Pharm Control Ltd. (fka PMCL)

[rebelgirl]

Question 5.5: When must the close-out be initiated?

Answer: Rule 203(b)(3) provides that participant of a registered clearing agency that has a net settlement failure in a threshold security for 13 consecutive settlement days must immediately take steps to close out the fail to deliver position. The close-out process must be initiated no later than the beginning of trading on the trading day following the 13th consecutive settlement day with a net short settlement obligation.