SETTLEMENT AND ISO STANDARDS: JAPAN MARKET PRACTICE. Issued on behalf of the Japanese Market Practice Group

Transcription

1 SETTLEENT AND ISO STANDARDS: JAPAN ARKET PRACTICE Issued on behalf of the Japanese arket Practice Group April 2016

2 INDEX 1. INTRODUCTION SETTLEENT INSTRUCTION NEEDED ELEENTS FOR SETTLEENT INSTRUCTION ARKET SPECIFICATIONS Specific Requirements Extension to Settlement Confirmation and Free of Payment Linked Transactions PSS (Pre-Settlement matching System) Transfer of JGBs Other JGB settlement methods (registered form and physical form) Transfer of Convertible Bonds/Corporate Bonds* at JASDEC Pair-off Settlement Repo Settlement Transaction Processing Command (T530) STATEENT OF HOLDINGS (T535) ELEENTS EXAPLES STATEENT OF TRANSACTIONS (T536) ELEENTS EXAPLES T T 537 STATEENT OF PENDING TRANSACTIONS Elements Examples T548 SETTLEENT STATUS AND PROCESSING ADVICE Elements Examples INSTRUCTION-T548-T537 ATRIX

3 1. Introduction This document refers to equities and fixed income vanilla trades in a custody environment. Version 5.1 ay 2004 Version 5.2 ay 2005 Version 5.3 April 2006 Version 5.4 April 2007 Changes to previous version Addition Preferable requirement for Linked Transactions Page 5 Addition Information on PSS (Pre Settlement matching System) in Japan Page 5 Clarification Further precisions on Transfer of Book-Entry JGBs Page 10 Addition Information on Book-Entry CB at CSD Page 10 Clarification Further precisions on the information provided by local JP custodians in the T535. Page 12 Addition Information provided in the T537and T548 in Japan. Page 20 Clarification JASDEC as Place of Settlement for CB Page 3 Clarification Recommendation on Place of Settlement Page 8 Addition Settlement flow on Public Offering Page 11 Deletion Deletion of Sub-Balance Codes not utilized Page 13 (PDT,PDU) Addition 94a Place field Page 20 Addition 97a Safekeeping Account field Page 20, 24 and 25 Addition Letter of Guarantee Indicator and its usage explanation Page 4 Change SWIFT PSET mandatory from optional Page 6 Addition 93B Balance Qualifier AVAI, NAVL Page 13 SR2005 Change Sub-Balance Format B or C Page 13 Deletion Deletion of Sub-Balance code TAVI Page 13 Addition Processing Reference field Page 17, 21, 22 and 26 Addition JASDEC as Place of Settlement for Book-Entry Page 3 Corporate Bonds Clarification Requirement for tax status in Book-entry Corporate Page 4 Bonds settlement Addition Quantity of Financial Instrument in Factored Securities Page 5 trades Addition PSS eligible securities lineup Page 6 Addition *remarks BIC change of PSET recommendation Page 9 Clarification Transfer of book-entry JGB Page 11 Addition Pair-off Settlement Page 13 Addition Repo Settlement Page 13 Change (SR2006) T535 Field mandatory/optional status Page 15 Change (SR2006) T535 Sub balance Qualifier Page 15 Addition Quantity Code(UNIT,FAT) of Financial Instrument Page 4 Addition PSS Requirement of Quantity Page 6,7 Change BIC change of JASDEC Page 8 Addition(SR2007) Transaction Processing Command Page 12 Addition(SR2007) T535 ACOW,PLIS Page 13,14 Addition(SR2007) T536 STBA Page 17,19 Deletion T536 ASRF Page 17 Deletion T537 ASRF Page 21 2

4 Version 5.5 Nov 2008 Version 5.6 July 2013 Changes to previous version Deletion Wording book-entry Page 3-10 Deletion Public Offering Settlement (so called Letter of Guarantee ) Page 4,11 Deletion Place of Settlement of FOL/Non-FOL Page 8 Addition(SR2008) CORP Ref. in T536. Page 207 Change JASDEC website Page 5 Addition Tolerance atching Page 9 Deletion Ultimate Investor/Trade Party on the side of the sender of the instruction (Conditional) Page 3 Deletion Trade Trasaction Condition Indicator Page 4 Deletion Settlement Transaction Condition (Conditional) Page 4 Change Transfer of JGBs Page Settlement Instruction 2.1 Needed elements for Settlement Instruction Business Element Name Data Format Remarks Sender message reference 16x Settlement date 8!n Trade date 8!n Identification of Financial Instrument ISIN 1!e12!c ISIN CODE Quantity of financial instrument to be settled 4!c/15d 4!c=UNIT (equities) 4!c=FAT(fixed income) Safekeeping account to be credited or 35x debited Delivering or Receiving agent BIC BIC is the country preference. Settlement amount (including currency) 3!a15d Direct Client of Delivering or Receiving agent BIC Place of settlement BIC Presently, different types of securities are settled at different places of settlement. JASDEC for equities, convertible bonds and corporate bonds*, and Bank of Japan for Government Bonds, and the counterparty's counter for any physical securities including registered bonds. Therefore, the local agent/account servicer will discern the place of settlement according to the type and form of securities that are to be settled, regardless of what is stated in this field. However, To be in line with international standards and to cope with future changes of the settlement system in Japan, BIC is preferred whenever present. *Regarding the definition please see clause arket specifications Specific Requirements Country Additions Data Format Qualifier SWIFT Code /O Comments Safekeeping Account (97A) of Direct Client of Delivering or Receiving agent 4!x//35x SAFE O Important information to avoid cross matching 3

