Confirmation is the process of providing a complete record of the commercial terms of a transaction and settlement instructions to the other party. The provision of a Confirmation allows the recipient to cross-check the sender's record of the terms of a transaction against the recipient's own records. Confirmations can also be used during the life of a transaction to verify changes. Counterparties should clarify prior to undertaking any transactions if they intend to provide confirmations, in what timeframe, and any expectations they have in relation to confirmations, of the other counterparty. If counterparties agree not to use confirmations, it is strongly encouraged that a robust Trade Matching and post-trade Contract Compare process is in place between the parties in order to mitigate risk.
(IBP-119 AGREED IN 2017)
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