Meeting of all the Stock Exchanges- January 17, 2001
Summary
This circular outlines decisions from a January 17, 2001 meeting regarding stock exchange compliance and operational standards. It mandates the implementation of client codes at the broker level by specific deadlines to retain access to MCFS or ALBM facilities. Additionally, it requires system-based margin calculations for MCFS/ALBM and extends certain settlement facilities to voluntary rolling segments.
Text
Stock exchanges must modify software to make client code mandatory at the broker level; failure to comply by February 28, 2001 results in discontinuation of MCFS/ALBM facilities for those offering them, or closure of trading for others with active trading by March 31, 2001.
Margins on MCFS and ALBM must be calculated from the system on a gross basis effective February 28, 2001, replacing self-certification; non-compliance leads to discontinuation of these facilities.
Facilities of CFRS, ALBRS, and CNS are extended to the voluntary rolling settlement segment for all scrips eligible for these products in account period settlement.
Stock exchanges may use Trade Guarantee Fund/Settlement Guarantee Funds for public issues subject to providing the facility for all issues, limiting aggregate exposure to 25% of existing funds, and collecting a minimum 25% cash margin.
Clients (excluding FIs, FIIs, MFs) must maintain deposits not less than 10% of net open positions; stock exchanges must obtain quarterly auditors' certificates from brokers, who must obtain similar certificates from sub-brokers.
Stock exchanges are allowed to buy-back membership rights of inactive members within the existing legal framework and must consult other exchanges if subsidiaries hold memberships there.
Stock exchanges must provide a separate icon in the order window to disseminate the buy-back position as of the previous trading day.
Source: SecMarx — Meeting of all the Stock Exchanges- January 17, 2001. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.