Clearing and Settlement Function Trades executed on automated

Clearing and Settlement Function • Trades executed on automated trading system are automatically sent to the CSD system • Broker/dealers may either entering the Client ID at the time they submit the orders or allocate the Bulk Trade to one or more clients after the execution. • Negative Affirmation, Custodian banks may reject trades that have been allocated to their clients as from T+2 noon and may re-accepted them up to T+3 morning. No fail trades up to now. • Trades settle on T+3. 1

· On trade day, the seller’s Securities Account shows a Pending Sell and the traded securities are not available for further trade. The buyer’s Securities Account shows a Pending Buy but may sell the shares before settlement, Turnaround Trading to increase liquidity. • On settlement date, funds transfer between the seller’s and buyer’s Participants takes place through the settlement bank. Immediately after this, the seller’s Securities Account is debited and the buyer’s Securities Accounts is credited. This ensures strict delivery versus payment. 2

For each trading session the net settlement liability (total purchases – total sales) of each Broker is computed and settlement reports are made available to the Participants and the settlement bank Net settlement system : Total debit positions = Total credit positions On settlement date, each Participant with a debit position ensures that it has the required balance in its account with the Settlement Bank by a cut-off time We settle trades effected in MUR, USD, EUR and GBP 3