ISLA has published the results of a settlement survey undertaken with a number of member firms. The objective of the survey was to understand how the market undertakes pre-matching and manages loan settlements, and whether the adoption of a best practice could help post-trade efficiencies. ISLA believes that increased efficiencies in these important processes could aid the successful production and matching of SFTR reporting obligations as well as mitigate some of the economic impacts of CSDR.
The survey reveals some clear trends and areas which can be focused on to help improve processing and to this end, ISLA will be forming a working group with the following objectives:
- Consider standardized approach to managing SSI’s
- Consider how to promote automated pre-matching and consider available functionality shortfalls
- Develop market guidance to promote manual pre-matching processes where required