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Required information to create settlement files

The settlement files are mostly generated based on the data stored in transactions in FA. The following table lists how different data points are fetched from FA for the settlement files:

Data

Field/value in FA

Sender BIC

Transaction's portfolio's EXT ID SenderBIC

Receiver BIC

Transaction's portfolio's EXT ID ReceiverBIC

Place of safekeeping BIC and code

Transaction's internal info field settlementPlaceOfSafeKeepingBIC. If the place of safekeeping is not a National Central Securities Depository (NCSD), you can also define the code with settlementPlaceOfSafeKeepingCode.  See https://www.iso20022.org/15022/uhb/mt540-44-field-94a.htm for available options.

Agent BIC

Transaction's Counterparty's Settlement place's field Agent. (The counterparty's settlement place must match the settlement place configured in the transaction.)

Counterparty BIC

Transaction's internal info field settlementCounterBIC. If not set, then the transaction's Counterparty's Settlement place's field Counter. (The counterparty's settlement place must match the settlement place configured in the transaction.)

Counterparty's account

Transaction's internal info field settlementCounterAccount. If not set, then the transaction's Counterparty's Settlement place's field Account. (The counterparty's settlement place must match the settlement place configured in the transaction.)

Counterparty's type

Transaction's counterparty's type (only used for Handelsbanken CSV)

Book entry account number

Transaction's internal info field settlementBookEntryAccount. If not set, then the transaction's portfolio's Book entry.

Cash account number

Transaction's internal info field settlementCashAccount. If not set, then the transaction's account's number.

Settlement place

Transaction's settlement place

Settlement channel

Transaction's tag Settlement channel. See below for more details on settlement channel, format and type.

Settlement format

Transaction's tag Settlement format. See below for more details on settlement channel, format and type.

Settlement type

Transaction's tag Settlement type. See below for more details on settlement channel, format and type.

Stamp duty indicator

Transaction's internal info field SettlementStampDutyIndicator. Value should be the type code, e.g. GBOX.

Transfer of beneficial ownership indicator

Transaction's internal info field SettlementTransferOfOwnership. Supported values yes, no, or no value provided.

Place of trade MIC

Transaction's internal info field SettlementPlaceOfTradeMIC

Market place code

Transaction's market place's code (only used for Handelsbanken CSV)

Settled with cash indicator

  • If the transaction has tag SWIFTFX, it's considered being settled with cash

  • If the transaction has tag Settlement cash type-DVP, it's considered being settled with cash

  • If the transaction has tag Settlement cash type-FOP, it's considered being settled without cash

  • If the transaction's type doesn't have cashflow effect, the transaction is considered being settled without cash

  • In all other cases, the transaction is considered being settled with cash

Partial settlement allowed

Transaction's internal info field PartialSettlementAllowed. Supported values yes, no, or no value provided.

Agreement number

Transaction's internal info field SettlementAgreementNumber (only used for Danske Bank CSV).

Message type

Individual trades are reported with message type MT540, MT541, MT542 or MT543, depending on the trade characteristics:

 

Free of Payment (FOP)

Delivery vs. Payment (DVP)

Transaction amount effect positive (e.g. Buy)

MT540

MT541

Transaction amount effect negative (e.g. Sell)

MT542

MT543

See above the row Settled with cash indicator for details on how FOP/DVP is determined for individual transactions.

The transaction related data above can be filled manually in transactions, but in many cases it is easier to use decision tables to automatically fill in the required information. The following decision table can be used as a basis for that: fa_settlements.xlsx. Note that the linked decision table is only for demonstration purposes; you probably need to adjust it for your specific use cases (for example, regarding handling of stamp duties and/or place of safekeeping values). For more information on decision tables, refer to the Developer Guide documentation: Business rules.

If you are use SEB as your settlement channel and ISO15022 format, you need to configure the Country code, Client ID, User ID and Environment. See FA Admin guide for details: Settlement configurations for SEB. This is not necessary if you use the CSV format that is uploaded manually to SEB Investor World. The CSV format follows SEB CSV specifications dated 2019/06/26.

Settlement channel, format and type

Settlement channel (the custody handling the settlement), format and type are indicated by transaction's tags.

  • Channel

    • The Settlement channel tag indicates your custodian where you send the settlement instructions to

  • Format

    • The Settlement format tag indicates the file format and the structure of the file used to create settlements.

      • Tag value ISO15022 indicates that the created file contains individual MT540-MT543 messages without any batch header and trailer messages

      • Tag value ISO15022 batch indicates that the created file contains individual MT540-MT543 messages with MT598 batch header and trailer messages

      • Tag value CSV indicates that the settlement file is created in CSV format. The exact format of the CSV file might vary based on the selected channel.

    • From our supported custodians, only SEB uses ISO15022 batch messages, and only Handelsbanken, SEB (when using manual upload via Investor World portal) and Danske Bank use CSV messages. For all other custodians, you should use the regular ISO15022 format.

  • Type

    • The Settlement type tag indicates if a transaction is an internal transfer within a custodian. From our supported custodians, only Nordea and Swedbank use this information. For all other custodians, this tag can be left empty, or it can always be filled with Settlement type-External.

    • Tag value Internal indicates that a special logic should be used when creating the settlement message:

      • All internal transfers are generated as MT542 messages, regardless of any other parameters of the transaction

      • Field :70E::SPRO//ACCOUNT TRANSFER is created in subsequence B

      • In subsequence E1, the agent's BIC is always reported with qualifier REAG

      • In the same subsequence, the counterparty's BIC is always reported with qualifier BUYR