Csd Bilateral Agreement

Back-to-back trades: a pair of transactions in which a counterparty must receive the same securities on the same day and re-deliver them. The transactions involved may be purely purchases and sales or collateral transactions (pension or securities lending). For example, a stockbroker could buy and sell the same securities on the same settlement date, if he manufactured contracts for clients, or could buy securities for inventory and finance the position through a pension contract. In particular, bilateral cancellation means that both parties are required to submit cancellation requests for congruent OVER-the-counter transactions. Otherwise, the trade remains at stake for liquidation. With regard to the additional new fields of correspondence, market participants will be able to deviate from the standard procedure for market exposures, provided that both counterparties agree from this point of view. Fields are optional, but if they are ordered by a party, they become consistent criteria. This regulation applies to all DTCs in the European Union, as well as those of Iceland, Liechtenstein and Norway (as part of the European Economic Treaty). Switzerland should also be subject to certain provisions of the CSDR through bilateral agreements. There is no grandfather process for the DCT (the previously agreed rules and standards would apply); As a result, all DTCs must follow an approval process to act under the new regime. Pre-matching process: procedure for comparing trading or settlement information between counterparties before any other comparison or comparison procedure. In general, pre-matching does not engage counterparties, as the comparison can do. Deposit link: a link between two SSS to settle transactions on securities held in SSS1 with SSS2 (instead of SSS1) when both the buyer and seller participate in SSS2.

The retention links do not provide for credit transfers between SSS1 and SSS2 and cannot be used to settle transactions between an SSS1 participant and an SSS2 participant. Trading partners are responsible for triggering a buy-in for transactions not billed by the central counterparty (the central counterparty is responsible for the transactions settled by the central counterparties). However, the details of this new regime have yet to be definitively adopted by the European Commission, which expires in the coming months. Matching (or comparison, review): the procedure for comparing transaction or settlement details provided by counterparties to ensure that they accept the terms of the transaction. Settlement instructions that have been successfully compared against the parties are called concurring settlement instructions. In some securities settlement-delivery systems, sanctions may be imposed on participants who unilaterally revoke the concurring settlement instructions.

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