Sell Transactions for Settlement

The Settlement Participant may hold sales for which the client does not have enough securities to deliver, and release them when the securities become available in its Custody Account. Only then will these sale transactions be sent to the settlement process. The Settlement Participants will be in charge of managing this procedure since they know the securities available in the client’s Custody Accounts.

The Holding of Sales may be done during the day prior to the Intended Settlement Date of the transaction, and it will be executed transaction by transaction.

Only the selling net balance of the net position accounts in the BME Clearing will be eligible to be held. Thus, held sales will decrease the settlement instruction generated by BME Clearing as long as the net selling balance of the account allows it.

During ISD and as transactions are released by the Settlement Participant, BME Clearing will send Settlement Instructions for the aggregated of released transactions and its corresponding cash in each settlement window.

If at the end of the last aggregation window of the session a transaction has not been released, BME Clearing will aggregate all the held gross trades with ISD equals to the session, generating a single settlement instruction that will be sent to IBERCLEAR in PREA status.

Once the settlement instruction has been send to IBERCLEAR, when the Participant Entity requests the total or partial release of the instruction to the CCP, BME Clearing will modify the instruction status of the instruction to allow its settlement.

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