3.4 Rights of Clients of Principals
Any securities delivered or to be delivered by the Principal pursuant to a DVP transaction shall be delivered free from any interest of the Principal's client. The client shall not retain any equitable or legal interest in the securities debited from his securities account pursuant to a DVP transaction and shall not be entitled to trace nor claim any interest in the securities. The client's sole remedy in respect of such securities shall be against the Principal who delivered the securities.
The client shall look solely to his Principal for payment or delivery of any securities to be received by the client pursuant to a DVP transaction. CDP shall have no responsibility or liability to the client or to any person who is not a Participant, notwithstanding that CDP is counterparty to the novated contracts.
The Principal shall indemnify CDP on a full indemnity basis for any losses, damages, liabilities, costs, claims, actions and demands made by its clients against CDP arising in respect of the novated contracts.