MT 601 Field Specifications

15. Field 26F: Settlement Type

FORMAT

Option F

9a

(Type)

PRESENCE

Mandatory in mandatory sequence A

DEFINITION

This field indicates how settlement is to be effected.

CODES

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

NETCASH	Cash-settled options result in two commodities spot transactions where the commodity nets to zero and the net amount is paid cash.
PHYSICAL	Physically-settled options result in one commodity spot transaction where one party delivers the commodity and the other party pays cash.