5 Settlement Transaction Condition (Conditional) Registration Indicator (Conditional) Registration Indicator (Conditional) 4!c/[8c]/4!c STCO//PHYS O UNLISTED EQUITIES STCO//PHYS is available in case of unlisted equities. When the securities(equities) are held in JASDEC, STCO//PHYS is overridden. (As from Jan. 2009, listed shares etc. will be dematerialized in JASDEC.) 4!c/[8c]/4!c REGT//NREG O UNLISTED EQUITIES When the securities(equities) are held in physical form and the standing instruction is to register upon receipt, but for a particular settlement this is to be overridden, i.e. hold securities in street name, then the Registration Override Indicator NREG must be present. 4!c/[8c]/4!c REGT//YREG O UNLISTED EQUITIES When the securities (equities) are held in physical form and the standing instruction is not to register upon receipt, but for a particular settlement this is to be overridden, i.e. securities to be registered, then the Registration Override Indicator YREG must be present. Quantity of Financial Instrument 4!c//4!c/15d SETT//UNIT or SETT//FAT FACTORED SECURITIES (Corporate Bonds* only) Pre-maturity redemption at fixed dates and partial callable bonds are categorized as Factored Securities. The JASDEC requires the original face amount to be quoted as the quantity of settlement and not the current face amount after partial redemption. *Regarding the definition please see clause Extension to Settlement Confirmation and Free of Payment The set of common elements can also be used for settlement confirmation and free of payment transaction with the following differences: free of payments Free of payment instruction contains the same elements as for the against payment transaction except for the elements pertaining to the settlement amounts. The settlement amount(s) is not required. confirms The Settlement confirmation whether it is a free of payment or an against payment transaction should contain the same elements as the original instruction PLUS: The reference to the original settlement instruction that was received. This is done using the Linkage Block and the qualifier 20C::RELA//16x EXCEPT: The settlement date given in the confirmation is the effective settlement date (which might differ from the instructed settlement date as stated in the instruction). This translates in ISO messages by using the qualifier ESET rather than SETT as qualifier for the date field 98a. The quantity of financial instrument in the confirmation is the effective settled quantity. This translates in ISO messages by using the qualifier ESTT rather than SETT as qualifier for the quantity of financial instrument field 36B. 4

6 The settlement amount given in the confirmation is the effective settlement amount. This translates in ISO messages by using the qualifier ESTT rather than SETT as qualifier for the amount field 19A Linked Transactions In case an account owner wants to settle more than two instructions together, linkage indicators such as BEFO, AFTE, WITH are preferably required. Please ask your local custodian for more details of linked transactions settlement PSS (Pre-Settlement matching System) Back ground In Japan, JASDEC launched PSS (Pre Settlement matching System) in February 2002 and all listing Equities and Convertible Bonds are allowable to be pre-matched in PSS PSS eligible securities lineup Listed Equities Convertible Bonds JGBs Commercial Paper Corporate Bonds In system perspective, PSS requires all PSS members to provide matching instruction with their particular message format, in accordance with ISO15022 format. Local custodian converts T540-3 message which is given by Global Custodians / Overseas parties to PSS requesting format. Global Custodians / Overseas parties are, thereof required to provide information, accommodating to PSS requesting format. The detail of PSS could be referred to JASDEC website in below. essage atrix a. T543 essage atrix (Sample). SWIFT atching andatory () T540-3 /O Definition Format criteria (Y or N) or Optional (O) in PSS Sender EFGHBEBB Receiver XXYZJPJT essage Text Start of Block :16R: GENL Reference :20C::SEE// N Function of essage :23G:NEW End of Block :16S: GENL Start of Block :16R: TRADDET Settlement Date :98A::SETT// Y 5

