

e,

bu

y s

ide

an

d T

SD

.9

.T

SD

re

lea

se

s b

locke

d s

ecu

ritie

s a

nd

exe

cu

tes s

ecu

ritie

s d

eliv

ery

.1

0.

TS

D s

en

ds s

ettle

me

nt

rep

ort

s to

se

ll sid

e,

bu

y s

ide

via

PT

I S

yste

m.

OT

C M

ark

et

593ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

594 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

TS

D

TS

D

(PT

I)

Sell

Sid

eB

uy S

ide

1. T

rade

3.M

atc

hin

g

2.T

rade D

ata

2.T

rade D

ata

BO

T（

BA

HT

NE

T ）

4. M

atc

hin

g R

esults

4. M

atc

hin

g R

esults

7. C

ash S

ett

lem

ent

8. C

onfirm

ation o

f C

redit

(Cash)

8. C

onfirm

ation o

f D

ebit

(Cash)

8. P

aym

ent R

esponse

Messag

e6. S

ett

lem

ent D

eta

ils

10. S

ett

lem

ent R

eport

(Bond)

10. S

ett

lem

ent R

eport

(Bond)

5. H

old

ing

Bonds

9. B

onds S

ett

lem

ent

Sell

Sid

e’s

Bank

Buy S

ide’s

Bank

595ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

via

OT

C m

ark

et.

2.

Se

ll sid

e a

nd

bu

y s

ide

se

nd

tra

nsa

ctio

n d

eta

ils t

oT

SD

via

PT

I S

yste

m.

3.

TS

D m

atc

he

s tra

de

da

ta f

rom

se

ll sid

e a

nd

bu

y s

ide

.4

.T

SD

se

nd

s m

atc

hin

g r

esu

lts to

se

ll sid

e a

nd

bu

y s

ide

via

PT

I S

yste

m.

5.

TS

D c

he

cks a

va

ilab

ility

an

d b

locks s

ecu

ritie

s in

me

mb

ers

’ acco

un

t.6

.T

SD

se

nd

s c

ash

se

ttle

me

nt

de

tails

to

BO

T.7

.B

OT

exe

cu

tes c

ash

se

ttle

me

nt.

8.

BO

T s

en

ds c

ash

se

ttle

me

nt

co

nfirm

atio

n to

se

ll sid

e,

bu

y s

ide

an

d T

SD

.9

.T

SD

re

lea

se

s b

locke

d s

ecu

ritie

s a

nd

exe

cu

tes s

ecu

ritie

s d

eliv

ery

.1

0.

TS

D s

en

ds s

ettle

me

nt

rep

ort

s to

se

ll sid

e,

bu

y s

ide

via

PT

I S

yste

m.

OT

C M

ark

et

596 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

597ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

or

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

Co

un

ter-

pa

rty

BO

TB

ahtN

et

ClearingMatching & Settlement

Cross-Border

TS

DP

TI

As C

ash

Corr

espondent

Trading

Th

ai

BM

A

Cash Settlement

Bank o

f T

haila

nd

1T

rade O

rder

3 A

gre

em

ent

on T

rade

& C

onfirm

atio

n

2T

rade O

rder

5 T

rade C

onfirm

atio

n6

Tra

de C

onfirm

atio

n

7S

ettle

ment

Inst

ructio

n

25

Settle

ment

Confirm

8 a

Settle

ment

Inst

ructio

n

8 b

FX

/Fundin

g I

nst

ructio

n

11

FX

Confirm

atio

n

28

Cash

Sta

tem

ent

4Trade

Reporting

10

Pre

-Matc

hin

g S

tatu

s

22 S

ettle

ment

Confirm

atio

n

26

Securitie

s S

tate

ment

24

Fundin

g o

f T

rades

27

Cash

Sta

tem

ent

12

Captu

re o

f T

ransa

ctio

n D

eta

ils

13

Matc

hin

g S

tatu

s

21

Settle

ment

Confirm

atio

n

19

Fundin

g o

f B

oT

Account

20

Confirm

atio

n o

f D

ebit/

Cre

dit

23

Report

NR

BS

Bala

nces

15

Request

Use

of B

ala

nce

14

Fundin

g R

eport

16

FX

Inst

ructio

n17

FX

Inst

ructio

n

18

FX

Confirm

atio

n

598 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

05.

OTC

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

/ D

VP

1.

Fore

ign Institu

tional

Investo

r pla

ces o

rder

with I

nte

rnational B

roker

2.

Inte

rnational B

roker

pla

ces o

rder

with D

om

estic B

roker/

Bank

3.

Dom

estic B

roker/

Bank t

rades O

TC

with C

ounte

rpart

y (

via

phone o

r B

loom

berg

)4.

Dom

estic B

roker/

Bank a

nd C

ounte

rpart

y r

eport

tra

de t

o T

hai B

MA

within

30 m

inute

s o

f tr

ade (

web input

or,

e.g

., v

ia B

loom

berg

)5.

Dom

estic B

roker/

Bank s

end t

rade c

onfirm

ation t

o Inte

rnational

Bro

ker

6.

Fore

ign Institu

tional

Investo

r re

ceiv

es t

rade c

onfirm

ation

7.

Fore

ign Institu

tional

Investo

r in

str

ucts

Glo

bal C

usto

dia

n o

n s

ecurities s

ettle

ment

and c

ash/fundin

g d

eta

ils8.

Glo

bal C

usto

dia

n i

nstr

ucts

Dom

estic C

usto

dia

n o

n (

a)

securities s

ettle

ment

deta

ils,

(b)

FX

request

or

fundin

g d

eta

ils (

sin

ce 3

rdP

art

y F

X p

ossib

le)

9.

Dom

estic C

usto

dia

n p

re-m

atc

hes w

ith C

ounte

rpart

y,

typic

ally

via

phone

10.

Dom

estic C

usto

dia

n s

ends p

re-m

atc

hin

g r

esults t

o G

lobal C

usto

dia

n11.

Dom

estic C

usto

dia

n s

ends F

X c

onfirm

ation t

o G

lobal C

usto

dia

n

12.

Dom

estic C

usto

dia

n c

aptu

res s

ettle

ment

deta

ils in P

TI

13.

Dom

estic C

usto

dia

n r

etr

ieves m

atc

hin

g r

esults,

via

TS

D t

erm

inal

14.

Dom

estic C

usto

dia

n s

ends f

undin

g r

eport

to G

lobal C

usto

dia

n15.

Glo

bal C

usto

dia

n s

ends,

if s

o r

equired,

request

to u

se T

HB

bala

nce t

o F

ore

ign I

nstitu

tional

Investo

r16.

Fore

ign Institu

tional

Investo

r sends,

if s

o r

equired,

FX

instr

uction (

or

additio

nal

securities p

urc

hase t

rade)

to G

lobal C

usto

dia

n17.

Glo

bal C

usto

dia

n,

if s

o r

equired,

sends F

X instr

uction t

o D

om

estic C

usto

dia

n,

as F

X b

ank

18.

Dom

estic C

usto

dia

n,

as F

X b

ank,

confirm

s F

X d

eal

19.

