 Option D |
6*35x |
(Narrative) |
Optional in mandatory sequence A
This field specifies the underlying legal agreement.
CODESOne of the following codes, or bilaterally agreed codes, may be used in this field:
| FIX |
Followed by the reference of the confirmation sent for the opening of the Non Deliverable trade. |
| SETC |
Followed by the Settlement Currency of a Non Deliverable Forward trade. |
| SRCE |
Followed by the Settlement Rate Source of a Cross Currency Non Deliverable Forward trade. |
| VALD |
Followed by the Valuation (Fixing) Date of a Non Deliverable Forward trade. |
/FIX/, /SETC/, /SRCE/ or /VALD/ must not be present at the start of any line (Error code(s): T70).
If code VALD is used:
it must appear in the first 6 characters of the first line, and in no other place, followed by a date expressed as YYYYMMDD and the end of line separator (that is :77D:/VALD/YYYYMMDDCrLf) (Error code(s): C58).
the second line must be present and contain the code SETC, followed by a valid ISO 4217 currency code and the end of line separator (that is /SETC/currencyCrLf)(Error code(s): C59).
Conversely, if the first six characters of the second line are equal to /SETC/, then the first six characters of the first line must be equal to /VALD/ (Error code(s): C59).
The code /SETC/ is not allowed in other places than the first six characters of the second line (Error code(s): C59).
If the first six characters of the third line are /SRCE/, then the first six characters of the second line must be /SETC/ (Error code(s): C59).
The code /SRCE/ is not allowed in any other place than the first six characters of the third line (Error code(s): C59).
This field may refer to master agreements which have been put in place on a bilateral basis. It may also refer to local regulations or to specific conditions applicable to the trade.
If this field is not present, the deal conforms either to bilateral agreements or to usual banking practice.
When structured format is used for bilaterally agreed codes, each code must be put between slashes and appear at the beginning of a line. Each character in a code must be in upper case.
This field may be used in confirmations for which bilateral side letters for Non Deliverable Forward NDF trades have been exchanged between Party A and Party B. If the confirmation relates to the fixing of an NDF, the reference of the opening confirmation must appear on the first line, if the confirmation relates to the opening of an NDF, its valuation date has to be confirmed on the first line of this field and the settlement currency on the second line. When matching is not required for settlement currency, then the settlement currency (/SETC/) may be populated with 'XXX' .
Optionally the settlement rate source for cross currency NDF can be confirmed on the third line.
The settlement rate source is only to be used:
in conjunction with a bilaterally agreed master confirmation agreement and
where the transaction is a cross currency NDF, that is, where /SETC/ is not followed by USD.
Where available, the settlement rate source should conform to the 1998 FX and Currency Option Definitions (the FX definitions, as published by the International Swaps and Derivatives Association, Inc., the Emerging Markets Traders Association and The Foreign Exchange Committee) as amended and supplemented from time to time. Otherwise, this may be a bilaterally agreed value.
Settlement rate source may optionally be followed by a time in format /HHMM, which refers to the local time of the centre in which it is published, for example, SRCE/EUR1 or SRCE/ECB37 USD/EUR (where the definitions include the time), or SRCE/EUR3 or SRCE/TKFE USD/EUR/1500 (where the definitions do not include a time).
