Collateral Fails Management

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

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)