• Calculating the net Underwriting position

    • PRU A6.8.6

      An Authorised Person must calculate a net Underwriting position from the date of initial commitment until the Underwriting process ends, as the initial gross commitment adjusted for:

      (a) Underwriting or sub-Underwriting commitments obtained from others since the time of initial commitment;
      (b) purchases or sales of the Securities since the time of initial commitment;
      (c) any allocation of Securities granted or received, arising from the commitment to underwrite the Securities, since the time of initial commitment; and
      (d) in the case of sales in the grey market, as defined in Rule A6.8.5, any sales of the Securities as at the time of initial commitment or since the time of initial commitment is subject, in both cases, to the following conditions:
      (i) any sales of the Securities as at the time of initial commitment must be confirmed in writing at the time of initial commitment;
      (ii) sales must be net of any purchases in the grey market; and
      (iii) any allocation of Securities granted or received, arising from the commitment to underwrite the Securities, since the time of initial commitment.

    • PRU A6.8.7 PRU A6.8.7

      If the allocation of Securities has not been fixed, an Authorised Person must calculate the gross amount of its commitment, for the purpose of Rule A6.8.6, by reference to the maximum amount it has committed to underwrite until the time the allocation is set. An Underwriting commitment may only be reduced under this Rule on the basis of a formal agreement.

      • Guidance

        Allocations may arise, after date of initial commitment, from the agreement to underwrite. For example, obligations or rights may be allocated to or from the Issuer, the Underwriting Group or syndicate.