Primary Market Facility Overview

Table of Contents

Primary Market Facility Overview

The Primary Market Facility provides listed Issuers with Delivery versus Payment (DvP) settlement services for certain capital raising. The CSP facilitates the processing of Initial Public Offerings (IPOs), including Institutional and Broker Firm Offers, Placements, Institutional (and Retail) Bookbuilds, within a CSP DvP settlement. This functionality is enabled through the:

  • Issuance of Allocation Interests to Settlement Agent;
  • DvP Settlement between Participants and Settlement Agent;
  • Movement of Allocation Interests between HINs and sub-registers; and
  • Transformation of Allocation Interests to underlying securities.

Settlement Agent

A Settlement Agent is appointed to facilitate the DvP settlement of Allocation Interests.

The CSP then grants the Settlement Agent the same roles as any other settlement Participant; they will not require a dedicated role for the DvP settlement of a Primary Offer nor any relationship to an Issuer (Registry).

Issuance of Allocation Interests

In order for a financial product to settle during a primary offer, the CSP creates an Allocation Interest of the parent security being offered. The Issuer (Registry) allocates the aggregate number of Allocation Interests to the nominated Account (HIN) of the Settlement Agent via a Holding Adjustment with an Adjustment Reason Initial Public Offering (IPOO).

DvP Settlement between Participant and Settlement Agent

The CSP will create and maintain a sub-register of the Allocation Interests to allow DvP settlement between Participants and the Settlement Agent.

The Bilateral Demand Settlement Instruction or Bilateral Settlement Instruction processes (Transaction Basis code of Initial Public Offering (IPOO)) are used to facilitate the transfer of Allocation Interests to an Account (HIN) controlled by a Participant from an Account (HIN) controlled by the Settlement Agent.

Movement of Allocation Interests between Accounts (HINs) and Sub-registers

When the initial receipt of Allocation Interests is settled, a Participant may then transfer Allocation Interests between:

In all cases the Transaction Basis code is optional, but if provided, it must be Initial Public Offering (IPOO) or Placement Issue (PLMT).

Transformation of Allocation Interests to Securities

When the offer closes, the Issuer (Registry) effects the transformation of the allocation interests into the underlying securities via a Holding Adjustment with a reason code of Initial Public Offering (IPOO) or Placement Issue (PLMT).

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