The process of trade matching is intended to ensure that transactions will not fail to settle once input into the security settlement system (SSS) at a CSD or ICSD because of mismatches between the instructions entered by or on behalf of counterparties. It is not good practice for counterparties to rely on trade matching at the SSS for the verification of the terms of transactions, as this usually reduces the time to correct mistakes or resolve disagreements about the terms of transactions and allows an unexpected build-up of risk. Once a transaction has been agreed counterparties should verify that they agree the terms of the transaction. A post-trade, pre-settlement, process of verification should be performed promptly after the execution of a trade, which means as soon as possible after the trade is executed and prior to SSS. All fields and Standard Settlement Instructions (SSIs) should be matched at the point of trade matching verification in order to mitigate the risk of a trade mismatching, or trades being set up with economic differences. (IBP-118 UNDER ISLA REVIEW)
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