Dom

estic C

usto

dia

n f

unds c

learing a

ccount

at

Bank o

f T

haila

nd

20.

Upon c

ash s

ettle

ment/tr

ansfe

r, B

AH

TN

ET

II sends c

redit/d

ebit c

onfirm

ation t

o D

om

estic C

usto

dia

n (

as B

AH

TN

ET

II part

icip

ant)

21.

Upon c

ash s

ettle

ment

confirm

ation,

TS

D t

ransfe

rs s

ecurities a

nd s

ends s

ettle

ment

confirm

ation t

o D

om

estic C

usto

dia

n22.

Dom

estic C

usto

dia

n s

ends s

ettle

ment

confirm

ation t

o G

lobal

Custo

dia

n23.

Dom

estic C

usto

dia

n r

eport

s c

lients

’ N

RB

S a

ccount

bala

nces t

o B

ank o

f T

haila

nd (

prior

to e

nd o

f day)

24.

Glo

bal C

usto

dia

n f

unds a

ccount

with D

om

estic C

usto

dia

n d

irectly,

or

into

FC

Y n

ostr

oaccount

(by e

nd o

f day)

25.

Glo

bal C

usto

dia

n s

ends s

ettle

ment

confirm

ation t

o F

ore

ign I

nstitu

tional

Investo

r26.

Dom

estic C

usto

dia

n s

ends s

tate

ment

of

securities t

o G

lobal C

usto

dia

n (

end o

f day)

27.

Dom

estic C

usto

dia

n s

ends c

ash c

redit/d

ebit info

rmation i

n c

ash s

tate

ment

to G

lobal C

usto

dia

n (

end o

f day)

28.

Glo

bal C

usto

dia

n s

ends c

ash c

redit/d

ebit info

rmation t

o F

II in c

ash s

tate

ment

(end o

f day)

Trade Date T+1 Settlement Date

599ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

600 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

MO

FB

on

d H

old

er

7. S

ubm

it W

ithhold

ing T

ax

BO

T

as P

ayin

g A

ge

nt

Acco

un

t M

an

ag

em

en

t In

stit

utio

n

TS

D

3. P

aym

ent

Instr

uction

1. B

ook

Clo

sure

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ideCash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

4. In

tere

st P

aym

ent

MO

F’s

A

ccount

Account M

anagem

ent

Institu

tion’s

Account

Bond H

old

er’

s

Account

BO

TA

cco

un

t M

an

ag

em

en

t In

stit

utio

n5. In

tere

st

Paym

ent

Sam

e E

ntity

2. R

equest

for

Inte

rest

Paym

ent

6.I

nte

rest

Paym

ent

Notice

Sam

e E

ntity

601ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1.

Ban

k o

fT

haila

nd

(B

OT

) as a

re

gis

tra

r a

nd

pa

yin

g a

ge

nt clo

se

s th

e r

ecord

book fo

r in

tere

st p

aym

ent b

y g

ath

erin

g b

ond

ho

lders

’ nam

es fro

m th

e T

SD

in c

ase o

f scriple

ss

se

cu

rities.

Th

e b

ook c

losure

perio

d v

arie

s b

etw

een

10

-30

da

ys.

(In

case

of scrip

se

cu

ritie

s, n

o n

ee

d to

ga

the

r in

form

ation

fro

m T

SD

, b

eca

use

BO

T o

wns

bond

hold

er’

s n

am

es.)

2

.B

OT

su

bm

its le

tte

r re

qu

esting

for

inte

rest p

aym

en

t to M

OF

45

-60

da

ys p

rior to

p

aym

ent

date

.3

.O

n the p

aym

ent d

ate

, MO

F in

str

ucts

BO

T to

make

inte

rest p

aym

entw

ithin

10

.00 a

.m.

4.

BO

T e

xecute

s in

tere

st p

aym

ent f

rom

MO

F’s

acco

un

t to a

ccou

nt m

anag

em

ent i

nstitu

tio

ns’

acco

unt v

ia B

AH

TN

ET

on th

e p

aym

ent d

ate

, d

edu

ctin

g ta

x if

ap

plic

able

. 5

.A

cco

unt m

ana

gem

en

t in

stitu

tions

cre

dit b

on

dho

lders

’ acco

un

ts w

ith in

tere

st p

aid

by M

OF.

6.

Acco

unt m

ana

gem

en

t in

stitu

tions

notify

bo

nd h

old

ers

of in

tere

st p

aym

ent.

7.

BO

T s

ubm

its w

ith

hold

ing

tax to

th

e R

eve

nue

De

part

me

nt (

on

a m

onth

ly b

asis

).

<In

Case o

f R

eta

il B

ond H

old

er>

•P

rior

to in

tere

st paym

ent fr

om

BO

T (

No.4

), B

OT

sends d

ata

and r

eport

of bond h

old

ers

’ nam

es, bank a

ccount

num

bers

to

whic

h inte

rest w

ill b

e s

ent,

and in

tere

st am

ount to

banks w

here

reta

il bond h

old

ers

have a

ccounts

with. T

his

is d

one in

3 w

ork

ing d

ays p

rior

to the p

aym

ent date

to p

repare

for

paym

ent

thro

ugh in

-house d

irect cre

dit s

yste

m o

f each b

ank.

•In

ste

ad o

f pro

cess N

o.4

, B

OT

tra

nsfe

rs fund to b

anks for

cre

ditin

g t

o r

eta

il bond h

old

ers

’ accounts

on t

he p

aym

ent date

.

Pro

cess

of In

tere

st P

aym

ent

602 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

2. In

form

ation a

bout

Redem

ption 3. R

etu

rn B

ond

Cert

ific

ate

MO

FB

on

d H

old

er

Acco

un

t M

an

ag

em

en

t In

stit

utio

n

TS

D

BO

T

as P

ayin

g A

ge

nt

1. B

ook C

losure

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

7.R

edem

ption

8.D

ele

te r

egis

tration

4. R

equest

for

Princip

al P

aym

ent

Cash

Flo

w

Info

rmation

Flo

w

11. S

ubm

it W

ithhold

ing T

ax

Tax O

ffic

e

6. R

edm

ption

Paym

ent

MO

F’s

A

ccount

Bond H

old

er’

s

Account

BO

TA

cco

un

t M

an

ag

em

en

t In

stit

utio

n9. R

edem

ption

Paym

ent

Sam

e E

ntity

5. P

aym

ent

Instr

uction

10.R

edem

ption

Paym

ent

Notice

Sam

e E

ntity

Account M

anagem

ent

Institu

tion’s

Account

603ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

Ban

k o

fT

ha

ilan

d (

BO

T)

as a

re

gis

tra

r a

nd

pa

yin

g a

ge

nt clo

se

s th

e r

ecord

bo

ok fo

r p

rin

cip

al p

aym

ent b

y g

ath

erin

g b

ond

ho

lders

’ na

me

s fr

om

the

TS

D. T

he

bo

ok c

losure

p

erio

d is

1 w

ork

ing

da

y fo

r sh

ort

-te

rm s

ecu

rities ,

an

d 1

0-3

0 d

ays fo

r lo

ng

-te

rm s

ecuritie

s.

