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Important information

Last updated 4 August 2015

Further information for clients of BBY Limited (In Liquidation) (Receivers & Managers appointed)

All queries regarding clients, creditors and employees should be directed to bby@kpmg.com.au 
For additional information please click here.

BBY Notices and Announcements

Notice Requesting Conversion to Issuer Sponsored Holdings – BBY Sponsored Holdings

ASX appreciates the impact of BBY’s insolvency on investors – including those BBY clients who wish to transfer their holdings to a new broker, or who wish to understand the impact on them of the close out of their positions as a consequence of BBY’s insolvency. ASX can confirm the following:

  • For BBY clients who wish to transfer their sponsored holdings to a new sponsoring broker – On Friday 3 July 2015 ASX Settlement Pty Limited (“ASX Settlement”) suspended BBY’s participation in the ASX Settlement Facility (the facility that settles transactions and records holdings in securities, warrants and certain other financial products that trade on the ASX market and certain other licensed markets).

    This means that all CHESS Holdings that were sponsored by BBY will need to be moved from the control of BBY. On Monday 6 July 2015 ASX mailed a notice to all BBY sponsored holders outlining details of the choices they can make about their holdings. In summary, holders sponsored by BBY have a choice to:
  1. Maintain the registration of their financial products on the CHESS subregister by appointing a new sponsoring broker for their CHESS holdings; or
  2. Converting their CHESS holdings to issuer sponsored holdings.

The notice advises BBY sponsored holders to action a CHESS holding transfer or conversion request by Friday 16 October 2015. Further detail of the process outlined in the letter is set out in question 6 below. If a valid instruction is not received by that the cut-off date then ASX Settlement will convert those CHESS holdings to issuer sponsored holdings.
For further information on holdings on the CHESS subregister and issuer sponsored subregister please refer to the fact sheet here.

For BBY clients who are seeking information about the close out of their positions – On Friday 5 June 2015 ASX provided the external administrators with a complete reconciliation of the default close out of BBY’s positions. The provision of this information to the external administrators will assist them in finalising the books and records of BBY including client account records.

ASX Clear has released from its control collateral lodged as security for BBY’s obligations on BBY’s client related derivative accounts that was not used to meet the cost of close out of derivative positions in those accounts.

ASX intends to pay the remaining cash margin on BBY’s client related derivative accounts to BBY as soon as the client trust account details are received from BBY’s Receivers & Managers and Liquidators.

 

ASX Clear Default Management Process

Questions and Answers

  1. What has happened to BBY Limited?
  2. Why were my options positions closed out and not transferred to a new clearing participant?
  3. Why was my collateral sold by ASX?
  4. When will I get my collateral back?
  5. CHESS sponsored holdings - Are my securities safe in CHESS?
  6. How do I transfer my sponsored holdings to another broker?
  7. How can I obtain further information about the status of the transfer of my sponsored holdings?
  8. If BBY can no longer act as my sponsoring broker how can I provide instructions for any takeover or buy-backs?
  9. I am a BBY client. What do I do if I want to trade in the ASX market?
  10. What is happening to my positions and any money I have with BBY?
  11. How can I find out information about what positions I have with BBY and what they are worth right now?
  12. Can I transfer my open derivative positions and cover to another clearing participant?
  13. What is the role of the ASX clearing house (ASX Clear) in a default situation?
  14. Can I access the National Guarantee Fund for any money I lose?
  15. Who are the Receivers & Managers and Liquidators?
  16. Where can I find more information about liquidation and receivership?
  17. Where can I find out more information?

Questions and Answers

  1. What has happened to BBY Limited?

    On 18 May 2015, ASX was advised that Receivers & Managers and Administrators were appointed to BBY Limited (BBY), a Clearing Participant of ASX Clear.

    As a consequence, ASX Clear has declared an event of default and BBY’s participation in the ASX market, ASX Clear (the central clearing house that clears for the ASX market) and Austraclear (the settlement facility used by BBY for cash settlements) have been suspended.

    Following discussion with BBY’s Administrators, ASX Settlement placed further restrictions on BBY’s participation in the ASX Settlement facility (the facility that settles transactions and records holdings in securities, warrants and certain other financial products that trade on the ASX market and certain other licensed markets) on 19 May 2015 prior to market opening. These restrictions meant that BBY could not participate in equity market settlement and can only transfer client holdings to the new Sponsoring Participant for that client or convert client holdings to issuer sponsored holdings.

