Claims Issuance & Settlement

Issuance & Tolerance>

Status: Under Review, Last Updated: 28/01/2022

Issuance & Tolerance
For CSDR, counterparties should issue their claim(s) within 30 calendar days from the CSD penalty issuance. Please note that the proposed deadlines for CSDR triggered claims may be amended as the process matures.

For non-CSDR related claims, counterparties should issue their claim(s) within a maximum of 60 days from the claim inception date for example, the final settlement of a sale that triggered a recall.

It is recommended that one claim is raised per instruction. Claims should only be initiated when actual settlement has occurred.

The recommended minimum claim is 500 EUR or equivalent per instruction, or lower if bilaterally agreed (prior to activity). Parties may also agree consolidation of multiple failing transactions to pass a 500 EUR threshold. For example, if a penalty for a failing instruction is below the value of 500 EUR however, it fails for a number of days and the total cost of the penalty > EUR 500, this would be considered a reasonable claim.

The receiving party must endeavour to pay the claim within 30 days where possible and within a maximum of 60 days, from the CSD penalty issuance.

Claims should be sent electronically or via e-mail, preferably in PDF format, with signature. The recipient should acknowledge receipt of the claim within 24 hours.

Once the claim has been agreed by both trading parties, payment should be made within 5 business days. The claim issuer must confirm receipt of payment to formally close the claim.

The claim issuer should provide the following information:

• Claim Initiator Name and BIC

• Trade Date of failing instruction

• Intended Settlement Date

• Actual Settlement Date

• Security ID (ISIN) and Description

• Quantity

• Cash Currency & Value - Settlement value or recall value

• Claim Reference - PCOM or other relevant reference

• Claim Calculation (i.e., cash value, interest rate, No. of days of failing instruction)

• Claim/Penalty Currency

• Claim/Penalty Amount

• Reason for claim

• Payment Details - SSI’s (IBP-141)