Practice Note 12A.4.1, 12A.5.2 — Position Account Allocation

Issue Date Cross Reference Enquiries
Added on 1 July 20161 July 2016 and amended on 10 December 201810 December 2018. Rules 12A.4.1, 12A.5.2. Please contact Member Supervision

Facsimile No : 6538 8273

1. Rule 12A.4.1 requires each TPC Trading Member to instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of the relevant trade into the intended Securities Account. This Practice Note provides guidance on the timelines within which such allocation is to be completed by in various circumstances.

2. With the exception of warehoused trades, each Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade cleared by the Clearing Member for the Trading Member to a specified Position Account immediately upon the trade being cleared, or at the latest by the end of the next Market Day immediately following the trade date.

3. For warehoused trades under Rule 12A.5.2, each Trading Member must ensure that no customer's trade is warehoused for more than one Market Day, unless under exceptional circumstances. The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade to a specified Position Account immediately after the order is completed, or at the latest by the end of the Market Day on which the order is completed.