Posted On: 03/23/2014 12:07:33 AM
Post# of 8059
Re: mediscience #6240
yes I remember that -since that program had mostly dried up and there werent even any comments on the proposed rule change I assumed they had other ways to cover fails to deliver which supplanted the old procedure-but thanks to Sunny and you for the dd-unless they were so crazy they were going to allow fails to deliver etc-but the lack of comment does indicate other ways were already in operation to replace that now little used procedure
the Stock Borrow Program and the lender has a free excess position of the security at DTC,
NSCC initiates deliveries through CNS to the long Member and sets up a pending receive for the
lending Member. If the position is not returned to the lender by the end of the
settlement day,
i.e., the Member with the original obligation to deliver to CNS does not complete that delivery,
the lender receives full market value for the securities through NSCC settlement.
Usage of NSCC’s Stock Borrow Program has declined over the past few years
In 2007,NSCC borrowed a daily average of approximately $1.85 billion in market value at the close of
each day from the approximately 21 Members that participated in the Stock Borrow Program. In
October 2013
only three Members participated in the Stock Borrow Program
and the average daily value borrowed at the close of day during that month was approximately $81 million
Usage of the program has continued to drop since the end of October 2013. Given
the reduction in the use of the program, NSCC has determined that it is not economically efficient to maintain the service
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