THE SETTLEMENT RULE FOR US TRADES 1. This material is strictly for - - PowerPoint PPT Presentation

THE SETTLEMENT RULE FOR US TRADES Page 1 of 11 1 September 2010 Written by CAD 1. This material is strictly for internal circulation only. 2. Use of Information and Materials The contents of this material are provided to you for information only and should not be used as a basis for making any specific investment, business or commercial decision. These pages should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities, and specifically funds or any investment products, mentioned herein, or, in any jurisdiction to any person to whom it is unlawful to make such an invitation or solicitation in such jurisdiction. 3. The contents of this material, including these terms and conditions, are subject to change and may be modified, deleted or replaced from time to time and at any time at the sole and absolute discretion of Phillip Capital. 4. Timeliness, accuracy and completeness of information In particular, we assume no responsibility for or make any representations, endorsements, or warranties whatsoever in relation to the timeliness, accuracy and completeness of any services, content, information and/or data contained in the material, whether provided by PSPL, any content providers or third parties.

THE SETTLEMENT RULE FOR US TRADES Page 2 of 11 1 September 2010 Written by CAD TRADING ON UNITED STATES (“US”) MARKETS The below Frequently Asked Questions is applicable for US TRADES ONLY and is applicable to the following Phillip Securities accounts:

• Cash Management Account
• Cash Trading Account
• Custodian Account
• Margin Trading Account
• Phillip Financial Account

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DIRECTORY OF TERMINOLOGY S/No Term Defined by 1 Due Date DD 2 Lifted LL 3 Hong Kong Dollar HKD 4 Phillip Securities Pte Ltd PSPL 5 Singapore S’pore 6 Singapore Dollar SGD 7 Suspended SS 8 Trading Day TD 9 Transaction T 10 Transaction + Number of Trading Days : e.g. Transaction +3 Trading Days T +3 11 United States US 12 United States Dollar USD

THE SETTLEMENT RULE FOR US TRADES Page 3 of 11 1 September 2010 Written by CAD DUE DATE, PAYMENT DUE & SETTLEMENT PROCEDURES

S/NO ITEM Q1 When is the Due Date (“DD”) for US Outstanding Contracts? A1 Generally, the DD of US outstanding contracts is T +3 Singapore Time. However, the DD may vary if a non-trading day is involved during the due period, for example a holiday in Singapore or the US. Please refer to examples below to determine the DD under various non-trading date scenarios either in Singapore or the US. Example 1: No holiday in Singapore and US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD TD TD TD T T +1 T +2 T +3 DD In example 1, US shares brought on Monday will be due on Thursday Singapore Time. Example 2 Holiday in Singapore but not in US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD TD Holiday TD T T +1 T +2 DD In example 2, US shares brought on Monday will be due on Wednesday Singapore Time as Thursday is a public holiday in Singapore. Example 3 Holiday in US but not in Singapore S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD TD Holiday TD T T +1 T +2 T +3 DD In example 3, US shares brought on Monday will be due on Friday Singapore Time as Thursday is a public holiday in the US

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S/NO ITEM A1 Example 4 Holidays falls on the same day in Singapore and US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD TD Holiday TD T T +1 T +2 T +3 DD In example 4, US shares brought on Monday will be due on Friday Singapore Time as Thursday is a public holiday in Singapore and US. Example 5 Consecutive Holidays in Singapore and no holiday in the US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD Holiday Holiday TD T T +1 DD In example 5, US shares brought on Monday will be due on Tuesday Singapore Time as Wednesday and Thursdays are public holidays in Singapore. Example 6 Consecutive Holidays in Singapore and no holiday in the US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD Holiday Holiday TD TD T T +3 DD In example 6, US shares brought on Monday will be due on Thursday Singapore Time as Tuesday and Wednesday are public holidays in Singapore. Example 7 Holiday in the US and is a Trading Date (e.g. Columbus Day & Martin Luther’s Day) and no Holiday in Singapore S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD Holiday TD TD T T +1 T +2 T +3 DD In example 7, US shares brought on Monday will be due on Friday Singapore Time as Wednesday is a public holiday in the US.

