Regulatory Notice 4.34.4 and 4.34.5 — Allocation of Trades to Position Accounts
1.1 Rule 4.34.4 requires a Trading Member that is not authorised to allocate positions to an Authorised Account to instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account(s) or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of the relevant trade into the intended Securities Account.
1.2 This Regulatory Notice provides guidance on the timelines within which such allocation is to be completed by in various circumstances.
2. Timelines for Allocation of Positions
2.1 With the exception of warehoused trades, the Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade cleared by the Clearing Member for the Trading Member to a specified Position Account immediately upon the trade being cleared, or at the latest by the end of the next Market Day immediately following the trade date.
3. Warehoused trades
3.1 For warehoused trades under Rule 4.34.5(b), each Trading Member must ensure that no customer's trade is warehoused for more than one Market Day, unless under exceptional circumstances. The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade to a specified Position Account immediately after the order is completed, or at the latest by the end of the Market Day on which the order is completed.