Compensation for failed trades on JSE.5 Sep 2020 18:41
Received a notice from FNB that JSE has awarded compensation to the effect of the following:
After applying the volume adjustment factor of 2,96% to the original quantity of the affected transactions. The failed transactions in respect of which compensation is to be determined comprise failed purchases by non-failing parties as well as any subsequent sales by those non-failing parties that were affected as a result of the failed purchases. The compensation payable on each affected transaction is the difference between the price of the affected transaction and the price of 236c per share determined by the Settlement Authority, and based on an adjusted quantity of shares per transaction using the volume adjustment factor of 2,96% of the original transaction quantity.
17. The amount of compensation payable to the non-failing parties on whose behalf your firm has transacted will now be paid to your firm (FNB), for distribution to the non-failing parties, once the JSE has ensured that the full amount of compensation payable by the failing party is available to the Settlement Authority for payment to the non-failing parties. The compensation payable to you will include the compensation as described above, as well as any specific claims that you may have made for expenses incurred or income foregone as a consequence of the failed trades, and which the Settlement Authority has assessed as being valid, as provided for in rules 10.110.4.1.8 and 10.110.5. We can confirm that the payment will be processed on the 7th of September 2020 and will reflect in your trading account.
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