May 24, 2011
PSE MEMO FOR BROKERS NO. 03-0511
| FOR | : | The Investing Public |
| SUBJECT | : | Update on the SCCP Give-up/Take-up Facility |
Last 21 January 2011, we issued our Memo for Brokers No. 06-0111 and sought your comments on our proposed Rules and Operating Procedures for the Give-up/Take-up Facility of SCCP which were approved by the SCCP Board of Directors on 19 January 2011. In addition, we also received comments and recommendations during meetings which were attended by clearing members and by representatives from the four (4) foreign custodian banks and institutional investors who are the potential users of the Give-up/Take-up facility — the first being on 07 February 2011 and the second, on 22 February 2011.
Taking into consideration the comments and recommendations we received, the SCCP Board approved the revisions to the original Rules and Operating Procedures for the Give-up/Take-up facility of SCCP during its regular meeting held on May 18, 2011, and they cover the following:
a. To be consistent with the Rule that a Give-up/Take-up transaction will not affect the contractual obligation of the Assigning Clearing...
