MERJ is able to facilitate transactions that have been negotiated directly between parties in certain circumstances. This is a called an off-order book, on-exchange transaction. Such transactions occur outside of the order book of MERJ, but are still executed and settled in accordance with the MERJ rules. Here is how it works:
Step 1: Buyer and seller negotiate a deal either directly or through their MERJ Member(s).
Step 2: Complete the form provided by the respective Member or, for MERJ Direct Participants, the form provided by MERJ using the following as a guide:
Reason Code
| Reason Code | Description | Conditions |
| LP | Large Portfolio Trade | Exceeds 20 times the market size (total volume for the trading day) |
| OH | Out of Hours Trade | Trade conducted outside of market hours |
Transaction Fees
Indicate if these are to be paid by each party equally or only the buyer or seller to cover the applicable fees.
Settlement Method
|
Delivery vs. Payment (DvP) |
Free of Payment (FoP) |
|
If selecting this option, MERJ will facilitate the settlement of the transaction through a simultaneous settlement of securities (to the buyer) and funds (to the seller). Following the settlement, the funds are instantly available to the seller and the buyer has full title and rights associated with the securities as recorded and maintained by the MERJ licensed and regulated CSD, MERJ DEP. |
If selecting this option, the buyer and seller are expected to have made other arrangements for the cash leg of the transaction, usually with a mutually agreed third-party escrow agent or stockbroker. The transaction is executed on a Free of Payment (FOP) basis only moving the corresponding securities from the account of the seller to the account of the buyer. |
Step 3 Submit the form within the specified time period
| Trade Type | Deadline |
| LP | By 1600 (GMT+4) on the indicated Transaction Date for processing same day (otherwise it may be processed the following day) |
| OH | By 0930 (GMT +4) on the Transaction Date |
Step 5: MERJ will execute and settle the transaction according to the instructions depending on the method chosen (i.e. DvP or FoP).
Notes:
1. Fees are calculated based on the higher of the current Reference Price (i.e. usually the prior session Closing Price) or the transaction price at 0.75% per side.
Please contact MERJ Support for any questions or for help facilitating an off-market, on-exchange transaction.