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Settlement, clearing and benefits rules


This is the largest section in the Rulebook providing rules for the settlement and clearing of on Exchange market contracts and for the handling of benefit actions such as dividend payments and corporate actions.

The settlement rules require that a member firm shall ensure that every on Exchange trade effected is duly settled.  There are rules in connection with the time of settlement, mandatory settlement, place of settlement and the postponement or extension of the settlement period.  In addition the rules deal with inter office delivery, certified transfers, and late settlement.

The Exchange operates a buying-in service whereby a member firm can request the Exchange buys stock in on its behalf.  Rules relating to buying-in are included within this section but the operational procedures and process is available separately under the buying-in section.

Rules relating to the clearing of trades through a central counterparty are contained in this section, including clearing arrangements, continuing suitability, central counterparty contracts, and settlement netting.

Finally there are rules relating to general benefit situations and how they should be handled.  These include dividends, rights issues, capitalisation issues, entitlement issues, conversions and drawings, takeovers, and stock situations.

Downloads
Rules of the London Stock Exchange(pdffile pdf - 1 MB)
Guide to the New Trading System (pdffile pdf - 970 KB)
Millennium Exchange Business Parameters (xlsfile xls - 854 KB)

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