    On 22 June 2015 BBY was placed into liquidation and Stephen Vaughan and Ian Hall of KPMG Australia were appointed as Liquidators.

    On 3 July 2015 BBY’s participation in the ASX Settlement Facility was suspended.

  2. Why were my options positions closed out and not transferred to a new clearing participant?

    Transfer of options that you traded through BBY was possible only if you had arrangements in place with an alternate clearing participant and the clearing participant notified ASX Clear that it was willing to accept the options, within the timeframe notified by ASX Clear to the market here.

    ASX Clear was not able to take instructions from individual BBY clients about transfer. It could only deal with clearing participants to obtain the necessary confirmations.

    If options that you traded through BBY were closed out, this is because arrangements for transfer to a new clearing participant were not confirmed to ASX Clear in accordance with the procedures described above.

  3. Why was my collateral sold by ASX?

    If BBY used your shares to meet its margin obligations to ASX Clear on options that you traded through BBY, then your shares were used as security to ASX Clear. Your shares secured (or were ‘collateral’ for) BBY’s performance of its obligations to ASX Clear in respect of the options.  When BBY entered external administration, ASX Clear had to manage its exposure to BBY, including by trading out of (or ‘closing out’) the options.  ASX Clear was entitled to sell your shares to recover the costs it incurred in closing out the options.  ASX Clear did this only where cash cover lodged by BBY and recorded by ASX Clear in respect of the options was insufficient to meet those costs.

  4. When will I get my collateral back?

    ASX Clear has released from its control collateral lodged as security for BBY’s obligations on its client related derivative accounts that was not used to meet the cost of close out of derivative positions in those accounts.

    ASX intends to pay to BBY’s client trust account the remaining cash margin on BBY’s client related derivative accounts as soon as BBY’s Receivers or Liquidators confirm to ASX the client trust account details.  ASX will pay this money to BBY on the basis that it will hold and deal with it in accordance with all applicable laws (including the Corporations Act) on behalf of clients entitled to the moneys.

    BBY clients should contact the Receivers & Managers and the Liquidators for further details.

    For information on how to transfer your HIN refer to question 6 below.

  5. CHESS sponsored holdings - Are my securities safe in CHESS?

    CHESS is an electronic system that registers legal title (or ownership) of shares and other securities, and facilitates the settlement of trades in those securities. It does this by transferring the legal title to securities while simultaneously facilitating the transfer of money paid for those securities.

    As a sponsored holder of securities in CHESS, you are the person who is registered as the legal owner of those securities. You are given a holder identification number or HIN, which is used to identify you as the legal owner of securities in CHESS. A HIN is similar to an account number.

    If you hold securities in CHESS then your sponsoring broker controls the transfer of securities to and from your CHESS holdings. However, it may only do so on your instructions and under the terms of the sponsorship agreement you have entered into with them.

    Securities that you hold in CHESS are your property, and not the property of your sponsoring broker. However, your sponsoring broker may have contractual or other rights that it may exercise in relation to your property, for instance, to secure any outstanding amounts that you owe. You should refer to your client documentation to confirm this. In addition, if you have an options account and you have pledged securities held on your HIN with the Clearing House as collateral then the Clearing House has rights over these securities.

  6. How do I transfer my CHESS sponsored holdings to another broker or to issuer sponsored holdings?

    As indicated above, BBY’s participation in the ASX Settlement facility has been suspended. On Monday 6 July 2015 ASX notified all BBY sponsored holders by mail of the choices they can make about their holdings (ie appointing a new sponsoring broker for their holdings or converting their holdings to issuer sponsored).

    Please be aware that if you provided instructions to BBY and/or your new sponsoring broker for the transfer or conversion of your holdings, and this was not effected at the time of BBY’s suspension, those instructions or the processing of those instructions will need to be repeated. Your new sponsoring broker can assist with that process.

