Street Side Term Trades

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Street Side Term Trades

Status: Finalised Last Updated: 26/04/2021

Question:
Where there is a term trade agreed between borrower and agent lender but the underlying loans at beneficial owner level are open and clients can sell out of positions, how should these be reported?

Best Practice:
The ISLA Working Group has agreed that the answer is subjective, dependent on a firm’s legal perspective and the how, within the agreement, term dates are applied (i.e. whether at the shell notional trade level or the beneficial allocation reporting level of the trade). (SFTR-288)