Settle closing Settle the closing leg of the transaction. Securities financing Instructing Settle closing Settle the closing leg of the transaction and advise the Securities Financing instructing party. Servicing Party If it is a Repo with multiple pieces of collateral, there should be one securities financing instruction per piece of collateral as today. Two Parties (Securities Financing Servicing Party and the Settlement Executing Party are the Same) Step Description Initiator Instruct securities Instruction of repo, reverse repo, securities lending Securities Financing financing transaction settlement and securities borrowing settlement Instruction Party transactions, based on an instruction received by a client or not. Process instruction Technical and business validation of the details of the Securities Financing instruction before further processing or not. Servicing Party/Settlement Executing Party Processed Yes/No If YES, that is, the instruction is for further Securities Financing processing, the next step is the instruct settlement Servicing Party/Settlement and monitor activity. It is understood that, though not Executing Party shown on the diagram, a status update may also occur following a YES. Create securities Instruction of the opening and closing leg for Securities Financing financing transactions settlement in a scenario where the next party in the Servicing Party/Settlement settlement and monitor chain will only execute the settlement of the opening Executing Party and closing legs. Process instruction Opening and closing and opening. Securities Financing Servicing Party/Settlement Executing Party Manage securities Monitor the transaction and report to client on Securities Financing financing transaction status and confirmations received from the securities Instruction Party financing servicing party. Manage securities Monitor the transaction and report to client based on Securities Financing financing transactions status and confirmations received from the settlement Servicing Party/Settlement executing party. Executing Party Opening settled If NO, go to update status activity. If YES, go to settle Securities Financing No/Yes opening activity. Instruction Opening settled If NO, go to update status activity. If YES, go to settle Securities Financing No/Yes opening activity. Servicing Party/Settlement Executing Party Closing settled No/yes If NO, go to update status activity. If YES, go to settle Securities Financing closing activity. Instruction Party Closing settled No/yes If NO, go to update status activity. If YES, go to settle Securities Financing closing activity. Servicing Party/Settlement Executing Party
Settle closing Settle the closing leg of the transaction. Securities financing Instructing Settle closing Settle the closing leg of the transaction and advise the instructing party. Securities Financing Servicing Party If it is a Repo with multiple pieces of collateral, there should be one securities financing instruction per piece of collateral as today. Two Parties (Securities Financing Servicing Party and the Settlement Executing Party are the Same) Step Description Initiator Instruct securities financing transaction Instruction of repo, reverse repo, securities lending settlement and securities borrowing settlement transactions, based on an instruction received by a client or not. Securities Financing Instruction Party Process instruction Technical and business validation of the details of the instruction before further processing or not. Securities Financing Servicing Party/Settlement Executing Party Processed Yes/No If YES, that is, the instruction is for further processing, the next step is the instruct settlement and monitor activity. It is understood that, though not shown on the diagram, a status update may also occur following a YES. Securities Financing Servicing Party/Settlement Executing Party Create securities financing transactions settlement and monitor Instruction of the opening and closing leg for settlement in a scenario where the next party in the chain will only execute the settlement of the opening and closing legs. Securities Financing Servicing Party/Settlement Executing Party Process instruction Opening and closing and opening. Securities Financing Servicing Party/Settlement Executing Party Manage securities financing transaction Monitor the transaction and report to client on status and confirmations received from the securities financing servicing party. Securities Financing Instruction Party Manage securities financing transactions Monitor the transaction and report to client based on status and confirmations received from the settlement executing party. Securities Financing Servicing Party/Settlement Executing Party Opening settled No/Yes If NO, go to update status activity. If YES, go to settle opening activity. Securities Financing Instruction Opening settled No/Yes If NO, go to update status activity. If YES, go to settle opening activity. Securities Financing Servicing Party/Settlement Executing Party Closing settled No/yes If NO, go to update status activity. If YES, go to settle closing activity. Securities Financing Instruction Party Closing settled No/yes If NO, go to update status activity. If YES, go to settle closing activity. Securities Financing Servicing Party/Settlement Executing Party
ISO20022_MDRPart1_SettlementAndReconciliation_2017_2018_ForSEGReview_v1.docx