    1. If you would like to maintain the registration of your shares on the CHESS subregister

      If you would like to maintain the registration of your shares on the CHESS subregister you will need to appoint a new sponsoring broker for your CHESS holdings. To do this you should follow the steps below:

      1. STEP 1 If you haven’t already done so, you should contact a broker who can act as your new sponsoring broker for your CHESS holdings. You can use the “Find a broker” function on the ASX website here to help you select a new sponsoring broker.
      2. STEP 2 If you haven’t already done so, you should establish an account with a new sponsoring broker, including entering into a Sponsorship Agreement. Your new account must be set up to exactly match your HINs current registration.
      3. STEP 3 Provide your new sponsoring broker with written instructions to authorise the transfer of your account from BBY to the new sponsoring broker. Your written instructions must be dated and signed by you as the registered account holder(s) (joint account holders must all sign) and must include your HIN, registration name and address details as well as your telephone contact details.
      ASX Settlement must receive a valid transfer request from your new sponsoring broker by Friday 16 October 2015 (or such later date determined by ASX Settlement in its absolute discretion). ASX will also need to give notice of the transfer request to the external administrators of BBY.

      If ASX Settlement receives a valid transfer request from your new sponsoring broker by that date, we intend to effect the change of your sponsoring broker for those CHESS holdings on the basis that your new sponsoring broker is authorised to request us to do so on your behalf, and that this request constitutes notice from you to ASX Settlement requesting that change.

      If you would like to obtain information about the status of your new account set up or your HIN transfer you will need to speak directly with your new sponsoring broker.

       

    2. If you would like to request a conversion to issuer sponsored holdings

      If you wish to have your CHESS holdings converted to issuer sponsored holdings, you will need to notify ASX Settlement by using the “Notice Requesting Conversion to Issuer Sponsored Holdings – BBY Sponsored Holdings” available here. Please follow the lodgement instructions contained in that notice.

      Should you require further assistance or wish to obtain information about the status of your request to convert your CHESS holdings to issuer sponsored holdings you can contact ASX Customer Service on 131 ASX (131 279).

      If ASX Settlement receives a valid notice from you by Friday 16 October 2015 (or such later date determined by ASX Settlement in its absolute discretion), we intend to convert those CHESS holdings to issuer sponsored holdings. Please note before actioning a transfer request ASX will need to give notice to the external administrators of BBY.
       

  1. How can I obtain further information about the status of the transfer of my CHESS sponsored holdings to my new sponsoring participant or the conversion of my holdings to issuer sponsored?

    As indicated in 6 above if you have provided instructions to BBY and/or your new sponsoring broker for the transfer or conversion of your holdings, and this has not been effected at the time of BBY’s suspension, those instructions or the processing of those instructions will need to be repeated.

    A transfer of your CHESS sponsored holdings to your new sponsoring broker can only occur if your account is established with your new sponsoring broker. If you have followed all the steps in 6 above you will need to speak directly with your new sponsoring broker for information regarding the status of your transfer request.

    If you wish to obtain information about the status of your request to convert your CHESS holdings to issuer sponsored holdings you can contact ASX Customer Service on 131 ASX (131 279).
     
  2. If BBY can no longer act as my sponsorsing broker how can I provide instructions for any takeover of buy-backs?

    If your CHESS holdings are subject to a takeover or buyback, BBY will not be able to process in CHESS any instructions from you to accept that takeover or buyback. Until you have appointed a new sponsoring broker for your CHESS holdings, or they have been converted to issuer sponsored holdings, you will need to contact the relevant company registry to accept any takeover or buyback relating to those CHESS holdings. The company share registry details will be contained in any notice you have received regarding the takeover or buy-back.
     
  3. I am a BBY client. Wht do I do if I want to trade in the ASX market?
     

    BBY’s participation as an ASX market participant has been suspended and, as such, BBY cannot place any orders for its clients on the ASX market. If you want to place an order on the ASX market, you will need to instruct another broker.

    If you don’t already have a relationship with another broker, you will need to enter into a new client agreement with an alternative broker. You can use the “Find a broker” function on the ASX website here to help you select a new broker.

    If your CHESS sponsored holdings have been converted to issuer sponsored holdings you should also check with the alternative broker as to any additional requirements they have before trading that issuer sponsored holding.

  4. What is happening to my positions and any money I have with BBY?
     
    1. Sponsored holdings with BBY

      Refer to question 6 above for more details about the process to transfer your CHESS sponsored holdings (and the related HINs) to an alternative sponsoring broker or convert them to issuer sponsored holdings.
       
