Implementation of the Buy-in Procedure Regulation of the European Parliament and of the Council of the European Union

From Monday 29th October 2012, in compliance with the European Short Selling Regulation; Article 15, our buy-in timeline will reduce to ISD+4.

At close of business on this date, all failed settlements that are older than ISD+4, will be subject to our revised buy-in rules.

Please review our EREP0025 – Settlement fails report, to prepare for your, or your client’s possible buy-ins

All clearing members will be subject to the regulation to initiate the buy-in process on ISD+4, with buy-in execution on ISD+5.

An exception has been made for registered Market Makers in market-making activity in Smaller Cap securities, whereby buy-in execution will commence on ISD+11 and a reduced failed settlement charge will apply.

After consultation with market participants we have made amendments to our original published failed settlement daily charges, as follows:

Fixed penalty:
Standard Rate: £12.50
Reduced Rate for Market Makers as described above: £2.00

The variable daily rate applied to failed net settlements will be 0.004% of the current sterling value.

We will also be producing a new report EREP0028 – Fails Charges that will be made available monthly within our member reporting environment. 
 
Click below to review our:

• Tariff structure

• Revised buy-in FaQs

• Member reporting document

For further information, or if you have any queries, please contact:

Ian Mackenzie, Manager, EquityClear
Tel. +44 (0) 20 7426 7265 
Email [email protected]