Content ITV PRO
This is Itvedant Content department
Typical Operational Breaks
Settlement Instruction Issues
Learning Outcome
5
Assess the risks arising from incorrect settlement instructions.
4
Describe how these issues are detected and resolved.
3
Explain the causes of settlement instruction issues.
2
Identify common settlement instruction issues.
1
Define settlement instructions and their purpose.
What Are Settlement Instructions?
Settlement instructions:
Details that tell the clearing and settlement systems exactly where and how securities and funds should move to complete a trade, such as the custodian, depository account, and payment details.
Also called SSIs:
These are often referred to as Standard Settlement Instructions, since they are usually set up in advance for a client or counterparty and used repeatedly for future trades.
Common Types of Settlement Instruction Issues
Custodian errors: The trade is instructed to settle through the wrong custodian, who does not hold the relevant securities or is not authorised to act for that client.
Depository account errors: An incorrect demat account number is used, so securities cannot be credited or debited from the intended account.
Payment instruction errors: Incorrect bank account details, wrong payment method, or missing payment references, causing funds to be sent to the wrong place or delayed.
Common Causes
Outdated static data:
A client's custodian or bank details change, but the old details are not updated in the firm's records.
Common Causes
Manual entry errors:
Incorrect account numbers or codes typed in while setting up or amending settlement instructions.
Multiple accounts:
A client holding several accounts with different custodians or banks, leading to confusion over which one applies to a specific trade.
Detection and Resolution
Core Concepts (Slide 6)
Core Concepts (Slide 7)
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Trade Lifecycle & Reconciliation Operations - Settlement Instruction Issues
By Content ITV
