MT 300 Field Specifications

9. Field 17I: Payment versus Payment Settlement Indicator

FORMAT

Option I

1!a

(Indicator)

PRESENCE

Optional in mandatory sequence A

DEFINITION

This field specifies if the FX transaction is PVP settlement.

CODES

Indicator must contain one of the following codes (Error code(s): T36):

N	The FX transaction is not PVP
Y	The FX transaction is PVP

USAGE RULES

Payment versus payment (PvP) settlement arrangement allows for two currencies in a foreign exchange (FX) contract to exchange simultaneously on a central settlement platform to eliminate the settlement risk. To apply PvP, the two parties in the FX contract need to have a pre-agreement with the central settlement platform, for example, USD/MYR FX deals require both parties to have an agreement to settle via HK Interbank Clearing Ltd settlement platform.

This field must not be used for trades that settle in CLS.