Matching and Not described in detail here. Executing Party settlement process needed Yes/No If YES, that is, a pending instruction need to be split, Instructing Party the next step is the instruct split activity. If NO, the pending instruction goes on its matching and settlement life cycle. Instruct split Instruction of the split on a pending instruction. The Instructing Party split may be reported to the client. It is to be noted that an instruction resulting from the split could be split itself, etc. Execute Execution of the The internal process performed Executing Party to execute the split may differ from one system to another. It is not important as long as the communication regarding the split is harmonised. Monitor matching and This activity is not described in detail here. Applies to Instructing Party settlement process all instructions, resulting from a split or not. Monitor matching and This activity is not described in detail here. Applies to Executing Party settlement process all instructions, resulting from a split or not. Settled Yes/No If NO, go to update status activity. If YES, go to settle trade activity. Applies to all instructions, resulting from a split or not. Update status Update status (and inform about it). Applies to all instructions, resulting from a split or not. Settle instruction Settle the instruction in the custody system. Applies to all instructions, resulting from a or not. Allegement Process Step Description Initiator Process allegement Process the allegement and allegement removal Instructing Party received from the Executing/Servicing Party Allege Following the receipt of counterparty instruction, an Executing allegement is sent. Instruction sent or not If an instruction has been sent, go to Investigate and Instructing Party contact counterparty. If NO, go to Initiator or not? Investigate and Investigation of the and contact of counterparty if Instructing Party contact counter needed. Processing and not describe here. Executing Party matching process Initiate or not If the Instructing Party is the initiator of the instruction, Instructing Party then instruct. If not, allege client Matched with the If yes, go to remove allegement. If not, go to allege Executing Party alleged instruction counterparty Instruct Instruct the missing instruction. Instructing Party Remove allegement Remove the allegement previously sent. Executing Party Allege client Allege the next party in the chain, that is, the client. Instructing Party Allege counterparty Allege the counterparty. Executing Party
Matching and settlement process Not described in detail here. Executing Party needed Yes/No If YES, that is, a pending instruction need to be split, the next step is the instruct split activity. If NO, the pending instruction goes on its matching and settlement life cycle. Instructing Party Instruct split Instruction of the split on a pending instruction. The split may be reported to the client. It is to be noted that an instruction resulting from the split could be split itself, etc. Instructing Party Execute Execution of the The internal process performed to execute the split may differ from one system to another. It is not important as long as the communication regarding the split is harmonised. Executing Party Monitor matching and settlement process This activity is not described in detail here. Applies to all instructions, resulting from a split or not. Instructing Party Monitor matching and settlement process This activity is not described in detail here. Applies to all instructions, resulting from a split or not. Executing Party Settled Yes/No If NO, go to update status activity. If YES, go to settle trade activity. Applies to all instructions, resulting from a split or not. Update status Update status (and inform about it). Applies to all instructions, resulting from a split or not. Settle instruction Settle the instruction in the custody system. Applies to all instructions, resulting from a or not. Allegement Process Step Description Initiator Process allegement Process the allegement and allegement removal received from the Executing/Servicing Party Instructing Party Allege Following the receipt of counterparty instruction, an allegement is sent. Executing Instruction sent or not If an instruction has been sent, go to Investigate and contact counterparty. If NO, go to Initiator or not? Instructing Party Investigate and contact counter Investigation of the and contact of counterparty if needed. Instructing Party Processing and matching process not describe here. Executing Party Initiate or not If the Instructing Party is the initiator of the instruction, then instruct. If not, allege client Instructing Party Matched with the alleged instruction If yes, go to remove allegement. If not, go to allege counterparty Executing Party Instruct Instruct the missing instruction. Instructing Party Remove allegement Remove the allegement previously sent. Executing Party Allege client Allege the next party in the chain, that is, the client. Instructing Party Allege counterparty Allege the counterparty. Executing Party
ISO20022_MDRPart1_SettlementAndReconciliation_2017_2018_ForSEGReview_v1.docx