Calculating the Net Underwriting Position
Authorised Firmmust calculate a net Underwritingposition from the date of initial commitment until the Underwritingprocess ends, as the initial gross commitment adjusted for:(a) Underwritingor sub-underwriting commitments obtained from others since the time of initial commitment;(b) purchases or sales of the Securitiessince the time of initial commitment;(c) any allocation of Securitiesgranted or received, arising from the commitment to underwrite the Securities, since the time of initial commitment; and(d) in the case of sales in the grey market, as defined in PIB Rule A5.8.5, any sales of the Securitiesas at the time of initial commitment or since the time of initial commitment is subject, in both cases, to the following conditions:(i) any sales of the Securitiesas at the time of initial commitment must be confirmed in writing at the time of initial commitment;(ii) sales must be net of any purchases in the grey market; and(iii) any allocation of Securitiesgranted or received, arising from the commitment to underwrite the Securities, since the time of initial commitment.
PIB A5.8.7 PIB A5.8.7
If the allocation of
Securitieshas not been fixed, an Authorised Firmmust calculate the gross amount of its commitment, for the purpose of PIB Rule A5.8.6, by reference to the maximum amount it has committed to underwrite until the time the allocation is set. An Underwritingcommitment may only be reduced under this Ruleon the basis of a formal agreement.
PIB A5.8.7 Guidance
Allocations may arise, after date of initial commitment, from the agreement to underwrite. For example, obligations or rights may be allocated to or from the
Issuer, the underwriting Groupor syndicate.