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Method Used to Provide Collateral

Method Used to Provide Collateral

Field 2.20 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: No>

Status: Best Practice Finalised, Last Updated: 26/04/2021

Field 2.20 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: No

Indication whether the collateral is subject to a title transfer collateral arrangement, a securities financial collateral arrangement, or a securities financial with the right of use. Where more than one method was used to provide collateral, the primary collateral arrangement should be specified in this field.

Best Practice:
While this field is not mandatory in the Validation Rules, as it is not accessible on a COLU message it should be populated on the NEWT, MODI, CORR & POSC for all SFTs which will be collateralised (i.e. Field 2.72 (Uncollateralised SL Flag) = "FALSE") and only where that collateral will be non-cash (even when Field 2.75 (Type of Collateral Component) is left blank).

When populated, this field shall contain only one of the following values, with the value used derived from the master agreement type used.

"TTCA" - title transfer (Default value where for cash pool collateral is taken and population is required - see minutes of SFTR WG 03NOV2021).
"SIUR" - a security interest with the right to re-hypothecate.
"SICA" - a security interest without a right to re-hypothecate.

For pledge collateral contracts such as the Pledge GMSLA, this field should be populated with "SICA". (SFTR-40)


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