(In

ca

se

of scrip

se

cu

ritie

s, n

o n

ee

d to

gath

er in

form

atio

n fr

om

TS

D, b

ecau

se

BO

T o

wns

bon

d h

old

er’

s n

am

es.)

2

.B

OT

se

nd

s p

rin

cip

al r

ed

em

ptio

n fo

rms to

info

rm th

e b

on

d h

old

ers

ab

out re

de

mp

tio

n a

nd

re

turn

bo

nd c

ert

ific

ate

s.3

.B

on

d h

old

ers

retu

rn b

ond

cert

ific

ate

s to

BO

T.4

.B

OT

su

bm

its le

tte

r re

qu

esting

for

prin

cip

al p

aym

en

t to

MO

F 4

5-6

0 d

ays p

rio

r to

p

aym

en

t d

ate

.5

.O

n th

e p

aym

en

t d

ate

, M

OF

instr

uct

s B

OT

to m

ake r

edem

ption p

aym

en

t.w

ithin

10.0

0 a

.m.

6.

BO

T e

xecute

s red

em

ptio

n p

aym

en

t fro

m M

OF

’s a

cco

unt t

o a

cco

un

t man

ag

em

ent

institu

tio

ns’ a

ccou

nt v

ia B

AH

TN

ET

on

th

e p

aym

ent d

ate

, d

edu

ctin

g ta

x if

ap

plic

ab

le.

7.

TS

D m

ake

s b

on

d red

em

ptio

n.

8.

BO

T d

ele

tes b

on

d r

eg

istr

ation

.9

.A

cco

unt m

an

age

me

nt i

nstitu

tio

ns

cre

dit b

on

dho

lders

’ acco

un

ts w

ith

last in

tere

st a

nd

prin

cip

al.

10.

Acco

unt m

an

age

me

nt i

nstitu

tions

notify

bo

nd h

old

ers

of re

dem

ptio

n p

aym

ent.

11.

BO

T s

ubm

its w

ith

hold

ing

tax to

th

e R

eve

nue

De

part

me

nt (

on

a m

onth

ly b

asis

).

Pro

cess

of R

edem

ptio

n P

aym

ent

1/2

604 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Pro

cess

of R

edem

ptio

n P

aym

ent

2/2

<In

Case o

f R

eta

il B

ond H

old

er>

•P

rior to

redem

ption p

aym

ent f

rom

BO

T(N

o.6

), B

OT

sends d

ata

and r

ep

ort

of bond

hold

ers

’ nam

es, b

ank a

ccount n

um

bers

to w

hic

h in

tere

st w

ill b

e s

ent,

and in

tere

st a

mount

to b

anks w

here

reta

il bond h

old

ers

have a

ccounts

with. T

his

is d

one in

3 w

ork

ing d

ays

prior to

the p

aym

ent d

ate

to p

repare

for paym

ent t

hro

ugh in

-house d

irect c

redit s

yste

m o

f each b

ank.

•In

ste

ad o

f pro

cess N

o.4

, BO

T tra

nsfe

rs fu

nd to b

anks for

cre

ditin

g to

reta

il bond h

old

ers

’ accounts

on th

e p

aym

ent d

ate

.

605ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

606 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

08. In

tere

st

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

8. S

ubm

it W

ithhold

ing T

ax

Pa

yin

g A

ge

nt

Acco

un

t M

an

ag

em

en

t In

stit

utio

n

TS

D

3. P

aym

ent

Instr

uction

1. B

ook

Clo

sure

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ideCash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

5. In

tere

st P

aym

ent

Bond H

old

er’

s

Account

BO

TA

cco

un

t M

an

ag

em

en

t In

stit

utio

n6. In

tere

st

Paym

ent

2. R

equest

for

Inte

rest

Paym

ent

7.I

nte

rest

Paym

ent

Notice

Account M

anagem

ent

Institu

tion’s

Account

Sam

e E

ntity

Pa

yin

g A

ge

nt

Issuer’

s

Account

4. In

tere

st

Paym

ent

Sam

e E

ntity

PA

’s A

ccount

607ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

1.

Ban

k o

fT

ha

ilan

d (

BO

T)

as a

regis

trar and

payin

g a

ge

nt clo

ses th

e r

ecord

bo

ok for

inte

rest p

aym

en

t by g

ath

ering b

ond

ho

lders

’ nam

es fro

m the T

SD

in c

ase o

f scriple

ss

securities.

The b

ook c

losure

period v

aries b

etw

een

10

-30 d

ays.

(In c

ase o

f scrip s

ecurities, n

o n

ee

d to g

ath

er in

form

ation

from

TS

D, b

ecause B

OT

ow

ns

bon

d h

old

er’

s n

am

es.)

2.

Payin

g a

ge

nt subm

its le

tter re

questing

for

inte

rest p

aym

ent t

o is

su

er 45-6

0 d

ays p

rior

to

paym

ent d

ate

.3.

On the

pa

ym

en

t date

, bond is

sue

r in

str

ucts

BO

T to

ma

ke in

tere

st p

aym

entw

ithin

10.0

0

a.m

. 4.

Payin

g a

ge

nt tr

ansfe

rs c

ash fr

om

issuer’

s a

ccoun

t to o

wn a

ccou

nt.

5.

BO

T e

xecute

s in

tere

st p

aym

ent f

rom

issuer’

s a

ccoun

t to a

ccou

nt m

ana

gem

ent

institu

tions’ a

ccou

nt v

ia B

AH

TN

ET

on the p

aym

ent d

ate

, dedu

cting ta

x if

ap

plic

able

. 6.

Acc

ount m

anag

em

ent

inst

itutions

credit

bon

dhold

ers

’ acc

ou

nts

with

inte

rest

paid

by is

sue

r.7.

Account m

an

age

ment i

nstitu

tions

notify

bond h

old

ers

of in

tere

st p

aym

ent.

8.

BO

T s

ubm

its w

ithhold

ing ta

x to

the R

evenue

Depart

ment (

on

a m

onth

ly b

asis

).

<In

Case o

f R

eta

il B

ond H

old

er>

•P

rior

to in

tere

st paym

ent fr

om

BO

T (

No.4

), B

OT

sends d

ata

and r

eport

of bond h

old

ers

’ nam

es, bank a

ccount

num

bers

to

whic

h inte

rest w

ill b

e s

ent,

and in

tere

st am

ount to

banks w

here

reta

il bond h

old

ers

have a

ccounts

with. T

his

is d

one in

3 w

ork

ing d

ays p

rior

to the p

aym

ent date

to p

repare

for

paym

ent

thro

ugh in

-house d

irect cre

dit s

yste

m o

f each b

ank.

•In

ste

ad o

f pro

cess N

o.4

, B

OT

tra

nsfe

rs fund to b

anks for

cre

ditin

g t

o r

eta

il bond h

old

ers

’ accounts

on t

he p

aym

ent date

.