    2. Scheduled equity market settlements

      Any unsettled equity market transactions entered into either on the ASX market or Chi-X market on or before 15 May 2015 (the last day on which BBY was able to execute client orders) have been closed out by ASX Clear. You should contact the Receivers & Managers or Liquidators to obtain details of the impact to you of close out.
       
    3. Open derivative positions and collateral

      ASX Clear, as the central clearing house for the ASX market, has an obligation to manage the clearing house’s exposure to BBY (see the answer to question 13 below).

      ASX Clear provided a facility to allow certain clients who had already started to transfer their open derivatives positions and cover to a new ASX Clear participant to complete that process. To take advantage of this facility, ASX Clear advised clearing participants that they had to notify ASX Clear of the details of transferring clients by 1.30pm on the 18 May 2015 and meet certain other conditions detailed in ASX notice 0521.15.05, found here. This facility is now closed.

      If your position wasn’t transferred ASX Clear has taken steps to manage its exposure including closing out those positions or letting those positions expire. As part of this process ASX Clear may have used some or all of the cover you lodged for those positions.  This process is now completed.

      ASX Clear has released from its control collateral lodged as security for BBY’s obligations on BBY’s client related derivative accounts that was not used to meet the cost of close out of derivative positions in those accounts.

      ASX intends to pay the remaining cash margin on BBY’s client related derivative accounts to BBY as soon as the client trust account details are received from BBY’s Receivers & Managers and Liquidators.

      You should contact the Receivers & Managers and Liquidators for further details.

  5. How can I find out information about what positions I have with BBY and what they are worth right now?
    You should contact the Receivers & Managers and Liquidators of BBY to ascertain this information.
     
  6. Can I transfer my open derivative positions and cover to another clearing participant?

    No. The period allowed for transfers under the facility in question 2 has now expired. You should contact your new clearing participant to confirm whether your account was transferred under this process.

  7. What is the role of the ASX clearing house (ASX Clear) in a default situation?
    The clearing house provides protection to non-defaulting clearing participants and indirectly their clients from the inability of a defaulting clearing participant to meet its obligations. It does not change the exposure clients have if their own clearing participant defaults. The clearing house’s priority is to minimise the impact of the default on the market as a whole. More detail on the role of the clearing house can be found here.
     
  8. Can I access the National Guarantee Fund for any money I lose?
    Claims against the NGF can only be made in certain circumstances. Clients should refer to the National Guarantee Fund client information booklet, found here, for details on eligible claims and how to apply.
     
  9. Who are the Receivers & Managers and Liquidators?
    ASX has been advised that Stephen Parbery and Brett Lord of PPB Advisory have been appointed as Receivers & Managers and Stephen Vaughan and Ian Hall of KPMG have been appointed as Liquidators.
     
  10. Where can I find more information about liquidation and receivership?
    ASIC has issued a media release regarding the external administration of BBY, which includes information on the role of the administrators, receivers & managers and ASIC. In addition, ASIC has published fact sheets available to creditors seeking further information on the process of liquidation for creditors and receivership for creditors, and maintains a website for the publication of insolvency and external administration-related notices, including details of creditors meetings here.
     
  11. Where can I find out more information?

    Liquidators

    All queries regarding clients, creditors and employees should be directed to bby@kpmg.com.au

    For additional information please visit www.kpmg.com/au/bby.

    Further information will be provided here on the ASX website as it becomes available.

    You can access further information about BBY on the ASIC website.

 

Notices

Date/Time Announcement
6/07/15
9:15am

Suspension of participation of BBY Limited

On 18 May 2015 and 19 May 2015, ASX Settlement Pty Limited imposed conditions on the participation of BBY Limited (In Liquidation) (Receivers and Managers Appointed) (ACN 006 707 777) (BBY).

ASX Settlement advises that with effect from completion of end of day processing on Friday 3 July 2015 it has suspended the participation of BBY.

The initial period of suspension will be until 3 August 2015. That period may be extended if it is considered necessary or desirable.

What do I need to do and by when?  

