The International Securities Lending Association (ISLA) has published the results of a settlement survey that it has undertaken with a number of its member firms.
The association said the aim was to understand how the market undertakes pre-matching and manages loan settlements, and whether the adoption of a best practice could help post-trade efficiencies.
ISLA said it believes that increased efficiencies in these important processes could aid the successful production and matching of Securities Financing Transactions Regulation reporting obligations and mitigate some of the economic impacts of Central Securities Depositories Regulation.
According to ISLA, the survey revealed some clear trends and areas, which can be focused on to help improve processing and that it will thus be forming a working group formed from volunteers from the survey responses and representatives from its executive operations group firms.
That group will set out to consider a standardised approach to managing standard settlement instructions, to consider how to promote automated pre-matching and to consider available functionality shortfalls.
It will also be tasked with developing market guidance to promote manual pre-matching processes where required.
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