Pro

cess

of In

tere

st P

aym

ent

608 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

2. In

form

ation a

bout

Redem

ption 3. R

etu

rn B

ond

Cert

ific

ate

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

Acco

un

t M

an

ag

em

en

t In

stit

utio

n

TS

D

Pa

yin

g A

ge

nt

1. B

ook C

losure

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

8.R

edem

ption

9.D

ele

te r

egis

tration

4. R

equest

for

Princip

al P

aym

ent

Cash

Flo

w

Info

rmation

Flo

w

Tax O

ffic

e

Bond H

old

er’

s

Account

BO

TA

cco

un

t M

an

ag

em

en

t In

stit

utio

n10. R

edem

ption

Paym

ent

Sam

e E

ntity

5. P

aym

ent

Instr

uction

11.R

edem

ption

Paym

ent

Notice

Sam

e E

ntity

12. S

ubm

it W

ithhold

ing T

ax

Pa

yin

g A

ge

nt

Issuer’

s

Account

6. R

edem

ption

Paym

ent

7. R

edem

ption P

aym

ent

Account M

anagem

ent

Institu

tion’s

Account

PA

’s A

ccount

609ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

09.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1.

Bank o

fT

haila

nd (

BO

T)

as a

regis

trar and p

ayin

g a

gent clo

ses th

e r

ecord

book for

princip

al p

aym

ent b

y g

ath

ering b

ond h

old

ers

’ nam

es fr

om

the T

SD

. T

he b

ook c

losure

period is

1 w

ork

ing d

ay for

short

-term

securities ,

and 1

0-3

0 d

ays fo

r lo

ng

-term

securities.

(In c

ase o

f scrip s

ecurities, n

o n

eed to g

ath

er in

form

ation fr

om

TS

D, because B

OT

ow

ns

bond h

old

er’

s n

am

es.)

2.

Payin

g a

gent sends p

rincip

al r

edem

ption fo

rms to

info

rm b

ond h

old

ers

about re

dem

ption

and retu

rn b

ond c

ert

ific

ate

s.3.

Bond h

old

ers

retu

rn b

ond c

ert

ific

ate

s to

BO

T.4.

BO

T s

ubm

its le

tter re

questing fo

r princip

al p

aym

ent t

o b

ond is

suer 45

-60 d

ays p

rior

to

paym

ent d

ate

.5.

On the p

aym

ent d

ate

, bond is

suer

instr

ucts

BO

T to

make redem

ption p

aym

ent.

within

10.0

0 a

.m.

6.

Payin

g a

gent tr

ansfe

rs c

ash fr

om

issuer’

s a

ccount t

o o

wn a

ccount.

7.

BO

T e

xecute

s redem

ption p

aym

ent f

rom

issuer’

s a

ccount t

o a

ccount m

anagem

ent

institu

tions’ a

ccount v

ia B

AH

TN

ET

on the p

aym

ent d

ate

, deducting ta

x if

applic

able

. 8.

TS

D m

akes b

ond redem

ption. (

to b

e c

onfirm

ed)

9.

BO

T d

ele

tes b

ond r

egis

tration. (

to b

e c

onfirm

ed)

10.

Account m

anagem

ent i

nstitu

tions

cre

dit b

ondhold

ers

’ accounts

with la

st in

tere

st a

nd

princip

al.

11.

Account m

anagem

ent i

nstitu

tions

notify

bond h

old

ers

of re

dem

ption p

aym

ent.

12.

BO

T s

ubm

its w

ithhold

ing ta

x to

the R

evenue D

epart

ment (

on a

month

ly b

asis

). (to

be

confirm

ed)

Pro

cess

of R

edem

ptio

n P

aym

ent

1/2

610 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

TH

09.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

Pro

cess

of R

edem

ptio

n P

aym

ent

2/2

<In

Ca

se

of R

eta

il B

ond

Ho

lder>

•P

rio

r to

re

dem

ptio

n p

aym

ent f

rom

BO

T(N

o.6

), B

OT

se

nds d

ata

an

d r

epo

rt o

f b

ond

h

old

ers

’ nam

es, b

an

k a

ccou

nt n

um

bers

to w

hic

h in

tere

st w

ill b

e s

en

t, a

nd in

tere

st a

mo

un

t to

ba

nks w

he

re reta

il b

on

d h

old

ers

ha

ve

acco

un

ts w

ith. T

his

is d

on

e in

3 w

ork

ing

da

ys

prio

r to

th

e p

aym

en

t da

te to p

repa

re fo

r pa

ym

ent t

hro

ug

h in

-ho

use

dire

ct c

red

it s

yste

m o

f e

ach

ban

k.

•In

ste

ad

of pro

ce

ss N

o.4

, BO

T tra

nsfe

rs fu

nd to b

anks fo

r cre

ditin

g to

re

tail

bon

d h

old

ers

’ a

cco

un

ts o

n th

e p

aym

en

t da

te.

611ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

Viet Nam(VN)

1. Bond Market Infrastructure Diagram

2. Bond Transaction Flow for Domestic Trades (Government Bond)

3. Bond Transaction Flow for Domestic Trades (Corporate Bond)

4. Bond Transaction Flow for Foreign Investors

5. Interest & Redemption Payment Flow (Government Bond)

6. Interest & Redemption Payment Flow (Corporate Bond)

612 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

613ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

01.

Govern

ment

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

IDV

HN

X –

The H

anoi S

tock E

xchange

VS

D –

Vie

tnam

Securities D

epository

BID

V –

Bank for

Investm

ent a

nd D

evelo

pm

ent o

f Vie

tnam

VS

D

HN

X (

Sp

ecia

lized

Govern

men

t B

on

d M

ark

et)

614 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

02.

Corp

ora

te B

ond M

ark

et

Infr

astr

uctu

re D

iagra

m

Tra

din

g

Tra

de m

atc

hin

g

CC

P

Settle

men

t m

atc

h.

Bon

d s

ettle

men

t

Cash

settle

men

tB

IDV

HN

X –

Th

e H

ano

i Sto

ck E

xch

ang

eH

OS

E –

Ho

Ch

i Min

h S

tock E

xchan

ge

VS

D –

Vie

tnam

Se

cu

rities D

eposito

ryB

IDV

–B

ank for

Inve

stm

ent a

nd D

evelo

pm

ent o

f Vie

tnam

VS

D

HO

SE

HN

X

615ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

616 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

HN

XS

ell

Sid

eB

uy S

ide

VS

D6. N

otice o

f tr

ansaction results

6. N

otice o

f tr

ansaction results

2.M

atc

hin

g

1. T

rade O

rder

1. T

rade O

rder

7. M

em

bers

confirm

transaction

results (and tr

adin

g a

mendm

ent

docum

ents

if a

ny)

7. M

em

bers

confirm

transaction

results (and tr

adin

g a

mendm

ent

docum

ents

if a

ny)

3.M

atc

hin

g R

esults

3.M

atc

hin

g R

esults

12. B

ond

Sett

lem

ent

BID

V

12. C

ash S

ett

lem

ent

4. T

rade D

ata

11. N

otice o

f lis

t of

mem

bers

who a

re

in d

efa

ult o

f cash (

if a

ny)

10. T

ransfe

r of F

unds

9. S

um

mary

notice o

f cash m

ultila

tera

l nett

ing

and p

aym

ent/

or

Sum

mary

notice o

f tr

ade b

y tra

de p

aym

ent of

cash w

ith U

SD

bonds

8. N

otice o

f cash/b

ond m

ultila

tera

l nett

ing

and p

aym

ent/

or

Notice o

f tr

ade b

y tra

de p

aym

ent of

securi

ties/c

ash w

ith U

SD

bonds

8.

