HONG KONG Securities Clearing Co (HKSCC) said yesterday it was following-up 11 brokerages for failing to settle their August futures positions in the mandatory time-frame. Following increasing pressure from the Government and legislators to enforce the T+2 settlement rule more strictly, the clearing company said it was looking into the behaviour of 11 of the 241 brokers that had failed to settle their August positions. After the massive Government intervention of August 14-28, many brokers found themselves unable to settle their August futures contracts within the T+2 settlement time-frame. At the Legislative Council Financial Affairs Panel briefing yesterday, the clearing company said it had identified 16 brokerages that had been responsible for 60 per cent of the transactions. Compulsory stock buy-ins had settled positions for five of them, leaving the company to follow up the remaining 11. HKSCC chief executive Stewart Shing Shin-cheung defended the company's decision not to apply the T+2 rule to the August positions, despite coming under attack from legislators and the administration for not penalising the brokers, many of whom were suspected of the illegal practice of 'naked short-selling'. Rebecca Lai Ko Wing-yee, Acting Secretary for Financial Services, said her department had asked the clearing company to consider how to implement the rule strictly. 'The result was disappointing.' Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong also expressed his exasperation through a letter presented to the panel. In his interpretation of the letter, Democratic Party chairman Martin Lee Chu-ming said : 'Yam felt he had caught a large manipulator and Hong Kong Clearing had let them go.'