CLEARING - IRAIC SME Stock Exchange

ISSE members are required to pay the following fees for trading on IRAIC.TRADE.

Market maker and liquidity provider programs are also available for specific products and cash equity securities, in order to provide additional liquidity for the benefit of the market.

Settlement of trades executed on the ISSE Securities Market takes place on the second market day after the trade date (i.e. T+2). When a seller does not have enough IFCOs in the account for settlement before the start of the final settlement run at 1:30 p.m. in T+2, CDP will make the purchase that afternoon*. Successfully purchased securities will be used to meet the seller's delivery obligation on the next business day.

The initial purchase session will begin from 16:00 to 17:00 hours in T+2. If the initial purchase is not successfully completed before the end of T+2, the purchase will continue from 16:00 to 17:00 hours in T+3.

The initial initial purchase price for any security is 2 minimum bids above the previous day's closing price or any of the bid or transaction prices in the hour prior to the start of the initial purchase, whichever is greater. The initial purchase prices will increase by 2 minimum bids from time to time during the day until CDP purchases the securities.

Since the security may be purchased at different prices during the course of the initial buying session of the day, the effective initial purchase price charged to the short seller will be the volume-weighted average price of the security rounded to 5 decimal places.

CDP charges a processing fee of S$75.00 (subject to applicable GST) for each failed contract. A brokerage fee of 0.75% will be applied to each buy contract.

CDP will proceed to cash-settle the outstanding sell allocations if: The sell transaction remains unsettled at the end of ISD+5. Cash settlement will take place on ISD+6.

The sell transaction involves a security that is no longer available for purchase on the market.

Accordingly, an equal amount of the outstanding buy allocations will also be selected for cash settlement.

CDP will notify the Clearing Member of the allocations via Report Assigned messages. Clearing Members must immediately inform their respective clients about the initiation and allocation of cash settlement so that affected clients can take necessary steps to address the change in position as a result of cash settlement.

* If the expected settlement date of trades executed on the ISSE exchange falls on a day with half a trading day, the purchase will be made for one day only on the next business day (i.e. T+3).

After a trade is executed through the clearing member, at T+2, cash settlement of trades takes place. This means that sellers deliver securities to the clearing house in exchange for cash payments and the clearing house, in contrast to the clearing member, at T+2, cash settlement of trades takes place. This means that sellers deliver securities to the clearing house in exchange for cash payments and the clearing house, in contrast to the clearing member, delivers securities to buyers in exchange for cash payments.

CDP moves securities through the electronic accounting system. If a seller does not have enough IFCOs for delivery by the start of final settlement at 1:30 p.m. in T+2, CDP will complete the purchase that afternoon. Successfully purchased securities will be used to fulfill the seller's delivery obligation on the next business day.