Amended on 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.1 Terminology
For clarity under Rules 6.7 and 6.7A:—
"short Clearing Member" refers to the Clearing Member who fails to comply with the obligation set out in Rule 6.5.2A; and
"selling Clearing Member" refers to the Clearing Member who has sold securities in the buying-in market.
Amended on 3 April 20083 April 2008, 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.2 Buying in
Amended on 3 April 20083 April 2008, 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.3 Notification of Buying-in
Amended on 27 March 200727 March 2007; 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.4 Buying-In Procedures
See Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Amended on 27 March 200727 March 2007, 3 April 20083 April 2008, 20 November 200920 November 2009, 15 June 201115 June 2011, 22 April 201322 April 2013 and 10 December 201810 December 2018.
6.7.6 Suspension of Buying-In
Amended on 22 April 201322 April 2013.
6.7.7 Commission for Buying-In Trades
Buying-in commission, at a rate to be advised by CDP from time to time, shall be charged and borne by the short Clearing Member.
Amended on 10 December 201810 December 2018.
6.7.7A Procurement
Subject to Rule 6.7.12(1), if securities to be bought-in are not bought-in by the second day scheduled for buying-in, the short Clearing Member shall procure the securities, whether by transacting on the ready market or otherwise, to discharge its delivery obligation.
See Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Added on 10 December 201810 December 2018.
6.7.8
CDP shall have the discretion to require a short Clearing Member to furnish reports and confirmations that the delivery requirements have been complied with in respect of all sale contracts.
6.7.9
CDP reserves the right to institute buying-in against or require procurement in respect of open sale positions although the net delivery position of the short Clearing Member with CDP is not a short position.
Amended on 10 December 201810 December 2018.
6.7.11 Cash Settlement
If a Clearing Member's obligation to deliver securities in respect of a Novated Contract remains outstanding on the fifth (5th) Settlement Day (or such other number of Settlement Days as CDP may specify) after the Intended Settlement Day of the Novated Contract, CDP shall, on the next Settlement Day, cash settle the Clearing Member's delivery obligation.
Refer to Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E) and Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Added on 10 December 2018 and Amended on 6 September 2021.
6.7.12
CDP reserves the right to:
Added on 10 December 201810 December 2018.