The margin indicator within CREST is a mandatory matching field which is populated by some loan counterparts as 105% and others as 100% when instructing Free Of Payment (FOP) transactions.
The initial discussion within the Best Practice Working Group seems to support the universal use of 5% on FOP, but a proposal was raised to conduct an ISLA survey to close the topic. This action has been noted and pending that survey outcome, the default of 5% could be applied to ensure widest possible settlement efficiency. (IBP-295)
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