Past version: Effective from 15 Sep 2017 to 09 Dec 2018
(1) Where a short Clearing Member has failed to deliver securities by the end of the Settlement Day in accordance with Rule 6.5.2, CDP may impose upon the short Clearing Member a fine of $1,000 or 5% of the contract value of the undelivered securities (whichever is higher).
For the purposes of this Rule, a Clearing Member is deemed to have failed to deliver securities where such securities have not been obtained through buying-in by the end of the Settlement Day.
For the purposes of this Rule, a Clearing Member is deemed to have failed to deliver securities where such securities have not been obtained through buying-in by the end of the Settlement Day.
(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 class of market participants that CDP may determine in its discretion from time to time, if it is in the interests of the market.
Added on 20 November 200920 November 2009 and amended on 15 September 201715 September 2017.