MT 304 Field Specifications

14. 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.