Business transactions
Updated 17 September 2007Lending and borrowing
Lending and borrowing activities are closely linked to the trading and settlement business processes, for example, securities may be borrowed when they have been sold short, but must be delivered to the buyer.
The transaction flow provides a high level overview of the existing lending and borrowing messages. These messages are currently available only in ISO 7775 syntax. The subsequent movement of securities are however in ISO 15022 syntax.
These messages cater for all aspects of the lending and borrowing activities - to list securities available for lending, request the borrowing of securities, notify the return or recall of securities previously out on loan, confirm the details of a loan, partial recall or return.
In addition, there are also ISO 7775 messages available to adjust the amount of collateral held against securities out on loan (MT 581) or to claim the reimbursement of funds or securities (MT 582).