Claims as a Result of Penalties & Fines
Partial Close & Claims>
Status: Best Practice Finalised, Last Updated: 06/10/2020
Partial Close & Claims
Counterparties should endeavour to settle partial sales of stock wherever possible (see IBP-307), and should accept partial returns or recalls. Counterparties will only be liable for 'sale fail' costs for the portion of the sale that fails due to an outstanding loan position which has been recalled and not delivered in the required timeframe.
It should be noted that in some markets, additional charges may be incurred for late settlements. Where these charges are incurred due to a failing recall, the failing party is liable. Equally if overdrafts are incurred the impacted party may consider raising a claim for any costs from the failing party. (IBP-140)
Sorry! You need to be logged in to access this document.
This premium content is available to ISLA member firms only. If you do not have a login, please use the ‘Request Login’ within the Member login.
If your firm is not a member of ISLA, find out more information regarding our current members, the types of membership we offer, and the benefits of joining.Find out more
Creating your PDF, please wait.
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