IPC's Flashcards
1
Q
What are IPC’s ?
A
Irrevocable Payment Commitments
2
Q
Who issues this ?
A
Custodian banks
3
Q
Why are IPC’s issued ?
A
To guarantee payment for securities in Capital market transactions
4
Q
What is the max intraday risk considered for custodian banks issuing IPC’s ?
A
CME at 30% of settlement amount
5
Q
Who are all included in the amended definition of “Authorised persons” ?
A
Authorised Dealer category 1 banks
Standalone primary dealers category 3
Recognised stock exchanges
Recognised clearing corporations
6
Q
What led to the review of guidelines on issuance of IPCs by banks ?
A
Introduction of T+1 rolling settlement
7
Q
Can IPC’s be withdrawn once issued ?
A
NOOOOO