Notice o

f cash/b

ond m

ultila

tera

l nett

ing

and p

aym

ent/

or

Notice o

f tr

ade b

y tra

de p

aym

ent of

securi

ties/c

ash w

ith U

SD

bonds

5. B

lockin

g b

onds

Note

: T

his

Busin

ess P

rocess F

low

sim

plif

ies t

he flo

wchart

of

the p

revio

us p

age.

617ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

03.

Govern

ment

Bond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

at

Th

e H

an

oi S

tock E

xch

an

ge

(H

NX

) o

r H

o C

hi M

inh

Sto

ck E

xch

an

ge

(H

OS

E).

2.

HN

X/H

OS

E m

atc

he

s tra

de

.3

.H

NX

/HO

SE

se

nd

s m

atc

hin

g r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

.4

.H

NX

/HO

SE

se

nd

s tr

ad

e d

ata

to

VS

D.

5.

VS

D h

old

s b

on

ds fro

m s

ell

sid

e’s

acco

un

t.6

.V

SD

no

tifie

s tra

nsa

ctio

n r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

. 7

.S

ell

sid

e a

nd

bu

y s

ide

co

nfirm

tra

nsa

ctio

n r

esu

lts (

an

d tra

din

g a

me

nd

me

nt

do

cu

me

nts

if

an

y).

8.

VS

D n

otif

ies s

ell

sid

e a

nd

bu

y s

ide

of

ca

sh

/bo

nd

mu

ltila

tera

l n

ettin

g a

nd

pa

ym

en

t o

r tr

ad

e b

y tra

de

p

aym

en

t o

f se

cu

ritie

s/c

ash

with

US

D b

on

ds.

9.

Bu

y s

ide

tra

nsfe

rs c

ash

to B

IDV

.1

0.

VS

D n

otif

ies th

e s

um

ma

ry o

f ca

sh

mu

ltila

tera

l n

ettin

g a

nd

pa

ym

en

t o

r tr

ad

e b

y tra

de

pa

ym

en

t o

f ca

sh

w

ith U

SD

bo

nd

s

11

.B

IDV

exe

cu

tes c

ash

se

ttle

me

nt.

12

.B

IDV

no

tifie

s o

f th

e lis

t o

f m

em

be

rs w

ho

are

in d

efa

ult

of

ca

sh

if a

ny.

13

.V

SD

exe

cu

tes b

on

d s

ettle

me

nt.

Exc

hange M

ark

et

(for

liste

d b

onds)

618 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

619ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

HN

X a

nd

HO

SE

Sell

Sid

eB

uy S

ide

VS

D6. N

otice o

f tr

ansaction results

6. N

otice o

f tr

ansaction results

2.M

atc

hin

g

1. T

rade O

rder

1. T

rade O

rder

7. M

em

bers

confirm

transaction

results (and tr

adin

g a

mendm

ent

docum

ents

if a

ny)

7. M

em

bers

confirm

transaction

results (and tr

adin

g a

mendm

ent

docum

ents

if a

ny)

3.M

atc

hin

g R

esults

3.M

atc

hin

g R

esults

13. B

ond

Sett

lem

ent

BID

V

11. C

ash S

ett

lem

ent

4. T

rade D

ata

12. N

otice o

f lis

t of

mem

bers

who a

re

in d

efa

ult o

f cash (

if a

ny)

10. T

ransfe

r of F

unds

9. S

um

mary

notice o

f cash m

ultila

tera

l nett

ing

and p

aym

ent/

or

Sum

mary

notice o

f tr

ade b

y tra

de p

aym

ent of

cash w

ith U

SD

bonds

8. N

otice o

f cash/b

ond m

ultila

tera

l nett

ing

and p

aym

ent/

or

Notice o

f tr

ade b

y tra

de p

aym

ent of

securi

ties/c

ash w

ith U

SD

bonds

8. N

otice o

f cash/b

ond m

ultila

tera

l nett

ing

and p

aym

ent/

or

Notice o

f tr

ade b

y tra

de p

aym

ent of

securi

ties/c

ash w

ith U

SD

bonds

5. B

lockin

g b

onds

620 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

04.

Corp

ora

te B

ond T

ransacti

on F

low

for

Dom

esti

c T

rades

1.

Se

ll sid

e a

nd

bu

y s

ide

tra

de

at

Th

e H

an

oi S

tock E

xch

an

ge

(H

NX

) o

r H

o C

hi M

inh

Sto

ck E

xch

an

ge

(H

OS

E).

2.

HN

X/H

OS

E m

atc

he

s tra

de

.3

.H

NX

/HO

SE

se

nd

s m

atc

hin

g r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

.4

.H

NX

/HO

SE

se

nd

s tr

ad

e d

ata

to

VS

D.

5.

VS

D h

old

s b

on

ds fro

m s

ell

sid

e’s

acco

un

t.6

.V

SD

no

tifie

s tra

nsa

ctio

n r

esu

lt to

se

ll sid

e a

nd

bu

y s

ide

. 7

.S

ell

sid

e a

nd

bu

y s

ide

co

nfirm

tra

nsa

ctio

n r

esu

lts (

an

d tra

din

g a

me

nd

me

nt

do

cu

me

nts

if

an

y).

8.

VS

D n

otif

ies s

ell

sid

e a

nd

bu

y s

ide

of

ca

sh

/bo

nd

mu

ltila

tera

l n

ettin

g a

nd

pa

ym

en

t o

r tr

ad

e b

y tra

de

p

aym

en

t o

f se

cu

ritie

s/c

ash

with

US

D b

on

ds.

9.

VS

D n

otif

ies th

e s

um

ma

ry o

f ca

sh

mu

ltila

tera

l n

ettin

g a

nd

pa

ym

en

t o

r tr

ad

e b

y tra

de

pa

ym

en

t o

f ca

sh

w

ith U

SD

bo

nd

s

10

.B

uy s

ide

tra

nsfe

rs c

ash

to B

IDV

.1

1.

BID

V e

xe

cu

tes c

ash

se

ttle

me

nt.

12

.B

IDV

no

tifie

s o

f th

e lis

t o

f m

em

be

rs w

ho

are

in d

efa

ult

of

ca

sh

if a

ny.

13

.V

SD

exe

cu

tes b

on

d s

ettle

me

nt.

Exc

hange M

ark

et

(for

liste

d b

onds)

621ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

622 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

05.

