Cash Bond Buy-in Rules
ICMA buy-in rules for cash eurobonds have an overall buy-in lead time of five days. The change came into effect on 1 January 2004. A comparison of the cash bond vs repo buy-in lead times can be seen in this timeline chart.
Key changes for cash bond buy-in rules:
- Earliest buy-in pre-advice notice can be given immediately after delivery failure (end of value date of original transaction)
- Buy-in notice must be given two business days after pre-advice notice given before 10 am London time. If no buy-in notice is given then the buy-in threat is assumed to be cancelled and any subsequent new buy-in threat requires a new pre-advice notice
- Earliest buy-in execution is three business days after buy-in notice given
The cash bond buy-in rules changed from an older 12-day to a new 5-day lead time on 1 January 2004. As such all pre 1 January 2004 cash trades remain on the old 12-day buy-in rules. We expect the EMCC will follow suit in harmonising their rules with ICMA 5-day rule for emerging market trades.
