This circular updates rules for banks issuing Irrevocable Payment Commitments (IPCs) under the T+1 rolling settlement cycle, replacing the previous T+2 cycle. Now, custodian banks must have a clause in client agreements giving them rights over securities for pay-outs, unless transactions are pre-funded. The maximum risk during the day is capped at 30% of the settlement amount, with adjustments for margin payments in cash or securities. Intraday risks must be resolved by the end of T+1, and counterparties’ risks are limited under the Large Exposure Framework. Previous guidelines for T+2 settlement remain unchanged, and these instructions take effect immediately.

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