Collateral Fails Management

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Status: Under Review, Last Updated: 07/08/2020

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Collateral fails may occur due to wrong instructions or short positions either on
(a) the commencement of the Loan
(b) in case of a substitution of Collateral or with regard to Margin Maintenance
(c) on the termination of the Loan.

In all cases, a failure to deliver or re-deliver Collateral should not be considered as cover of exposure for the receiving party.

Overnight exposure should be avoided where possible. (IBP-192)