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs O

TC

Mark

et

Do

me

stic

Ba

nk

As F

X B

ank

As C

ash

Corr

espondent

Foreign Institutional Investor (direct or Investment Manager)

Glo

ba

l C

usto

dia

n

Inte

rna

tion

al

Bro

ke

r

Do

me

stic

B

roke

r

Do

me

stic

Cu

sto

dia

n

Co

un

ter-

pa

rty

BID

V

Transaction result

Clearing & Settlement

Cross-Border

VS

D

As C

ash

Corr

espondent

Trading Cash Settlement

3T

rade O

rder

12Balance Enquiry

5 A

gre

em

ent

on T

rade

& S

ignin

g o

f C

ontr

act

4T

rade O

rder

6 T

rade C

onfirm

atio

n7

Tra

de C

onfirm

atio

n

9S

ettle

ment

Inst

ructio

n

24

Settle

ment

Confirm

10 S

ettle

ment

Inst

ructio

n

2 F

X/F

undin

g I

nst

ructio

n

17

FX

Confirm

atio

n

27

Cash

Sta

tem

ent

16

Matc

hin

g/S

tatu

s U

pdate

22

Settle

ment

Confirm

atio

n

25

Securitie

s S

tate

ment

23

Fundin

g o

f T

rade

26

Cash

Sta

tem

ent

(15

Corr

ectio

n o

f T

ransa

ctio

n D

eta

ils)

20

Retr

ieval of

Settle

ment

Confirm

14

Settle

ment

Report

19

Fundin

g o

f B

IDV

Account

21

Retr

ieval of

Debit/

Cre

dit

Info

HN

X

(eB

on

d)

13 C

aptu

re T

rade D

eta

ils

1F

X/F

undin

g I

nst

ructio

n

8Trade Confirmation

11 R

ela

y o

f T

rade D

eta

ils

18

FX

Confirm

atio

n

623ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

05.

OTC

Bond T

ransacti

on F

low

for

Fore

ign Investo

rs

1.F

ore

ign Institu

tional In

vesto

r sends F

X/f

undin

g instr

uction t

o G

lobal C

usto

dia

n (

for

pla

nned b

ond t

rades)

2.G

lobal C

usto

dia

n s

ends F

X/f

undin

g instr

uction t

o D

om

estic C

usto

dia

n (

to e

nsure

tim

ely

availa

bili

ty o

f V

ND

)3.F

ore

ign Institu

tional In

vesto

r pla

ces o

rder

with I

nte

rnational B

roker

4.I

nte

rnational B

roker

pla

ces o

rder,

typic

ally

with D

om

estic B

ank

5.D

om

estic B

roker/

Bank tra

de O

TC

with C

ounte

rpart

y (

via

phone),

both

part

ies s

ign t

rade a

gre

em

ent (c

ontr

act)

6.D

om

estic B

roker/

Bank s

ends t

rade c

onfirm

ation to Inte

rnational B

roker,

and to D

om

estic C

usto

dia

n7.I

nte

rnational B

roker

sends tra

de c

onfirm

ation t

o F

ore

ign I

nstitu

tional I

nvesto

r8.D

om

estic B

ank s

ends t

rade c

onfirm

ation to D

om

estic C

usto

dia

n9.F

ore

ign Institu

tional In

vesto

r sends s

ecurities s

ett

lem

ent in

str

uction t

o G

lobal C

usto

dia

n10.G

lobal C

usto

dia

n instr

ucts

Dom

estic C

usto

dia

n o

n s

ecurities s

ett

lem

ent deta

ils11.D

om

estic B

ank r

ela

ys t

rade d

eta

ils t

o D

om

estic B

roker

(as H

NX

mem

ber)

for

trade c

aptu

re

12.D

om

estic B

roker

checks a

vaila

ble

funds/b

onds w

ith D

om

estic C

usto

dia

n13.D

om

estic B

roker

captu

res tra

de d

eta

ils o

n H

NX

, ty

pic

ally

via

eB

ond

front-

end s

yste

m14.V

SD

pro

vid

es S

ett

lem

ent

Report

to D

om

estic C

usto

dia

n (

at

end o

f ‘T

rade D

ate

’)15.O

nly

in t

he e

vent of

a d

iscre

pancy,

does D

om

estic C

usto

dia

n n

eed to c

onta

ct V

SD

(hence d

ashed a

rrow

)16.D

om

estic C

usto

dia

n p

rovid

es s

ett

lem

ent/

matc

hin

g s

tatu

s to G

lobal C

usto

dia

n17.D

om

estic C

usto

dia

n s

ends F

X c

onfirm

ation to G

lobal C

usto

dia

n18.G

lobal C

usto

dia

n

sends F

X c

onfirm

ation to Investo

r19.D

om

estic C

usto

dia

n e

ffects

fundin

g o

f B

IDV

account

20.A

fter sett

lem

ent deadlin

e,

Dom

estic C

usto

dia

n r

etr

ieves s

ett

lem

ent confirm

ation fro

m V

SD

(hard

copy, or

onlin

e)

21.A

fter sett

lem

ent deadlin

e,

Dom

estic C

usto

dia

n r

etr

ieves c

ash d

ebit/c

redit c

onfirm

ations fro

m B

IDV

(hard

copy)

22.D

om

estic C

usto

dia

n s

ends s

ett

lem

ent confirm

ation t

o G

lobal C

usto

dia

n23.G

lobal C

usto

dia

n e

ffects

fundin

g o

f account w

ith D

om

estic C

usto

dia

n,

or

into

FC

Y n

ostr

oaccount (b

efo

re e

nd o

f day)

24.G

lobal C

usto

dia

n s

ends s

ett

lem

ent confirm

ation to F

ore

ign I

nstitu

tional In

vesto

r25.D

om

estic C

usto

dia

n s

ends s

ecurities s

tate

ment to

Glo

bal C

usto

dia

n26.D

om

estic C

usto

dia

n s

ends d

ebit/c

redit in

form

ation in

cash s

tate

ment to

Glo

bal C

usto

dia

n27.G

lobal C

usto

dia

n s

ends c

ash s

tate

ment to

Fore

ign I

nstitu

tional I

nvesto

r

T-1 Trade Date Settle Date / T+1

624 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

625ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond

1. N

otification o

f R

ecord

Date

2. N

otification o

f B

ondhold

ers

-lis

t5. C

onfirm

ation o

f P

aym

ent D

eta

ils

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Sta

te T

rea

su

ryM

inis

try o

f F

ina

nce

Bo

nd

Ho

lde

r

VS

Da

s C

SD

VS

D’s

Me

mb

er

VS

Da

s P

ayin

g A

ge

nt

8. P

aym

ent

Instr

uction

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

1. N

otification o

f R

ecord

Date

3. C

onfirm

ation o

f B

ondhold

ers

-lis

t

Tax O

ffic

e

7. C

ash

Tra

nsfe

rM

OF

’s

Account

VS

D M

em

ber’

s

Account

Bond H

old

er’

s

Account

BID

VC

usto

dia

n9. In

tere

st

Paym

ent

Se

ttle

me

nt

Ba

nk

4. P

aym

ent In

str

uction &

B

ondhold

ers

-lis

t

6. I

nstr

uction o

f C

ash

Tra

nsfe

r

11.I

nte

rest

Paym

ent

Notice

VS

D’s

A

ccount

10. In

tere

st

Paym

ent

Sam

e E

ntity

626 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

06.

