Reconciliations

Contract Compare>

Status: Under Review, Last Updated: 09/11/2020

Contract Compare
Contract Compare is a procedural function in which counterparts to outstanding lending transactions reconcile those outstanding (open) contracts. Most market participants utilise on-line tools provided by market vendors,

Contract comparisons may be performed against multiple aspects of outstanding loan and collateral positions, which will improve settlement and future billing processes. It should be noted that this practice is distinct from the notification communication(s) between counterparts for lifecycle events.

Contract Compare field composition and applied tolerance levels are agreed between the two parties. However, both parties should take into account any related regulatory obligations or responsibilities, such as SFTR that may influence the number and scope of data points reconciled.

ISLA supports the use of automated vendor solutions for reconciliation and contract compare practices. (IBP-153)

Data Frequency & Content>

Status: Under Review, Last Updated: 09/11/2020

Data Frequency & Content
Data should be transmitted between counterparties, or their preferred market vendor, at least once a day preferably at each close-of-business (COB), by both counterparties.

The data elements present in the data set should be agreed by both parties, including what tolerance of pairing/matching is appropriate.
On completion of a reconciliation, agreed methods of communication, analysis, investigation and escalation should be applied.

Please note that all the above functions may be supported by a mutual vendor platform or should be agreed bilaterally. (IBP-155)