Whole Section

  • 6.7A Penalties and Disciplinary Action for the Non-Delivery of Securities

    Amended on 10 December 201810 December 2018.

    • 6.7A.1

      (1) If a Clearing Member fails to deliver, in accordance with Rule 6.5.2, securities in respect of a Novated Contract when due, CDP may impose upon the short Clearing Member a fine of:
      (a) $1,000 or 5% of the contract value of the undelivered securities (whichever is higher); or
      (b) if the securities are to settle a Novated Contract arising from a trade on the buying-in market, $5,000 or 10% of the contract value of the undelivered securities (whichever is higher).
      (2) Nothing in the foregoing prevents CDP from waiving the fine under Rule 6.7A.1 for:
      (a) market makers of cross-listed exchange traded funds; or
      (b) such participants and such class of market participants that CDP may deem appropriate from time to time.

      Added on 20 November 200920 November 2009 and amended on 15 September 201715 September 2017 and 10 December 201810 December 2018.

    • 6.7A.4

      (1) CDP may refer a Clearing Member to the Disciplinary Committee where:
      (a) the Clearing Member fails to procure securities as directed by CDP, pursuant to these Rules; or
      (b) the Clearing Member fails to deliver securities in the buying-in market in accordance with the buying-in procedures as prescribed by CDP.
      (2) If the Disciplinary Committee is satisfied that CDP has proved on a balance of probabilities that the Clearing Member has committed the conduct described in the charge, the Disciplinary Committee:
      (a) shall impose a penalty, pursuant to its power under Rule 11.5.4, not lower than $20,000; and
      (b) may choose to impose, in addition to the penalty in subsection (a), any one or more of the sanction(s) as set out in Rule 11.5.4.

      Added on 20 November 200920 November 2009 and amended on 21 January 201321 January 2013 and 10 December 201810 December 2018.