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Article 16
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When two or more securities finance enterprises simultaneously engage securities broker(s) to conduct a reverse auction for a given security, a single reverse auction shall be conducted for the combined total of the quantities sought. The execution price of the reverse auction shall be the average price of all successful bids, and shall be collected from each securities finance firm on the basis of the total number of successful bids for that firm's offer.
If a reverse auction carried out under the preceding paragraph does not result in enough successful bids, each securities finance enterprise will be distributed an integral number of trading units, the quantity to be decided on a pro rata basis according to the quantity specified when the enterprises engaged the securities broker to apply for a reverse auction; any quantity remaining thereafter will further be distributed in decimal fractions of trading units to the securities finance enterprises in the order of the size of the distribution to which they are entitled, and if multiple securities finance enterprises are due to receive the same decimal fraction, the distribution shall be made in random order.
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