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  • PIB A4.6.8 PIB A4.6.8

    An Authorised Firm must determine E for an unsettled non-DvP transaction as equal to the outstanding receivables after the end of the first contractual payment or delivery date.

    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB A4.6.8 Guidance

      1. E is the price difference to which the Authorised Firm is exposed, being the difference between the agreed settlement price for the debt instrument, equity, foreign currency or commodity in question and its current market value, where the difference could involve a loss for the firm.
      2. In cases of a system-wide failure of a settlement or clearing system, an Authorised Firm need not calculate CRCOM on transactions remaining unsettled till the settlement or clearing system is brought back to normal operations.
      3. In respect of unsettled non-DvP transactions referred to in PIB Rule A4.6.8, if the dates when two payment legs are made are the same according to the time zones where each payment is made, they are deemed to have been settled on the same day.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]