Islamabad August 26 2022: Securities Lending and Borrowing contract period is enhanced from 14 business days to a maximum of 132 business days from 29th August 2022, NCCPL revealed on Friday.
Currently for each Securities Lending and Borrowing (SLB) eligible Security, SLB contract is available in SLB Market from one business day to 14 business days on daily basis. In accordance with above mentioned approved amendments in NCCPL Regulations, SLB Contract Period shall now also be made available to next 22 Business Days, 44 Business Days, 66 Business Days and 132 Business Days except where book-closure of a security falls within the aforementioned contract period. However, where the SLB (R) Transaction Date is same as the SLB Transaction date, the SLB contract length will be one day.
Following changes will be implemented in the SLB system effective from August 29, 2022.
In case where book closure of SLB eligible security falls during SLB Contract period, the Company shall reduce the existing contracts in a manner that on Book closure-4 (BC-4), the SLB system will automatically initiate a SLB (R) transaction before the opening of business, which shall be settled in accordance with NCCPL Regulations.
At the time of opening the SLB Contracts on each Business Day, the Company shall review and evaluate whether book closure announced for a particular SLB Eligible Security at the time of opening the SLB Contract on that particular Business Day falls within the specific contract period of a SLB Contract, under such circumstances the maturity period of the SLB Contract in that particular SLB Eligible Security made available on that particular Business Day shall be adjusted according to the book closure period in a manner prescribed in the Procedures till the time the book closure period has ended.
Institutional Delivery System (IDS) module shall be made available to Non Broker Clearing Members for clearing and settlement of SLB transactions executed through respective TOSB, TSSB and TCSB Clearing Members in SLB Market through SLB System.
Such IDS transaction shall not be reflected on the SLB portal and is initiated by SLB Participant based on a SLB Transaction; and/or is recorded on NCSS in which the initiating SLB Participant notifies NCSS that the transaction shall be settled by an affirming SLB Participant on its behalf, provided that such affirmation is made by a SLB Participant. Further, institutional delivery system transactions initiated by a SLB Participant based on an SLB (R) Transaction shall be considered auto affirmed by other affirming SLB Participant.
In case of IDS SLB Transactions, the Exposure Margin and Mark-to-Market with respect to all affirmed IDS SLB Transactions and till the settlement of auto affirmed SLB(R) Transaction shall be deposited by the affirming Non – Broker Clearing Member SLB Participant. Note: All SLB participant who would like to avail aforementioned functionality are required to ensure updated installation of ultra-Report and SLB TWS system on their respective SLB Terminals.
