3.7A.1 Settlement Timelines
Unless the Trading Member has in place arrangements to settle Exchange Trades with its Clearing Member on a delivery-versus-payment basis through the CDP Settlement Facility, the Clearing Member must make payment (whether of sale proceeds, Cash Settlement Amounts, corporate action entitlements or compensation for corporate action entitlements) or deliver securities to a Trading Member in respect of any Exchange Trade, by such time as to enable payment or delivery by the Trading Member to the Trading Member's customers within any timelines specified in the SGX-ST Rules, save that a Clearing Member may:
Added on 10 December 201810 December 2018.
3.7A.2 Force Sale
Subject to Rules 3.7A.3 and 3.7A.4, if a buying Trading Member fails to meet any of the timelines set out in the SGX-ST Rules for payment to its Clearing Member, the Clearing Member shall force-sell the securities of the buying Trading Member on the following Market Day.
Added on 10 December 201810 December 2018.
3.7A.3
Rule 3.7A.2 does not apply if the Clearing Member has allowed the buying Trading Member to effect a corresponding sale position after the purchase but not later than the Intended Settlement Day of the Exchange Trade for such purchase.
Added on 10 December 201810 December 2018.
3.7A.4
If the Clearing Member reasonably expects full payment from the buying Trading Member, the Clearing Member may defer force-sale for up to two Market Days.
Added on 10 December 201810 December 2018.
3.7A.5
A Clearing Member exercising its discretion under Rule 3.7A.4 must not engage in imprudent credit practices.
Added on 10 December 201810 December 2018.
3.7A.6
The following rules apply to all force-sales by a Clearing Member:
Added on 10 December 201810 December 2018.
3.7A.7
A Clearing Member shall, if informed by CDP that a right to receive securities pursuant to an Exchange Trade is to be cash settled, immediately inform the relevant buying Trading Member.
Added on 10 December 201810 December 2018.