Non-Novated Settlement Obligations Process

Table of Contents


Non-Novated Settlement Obligations Process Flow

Non-Novated Settlement Obligations Process

StepDescriptionPartyRecipientMessage Reference
1

The CSP determines whether there is a Full or Partial Failure.

If there is a Full Failure, refer to Step 2; "Full Failure".

If there is a Partial Failure, refer to Step 5, "Partial Failure".

CSP--
Full Failure
2The CSP reschedules settlement obligation to the next settlement date. CSP--
3

The CSP sends a Settlement Transaction Generation Notification (sett_130) to the Settlement Participant.

CSPSettlement ParticipantSettlement Transaction Generation Notification (sett_130)
4

Where the Settlement Instruction is a Bilateral Scheduled Settlement Instruction (BSSI) or a Non-Novated Gross Market Trade (NNGMT), the CSP sends a Settlement Transaction Generation Notification (sett_130) to the Counterparty.

Where all Accounts (HINs) have sufficient units, the CSP will invoke the Aggregate Funds Obligation Process

CSPCounterpartySettlement Transaction Generation Notification (sett_130)
Partial Failure
5

The CSP calculates the Settlement Value of the failed quantity.

Where all Accounts (HINs) have sufficient units, the CSP will invoke the Aggregate Funds Obligation Process

CSP-

Business Values and Rules

Settlement Transaction Generation Notification

A Settlement Transaction Generation Notification (sett_130) is sent to the Settlement Participant, advising that their Settlement Instruction has been rescheduled to a new settlement date as a result of a unit shortfall.

ASX Element Name 
ISO 20022 Element
Guidelines
Target Transaction IdTransaction Identification Details / Account Owner Transaction Identification

The identifier of the Settlement Instruction that has been rescheduled.

For Unilateral Scheduled Settlement Instructions (USSIs) and BSSIs, this will be the Transaction Id that was sent in the Settlement Instruction Request (sett_105).

For a Non-Novated Gross Market Trade (GMTD), this will be populated with NONREF.

Transaction IdTransaction Identification Details / Account Servicer Transaction Identification

Uniquely identifies a transaction in the CSP.

For a USSI and BSSI, the Transaction Id will not be populated.

For a GMTD, this will be the Transaction Id that was sent in the Trade Confirmation Notification (sett_101).

Obligation IdTransaction Identification Details / Market Infrastructure Identification

Indicates the Obligation Id assigned by CSP when a settlement instruction is confirmed or scheduled.

For a USSI and BSSI, this will be the Obligation Id that was sent in the Settlement Instruction Response (sett_106).

For a
GMTD, this will be the Transaction Id (Obligation Id) that was sent in the Trade Confirmation Notification (sett_101).

Security CodeFinancial Instrument IdentificationIndicates the security related to the Settlement Instruction. Both Security Code and ISIN will always be present on the Settlement Transaction Generation Notification sent to the Settlement Participant.
Account Identifier (HIN)Safekeeping Account

Identifier of an Account (HIN) within the CSP.

For a USSI, the Account (HIN) is the Delivering Account Identifier (HIN).

For a BSSI and GMTD the Account (HIN) will be:

  • Delivering Account Identifier (HIN) if the recipient of this message is the Delivering Participant; or
  • Receiving Account Identifier (HIN) if the recipient of this message is the Receiving Participant.
Remaining Units Awaiting Settlement Settlement Quantity / Quantity / Unit

Indicates the number of units scheduled for settlement on the Settlement Date for the Settlement Instruction.

Securities Movement TypeSecurity Movement Type

Indicates the Securities Movement Type of the Settlement Instruction.

The Securities Movement Type is Delivery (DELI), where the Settlement Participant is the Delivering Participant.

The Securities Movement Type is Receive (RECE), where the Settlement Participant is the Receiving Participant.

PaymentPaymentIndicates the Payment type of the Settlement Instruction. Either "Against Payment" (APMT) or "Separate Settlement" (FREE) will be present.
Settlement Link Id

Linkages / Reference / Securities Settlement Transaction Identification

Where applicable, indicates the Settlement Link Id that is common for each linked transactions, allowing multiple Settlement Instructions to be linked together.

Settlement Transaction ConditionSettlement Parameters / Settlement Transaction Condition

The Settlement Transaction Condition defines the type of the Transaction. In this case either:

  • Bilateral Scheduled Settlement Instruction (BSSI);
  • Unilateral Scheduled Settlement Instruction (USSI); or
  • Non-Novated Gross Market Trade (GMTD).
Rescheduled Settlement DateTrade Details / Settlement Date / Date / Date

Indicates the date the Settlement Instruction has been scheduled / rescheduled for settlement. 

Where the Settlement Transaction Condition is GMTD, USSI or BSSI, the Settlement Date is the next business date. 

Current Settlement DateTrade Details /  Settlement Instruction Processing Additional DetailsIndicates the business date the settlement instruction was scheduled to be settled.
Basis of Movement 1, 2 and 3Trade Transaction Condition  / Code / Proprietary / Identification

Indicates, where applicable, the corporate action entitlement(s) scheduled to settle for the Settlement Instruction being notified. In this case, one of the valid values outlined in the Proprietary Code List (16 - BasisofMovement) will be present.

Transaction BasisSettlement Parameters /  Securities Transaction TypeIndicates the type of securities transaction. In this case, one of the valid values outlined in the Proprietary Code List (9 - TransactionBasisCode) will be present.
Receiving Settlement Participant

Receiving Settlement Participant / Parties / Party 1 / Identification

Indicates the Settlement Participant which controls the Account (HIN) receiving units.

Remaining Cash Awaiting SettlementSettlement Amount / AmountIndicates the funds scheduled for settlement to the relevant settlement date for the Settlement Instruction.
Remaining Cash Awaiting Settlement Credit Debit IndicatorSettlement Amount / Credit Debit Indicator

Indicates whether the Remaining Cash Awaiting Settlement is to be paid or received, either:

  • Credit (CRDT), where the Remaining Cash Awaiting Settlement is to be received by the Participant (or when the Remaining Cash Awaiting Settlement is zero); or
  • Debit (DBIT), where the Remaining Cash Awaiting Settlement is to be paid by the Participant.
Delivering Settlement ParticipantDelivering Settlement Participant

Indicates the Settlement Participant which controls the Account (HIN) delivering units.

Receiving Account Identifier (HIN)

Receiving Settlement Parties / Party 1 / Safekeeping Account

Where the Settlement Transaction Condition is USSI, indicates the receiving Account (HIN).

Where the Settlement Transaction Condition is BSSI or GMTD, the Receiving Account Identifier will not be populated.

Reason

Settlement Status / Pending / Reason

Indicates the reason for receiving this message. In this case, Failed Settlement - Unit Shortfall (FSUS) will be present since the Settlement Instruction is a rescheduled Settlement Instruction due to a unit shortfall.




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