PART A.3 - BUY-IN TRANSACTIONS

4810. Buy-ins

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    1. Buy-ins must be made within the times, using the notices prescribed, and according to IIROC requirements. For the purposes of clauses 4810(1)(i) through 4810(1)(v) a "regular delivery transaction" is deemed to have taken place once the Dealer Members involved have agreed on a price.

      1. For transactions between Dealer Members in the same municipality, where the seller does not advise the buyer about the delivery by 11:30 a.m. on the fourth business day after a regular delivery transaction:

        1. The buyer may at his or her option buy-in the securities, where the buyer intends to buy-in the securities, the buyer must give written notice to the seller and to IIROC on that day, or any subsequent business day, prior to 3:30 p.m., of his or her intention to buy‑in for cash on the second business day after the original notice.

        2. The notice is deemed to automatically renew itself from business day to business day from 11:30 a.m. until closing until the transaction is finally completed.

        3. Where the buy-in is not executed on the second business day after the original notice, the seller has the privilege of advising the buyer each subsequent day before 11:30 a.m. of his or her ability, and intention, to make either whole or partial delivery on that day.

      2. For transactions between Dealer Members in different municipalities, where delivery has not been received by the buyer at the expiration of four business days after the transaction takes place, on or after the fourth business day:

        1. The buyer may at his or her option buy‑in the securities, where the buyer intends to buy‑in the securities, the buyer must give written notice to the seller and to IIROC on that day by 12 p.m. (the seller’s time) his or her intention to buy‑in for cash on the third business day after the original notice. 

        2. Where the seller has not advised the buyer in writing by 5 p.m. (the buyer’s time) on the day after the original notice that the securities covered by the buy‑in have passed through his or her clearing and are in transit to the buyer, the buyer may proceed to execute the buy‑in on the third business day after the original notice.

        3. The notice is deemed to automatically renew itself from business day to business day and the seller forfeits all rights to complete delivery other than the portion of the transaction that is in transit by the day following the receipt of the original notice. The buyer may at his or her option allow the seller to complete delivery of any remaining portion of the transaction.

      3. Any Dealer Member who is bought‑in may demand evidence that a bona fide transaction has taken place involving the delivery of the bought‑in securities. The Dealer Member who is bought‑in has the right, to deliver such part of his or her commitment according to clauses 4810(1)(i) and 4810(1)(ii) and must complete any such delivery to the nearest $1,000 par value, or stock trading unit.

      4. IIROC has the authority to postpone the execution of a buy‑in from day to day, and to combine buy‑ins in the same security, and to decide any dispute arising from the execution of the buy‑in, and its decision is final and binding.

      5. When a buy-in has been completed the buyer must submit to the seller a statement of account showing:

        1. as credits, the amount originally contracted for as payment for the securities, and

        2. as debits, the amount paid on buy‑in, the cost of the buyer's communication charges relative to the buy‑in, and any bank or shipping charges incurred.

      6. Where there is a credit balance remaining, the buyer must pay this amount to the seller, and where there is a debit balance remaining, the seller must pay this amount to the buyer.

    4811. – 4849.  Reserved.

    There is no history log for this rule.