Clearing and Settlement of Derivatives

Bear in mind that there may be no requirement for a counterparty

to notify the other counterparty about an action or what options there

are for settlement.

Summary

Corporate actions can cause all sorts of problems for operations teams

and can result in financial and, not to mention, reputation loss.

Procedures must be devised and maintained, with operations teams

aware of both the impact and how to deal with an event should it

occur. A ‘checklist’ for corporate actions can prove invaluable.

An example of the ‘checklist’ we can draw up for corporate actions

is as follows:

Event Capture Source of data on the corporate action ...