ASX Settlement will be notifying BBY Sponsored Holders of their options for transferring or converting their BBY Sponsored Holdings. This notification will be given by letter sent to the registered address for the BBY Sponsored Holding recorded in CHESS.  Information on the transfer options will also be available on the ASX website at www.asx.com.au/bby.

BBY clients should direct any other enquiries regarding their accounts and positions with BBY directly to:

Participants should refer to ASX Notice 0756.15.06 for information as to the processing of requests for the transfer of BBY Sponsored Holdings.


Source:  Notice Reference Number:  0771.15.07

1/07/15
4.45pm
 

ASX’s intention to suspend the participation of BBY Limited (Liquidators Appointed) (Receiver and Manager Appointed) (ACN 006 707 777)

Further to Notices 0525.15.05 and 0553.15.05 ASX notes that on 22 June 2015 BBY Limited (BBY) was placed into liquidation and Stephen Vaughan and Ian Hall of KPMG Australia were appointed as Liquidators.

ASX advises participants that it intends to suspend BBY’s participation in the ASX Settlement Facility on Friday 3 July 2015 following the end of day processing.

On Monday 6 July 2015 ASX intends to notify all registered holders of financial products on the CHESS Subregister (“CHESS Holdings”) which are controlled by BBY in its capacity as the Sponsoring Participant that BBY has been suspended. That notice will provide the registered holders with a choice to either:

  1. Maintain the registration of their financial products on the CHESS Subregister by appointing a new Sponsoring Participant for their CHESS Holdings; or
  2. Convert their CHESS Holdings to Issuer Sponsored Holdings,

and provide further information to assist registered holders to pursue either of those options.  As from Monday, ASX also intends to update its website at http://www.asx.com.au/bby to provide further information to registered holders on pursuing those options.
 
The notice will also advise registered holders that if their CHESS Holdings are subject to a takeover or buyback, BBY will not be able to process in CHESS any instructions from them to accept that takeover or buyback. Until they have appointed a new Sponsoring Participant for their CHESS Holdings, or they have been converted to Issuer Sponsored Holdings, the registered holder will need to contact the relevant company registry to accept any takeover or buyback relating to those CHESS Holdings.

What will happen to outstanding CHESSMT 245 messages?

All messages outstanding at the time of BBY’s suspension will be rejected. Participants can re-enter broker to broker transfer requests from Monday 6 July 2015 by following the instructions below.

Processing of Broker to Broker Transfers following BBY’s suspension

From Monday 6 July 2015 to effect a broker to broker transfer the new Sponsoring Participant will need to enter in a valid CHESSMT 245 message against BBY’s PID 1124 or, where it is processing more than 100 transfer requests, provide ASX with a valid bulk transfer request in the form of attachment A. In accordance with ASX Settlement Operating Rule 12.19.10, ASX will also need to give notice of the transfer request to the external administrators of BBY.

ASX intends to effect the change of Sponsoring Participant for any valid transfer request that has been received from Monday 6 July 2015 up until Friday 16 October 2015 on the basis that the registered holder’s new Sponsoring Participant is authorised to request us to do so on their behalf, and that this request constitutes notice from the registered holder to ASX Settlement requesting that change.

ASX will be advising registered holders wishing to obtain a status of their HIN transfer to speak directly with their new Sponsoring Participant.

Action ASX will take if no valid transfer or conversion instructions have been received by Friday 16 October 2015

If ASX Settlement has not received a valid request from the new Sponsoring Participant by Friday 16 October 2015 (or such later date determined by it in its absolute discretion) to change the Sponsoring Participant for any CHESS Holdings controlled by BBY, and if the registered holder has not otherwise requested the conversion of those CHESS Holdings to Issuer Sponsored Holdings, then ASX Settlement intends to convert those CHESS Holdings to Issuer Sponsored Holdings without instruction from the registered holders.

CHESS Statements

CHESS Statements will be sent to registered holders detailing the movement of holdings under either of the scenarios noted above.

Other Sponsored Holder or Holdings maintenance

ASX will only action requests for valid transfer and conversion of HINs or holdings. No other instructions will be processed.


 

Source:  Notice Reference Number:  0756.15.06

5/06/15
6:04pm

ASX provides details of cash market and derivatives close out - ready to return surplus BBY client derivative funds

ASX Clear has now provided close‑out transaction details to the Administrators of BBY Limited in respect of BBY’s cash market and derivative accounts.

