Don't Know Trades and Aged Fails
Chapters in this video
- 0:00 The DK world: does the contra-member agree the trade happened
- 1:21 Where the DK sequence starts and the clearing organization exclusion
- 2:16 The confirming member sends the notice, not the DK
- 2:42 Silence as DK under the alternative form
- 3:45 DK versus delivery fail: separate stages, separate concepts
- 4:50 Aged securities fails and the handoff to buy-ins and close-outs
- 5:41 Rapid-fire exam recap
What this video covers
- When the Don't Know (DK) procedure applies: only to member-to-member trades outside a registered clearing organization
- The correct chronological trigger for starting a DK sequence (after comparison, never after missed delivery) and why sequence matters
- The confirming member's role: sending the notice claims the trade, so the sender has not DK'd anything
- How silence from the contra-member constitutes a DK under the alternative form
- Why a DK issue and a delivery fail live at completely different stages of the trade lifecycle
- The exact three-step path from confirmed trade to delivery fail, and why confirmation must precede any fail
- How aged securities fails are a separate topic from DKs, require their own confirmation, and lead to the buy-ins and close-outs lesson
Read the full lesson, free
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