Effective 1 November 2000, buying-in brokerage will be fixed at a flat rate of 0.75%. In addition, a processing fee of S$30 will be levied for every buying-in contract or withdrawal of buying-in.
Investors who choose to use the buying-in mechanism to cover their short positions should be prepared to pay for the processing costs for buying-in. The introduction of the processing fee is not punitive as SGX-ST Bye-Laws already provide for a fine of S$100 for each day a sold contract is overdue. Many other securities markets charge a daily penalty until the short position is covered.
