August 15, 2008
PSE MEMORANDUM NO. 0396-08
| TO | : | All Trading Participants |
| RE | : | Loan by a Trading Participant to a Client Structured as a Trade |
Upon its review of Memorandum No. 2008-0338 dated 21 July 2008, the Market Integrity Board has exempted from the coverage of the memorandum the payment by a trading participant ("TP") to a selling client of the trade proceeds prior to actual settlement based on a request by the selling client under the following conditions:
1. The request is an isolated incident;
2. The request is based on the client's urgent exceptional circumstances necessitating the early release of trade proceeds;
3. The early release of trade proceeds shall not materially and adversely affect the operations or financial position of the TP;
4. The client has delivered the sold securities to the TP upon release of the trade proceeds; and
5. The TP shall properly record the particulars of the early release of trade proceeds (specifically, the selling client, reason for the request of the selling client, and the value and number of shares sold) and disclose them to...