This follows completion this week of the orderly close‑out of BBY's unsettled cash market transactions and open positions in derivative (equity option) contracts, other than for open derivatives positions which were transferred to another clearing participant or proceeded to expiry.

The open derivative positions closed‑out by ASX Clear included positions in approximately 400 of BBY’s client‑related derivative accounts.  A further 217 of BBY’s client‑related derivative accounts were transferred by ASX Clear to other clearing participants in accordance with procedures notified by ASX Clear at the time of BBY's default.

These close-out transaction details provided by ASX Clear will help the Administrators finalise the closure of clients’ positions with BBY in the books of BBY.

The information provided by ASX Clear today includes details of the surplus funds held by ASX Clear in respect of BBY’s client‑related derivative accounts, and associated collateral for those accounts, at the completion of ASX Clear’s close‑out and reconciliation processes.  Those surplus funds comprise:

  1. remaining cash margin in respect of each client-related derivative account taking into account payments and receipts resulting from close‑out of the open positions in the account;
  2. unutilised proceeds of ASX Clear’s realisation of collateral lodged as security for BBY's obligations in respect of each client‑related derivative account.

ASX Clear is ready to transfer surplus funds described in 1 above to BBY's client trust account and intends to do so on Tuesday, 9 June 2015.

ASX Clear is accountable for the surplus funds described in 2 above directly to the persons who were the registered holders of the collateral.  ASX Clear does not hold bank account details for those persons and has initiated discussions with the Administrators regarding the process for return of those funds.  Further information on this process will be provided as soon as it is available.

ASX Clear also intends to release from its control collateral lodged as security for BBY's obligations on its client‑related derivative accounts which was not realised by ASX Clear following BBY's default, on Tuesday, 9 June 2015.

Source:  Notice Reference Number:  0640.15.06

22/05/15
3:07pm

 

 

 

 

PROCESS TO EFFECT CHANGE OF SPONSORING PARTICIPANT – BBY LIMITED (ACN 006 707 777)
(Administrators, Receivers and Managers appointed)

On 18 May 2015 ASX was advised that Stephen Vaughan and Ian Hall from KPMG were appointed administrators to BBY Limited (ACN 006 707 777) (“BBY”) and Stephen Parbery and Brett Lord of PPB Advisory were appointed receivers and managers to BBY.

ASX Settlement has been advised by the Receivers and Managers of BBY that BBY has, at this time, the capability to transfer a HIN or otherwise individual CHESS Holdings of a client for which it has been the Sponsoring Participant, to a new Sponsoring Participant in accordance with the ASX Settlement Operating Rules and the terms of BBY’s client agreement.

The ASX website has been updated to include transfer information for any clients of BBY Limited wishing to transfer to another Sponsoring Participant here.

Source:  Notice Reference Number:  0553.15.05

20/05/15
4:13pm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPLETION OF TRANSFER OF NOTIFIED DERIVATIVES POSITIONS OF CLIENTS OF BBY LIMITED

This Notice deals with an extension of time for clearing participants to complete the transfer of derivatives positions and Cover of BBY Limited (BBY) clients which were notified for transfer by those clearing participants to ASX Clear pursuant to ASX Notice 0521.15.05. Refer below for further details.

As set out in that Notice, following the suspension of the participation of BBY on 18 May 2015, ASX Clear provided a facility to allow clients who had already started to transfer their open derivatives positions and Cover to a new clearing participant, to complete that process. This was provided as an alternative to the exercise of ASX Clear’s powers to close out open positions for those clients who were in a position to complete a transfer at the time of BBYs suspension (including having the necessary documentation in place with a new clearing participant).

ASX Clear advised clearing participants that they had to notify ASX Clear of the details of transferring clients by 1.30pm on 18 May 2015 and meet certain other conditions detailed in the ASX notice in order for the client derivative positions to be considered for transfer (‘qualifying client positions’) by ASX Clear. ASX Clear also advised clearing participants that the transfer of qualifying client positions and Cover would need to be completed by 5pm Wednesday 20 May 2015, or otherwise ASX Clear would take such steps as it determines to manage its exposure, including closing out the position.

