MT 306 Field Specifications

40. Field 26F: Settlement Type

FORMAT

Option F

9a

(Settlement Type)

PRESENCE

Mandatory (C12) in a conditional sequence (C10)

DEFINITION

This field indicates how settlement is to be effected.

CODES

Settlement Type must contain one of the following codes (Error code(s): T60):

NETCASH	The underlying amount of the option is to be compensated against a foreign exchange deal and the seller of the option will settle the difference, in the counter currency, with the buyer. A non deliverable option (field 17F = Y) is cash settled with no foreign exchange deal behind it.
PRINCIPAL	The underlying currency amount and the counter currency amount are exchanged at the exercise of the option.