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Returns

Returns

General

Members recognise potential differences between standard returns initiated by borrowers and loan recalls initiated by lenders, typically in response to asset sale by beneficial owner.

Returns may be instructed for standard settlement with reference to the related market, as noted in the GMSLA, however prevailing market practice allow for returns on T+0.
This provides benefits to both parties and, in relation to settlement efficiency, may support improved settlement rates as it relates to increase certainty of assets being place. Where loan returns are instructed to return on T+0, instructions should be provided at least 90 minutes prior to FOP cut-off to avoid instruction mismatches.
(IBP-137)

Notification Template

If use of a vendor platform is not available, counterparties should use the standard template detailed on Chapter 4, page 11 of the CSDR: Settlement Discipline Impact to Securities Lending (Sep 2019). (IBP-138)

Partial Close and Claims

Partial settlement can be requested within market deadlines following receipt of shares or notification that the recall recipient is insufficient to deliver. Where this is the case, it is recommended that both parties partially settle wherever possible to reduce exposure to potential claims or fines.
(IBP-316)

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