Clearing, Settlement and Custody

Reconciliation of bond positions are performed by comparing the

investor’s ledger records to those of the custodian or ICSD where the

bonds are held, or to the actual bonds physically held in, for instance,

the vaults of the organization.

As the reconciliation is prepared from a trade date position and the

custodian’s records reflect the actual (settled) position, there will be

differences, which can be made up of:

䊏 Trades pending settlement

䊏 Failed settlements

䊏 Corporate actions

䊏 Securities lending and borrowing positions

䊏 Bond positions blocked for whatever reason by the custodian

Any additional differences that cannot be accounted for will indicate ...