Buy-Ins and Close-Outs of Fails

What this video covers

• The standard buy-in: why the third business day following the date delivery was due is the earliest permitted execution date, not a mandatory deadline
• The notice requirement: when written notice must precede execution, and when it can follow instead
• The two execution blockers for a standard buy-in (proof request, and physical possession notice), and why acceptance controls the entire process
• Cash and guaranteed-delivery contracts: why next-day execution without advance notice is permitted, and why the buyer must still send notice after execution
• The customer-buyer procedure: why a clearing corporation failure forces a cash purchase in the best available market or a purchase for guaranteed delivery, and why the defaulting party bears the account and liability
• Regulation SHO close-out deadlines: the settlement-day-following rule for standard long and short sale fails, and the third consecutive settlement day extension for documented long sales and bona fide market makers
• The deemed-owned delivery restriction exception: why it is 35 consecutive calendar days from the trade date, why purchase-only applies, and why the seller's intent to deliver when restrictions end is required