The use of standard settlement instructions (SSI's) is strongly encouraged because:
A) it reduces operational risk
B) it splits differences arising from failed settlement between the two counterparties
C) it removes the need for sending out SWIFT confirmations
D) the use of SSI's secures the trading on more secure platforms

Question

Quizplus · Accepted Answer

The use of standard settlement instructions (SSI's) helps reduce operational risk by ensuring that all parties involved in a trade are using the same information when settling the transaction. This helps prevent errors and delays in settlement, which can be costly and time-consuming for both parties. SSI's do not split differences arising from failed settlement, remove the need for sending out SWIFT confirmations, or secure trading on more secure platforms.

The Use of Standard Settlement Instructions (SSI's) Is Strongly Encouraged