Inte

rest

Paym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

1.

Vie

tnam

Securities D

eposito

ry (V

SD

) as a

payin

g a

gent notifies th

e record

date

to S

tate

Tre

asury

-M

inis

try o

f F

inance (is

suers

), V

SD

’s m

em

bers

and o

ther re

late

d o

rganiz

ations.

2.

VS

D m

akes a

nd s

ends it

’s m

em

bers

bondhold

ers

-lis

t receiv

ing b

ond in

tere

st p

aym

ent.

3.

Mem

bers

send V

SD

the c

onfirm

ation o

f the b

ondhold

ers

list.

4.

VS

D s

ends is

suers

paym

ent r

equest a

nd c

om

pre

hensiv

e b

ondhold

ers

list.

5.

VS

D s

ends it

’s m

em

bers

confirm

ation o

f inte

rest d

istr

ibution to

investo

rs n

am

ed in

the

bondhold

ers

list.

6.

Issuers

instr

uct s

ett

lem

ent b

ank to

tra

nsfe

r cash for in

tere

st f

rom

issuers

’ account t

o

VS

D’s

account.

7.

Sett

lem

ent b

ank tr

ansfe

rs c

ash a

s r

equeste

d.

8.

VS

D in

str

ucts

BID

Vto

tra

nsfe

r cash for

inte

rest f

rom

VS

D’s

account t

o rela

ted V

SD

m

em

bers

’ account.

9.

BID

V tr

ansfe

rs c

ash a

s requeste

d.

10.

VS

D m

em

bers

cre

dit b

ondhold

ers

’ account w

ith in

tere

st.

11.

VS

D m

em

bers

notify

bond h

old

ers

of in

tere

st p

aym

ent.

Pro

cess

of In

tere

st P

aym

ent

627ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond

1. N

otification o

f R

ecord

Date

2. N

otification o

f B

ondhold

ers

-lis

t5. C

onfirm

ation o

f P

aym

ent D

eta

ils

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Sta

te T

rea

su

ryM

inis

try o

f F

ina

nce

Bo

nd

Ho

lde

r

VS

D’s

Me

mb

er

VS

Da

s P

ayin

g A

ge

nt

8. P

aym

ent

Instr

uction

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

1. N

otification o

f R

ecord

Date

3. C

onfirm

ation o

f B

ondhold

ers

-lis

t

Tax O

ffic

e

7. C

ash

Tra

nsfe

rM

OF

’s

Account

VS

D M

em

ber’

s

Account

Bond H

old

er’

s

Account

BID

VC

usto

dia

n9. R

edem

ption

Paym

ent

Se

ttle

me

nt

Ba

nk

4. P

aym

ent In

str

uction &

B

ondhold

ers

-lis

t

6. I

nstr

uction o

f C

ash

Tra

nsfe

r

12.R

edem

ption

Paym

ent

Notice

VS

D’s

A

ccount

11. R

edem

ption

Paym

ent

10.R

edem

ption

VS

Da

s C

SD

Sam

e E

ntity

628 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

07.

Redem

pti

on P

aym

ent

Flo

w o

f G

overn

ment

Bond O

TC

Mark

et

1.

Vie

tnam

Securities D

eposito

ry (V

SD

) as a

payin

g a

gent notifies th

e record

date

to S

tate

Tre

asury

-M

inis

try o

f F

inance (is

suers

), V

SD

’sm

em

bers

and o

ther re

late

d o

rganiz

ations.

2.

VS

D m

akes

and s

ends it

’s m

em

bers

bondhold

ers

-lis

t re

ceiv

ing b

ond r

edem

ptio

n p

aym

ent.

3.

Mem

bers

send V

SD

confirm

ation o

f bondhold

ers

list.

4.

VS

D s

ends is

suers

paym

ent r

equest a

nd c

om

pre

hensiv

e b

ondhold

ers

list.

5.

VS

D s

ends it

’s m

em

bers

confirm

ation o

f inte

rest a

nd p

rincip

al d

istr

ibution to

investo

rs

nam

ed in

bondhold

ers

list.

6.

Issuers

instr

uct s

ett

lem

ent b

ank to

tra

nsfe

r cash for re

dem

ption fr

om

issuers

’ account t

o

VS

D’s

account.

7.

Sett

lem

ent b

ank tr

ansfe

rs c

ash a

s r

equeste

d.

8.

VS

D in

str

ucts

BID

Vto

tra

nsfe

r cash for

redem

ption fr

om

VS

D’s

account t

o rela

ted V

SD

m

em

bers

’ account.

9.

BID

V tr

ansfe

rs c

ash a

s requeste

d.

10.

VS

D m

akes b

ond r

edem

ption.

11.

VS

D m

em

bers

cre

dit b

ond h

old

ers

’ accounts

with la

st in

tere

st a

nd p

rincip

al, d

educting

incom

e ta

x if

applic

able

.12.

VS

D m

em

bers

notify

bond h

old

ers

of re

dem

ption p

aym

ent.

Pro

cess

of R

edem

ptio

n P

aym

ent

629ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

1.

Bond M

ark

et

Infr

astr

uctu

re D

iagra

m

2.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Gove

rnm

en

t B

ond)

3.

Bond T

ransaction F

low

for

Dom

estic T

rades (

Corp

ora

te B

ond)

4.

Bond T

ransaction F

low

for

Fore

ign I

nve

sto

rs

5.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Gove

rnm

ent

Bond)

6.

Inte

rest

& R

edem

ption P

aym

ent

Flo

w (

Corp

ora

te B

ond)

630 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond

2. N

otification o

f R

ecord

Date

4. N

otification o

f B

ondhold

ers

-lis

t8. C

onfirm

ation o

f P

aym

ent D

eta

ils

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

VS

Da

s C

SD

VS

D’s

Me

mb

er

VS

Da

s P

ayin

g A

ge

nt

11. P

aym

ent

Instr

uction

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

1.N

otification o

f C

orp

ora

te A

ction

5. C

onfirm

ation o

f B

ondhold

ers

-lis

t

Tax O

ffic

e

10. C

ash

Tra

nsfe

r

Issuer’

s

Account

VS

D M

em

ber’

s

Account

Bond H

old

er’

s

Account

BID

VC

usto

dia

n12. I

nte

rest

Paym

ent

Se

ttle

me

nt

Ba

nk

6. B

ondhold

ers

-lis

t

9. I

nstr

uction o

f C

ash

Tra

nsfe

r

14.I

nte

rest

Paym

ent

Notice

VS

D’s

A

ccount

13. In

tere

st

Paym

ent3

.Record

Date

Notice

7.C

onfirm

ation o

f B

ondhold

ers

-lis

t

Sam

e E

ntity

15.T

ax P

aym

ent

631ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

08.

Inte

rest

Paym

ent

Flo

w o

f C

orp

ora

te B

ond O

TC

Mark

et

1.

