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Every so often, it is decided that a "leap second" must be added or removed from standard time in order to keep it in line with the actual time. The reason for this is simply because the speed of the Earth's rotation changes over time, whereas accurate clocks are "too accurate".

NTP servers send a signal along with the time to tell the client that a leap second is going to be added or removed from the end of the current day. When you set the "Obey Leap Second" option in FACTS, the program will act on this leap second information and - come midnight - will adjust the time accordingly (note that "AutoDST->Quiet" also affects the notification of leap seconds).

If you have your machine permanently connected to the Internet, with a (fairly short) time interval set in FACTS, there is no need to set this switch. If you run timing critical programs, please either do not set this switch, or set "Write Time To" to "BattClock" only. See known bugs