Clients are advised to take note of the new SGX settlement processes which will apply to trades due for settlement.

1.Shares security delivery cut-off time, 12.00pm on trade date (T+3). Investors must ensure  - sufficient securities in CDP their accounts by cut-off time of 12.00pm on T+3 mkt days for delivery of their  sell positions.

2.Buying-in on T+3 (effective 14-Dec-09 after the transition period). Trades with insufficient securities, buying-in start from 3pm to 5pm on T+3. CDP will not accommodate withdrawal of buying-in requests on T+3 after 12.00pm cut-off time.

3.Penalty for Failed Settlements on T+3. From 14 Dec-09, if buying-in for the shortfall is unsuccessful by the end of T+3. SGX will impose a penalty of S$1,000 or 5% of the value of the failed contract that was not bought-in (whichever is higher) at the end of T+3. The existing arrangement for SGX to consider appeals for waiver of this penalty will continue.

4.Buying-in and Procurement after T+3
Buying-in will continue on T+4  & T+5 from 3.00pm to 5.00pm for open positions that are not covered in the previous mkt day. CDP may consider request for withdrawal of the buy-in instructions by 11.00am on T+4 if it is satisfied that there are sufficient securities in the customer's securities account.

If buying-in is unsuccessful by T+5, procurement required securities will commence from T+6. SGX will impose a fine of S$5,000 for each day a sell contract is overdue. If the sell contract is still overdue after T+7, SGX may refer the matter to the Disciplinary Committee, a penalty of not less than $20,000 may be imposed. Please note that the penalties outlined in paragraph 3 and 4 above are cumulative in nature. 

To facilitate the implementation of the above changes, SGX has transition period of 3wks from 20-Nov-09 to 11-Dec-09.

Buying-in will start from T+4 between 3.00pm and 5.00pm. Request for withdrawal of buying-in orders by 11.00am on T+4 if it can established - there are sufficient securities in the customers' securities accounts.

(note - Old old Rules 0f 2009) - A penalty of 5% of the value of the failed trade, subject to a minimum of S$1,000, will also be imposed from September 25 onwards, on top of the current processing fee for buying-in of S$30 per contract.