Final Maturities:

• Home


• ISLA Corporate Actions Best Practices


• Corporate Actions:


• Frequently Asked Questions:


• Final Maturities:

Final Maturities

Status: Finalised Last Updated: 28 Jan 2022

Description:
Typically, bonds stop earning interest after they mature. Bonds are usually de-listed from the exchanges ahead of their expiry date.

Issuers return the holders of the bonds their face value after expiry. The unwinding of an expired bond position could take weeks or even months during which time the collateral (and capital) are tied up.

Best Practice:
SFTs with bonds and other expiring securities on loan (and as non-cash collateral) are closed out or exchanged a 7 days prior to the de-listing date.

It may not always be possible to do this due to market liquidity, holding an overall short position or other trading obligations, however a reduction of the number of expired securities on loan would be very beneficial. (COAC-136)