Partial Loan Close

Partial Loan Close>

Status: Under Review, Last Updated: 28/01/2022

Partial Loan Close
A Partial Loan Close is the return of some part of an existing stock loan. The remaining part of the original loan remains with the borrower.

Regarding the notification to partially close, and subsequent settlement instruction(s), both parties should communicate and instruct a delta quantity and value rather than a full close and re-opening of the remaining loan.

This practice aligns with SFTR Best Practices [SFTR-337]

“ Partial returns: should be reported with a MODI (reducing quantity). When the final value is fully returned, this should not be reflected by a MODI reducing the quantity to '0'. “ (IBP-330)