Reduced exposure for rolling settlements now extends for additional settlement cycles and imposes tiered exposure limits and collateral conditions. Where a trading member's settlement shortage exceeds the base minimum capital or where shortages exceed 20% of BMC on six occasions within three months, trading is to be suspended and securities pay-out withheld. After full recovery, the member may trade at a reduced gross exposure according to cumulative shortage bands; the reduced level must be maintained for ten rolling settlements and is restored if shortages over the subsequent ten rolling settlements stay below 20% of BMC. Immediate restoration is allowed upon deposit of equivalent funds-shortage collateral retained for ten rolling settlements, with no interest or exposure benefit; collateral forms accepted include cash, fixed deposit receipts and bank guarantees. Penal interest on outstanding amounts is set at not less than 0.07% per day. Exchanges must amend rules, notify members and report implementation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reduced exposure for rolling settlements now extends for additional settlement cycles and imposes tiered exposure limits and collateral conditions.
Where a trading member's settlement shortage exceeds the base minimum capital or where shortages exceed 20% of BMC on six occasions within three months, trading is to be suspended and securities pay-out withheld. After full recovery, the member may trade at a reduced gross exposure according to cumulative shortage bands; the reduced level must be maintained for ten rolling settlements and is restored if shortages over the subsequent ten rolling settlements stay below 20% of BMC. Immediate restoration is allowed upon deposit of equivalent funds-shortage collateral retained for ten rolling settlements, with no interest or exposure benefit; collateral forms accepted include cash, fixed deposit receipts and bank guarantees. Penal interest on outstanding amounts is set at not less than 0.07% per day. Exchanges must amend rules, notify members and report implementation.
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