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Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11 — Buying-in, Procurement and Cash Settlement if Intended Settlement Day is Day with Half Day Trading

Issue Date Cross Reference Enquiries
Added on 10 December 201810 December 2018. Rule 6.7.2(1A), Rule 6.7.4(8), Rule 6.7.7A and Rule 6.7.11. Please contact Clearing Ops:

E-Mail Address: securitiesclearing@sgx.com
1. Rule 6.7.2(1A) states that subject to Rule 6.7.12(1), buying-in in respect of a Novated Contract will commence on the Intended Settlement Day of the Novated Contract.
2. Rule 6.7.4(8) states that subject to Rule 6.7.12(1), if securities to be bought-in are not bought-in on the first day scheduled for buying-in and unless the securities are withdrawn from buying-in or the short Clearing Member makes the securities available for delivery to CDP by such time as specified by CDP on the following Market Day, the buying-in shall continue on the following Market Day.
3. Rule 6.7.7A states that 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.
4. Rule 6.7.11 states that if a Clearing Member's obligation to deliver securities remains outstanding on the fifth (5th) Settlement Day (or such other number of Settlement Days as CDP may specify) after delivery is due, CDP shall, on the next Settlement Day, cash settle the Clearing Member's delivery obligation.
5. This Practice Note clarifies the timelines for buying-in, procurement and cash settlement in respect of those Novated Contracts with Intended Settlement Days that fall on a day with half day trading.
6. Where the Intended Settlement Day of a Novated Contract falls on a day with half day trading, there will be no buying-in conducted on the first day scheduled for buying-in (i.e. the Intended Settlement Day). Any buying-in will be conducted only on the second day scheduled for buying in (i.e. the Market Day following the Intended Settlement Day). There shall only be one day of buying-in.
7. If the securities to be bought-in are not bought-in by that day, the short Clearing Member shall procure the securities, whether by transacting on the ready market or otherwise, to discharge its delivery obligation.
8. If the short Clearing Member's obligation to deliver securities remains outstanding on the fifth (5th) Settlement Day (or such other number of Settlement Days as CDP may specify) after the Intended Settlement Day, CDP shall, on the next Settlement Day, cash settle the Clearing Member's delivery obligation.
9. This Practice Note does not limit CDP's discretion with regard to buying-in, procurement and cash settlement, as provided in the Rules.