P248 – Aligning BSC interest calculation requirements with the FAA calculation method and P235 principles
Formal title: Aligning BSC interest calculation requirements with the FAA calculation method and P235 principles
P248 proposes to bring the BSC requirements for four Funds Administration Agent (FAA) interest calculations in line with the principles of accuracy and fairness established by P235.
We have identified a further four calculations that are unclear on how interest is calculated. These calculations are for:
- Interest on Ad-Hoc Trading Charges relating to Extra-Settlement Determinations (ESDs). In particular, Section U2.2.3(i) of the BSC requires interest to be calculated if an ESD is followed by a subsequent Settlement Run for the same Settlement Day;
- Interest on payments relating to Contingency Provisions (i.e. Black Start, Manifest Errors, and Q8 compensation);
- Interest relating to Initial Settlement Runs for which the Payment Date is delayed by more than a week; and
- Interest relating to late payment of Trading Charges (‘Payment Defaults’).
On 5 February, the Authority approved P248 with a retrospective Implemenation Date of 27 March 2001 (NETA Go Live date).
The changes to the Funds Administration Agent (FAA) Service description will be implemented on the next available Release following the Authority’s approval.