Recycling of instructions when a security code is not yet open

31.08.2012

Customers who subscribe to the Recycling service, available free of charge from 15 October 2012, can recycle MT54x settlement instructions in securities whose code is, at the end of RTP on instruction receipt date, not yet open in our database. Normally, an instruction in such securities is automatically cancelled.

The recycling period is until the instruction’s requested settlement date or four business days, inclusive of receipt date, whichever is later. During this period, the eligibility of the respective security code is investigated.

Details of the service

Instructions entered by subscribing customers in a security whose code is not yet open in our database will be reported as follows:

  • Upon receipt of the customer’s instruction, an MT548 will be released with Status, Reason and Reason Narrative fields set as follows:

    :25D::IPRC//PACK
    :24B::PACK//NARR
    :70D::REAS//“Security code not yet open in Clearstream or LuxCSD. Instruction to be recycled.”

  • If, after investigation, the code is deemed not eligible in Clearstream Banking or LuxCSD, an IPRC//CAND MT548 will be reported with the reason for the ineligibility.

  • If, at the end of the recycling period, the code has not been opened, an MT548 is sent with Status, Reason and Reason Narrative fields set as follows:

    :25D::IPRC//REJT
    :24B::REJT//DSEC
    :70D::REAS//"A/M security code is not open in LuxCSD or Clearstream Banking."

  • If the code is opened during the recycling period, the instruction is sent for further processing and the usual life-cycle Status and Reason information will be provided accordingly. (Please refer to Appendix A to our Creation via SWIFT User Guide.)

Reporting related to the service

With the is availability of the new service, the MT548 Settlement Status and Processing Advice will include more detailed narrative in cancellation messages for instructions whose security code could not be opened.

Upon receipt of a settlement instruction containing a security code not yet open in our database, an automatic MT548 will be released with Status, Reason and Reason Narrative fields set as follows:

:25D::IPRC//PACK
:24B::PACK//NARR
:70D::REAS//“Security code not yet open in Clearstream or LuxCSD.”
or, for subscribing customers:
:70D::REAS//“Security code not yet open in Clearstream or LuxCSD. Instruction to be recycled."

As soon as the eligibility investigation is complete and if the security code cannot be accepted in our database, an automatic MT548 will be sent, with the Reason Narrative appropriate to the scenario, as follows:

  • For security codes that are valid but not eligible in Clearstream:

    :25D::IPRC//CAND
    :24B::CAND//NARR
    :70D::REAS//“Security code not eligible in Clearstream or LuxCSD.”

  • For instructions submitted with an invalid combination of Place of Safekeeping, Place of Settlement and ISIN (for example, for any instruction against payment sent for a Eurobond with a domestic Place of Settlement):

    :25D::IPRC//CAND
    :24B::CAND//NARR
    :70D::REAS//“Instruction type is not authorised for the depository.”

  • For all other cases where code eligibility has to be investigated:

    :25D::IPRC//CAND
    :24B::CAND//NARR
    :70D::REAS//“ISIN is not yet accepted in Clearstream or LuxCSD.”

Whenever required, free-format text will be included in the narrative to provide more information to clarify why a security code cannot be accepted.

For all other reports (for example, MT537 Statement of Pending Transactions) and report formats (XML, PDF and ISO), the same reasons will be reported in the respective fields as any other reason codes linked to the MT548.

In CreationOnline, recycled/cancelled instructions in securities not yet open will be found via the Dashboard under status “Incomplete” or via a query under Securities Post Release/activity status “processing-accepted”.

Subscription to the service

To subscribe to the service, customers must complete and sign the attached subscription form and return it to the address indicated on the form.

Note: Customers can request the subsequent addition or removal of accounts from the service via MT599 free-format message.

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