ASX Clear advises that pursuant to the above facility, it has received notifications from several clearing participants seeking the transfer of qualifying client positions and Cover. ASX Clear has been working with those clearing participants to effect the transfer of those qualifying client positions and Cover and appreciates their efforts to do so within the specified timeframe.

EXTENSION OF TIMEFRAME TO COMPLETE TRANSFER OF NOTIFIED POSITIONS AND COVER

As a result of the large number of qualifying client positions sought to be transferred and the processing involved in such transfers, ASX has determined to extend the timeframe to complete the transfer of those positions and Cover to the new clearing participant to 9am Thursday 21 May 2015.

Please note that this is not an extension of the time for clearing participants to have notified ASX Clear that they seek the  transfer of any non-qualifying client positions, which has already expired.

WHAT DO I NEED TO DO AND BY WHEN?
This information is provided to clearing participants that notified ASX Clear of their seeking the transfer to them of qualifying client positions and Cover of clients of BBY pursuant to the above facility and are facilitating that transfer.

Those clearing participants need to have effected those transfers by 9am Thursday 21 May 2015, or otherwise ASX Clear will take such steps as it determines to manage its exposure in respect of those positions, including closing out of the position.

19/05/15
9:47am

CLOSE OUT OF EQUITY MARKET TRANSACTIONS – BBY LIMITED

On 18 May 2015 ASX was advised that Stephen Vaughan and Ian Hall from KPMG were appointed administrators to BBY Limited (ACN 006 707 777) (the “Company”) and Stephen Parbery and Brett Lord of PPB Advisory were appointed receivers and managers to the Company.

The Company's participation was suspended yesterday by ASX Limited and ASX Clear Pty Limited ("ASX Clear"), and conditions imposed on the Company's participation by ASX Settlement Pty Limited ("ASX Settlement") and Austraclear Limited (“Austraclear”) (refer to Notice 0520.15.05).

ASX advises that with effect from today 19 May 2015:

  • ASX Settlement has imposed new conditions on the participation of the Company. These conditions further limit the Company’s participation so that it is restricted from participating in equity market settlement. Unsettled equity market transactions of the Company are being closed out (see further below).
  • Austraclear has suspended the participation of the Company.

MANAGEMENT OF EXPOSURE BY ASX CLEAR

ASX Clear advises that, in order to manage its exposure to the Company, unsettled equity market transactions that were entered into by the Company on or before 15 May 2015 (the last day on which the Company was able to execute client orders) are being closed out. ASX Clear, as the central counterparty clearing house for the equity market, will perform its settlement obligations to the counterparties to those transactions.

CLIENTS OF THE COMPANY

The ASX Group does not hold or manage the equity market positions of clients of the Company. The responsibility for managing the closure of client positions in the books of the Company rests with the external administrators of the Company. Queries in relation to these matters should be directed to the external administrators (refer to contact details below).

ASX Clear will inform the external administrators of the outcome of the process of managing its exposure to the Company once that process is complete. It will be a matter for the administrators of the Company to determine the manner in which client positions in the books of the Company are closed.

PERIOD OF AUSTRACLEAR SUSPENSION

The initial period of Austraclear suspension will be for a term of 29 days. That period may be extended if it is considered necessary or desirable.

WHAT DO I NEED TO DO AND BY WHEN?

ASX is advised that clients of the Company should direct any enquiries regarding their accounts and positions directly to:

the receivers and managers on 1300 306 230 and bbyclients@linkmarketservices.com.au
the administrators on 1300 784 494 and bbyclients@linkmarketservices.com.au

 

18/05/15

BBY Limited (Administrators appointed) ("BBY") ACN 006 707 777
  • Stephen Vaughan and Ian Hall of KPMG were appointed as administrators to the BBY Group business last night.
  • The administrators are focused on preserving the maximum value of the BBY Group business and protecting the interests of clients, creditors and staff.
  • As such, we are now working with the receivers to understand the financial position of the Group and legal position. We are in the process of reviewing records of the companies with a view to ensuring that all client positions are identified and reconciled as swiftly as possible.
  • In the interim, we are not in a position to adopt or take any other steps to perform any of the obligations of the Group under any of its agreements with clients or other parties, to open any new accounts, or to transfer any accounts to third parties.
  • We will keep clients, creditors and staff involved and informed of developments in the administrations of the Group.
  • A meeting of creditors will be held on 27 May 2015 – a mail out to creditors and clients advising them of details is underway.

