The London Stock Exchange uses cookies to improve its website. The cookies for analytical purposes have already been set. For more details and how to manage cookies, please see our privacy and cookies policy.

 

Revamped website coming soon

We're refreshing London Stock Exchange's website to give our users a better experience. The revamped website has a fresh look and feel, intuitive navigation and search as well as a clearer view of our key data and documents. Visitors to our website will be able to search for companies, compare different products and services and discover how the market has evolved over its history.

We look forward to introducing you to the revamped website soon.

Hammer Prices


For those trades where SVS Securities Plc ("SVS") traded in a principal capacity the Exchange will apply the provisions of the default rules applicable to unsettled relevant principal contracts in accordance with rules D120 - D146 of the Rules of the London Stock Exchange. See below for full details of this process.

Hammer Price spreadsheets are available from the downloads below.

Unsettled Relevant Principal Contracts

The Exchange will determine the final cash settlement payable between the two counterparties involved in each transaction. This is based on the difference between the original trade price and the Exchange’s middle price (“the hammer price”) of the relevant securities immediately prior to the time at which the default was declared, namely at 15:30 on Friday 9 August 2019.

In accordance with Rules D141 and D142:

If the hammer price exceeds the contract price:

  • If the contract was a purchase by the defaulter the defaulter is entitled to receive the excess from the counterparty
  • If the contract was a sale by the defaulter the defaulter is obliged to pay the excess to the counterparty

If the hammer price falls short of the contract price:

  • If the contract was a purchase by the defaulter the defaulter is obliged to pay the shortfall to the counterparty
  • If the contract was a sale by the defaulter the defaulter is entitled to receive the shortfall from the counterparty

If hammer price is equal to the contract price:

  • Zero position – nothing owed between counterparty and defaulter

Publication by the Exchange of a hammer price in any particular security should not be interpreted to mean that the Exchange accepts that these are unsettled on Exchange market contracts in any such security. The Exchange's reconciliation process is intended to identify the unsettled market contracts that are on Exchange.

Additional Hammer Prices

We have a Hammer Price list (dated and version controlled) on a dedicated website page.  If necessary, additional security hammer prices will be added to an updated list (with a new version number) and highlighted in red text. The Exchange will communicate that an updated version of the list is available to market counterparties via a Stock Exchange Notice with a link to the site.

Objection to Hammer Prices

Under Rule D132 a member firm may object to a hammer price in writing (email will suffice) within five business days of the date of notification (ie: when the given hammer price first appeared on the Exchange’s list). Any dispute will be determined in accordance with Rule D132 and the determination will be final and binding on all concerned. In making any objection, the member firm should state why it does not believe the stated hammer price reflects the Exchange’s middle market price of the security as at 15:30 on Friday 9 August 2019, when the default was declared.

Rate of Exchange for Net Sums Due under Default Procedures

Under Rule D120 the Exchange will calculate the net amount due between SVS and its counterparties where they were party to unsettled, non-CCP trades undertaken on the Exchange in currencies other than Sterling.

In accordance with Rule D144, for the purpose of discharging the amounts calculated in respect of such trades, the Exchange will aggregate all the relevant amounts which are in the same currency, creating a "currency aggregate". This is to allow the Exchange to certify a single net amount to be paid by SVS to its counterparty or by the counterparty to SVS, as appropriate.

Downloads
Hammer Prices - SVS Securities Plc V1 09-08-19 

Hammer Prices – SVS Securities Plc V2 20-09-19

Hammer Prices – SVS Securities Plc V3 15-10-19

The Exchange accepts no responsibility for the content of the website you are now accessing or for any reliance placed by you or any person on the information contained on it.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds.

You are accessing the London Stock Exchange Annual Report Service powered by PrecisionIR.

The Exchange accepts no responsibility for the content of the reports you are now accessing or for any reliance placed by you or any person on the information contained therein.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds