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New or Close

New or Close


It is recommended that that all loan transaction activity, new or close, should be undertaken through automated platforms.

For reference to working group discussion on this topic, please refer to CSDR: Settlement Discipline Impact to Securities Lending (Sep 2019) (IBP-134)


On receipt of a notification, the receiving party should provide an acknowledgement (ACK) within an hour in support of the one-hour timestamp SFTR validation rule.

See SFTR 'Execution Timestamp'


Recall Close

Where a recall is issued by a lender and the borrower cannot return the full quantity, the response to a notification should advise the shapes that will be returned or partial delivery that is possible to fulfil the recall notice. (IBP-317)


The use of vendor platforms, is recommended where possible for trade notifications and other communications between parties. As such it is recommended that counterparts communicate their platform and functionality preferences on a regular basis. Functionality may included features that support loan or collateral reconciliation, trade notification, regulatory reporting, any restrictions that might apply to a return (e.g. Maturity Date) and other useful communications.

It is further recommended that a reconciliation of counterparty platforms and functionality is kept up-to-date to ensure communications are not disrupted.

It should be noted that restriction functionality may be utilised on vendor platforms which result in a trade notification reject. Counterparts should communicate reject/filters to their counterparts to improve transparency. (IBP-136)


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