Effective 17 November 2009, SGX will be implementing new securities settlement processes to reduce the incidences of non-delivery of securities and imposition of penalties for failed deliveries.

The key changes are :

Streamline Security Delivery Cut-off Time to 12.00pm on T+3
The cut-off time for clients to meet their sale obligations has been brought forward to 12.00pm on T+3. Clients must ensure that they have sufficient securities in their securities account by this timing in order to avoid buy-in by the SGX. This will take effect for trade done on 17 November 2009 onwards.

Introduction of Buying-in on T+3
CDP will conduct the buy-in of undelivered securities on T+3 from 3.00pm to 5.00pm instead of the morning of T+4. This new buy-in time will take effect for trade done on 9 December 2009 onwards.
During the transition period (i.e. trade done between 17 November 2009 to 8 December 2009), buying-in will be conducted on T+4 from 3.00pm to 5.00pm.

Penalty for Failed Trades on T+3
A trade is deemed to have failed if buy-in for the shortfall is unsuccessful by the end of T+3. SGX will impose a penalty of $1,000 or 5% (whichever is higher) of the value of the failed contract that was not bought in at the end of T+3. The existing arrangements for SGX to consider appeals for the waiver of this penalty will continue.
Penalties will NOT be imposed on short positions whereby the securities have been successfully bought-in on T+3 afternoon.

Buying-in and Procurement after T+3
Buy-in will continue on T+4 and T+5 from 3.00pm to 5.00pm for outstanding undelivered securities at the end of T+3. For failed delivery of securities that cannot be procured after T+5, a penalty of $5,000 each day will apply.
For extended failed delivery of securities after T+7, or for failed delivery of securities in the buy-in market, the matter may be referred to the SGX Disciplinary Committee to decide on the appropriate penalty. A penalty of not less than S$20,000 may be imposed if the party is found culpable.

Revision of Buying-in Processing Fee
The buying-in processing fee will be revised from the current S$30 to $75 (S$80.25 inclusive of GST). This revised fee will be applicable to trades done from 17 November 2009 onwards.

What will happen if I had sold short?
	There will be a buy-in against you by SGX on T+3 (or 3rd trading day of month after contract spot month for ES trades) at a price that is at least 2 bids above the market price or previous close, whichever is higher.

What will happen if I had sold short?
	There will be a buy-in against you by SGX on T+3 (or 3rd trading day of month after contract spot month for ES trades) at a price that is at least 2 bids above the market price or previous close, whichever is higher.

What will happen if I had sold short?
	There will be a buy-in against you by SGX on T+3 (or 3rd trading day of month after contract spot month for ES trades) at a price that is at least 2 bids above the market price or previous close, whichever is higher.

For more details, kindly contact your brokers.
You can also refer to SGX news releases dated 9 October 2009 and 12 November 2009 via the link below.


http://www.sgx.com/wps/portal/corporate/cp-en/home