(1) If a short Clearing Member fails, on the Intended Settlement Day of a Novated Contract, to make securities available in accordance with Rule 6.5.2A, CDP shall have the discretion but not the obligation to commence buying-in, on the buying-in market, of those securities, on the Clearing Member's behalf, without prior notice to the short Clearing Member.

(1A) Subject to Rule 6.7.12(1), such buying-in will commence on the Intended Settlement Day of the Novated Contract.

See Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.

(2) [Deleted]

(3) [Deleted]

(4) The costs of the buying-in shall be paid by the short Clearing Member.