The most recent daily list of CSE Buy-In Opportunities:
This process describes an effort to support CDS and dealers in those cases where a seller has failed to deliver a CSE listed security following a trade. The CSE will provide a "Buy-In" service that attempts to locate an alternate seller capable of immediately delivering the security. If successful, this process should allow CDS to clear the failed positions.
Each day the CSE may receive from CDS a list of securities that dealers have failed to make delivery on and for which CDS is trying to identify sellers to satisfy Buy-In notices. This list is preliminary and may change prior to 3:00 PM.
Step 1 – Shortly after a list is received, the CSE will begin contacting CSE Market Makers responsible for the instruments on the potential Buy-In list. The Market Makers will be given the opportunity to cover any Buy-In still open for their respective instruments as of the 3:00 PM cut-off time.
Step 2 - After contact with the Market Makers, any Buy-Ins still open and not already accepted by the respective Market Maker, will be posted on the CSE portal for viewing by any interested dealers. Interested dealers may then contact CSE to request participation in the Buy-In.
Cut off – Deadline for accepting Buy-In orders
Following a 3:00 PM cut-off, the CSE will begin a process to generate trades marked for Cash Today settlement between the CSE and each of dealers participating in the Buy-Ins . The price of the trade will be based on the National Last Sale Price just prior to 3:00 PM plus a premium defined by the CSE.
Buy-In Price = N.L.S.P. (just prior to 3:00 PM) + Premium
The CSE will, no later than 3:30 PM, manually enter the trades that will be cleared by CDS on a same-day basis. Once completed, trades will be manually reported by the CSE to the participating dealers.