The Financial Markets Standards Board (FMSB) published its final Standard for Sharing of Standard Settlement Instructions (SSIs), aimed at increasing the use of electronic solutions that standardise and pre-authenticate settlement instructions to support straight-through processing and reduce settlement fails caused by incorrect SSIs. Where electronic sharing is not legally or operationally feasible, the Standard provides templates for manual SSI exchange. The Standard is split into Core Principles covering channels, processes and governance for SSI sharing, and Templates for residual manual use cases. The templates were developed with ISITC and use an ISO 20022-based taxonomy to reduce ambiguity in SSI data fields and enable automation by receiving counterparties. It applies to FMSB member firms when sharing their own SSIs and when managing clients’ SSIs as part of services such as custody or prime brokerage, but not to the management of counterparties’ SSIs, and non-members are invited to adopt it. The release positions the Standard as supporting industry work on accelerated settlement, referencing the UK and European Union’s planned move to T+1 in 2027 and recommendations from the Bank of England and Financial Conduct Authority-led Post-Trade Task Force.
Financial Markets Standards Board 2025-01-27
Financial Markets Standards Board publishes final Standard for Sharing of Standard Settlement Instructions to reduce settlement fails
The Financial Markets Standards Board published its final Standard for Sharing of Standard Settlement Instructions, promoting electronic solutions to standardize and pre-authenticate settlement instructions, reducing settlement fails. Developed with ISITC and using an ISO 20022-based taxonomy, it applies to FMSB member firms and supports industry efforts towards accelerated settlement, referencing the UK and EU's planned T+1 move in 2027.