Search

ISLA logo

Standard Settlement Instructions

Storage

Where possible all standard settlement instructions should be maintained and exchanged via an SSI repository. Where the use of a repository is not possible, standard settlement instructions should be stored and maintained locally. Standard settlement instructions should be stored at entity/fund level for each market. (IBP-105)

New Funds/ Entities

Standard settlement instructions should be provided at the set-up stage of any new business. Authentication and call back procedures should be performed prior to any new activity and within a reasonable time of receipt. Confirmation that all standard settlement instructions have been set up should be provided prior to any new activity. (IBP-106)

Changes to existing SSIs

Notification

Where SSIs are maintained on a centralised vendor platform used to communicate and reconcile SSI between counterparts, any change to an SSI should generate instant notifications. That notification should contain a forward effective date of 30 days.

If SSI communcation is not provided via vendor platform, the initiator of any SSI change should give at least 30 business days' notice via email or other agreed medium, such as SWIFT. That notification should provide a clear summary of the changes. Authentication and call back procedures should be performed prior to the effective date. All notified changes should be updated prior to or on the effective date by all parties. (IBP-107)

Changes to existing SSIs

SSI Standard

ISLA supports the use of ISO20022 Standing Settlement Instructions for Securities, Payments and FX which may be found here.

The Best Practice Working Group noted that many market participants use vendor solutions to store and swap standard settlement instruction. Where this is the case, counterparts should determine which vendor solution their counterpart uses and ensure data is distributed in a timely manner.

(IBP-294 UNDER ISLA REVIEW)

Authentication

Standard settlement instructions that are maintained in an SSI repository should be subject to reasonable verification controls. Where standard settlement instructions are retrieved from a repository these should be deemed to be authenticated and no call back required. Standard settlement instructions that are received by other means will be subject to the internal controls of each party. Standard settlement instructions that are input or amended manually should be subject to reasonable verification controls. If possible, call backs should be performed with a different known individual to the individual that sent the SSIs. All parties should work bilaterally to meet internal controls and requirements. (IBP-108)

Maintenance

All parties should reconcile standing settlement instructions no less than annually. (IBP-109)

Close

Already a member? Login to your account

Interested in Becoming a Member?

ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.

Become a member today