Settlement Lock Process

Table of Contents

Settlement Lock Process Flow

Settlement Lock Process

StepDescriptionPartyRecipient / ObserverMessage ReferenceAPI Contract
1

The Participant populates a Scheduled Settlement Lock Request with the following:

  1. Mandatory ISO 20022 elements defined in the Message Usage Guidelines.
  2. Optional ISO 20022 elements defined in thMessage Usage Guidelines where applicable
  3. Related ASX business values and rules applicable to their transaction; 

The Participant sends the Scheduled Settlement Lock Request to the CSP.

Sender ParticipantCSP

Scheduled Settlement Lock or Unlock Request (sett_115)

-
2

The CSP validates the request against the schema and business validation rules. 

As part of this validation, the CSP will check that there are sufficient units available in the Delivering Account (HIN) for the Security Code. 

Scheduled Settlement Lock Request allows the Delivering Participant to request the lock of units for settlement where previously the Settlement Instruction Request omitted "Lock on Request" or "Lock on Match"

If the Scheduled Settlement Lock or Unlock Request is schema and business valid, then refer to Step 3; "On Success".

If the Scheduled Settlement Lock or Unlock Request is schema and business valid, then refer to Step 5; "On Fail".

CSP---
On Success
3

If the Scheduled Settlement Lock Request is schema and business valid, and the Sender Participant is the Delivering Participant, the CSP applies the settlement lock on the unit quantity and security code within the Delivering Account (HIN).

CSP---
4The CSP sends a Scheduled Settlement Lock Confirmation to the Sender ParticipantCSPSender ParticipantScheduled Settlement Lock or Unlock Confirmation (sett_116)

Holding.Holding (Holding)


Holding.Holding2Issuer (Holding) [Issuer (Registry) Only]


SettlementInstructions.UnilateralSettlementInstruction (UnilateralSettlementInstruction) [Settlement Instruction Type = Unilateral Settlement Instruction (USSI)]


SettlementInstructions.BilateralSettlementInstruction
(BilateralSettlementInstruction) [Settlement Instruction Type = Bilateral Settlement Instruction (BSSI)]

On Fail
5

If the Scheduled Settlement Lock Request fails schema or business validation, the CSP will send the Participant:

  • An invalid Transaction Notification with the relevant error code for schema failure; or
  • A rejected Transaction for business validation failure.
CSPSender Participant

Invalid Transaction Notification (comm_807)

Rejected Transaction (comm_808)

-

Business Values and Rules

Scheduled Settlement Lock Request

ASX Element NameISO 20022 ElementGuidelines
Transaction IDTransaction Identification

The Transaction ID is a unique identifier for the Scheduled Settlement Lock Request.

Further details of Transaction Identifications are detailed here. 

Target Transaction IDSecurities Settlement Transaction IdentificationThe Transaction ID of the previously received Settlement Instruction Request for which the lock of units is to be applied.

Account (HIN)


Safekeeping Account / Identification

The Sender Participant must be in control of the Account (HIN) and the Account (HIN) must not be a Settlement Entrepot.

The Account (HIN) must be the same as the Account (HIN) on the Settlement Instruction Request, identified by the Target Transaction Id received in the request.

Security Code Financial Instrument Identification

Identifies the security for which units are to be locked. 

The Security Code requested must be the same as the Security Code on the Settlement Instruction Request, identified by the Target Transaction Id received in the request. 

Either a Security Code, an ISIN or both elements may be populated.  Where both elements are present, the ISIN and Security Code must refer to the same security.

Unit Quantity

Settlement Quantity / Unit

The Unit Quantity requested to be locked must be less than or equal to the available balance within the 'Delivering Account (HIN). This must be a positive whole number greater than 0, with no decimal places.

The Unit Quantity received in the request message must equal the Unit Quantity on the Settlement Instruction Request, identified by the Target Transaction Id received in the request.

Creation DateSettlement DateThe ISO Dates segment of the message creation date.

Previous State

Balance From

The Previous State must be Available (AVAI). This is to indicate that the Unit Quantity is to move from available to locked for settlement.

New State

Balance To

The New State must be Locked (BLOK).  This is to indicate that the Unit Quantity is to move to locked for settlement from available.

Holding Status Update ReasonInstruction Processing Additional Details

The Holding Status Update Reason indicates the reason for applying the lock.  For the purpose of Settlement Locks the Holding Status Update Reason must be SETT.

Notifications

Scheduled Settlement Lock Confirmation

A Scheduled Settlement Lock or Unlock Confirmation (sett_116) notification is sent to a Sender Participant who is delivering units to confirm the holding lock was applied.

ASX Element Name

 ISO 20022 Element

Guideline
Transaction IDAccount Owner Transaction IdentificationThe Transaction Identification of the Scheduled Settlement Lock Request.
Account Servicer Transaction Id Account Servicer Transaction Id The Transaction Id generated when the CSP removes a Settlement Lock due to a Security State Change.
Target Transaction Id Pool IdentificationThe Transaction Id of the previously received Settlement Instruction Request for which the lock or unlock of units is to be applied.

Account Identifier (HIN)

Safekeeping Account / Identification

The Delivery Account (HIN) received on the Scheduled Settlement Lock Request by the Sender Participant.

Security CodeFinancial Instrument Identification

The Security Code received on the Scheduled Settlement Lock Request by the Sender Participant that identifies the security for which units are being locked.  

Both a Security Code and an ISIN will be present.

Unit QuantitySettled Quantity / UnitThe Unit Quantity received on the Scheduled Settlement Lock Request by the Sender Participant.

Balance From

Balance From

The Previous State received on the Scheduled Settlement Lock Request by the Sender Participant.

Balance To

Balance To

The New State received on the Scheduled Settlement Lock Request by the Sender Participant.

Holding Status Update ReasonInstruction Processing Additional Details

The Holding Status Update Reason received on the Scheduled Settlement Lock Request by the Sender Participant.





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