Stephen Vaughan and Ian Hall
KPMG Australia

18/05/15
11:53am

TRANSFER OF DERIVATIVES POSITIONS OF CLIENTS OF BBY LIMITED

ASX Limited and ASX Clear Pty Limited (“ASX Clear”) have suspended the participation of BBY Limited (ACN 006 707 777) (the “Company”) with effect from 18 May 2015 as a consequence of the appointment of receivers and administrators to the Company. Refer to Notice 052.15.05.

ASX Clear, as an ASX Group central counterparty clearing house, is managing its exposure to the Company.

This includes considering whether ASX Clear can facilitate the transfer of any client derivatives positions and Cover.

ASX Clear advises Clearing Participants that it will only consider the transfer of client derivatives positions and Cover to a new Clearing Participant in the following circumstances:

  • The client must have in place with the new Clearing Participant by no later than the time of this notice:

 - an executed Client Agreement;
 - a completed and executed Registered Holder Collateral Cover Authorisation (“RHCCA”) form;
 - a completed and executed Form C3 – Transfer of Collateral between Participants; and
 - an executed Sponsorship Agreement.

  • The new Clearing Participant must notify ASX Clear in writing by 1.30pm today of the clients (who must meet the above requirements) whose derivatives positions and Cover it wishes to have transferred to it, together with details of the accounts in which those positions are registered with ASX Clear.
  • The new Clearing Participant must confirm to ASX Clear in the above notice that it has client instructions to transfer all positions in the above accounts and the relevant Cover for those positions, and can complete the transfer of those positions and that Cover by 5pm Wednesday 20 May 2015.

If ASX Clear determines to facilitate the transfer of a client derivatives position and Cover as set out above, the transfer must be completed by 5pm Wednesday 20 May 2015, or ASX Clear will take such steps as it determines to manage its exposure, which may include closing out of the position.

Any decision by ASX Clear to facilitate a transfer of positions and Cover is at the absolute discretion of ASX Clear. For the avoidance of doubt, ASX Clear may close out or otherwise manage its exposure in respect of any position at any time should ASX Clear determine to do so.

Additional documentation for the transfer of positions and Cover meeting the above requirements, will be notified by ASX Clear to relevant Clearing Participants.

WHAT DO I NEED TO DO AND BY WHEN?
This information is provided to clearing participants facilitating the transfer of derivatives positions of clients of BBY.

Notification to ASX Clear by clearing participants of the clients whose derivatives positions and cover it wishes to have transferred to it, together with details of the account in which those positions are registered with ASX Clear should be emailed to deriv.clearing@asx.com.au

18/05/15

PPB ADVISORY MEDIA RELEASE:  PPB Advisory appointed Receivers and Managers of BBY Limited

18/05/15
10:50am

SUSPENSION OF PARTICIPATION

On 18 May 2015, Stephen Vaughan and Ian Hall from KPMG were appointed administrators to BBY Limited (ACN 006 707 777) (the “Company”) and Stephen Parbery and Brett Lord of PPB Advisory were appointed receivers and managers to the Company.

As a consequence:

  • ASX Limited has suspended the participation of the Company with effect from 18 May 2015.
  • ASX Clear Pty Limited (“ASX Clear”) has suspended the participation of the Company with effect from 18 May 2015.

ASX Settlement Pty Limited and Austraclear Limited have imposed conditions on the participation of the Company with effect from 18 May 2015. Those conditions have the effect of limiting the Company’s participation to allow an orderly wind-down of outstanding novated cash market settlements and derivatives margin payments.
 
PERIOD OF SUSPENSION

The initial period of suspension will be for a term of 30 days. That period may be extended if it is considered necessary or desirable.

ROLE OF ASX GROUP

ASX Clear, as an ASX Group central counterparty clearing house, is managing its exposure to the Company.

ASX Clear will inform the administrators and receivers and managers of the outcome of the process of managing its exposure to the Company once that process is complete.

WHAT DO I NEED TO DO AND BY WHEN?

ASX is advised that clients of the Company should direct any enquiries regarding their accounts and positions directly to:

Source:  Notice reference number:  0520.15.05

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