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Article 21
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In competitive bid transactions, borrowing quotes are matched against lending quotes that state the same terms and conditions with respect to the recall notification period, on a transaction-by-transaction basis and in an order of priority determined according to the following principles:
- If the securities borrowing fee rate entered for a borrowing quote is at a rate higher than or equal to the lowest ask rate among all lending quotes, the borrowing quantity will be matched against one or more of the lending quotes available from among the lenders, determined in ascending order of the ask rates quoted by the lenders, until the borrowing quantity is reached; if the borrowing quantity is reached at a rate at which the total quantity from all lending quotes at that rate is higher than the quantity needed to be borrowed, one or more of those lending quotes will be selected on a random basis for matching, until the needed quantity is reached.
- If the ask rate entered for a lending quote is at a rate lower than or equal to the highest securities borrowing fee rate among all borrowing quotes, the lending quantity will be matched against one or more of the borrowing quotes available from among the borrowers, determined in descending order of the borrowing fee rates quoted by the borrowers, until the lending quantity is reached; if the lending quantity is reached at a rate at which the total quantity from all borrowing quotes at that rate is higher than the quantity offered for lending, one or more of those borrowing quotes will be selected for matching, on a transaction-by-transaction basis and in the order of the time they are entered, until the needed quantity is reached.
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