Issu

ers

se

nd

s th

e a

de

qu

ate

an

d le

ga

l d

ossie

r n

otif

yin

g c

orp

ora

te a

ctio

n t

o V

ietn

am

Se

cu

ritie

s

De

po

sito

ry (

VS

D)

.2

.V

SD

as a

pa

yin

g a

ge

nt

no

tifie

s r

eco

rd d

ate

to

VS

D’s

me

mb

ers

an

d o

the

r re

late

d o

rga

niz

atio

ns.

3.

VS

D’s

me

mb

ers

no

tify r

eco

rd d

ate

to

bo

nd

ho

lde

rs.

4.

VS

D m

ake

s a

nd

se

nd

s it

’s m

em

be

rs b

on

dh

old

ers

-lis

t re

ce

ivin

g b

on

d in

tere

st p

aym

en

t.

5.

Me

mb

ers

se

nd

VS

D c

on

firm

atio

n o

f b

on

dh

old

ers

-lis

t.6

.V

SD

se

nd

s is

su

ers

co

mp

reh

en

siv

e b

on

dh

old

ers

list.

7.

Bo

nd

issu

er

se

nd

s c

on

firm

atio

n o

f b

on

dh

old

ers

-lis

t.8

.V

SD

se

nd

s it

’s m

em

be

rs c

on

firm

atio

n o

f in

tere

st

dis

trib

utio

n t

o in

ve

sto

rs n

am

ed

in

bo

nd

ho

lde

rs li

st.

9.

Issu

ers

instr

uct

se

ttle

me

nt

ba

nk to

tra

nsfe

r ca

sh

fo

r in

tere

st fr

om

issu

ers

’ acco

un

t to

VS

D’s

acco

un

t in

B

IDV

.1

0.

Se

ttle

me

nt

ba

nk tra

nsfe

rs c

ash

as r

eq

ue

ste

d.

11

.V

SD

in

str

ucts

BID

Vto

tra

nsfe

r ca

sh

fo

r in

tere

st

fro

m V

SD

’s a

cco

un

t to

re

late

d m

em

be

rs’ a

cco

un

t.1

2.

BID

V t

ran

sfe

rs c

ash

as r

eq

ue

ste

d.

13

.M

em

be

rs c

red

it b

on

dh

old

ers

’ acco

un

t w

ith in

tere

st.

14

.M

em

be

rs n

otif

y b

on

d h

old

ers

of

inte

rest

pa

ym

en

t.1

5.

Bo

nd

issu

ers

pa

y in

co

me

ta

x t

o t

ax o

ffic

e if

ap

plic

ab

le.

Pro

cess

of In

tere

st P

aym

ent

632 ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond

2. N

otification o

f R

ecord

Date

4. N

otification o

f B

ondhold

ers

-lis

t8. C

onfirm

ation o

f P

aym

ent D

eta

ils

Bo

nd

Issu

er

Sid

eC

SD

Bo

nd

Ho

lde

r S

ide

Bo

nd

Issu

er

Bo

nd

Ho

lde

r

VS

D’s

Me

mb

er

VS

Da

s P

ayin

g A

ge

nt

11. P

aym

ent

Instr

uction

Sam

e

Entity

Cash

Flo

w

Info

rmation

Flo

w

1.N

otification o

f C

orp

ora

te A

ction

5. C

onfirm

ation o

f B

ondhold

ers

-lis

t

Tax O

ffic

e

10. C

ash

Tra

nsfe

r

Issuer’

s

Account

VS

D M

em

ber’

s

Account

Bond H

old

er’

s

Account

BID

VC

usto

dia

n12. R

edem

ption

Paym

ent

Se

ttle

me

nt

Ba

nk

6. B

ondhold

ers

-lis

t

9. I

nstr

uction o

f C

ash

Tra

nsfe

r

15.R

edem

ption

Paym

ent

Notice

VS

D’s

A

ccount

14. R

edem

ption

Paym

ent3

.Record

Date

Notice

7.C

onfirm

ation o

f B

ondhold

ers

-lis

t

13.R

edem

ption

VS

Da

s C

SD

Sam

e E

ntity

16.T

ax P

aym

ent

633ASEAN+3 Information on Transaction Flows and Settlement Infrastructures ▌ Part 3: Bond Market Infrastructure Diagrams, Domestic . . .

VN

09.

Redem

pti

on P

aym

ent

Flo

w o

f C

orp

ora

te B

ond O

TC

Mark

et

1.

Issu

ers

se

nd

s th

e a

de

qu

ate

an

d le

ga

l d

ossie

r n

otif

yin

g c

orp

ora

te a

ctio

n t

o V

ietn

am

Se

cu

ritie

s

De

po

sito

ry (

VS

D)

.2

.V

SD

as a

pa

yin

g a

ge

nt

no

tifie

s r

eco

rd d

ate

to

VS

D’s

me

mb

ers

an

d o

the

r re

late

d o

rga

niz

atio

ns.

3.

VS

D’s

me

mb

ers

no

tifie

s r

eco

rd d

ate

to

bo

nd

ho

lde

rs.

4.

VS

D m

ake

s a

nd

se

nd

s it

’s m

em

be

rs b

on

dh

old

ers

-lis

t.5

.M

em

be

rs s

en

d V

SD

co

nfirm

atio

n o

f b

on

dh

old

ers

-lis

t.6

.V

SD

se

nd

s is

su

ers

co

mp

reh

en

siv

e b

on

dh

old

ers

list.

7.

Bo

nd

issu

er

se

nd

s c

on

firm

atio

n o

f b

on

dh

old

ers

-lis

t.8

.V

SD

se

nd

s it

’s m

em

be

rs c

on

firm

atio

n o

f re

de

mp

tion

pa

ym

en

t to

in

ve

sto

rs n

am

ed

in b

on

dh

old

ers

list.

9.

Issu

ers

instr

uct

se

ttle

me

nt

ba

nk to

tra

nsfe

r ca

sh

fo

r re

de

mp

tion

pa

ym

en

t fr

om

issu

ers

’ acco

un

t to

V

SD

’s a

cco

un

t in

BID

V.

10

.S

ettle

me

nt

ba

nk tra

nsfe

rs c

ash

as r

eq

ue

ste

d.

11

.V

SD

in

str

ucts

BID

Vto

tra

nsfe

r ca

sh

fo

r re

de

mp

tion

pa

ym

en

t fr

om

VS

D’s

acco

un

t to

re

late

d m

em

be

rs’

acco

un

t.

12

.B

IDV

tra

nsfe

rs c

ash

as r

eq

ue

ste

d.

13

.V

SD

as C

SD

ma

ke

s b

on

d r

ed

em

ptio

n.

14

.M

em

be

rs c

red

it b

on

dh

old

ers

’ acco

un

t w

ith r

ed

em

ptio

n.

15

.M

em

be

rs n

otif

y b

on

d h

old

ers

of

red

em

ptio

n p

aym

en

t.1

6.

Issu

ers

pa

y in

co

me

ta

x to

ta

x o

ffic

e if

ap

plic

ab

le.

Pro

cess

of R

edem

ptio

n P

aym

ent