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S/NO ITEM Q2 When must payment be received for US outstanding contracts? A2 Payment for US outstanding contract must be received on the Due Date before 5.00 pm Singapore Time. Q3 When will I know the amount to settle US outstanding contracts? A3 The amount to settle US outstanding contracts will be available on T +1 through POEMS. Example 8 No holiday in Singapore and US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD TD TD TD TD T T +1 In Example 8, the amount for settlement of US outstanding contracts will be made available on Tuesday Example 9 Holiday in Singapore but not in US S’pore Time Week 1 Mon Tues Wed Thurs Fri TD Holiday TD TD TD T T +1 In Example 9, the amount for settlement of US outstanding contracts will be made available on Tuesday Example 10 Holiday in US but not in Singapore S’pore Time Week 1 Mon Tues Wed Thurs Fri TD Holiday TD TD TD T T +1 In Example 10, the amount for settlement of US outstanding contracts will be made available on Tuesday

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S/NO ITEM Q4 Where can I find the amount for settlement of US outstanding contracts? A4 The following steps are to view the existing amount for settlement of US outstanding contracts: (i) Login to POEMS (ii) Click on the STOCKS tab (iii) Click on ACCT MGMT tab (iv) Click on Outstanding Position tab (v) The S$ AMT column indicates the amount for settlement of that outstanding contract Important: If you do not have access to POEMS, you should call your Trading Representative to confirm the amount and make payment before the Due Date.

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S/NO ITEM Q5 What are the different payment modes for settlement of US outstanding contracts? A5 US outstanding contract can be settled via the following payment modes: 1. EPS 2. Phone Banking / Bill Payment 3. TT 4. Cashier’s Order 5. GIRO 6. Cheque Q6 What are the things to note for payments of US outstanding contracts via the different payment modes? A6 EPS Payment via EPS is on T +3 before 9.00 pm Singapore Time and must include the outstanding contract reference number. EPS can be made through DBS / POSB, UOB, OCBC, Citibank. Phone Banking / Bill Payment Payment via Phone Banking / Bill Payment is on T +3 before 9.00 pm Singapore Time and must include the outstanding contract reference number. DBS / POSB, UOB and OCBC, Standard Chartered and Maybank TT Payment via TT is on Cashier’s Order Payment via Cashier’s order must be issued in SGD and by a bank based in Singapore. GIRO Payment via GIRO will be effected through DBS / POSB and deduction will take place on T +4 at 12.01 am. GIRO is available only for Ordinary Cash Trading account and is not applicable to Phillip Capital Investment or Financial account. SGD Denominated Cheque Payment via SGD denominated cheque must reach PSPL latest by T +3 before 5.00 pm Singapore Time. USD Denominated Cheque Payment via USD denominated cheque will only be accepted provided they are issued from a bank based in Singapore and must reach PSPL latest by T +2 before 5.00 pm Singapore Time. HKD Denominated Cheque Payment via HKD denominated cheque will only be accepted provided they are issued from a bank based in Hong Kong and must reach PSPL latest by T +2 before 5.00 pm Singapore Time.

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S/NO ITEM Q7 What is the settlement currency for my US trading purchases? A7 Settlement currency for purchases will be defaulted to SGD. If you wish to settle your US outstanding contracts in other currencies, kindly contact your Trading Representative latest by T +1 before 12.30 pm Singapore Time for arrangements. You will have to bear the full costs including exchange rates differences if you fail to confirm your US outstanding contracts in SGD Q8 When will the sales proceeds from the sales of my shares be credited to my account? A8 Sales proceeds will be credited on due D +1 midnight (S’pore time). If you have applied for either EPS or GIRO, we will credit the proceeds into your bank account. For Phillip Capital Investment and financial account holders, the sales proceeds will be credited into your trading account with Phillip. Q9 Can I use CPF for payment for my US shares purchases? A9

• No. CPF cannot be used to make payment for US share purchases

FORCE SELLING PROCEDURES

S/NO ITEM Q1 When will PSPL implement force-selling for US outstanding contracts? A1 All US outstanding contracts will be due for force-selling on DD +2. Q2 When will payment be received in order for US outstanding contracts not to be forced-sold? A2 Payment to settle US outstanding contracts must be received by DD +1 before 5.00 pm Singapore Time in order not to be forces-sold. Q3 When will PSPL implement force-selling for US outstanding contracts? A3 All US outstanding contracts will be due for force-selling on DD +2. Example 11 No holiday in Singapore and US S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon TD TD TD TD TD TD T T +1 T +2 T +3 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 11, US shares brought on Monday (Week 1) will be due on Thursday (Week 1). Payment not received by DD +1 (Week 1) will be force-sold

• n DD +2 (Week 2).

