The client's cash account is credited with funds on a sale (and debited on a purchase) on the due settlement date in place of when a trade actually settles. In a 'Contractual Settlement' environment, 'Failed Trade Reporting' is important because the actual settlement performance - and the problems they cause - are hidden.
Taking a proactive stance, reviewing all failed trades and working with local agent banks and clients to minimize their occurrence. The process continues to identify the root causes of failed trades globally and suggests new methods to clients and agent banks.
The late delivery of securities and late payment of cash often give rise to financial penalties or indirect costs (such as the loss of interest on funds). Many markets have an established mechanism for making a claim (a 'market claim') so that the owner receives compensation for some of the associated costs. The service provider makes these market claims and actively pursues unpaid claims.