Background

In a securities lending trade, the lender will deliver the security being lent to the borrower. This is performed on a date agreed by the parties (i.e. it is scheduled) and forms part of the settlement obligations of the trade.

The actual transfer of the shares can be processed using the TransferInstruction primitive instruction. However, under the scheduledTransfer type there is a mandatory transferType attribute where the type of this scheduled transfer must be defined. This enum currently has no option that can be used to define the delivery of the security to the borrower.

Proposal

Add a new “SecurityDelivery” option to the ScheduledTransferEnum

Compatibility

This is adding a new option to an existing enum so has no compatibility issues

Release

CDM V7 dev only

Additional Context

The ScheduledTransferEnum appears to be related to cashflows. However, the transfer -> transferExpression is mandatory and must contain either a priceTransfer or a scheduledTransfer. Within scheduledTransfer, either the transferType or corporateActionTransferType must be set, with transferType being relevant to this use case.

Due to these cardinality constraints the need for a new option in ScheduledTransferEnum is being proposed, even though it looks like all the options in that enum appear to relate to cash flows and not securities per se.