Counterparties should ensure certain levels of operational information are discussed and shared before beginning to transact with each other.
The following list represents an indicative grouping of data points which should be exchanged between new trading counterparts. It is recommended that notification procedures be arranged to ensure data is current in addition to a semi-annual review.
• Governing E.g. legal documentation
• Collateral - E.g. schedule, type, margin, currency
• Markets to be traded - E.g. dividend rates, SSIs
• Billing - E.g. frequency, CCY, SSIs, margin
• Vendor platform functionality - E.g contract compare, billing, returns, marks
• Marking - E.g. frequency, rounding
• Returns - E.g. return restrictions, cut-off times
Please note that some firms utilise vendor solutions to support many of the above data points. Counterparties should communicate their use of vendor platforms, or provide alternatives where one counterpart does not use the same platform.
Already a member? Login to your account
Interested in Becoming a Member?
ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.Become a member today