STOCK EXCHANGES.

Auckland Star, Volume LXI, Issue 162, 11 July 1930, Page 10

STOCK EXCHANGES.

N.Z. ASSOCIATION FORMED. CODE OP RULES APPROVED. SETTLEMENT AND TIME BARGAINS ;<By Telegraph.— Parliamentary Reporter.) WELLINGTON, this day. A Stock Exchange Association of New Zealand, with its head office in Wellington, has been formed with the variousStock Exchanges of the Dominion as members, and a code.of rules, which is approved by the Governor-General m Council. Brokerage rates are specified and are to be uniform through the Dominion. Double rates will be charged on the sale of shares of New Zealand companies not listed cm the Exchange. Among the most important rules affecting the public are the following: — As between brokers and members of different Exchanges, ten clear days shall be allowed for delivery of documents by eeller, and for Australian and Tasmanian deliveries 21 days shall be allowed, provided that such delivery is agreed upon, at the time the bargain is made, and, failing delivery thereof during that period, the buyer may instruct the chafrnian of the seller's Exchange to take such action as the buyer may direct under the rules of the seller's Exchange. Any deficiency or surplus shall be adjusted between the parties by the chairman acting between them.

Payment of Purchase Money. Sellers shall have the right to require the purchase money to be paid at the time and place of delivery of the documents. In the case of failure oi payment bT the buyer the vendor may, on the expiration of one day after default of settlement, or on any future day Hither cancel the transaction or sell at toe buyer's risk,, through the chairman of his own Exchange, the securities involved, and. the defaulting broker shall forthwith pay to the vendor any difference between -the- original purchase, money, plus any expenses occasioned by the default, and" the'ii&t proceeds of the securities "

In the event of the seller being put to any expense through a draft being held over, the buyer shall be liable to make good to the seller all such expense. Should the draft be presented on a Stock Exchauge holiday it shall be payable on the day the Exchange reopens. Accrued interest on debentures up to and including the day of sale, in addition to the price, shall belong to the seller. All bonds or documents are at - the seller's risk until delivered to the buyer. All dealings in shares shall be "ex div." on the day the dividend is payable. Time Bargains. The terms of a time sale must, immediately upon agreement to sell and buy, be clearly set out in writing, and a copy of such terms, signed by the buyer, handed to the seller, and vice versa. Time bargains, the day for completion of which shall fall on a Sunday or public or Exchange holiday, shall not be completed until the business day next following. When a broker sends a telegram marked "urgent" and no time limit is stated therein, the receiving broker must lodge an urgent reply within two hours, calculated from the time of dispatch. Orders sent by ordinary telegram shall hold good, unless otherwise specified, if replied to before twelve midnight of that day. In cases. where mutilation of a telegram causes monetary loss, and a dispute arises over liability, each case shall be decided on its merits, but it is affirmed as a general principle that the sender is liable for the telegram as it is received.