396 THE WORK OF THE STOCK EXCHANGE
same chapter it was also explained how debits were established
at the Stock Clearing Corporation for lending firms making
new loans by the “new loan charge tickets” (Figure 41b), and
for borrowing firms paying off old loans by the “pay-off loan
charge tickets” (Figure 42b) or by the “return loan agree-
ments” (Figure 37).
As these different forms come to the cage where the given
clearing member’s account is kept, his account is respectively
credited or charged in accordance with them, since the forms
in each case are signed orders from him to the Stock Clearing
Corporation.
Actual Credits and Debits from “W. I.” Settlements.—
In addition to its regular settlements, the Stock Clearing Cor-
poration sometimes effects special settlements; this is done
usually with securities which are traded in upon the Stock
Exchange “when, as, and if issued’—that is, before actual
security certificates for the issue are available for delivery.
Occasionally such trading “w.i.”” as it is called, may last for
some time,'® and under these circumstances daily deliveries
of securities “regular way’ are of course impossible. In order
to avoid large open contracts and commitments from accumu-
lating thereby, the Stock Clearing Corporation will settle such
contracts by a final special settlement when security certificates
become available for delivery, and meanwhile (if the “w.i.”
trading is sufficiently protracted and extensive) may conduct
interim intermediate settlements and markings to the market.
In either case, a settlement price is fixed, and contracts are
cleared at this price. With any firm which has commitments
in the “w.i.”’ securities, there will be money differences between
this settlement price to which the contracts are thus marked,
and the actual prices at which the contracts were made on the
Exchange. If a clearing member is in debit for such differ-
ences on his whole commitments, he pays the respective amount
into his account at the Stock Clearing Corporation, while if
15 See Appendix XIVb.
