By JAMIE LEE
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INVESTORS left naked with uncovered short positions due to Tuesday's trading disruption can appeal for a waiver of the penalty for failed share delivery, the Singapore Exchange (SGX) said yesterday. The securities and derivatives trading systems were disrupted at 4.09 pm two days ago due to connectivity issues at the primary telecommunications network, SGX said.
A Business Times reader wrote in to say that he was unable to cover his short position as a result. The reader said that he took short positions on several counters in the morning and planned to cover them near the end of trading. He said that he was told by his broker that the link to the SGX trading platform was down. 'Am I still liable to be fined the 5 per cent penalty for not covering my intra-day shorts?' he asked.
In September, SGX introduced a penalty of 5 per cent of the value of a failed trade, or at least $1,000. 'Market participants affected by the interruptions can lodge an appeal with SGX through their broker,' an SGX spokesman said yesterday. 'The connectivity incident will be taken into consideration where relevant in our assessment of the merits of any application for a waiver over failed share delivery.'
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