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S/NO ITEM A3 Example 12 Holiday in Singapore but not in US S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon TD TD TD Holiday TD TD T T +1 T +2 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 12, US shares brought on Monday (Week 1) will be due on Wednesday (Week 1) as Thursday (Week 1) is a public holiday in Singapore. Payment not received by DD +1 (Week 1) will be force-sold on DD +2 (Week 2). Example 13 Holiday in US but not in Singapore S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon Tue TD TD TD Holiday TD TD TD T T +1 T +2 T +3 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 13, US shares brought on Monday (Week 1) will be due on Friday (Week 1) as Thursday (Week 1) is a public holiday in the US. Payment not received by DD + 1 (Week 2) will be force-sold on DD + 2 (Week 2). Example 14 Holidays falls on the same day in Singapore and US S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon Tue TD TD TD Holiday TD TD TD T T +1 T +2 T +3 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 14, US shares brought on Monday (Week 1) will be due on Friday (Week 1) as Thursday (Week 1) is a public holiday in Singapore and US. Payment not received by DD +1 (Week 2) will be force-sold on DD +2 (Week 2).

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S/NO ITEM A3 Example 15 Consecutive Holidays in Singapore and no holiday in the US S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon TD TD Holiday Holiday TD TD T T +1 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 15, US shares brought on Monday (Week 1) will be due on Tuesday (Week 1) as Wednesday and Thursday are public holidays Singapore. Payment not received by DD +1 (Week 1) will be force-sold on DD +2 (Week 2). Example 16 Consecutive Holidays in Singapore and no holiday in the US S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon TD Holiday Holiday TD TD TD T T +3 T +4 T +5 DD DD +1 DD +2 (Force-Selling) In example 16, US shares brought on Monday (Week 1) will be due on Thursday (Week 1) as Tuesday and Wednesday are public holidays Singapore. Payment not received by DD +1 (Week 1) will be force-sold on DD +2 (Week 2).

THE SETTLEMENT RULE FOR US TRADES Page 11 of 11 1 September 2010 Written by CAD PROCEDURES FOR SUSPENDED SHARES & SECURITIES

S/NO ITEM Q1 What are the procedures for settlement for US shares that have been suspended? A1 Settlement for US shares that have been suspended will follow the normal settlement period. Please refer to examples 1 to 7 for settlement periods. Q2 What is the grace period for clients who have not paid for their shares purchases while the shares are being suspended? A2 A period of 14 calendar days from the due date will given for settlement of US shares that have been suspended. Non-payment will result in the suspended shares being forced-sold upon lifting of the shares. Q3 What are the force-selling procedures for settlement for US shares that have been suspended? A3 For US shares that have been suspended and lifted before T +5, the normal force-selling procedures will apply. See example 17. Example 17 No holiday in Singapore and US Shares suspended on Tuesday (Week 1) & Lifted on Monday (Week 2) S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon TD TD TD TD TD TD T T +1 T +2 T +3 T +4 T +5 SS SS SS LL DD DD +1 DD +2 (Force-Selling) In example 17, the suspended US shares which was lifted on Friday (Week 1) will be force-sold on Monday (Week 2). A3 For US shares that have been suspended and not lifted by T +5, force-selling will occur on LL. See example 18. Example 18 No holiday in Singapore and US Shares suspended on Tuesday (Week 1) & Lifted on Thursday (Week 2) S’pore Time Week 1 Week 2 Mon Tues Wed Thurs Fri Sat Sun Mon Tue Wed Thurs TD TD TD TD TD TD TD TD TD SS SS SS SS SS SS SS LL T T +1 T +2 T +3 T +4 T +5 T +6 T +7 T +8 DD DD +1 DD +2 DD +3 DD +4 DD +5 (Force-selling) In example 18, the suspended US shares which was lifted on Thursday (Week 2) will be force-sold on same day Thursday (Week 2).