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Cash SSI Exchange

Cash SSI Exchange

Description

SSIs or Standing Settlement Instructions are account numbers and other details which have been agreed in advance, and that are to be used every time a trade is made.

Cash payments are sometimes paid late because the SSIs are not kept updated by counterparties or have not been pre-agreed before settlement date.

Updating SSIs can take more time than available on payment date as often firms require manual processing: Fax and call backs as well as senior signoff.

Some firms procedures insist on completing a call back for every cash payment, even if the account and currency have already been paid multiple times on the same day.

Best Practice

Firms must ensure that they have adequate processes and systems in place to manage SSIs to avoid the requirement for call backs to be performed.

Counterparties should establish processes to monitor the SFTs trading on new accounts or currencies and agree cash SSIs ahead of payment date.

Third party providers such as Pirum and Alert offer comprehensive services to exchange and confirm cash SSIs for subscribers. (COAC-137)

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