Buy-in If a trade cannot be settled on the value date because the selling participant that is in default ("defaulting seller") does not hold the securities, the defaulting seller shall have a further three trading days during which to buy in the missing securities (buy-in on the part of the defaulting seller). The defaulting seller must reimburse the buying participant ("buyer") all direct and indirect costs that it may incur (including costs related to any securities borrowing operation). If the defaulting seller is not itself able to obtain and deliver the missing securities by no later than noon CET four trading days after the value date (T+7) at the latest, the buyer shall itself be entitled to buy in the same volume of missing securities. The buyer must notify the Exchange and the defaulting seller of its intention to undertake such a buy-in by midnight of the preceding trading day at the latest. The defaulting seller must bear the costs incurred by the buyer as a result of the buy-in, in particular the difference in price if the price of the securities in question has risen. If the price of the securities has fallen, the defaulting seller shall not have any right to a refund of this difference. If the buyer's buy-in cannot be effected on day T+7 owing to a lack of trading liquidity in the securities, the buyer shall be entitled to attempt a buy-in for a further 13 trading days, i.e. up to T+20. Once a buy-in has been affected, the buyer must inform the Exchange and the defaulting seller on the same day, notifying them of the settlement details by fax or electronically.
Compensation Should the buyer's buy-in attempts fail, the underlying contract between the defaulting seller and buyer shall laps at the close of trading on day T+20 and instead give rise to a compensation claim on the part of the buyer. This compensation claim shall amount to 30% of the contractual purchase price or, if higher, of the closing price on T+20.
