6.7.4 Buying-In Procedures

Past version: Effective from 22 Apr 2013 to 09 Dec 2018

(1) CDP shall schedule a time for commencement of buying-in and inform Clearing Members of the scheduled time via circular. On the day of buying-in, CDP shall, as far as practicable, by the scheduled time for commencement of buying-in, notify Clearing Members of the securities for buying-in via the SGX website or through such other medium as CDP may consider appropriate. CDP shall, at least 3 working days before changing the scheduled time for commencement of buying-in, inform Clearing Members of the details of such change via circular.
(1A) If CDP is of the opinion that, due to an emergency on a particular day, buying-in is unlikely to commence at the scheduled time, CDP shall, via circulars or such other medium as CDP may consider appropriate, inform Clearing Members of the following matters:
(a) that buying-in will not commence at the scheduled time; and
(b) when it can be determined, the estimated time at which the delayed buying-in will commence.
In any case where the commencement of buying-in is delayed, the delayed buying-in shall only commence at least 15 minutes after the original scheduled time.
(2) Where the securities to be bought-in are in excess of a board lot, the selling Clearing Member may deliver a board lot or a multiple thereof in reduction of the securities to be bought-in.
(3) [Rule has been deleted.]
(4) CDP shall have the discretion not to buy-in any security.
(5) The buying-in bid price, as determined by CDP, will be 2 minimum bids above the highest of the following:
(a) the closing price of the previous day;
(b) the reference transacted price,
(c) the reference bid price; and
(d) in respect of a contract made in the buy-in market on the previous Market Day for which delivery failed, the transacted price of that contract.
For the purpose of this Rule, the reference transacted price and the reference bid price will be any of the last transacted prices and bid prices within the 1 hour preceding the commencement of buying-in, as determined by CDP.
(5A) Where necessary, CDP shall have the discretion to make adjustments to any of the prices described in 6.7.4(5) to cater for corporate actions on the particular security.
(6) Subject to paragraph (1A), buying-in shall commence at the time scheduled by CDP on the Settlement Day or the following and successive Market Days and sellers may offer for immediate delivery any securities required for buying-in. Offers may be in whole or in part of any particular security to be bought-in, provided that where only part is being offered, such part shall be in board lots.
(7) If the securities are not obtained after the commencement of buying-in, CDP shall have absolute discretion to raise the buying-in price bid by 2 minimum bids, as determined by SGX-ST, from the following, in order to facilitate the successful buying-in of the securities:
(a) the prevailing buying-in bid price;
(b) the transacted price in the ready market; or
(c) the bid price in the ready market,
at such time as determined by CDP, from time to time throughout the buying-in session until the securities are bought or delivered to CDP.
(8) If the securities cannot be obtained during the Settlement Day and unless the securities are withdrawn from buying-in, the buying-in shall continue on the following Market Day with the buying-in bid price at the commencement of buying-in determined in accordance with 6.7.4(5) and 6.7.4(5A), and CDP shall have absolute discretion to raise the buying-in bid price after the commencement of buying-in in accordance with 6.7.4(7).
(8A) If the securities cannot be obtained by the close of the Market Day following the Settlement Day, CDP may require the short Clearing Member to procure the securities within the time stipulated by CDP.
(9) [Rule has been deleted.]
(10) [Rule has been deleted.]
(11) For book-entry securities, CDP shall debit the securities from the selling investor's Securities Account or sub-account or the selling Clearing Member's Stock Account, as the case may be, during the settlement run on the same Market Day the buying-in was effected. CDP shall pay the seller's Clearing Member on the following Market Day, or as CDP may otherwise notify. This payment shall be set-off against the amounts that such Clearing Member is obliged to pay CDP on the following Market Day, or as CDP may otherwise notify, in accordance with Rule 6.3.1.
(12) [Rule has been deleted.]

Amended on 27 March 200727 March 2007, 3 April 20083 April 2008, 20 November 200920 November 2009, 15 June 201115 June 2011 and 22 April 201322 April 2013.