MIR 4.11 MIR 4.11 Settlement finality
A Recognised Clearing House must have adequate arrangements to ensure clear and certain final settlement of payments, transfer instructions or other obligations of Members and other participants using its facilities and, where relevant, its own obligations. Where possible, a Recognised Clearing House should provide intra-day or real-time settlement finality to reduce settlement risk.
A Recognised Clearing House's arrangements for final settlement must:(a) ensure that, if intra-day or real-time settlement is not feasible, final settlement (of any payment, transfer instruction, or other obligation that has been submitted to and accepted by a Recognised Clearing House in accordance with its acceptance criteria) occurs at least by the end of the value date of the relevant transaction; and(b) clearly define:(i) the point at which the transfer instruction takes effect as having been entered into the system and when the final settlement occurs;(ii) the point after which unsettled payments, transfer instructions, or other obligations may not be revoked by the parties to the underlying contract; and(c) prohibit the revocation by a Member, participant or other user of a transfer instruction from the point specified in accordance with sub-paragraph (b)(ii).
For the purposes of this Rule:(a) "final settlement" is the irrevocable and unconditional transfer of an asset or Financial Instrument, or the discharge of obligations arising under the underlying contract by the parties to the contract; and(b) "value date" is the day on which the payment, transfer instruction, or other obligation arising under the underlying contract is due and, accordingly, the associated funds or Investments are available to the respective parties under the contract.