Outstanding trades and settlement
Who is responsible for chasing outstanding trades?
This is a shared responsibility where FinClear reports and helps chase, and you confirm each counterparty has instructions in place. We'll do our best to chase settlements on your behalf, with your support in following up directly where needed.
What happens if funds are outstanding at settlement?This depends on the deal type.
- Lead Manager deals: funding is assessed on an individual basis. Because FinClear holds the stock on hand, any shortfall is reviewed after settlement. Depending on the outcome, you may be asked to provide a bond to cover the shortfall until the outstanding trades settle, or FinClear may make a partial payment to the issuer.
- Non-lead deals: funding needs to be arranged before the 11:30am CHESS cut-off on settlement date. If funds aren't in place by then, FinClear may need to match a partial amount with the delivering broker.
In both cases, outstanding trades are settled the following day and any remaining balances are then paid away. FinClear can also help manage manual payments as outstanding funds arrive.
Key settlement cut-offs:
11:30am CHESS cut-off, 2pm to 4pm remittance, 11am ASX bulletin,
DVP PID 1792.