Claims issuance and settlement

Status: Best Practice Finalised, Last updated: 06-10-2020

Issuance and tolerance

Counterparties should aim to issue claims within 30 days but within a maximum of 60 days of the settlement of the sale.

The recommended minimum claim is EUR500 or equivalent, or as bilaterally agreed (prior to activity). The receiving party must endeavour to pay the claim within the same time frames of 30 days where possible and within a maximum of 60 days.

The claim issuer should provide the following information on claims:
- Date, time and the name of the borrower contact to whom the recall was issued
- Trade and settlement date of recall
- Actual settlement date of recall
- Security ID and description
- Quantity recalled
- Cash amount of recall (based on sale price)
- Claim calculation (i.e. cash amount of recall, interest rate, days of fail/100/360 or 365 depending on market)
- Reason for claim
- Payment instructions

Claims should be sent via e-mail with, preferably in PDF format with signature.
The recipient should acknowledge receipt within 24 hours via return of e-mail. (IBP-141)