Independently of the preceding options, the following transactions always reduce a Participant’s Memo Segregation position:

  • Withdrawals-by-transfer (WTs) Certificates-on-demand (CODs)

  • Free deliver orders (DO), except those processed with reason codes 10-29, 98, 100, 220, 260-268, 270-278, 280-288, 290-291, 396, 600-619, 704-708, and CNS short covers

  • Deliveries processed with reason codes 95, 97, 630, 640 and reclaim codes 197, 631, and 641 (free and valued).

 

When one of these transaction types is processed against a Participant’s account with a Memo Segregation position, the system checks the Participant’s free account. If sufficient shares exist, both the free position and the Memo Segregation position are reduced by the amount of the transaction.

Note -

If the free position is greater than the Memo Segregation position, and the transaction is for the entire free amount, the Memo Segregation position is reduced to zero; it does not become a negative value.

 

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