7 O Trade Date :98A::TRAD// N Identification of Financial :35B:ISIN JP Instrument HITACHI LTD Y End of Block :16S:TRADDET Start of Block :16R:FIAC Quantity to be settled :36B::SETT//UNIT/50000, Y (See Notes 5) Safekeeping Account :97A::SAFE//JP N O End of Block :16S:FIAC Start of Block :16R: SETDET Settlement Condition :22F::STCO/JSDC/RELE NA Indicator (See Notes 1) Y O() Settlement type Indicator :22F::SETR//TRAD N Start of Block Receiving Agent :95P::REAG//ABCDJPJT Y Notes End of Block Start of Block :95P::BUYR//ABCDGB2L Client of Receiving Agent (See Notes 2) Y O Safekeeping Account :97A::SAFE//JP N O End of Block Start of Block O Delivering Agent 95P::DEAG//XXYZJPJT No instruction required Y (See Notes 3) End of Block Start of Block O Client of Delivering Agent :95P::SELL//EFGHBEBB No instruction required Y (See Notes 4) End of Block Start of Block Place of settlement :95P::PSET//JJSDJPJT Y End of Block Start of Block :16R:AT Settlement Amount :19A::SETT//JPY , Y End of Block :16S:AT End of Block :16S:SETDET 1 This is the characteristic field in PSS, called Release Flag. It is a sort of commitment to execute and it is actually utilized to tell sufficient/insufficient balance (securities/cash). In case of receive free, it means ready to receive. After all the matching items are matched, the system checks this flag. If the flag indicator matches, settlement process starts. In case a local agent does not have enough securities/cash balance an agent should mention non-release (STCO/JSDC/NREL), since an instruction without this field is treated as STCO/JSDC/RELE A sort of commitment to execute 2 The Qualifier other than BUYR is acceptable. The party information required in the instruction is the client of the counterparty. 3 It is equal to the message recipient. 4 It is equal to the message sender unless the instruction is originated from third party. 5 The requirement of PSS is UNIT or FAT, not AOR. b. Search Key Criteria in instruction designated by PSS. No. atching items Condition for atched Status 6

8 1 Settlement date/time Japanese financial institutions business date should be quoted. The same as that of matching C/P is set. 2 Identification of the Financial Instrument The pair consisting of the ISIN code and the current local code is the same as that of matching C/P. 3 Quantity of Financial The same value as that of the matching C/P is set. Instrument 4 Delivery Agent The same value as that of the matching C/P is set. 5 Receiving Agent The same value as that of the matching C/P is set. (Remark) If the above criteria were not matched with that of C/P, matching status in PSS would be atching Pending (It represents C/P has no instruction) instead of Unmatched. 7

9 Gap Analysis in Above atrix Trade date Referring to the above matrix, Global Custodians / Overseas parties are not required to quote trade date under ISO15022 standard. However, local custodians are required to quote this field in PSS standard. In order for local custodians to perform full STP, Global Custodians / Overseas parties need to quote this field even though it is not a mandatory matching field. Place of settlement As far as physical settlement is concerned, there is no single place of settlement and place of settlement depends on direction of trade, type of counterparty (custodian banks or brokerage houses). Please ask your custodian what should be quoted in the field in physical shares trade. PSET is a SWIFT mandatory but it is not requirement in Japan market. Local agents handle PSET in accordance with market practice and bilateral agreement as mentioned above. The following shows recommendation for the sake of clients STP process Equity Category of Financial Instrument Place of Settlement JJSDJPJT Bonds JGB BOJPJPJT Convertible Bonds JJSDJPJT Corporate Bonds JJSDJPJT (As from June , JJSDJPJ1 changed to JJSDJPJT) Other Recommendation Local counterparty and Underlined parties information Under PSS message format, local custodians are required to quote BIC code for this information. Besides, Global Custodians / Overseas parties are not required to quote BIC code but allowed to quote it as text format. It leads local custodian to modify to BIC code in order to accommodate to PSS format. Therefore, global custodians need to quote BIC code in these fields. Extension of matching criteria In PSS scheme matching of settlement parties up to 3 levels are available, i.e. DEAG/REAG, DECU/RECU and SELL/BUYR. But under PSS definition, PSS member pre-matches with counterparty for local C/P and underlined party name level but not need to pre-match further sub account level as above message matrix shows. In other word, Global Custodian should quote local C/P s client BIC in SELL/BUYR but not quote sub account name or dealing party name unless BIC are not provided for those parties. 8

10 Implementation DVP for Non Exchange Transaction Deliveries (NETD) PSS is followed by DVP system whose structure is based on DTC (US) model. DVP for NETD is available only for securities deposited at JASDEC. Physical shares such as FOL cannot be settled through DVP system. No specific indication for NETD is required in settlement instructions. Local agents will decide settlement method in accordance with arket Practice. If an instruction includes DVP settlement information for FOL settlement, such conditional information is disregarded. ore information is here Tolerance atching Tolerance atching is to be introduced by JASDEC from January 6 th, JASDEC is to start the implementation of Tolerance atching. The rules shall be applied to Settlement Instruction Data and/or its correction transmitted to PSS from January 6 th, 2014 onward. 2. Tolerance atching shall be equally applied to ALL non-residential transactions by ALL PSS users. 3. Tolerance atching shall be applied to ALL types of securities in PSS for non-residential transactions including Stocks, etc, Corporate Bonds, CP, and Japanese Government Bonds. 4. When a discrepancy in the settlement amounts between the instructions sent by the relevant settlement agents is within the limited tolerance; JPY100 for all types of securities, PSS is to regard that the settlement instructions are matched as follows. PSS will adopt the settlement amount set by the delivering agents. PSS will notify the relevant settlement agents of the amount. The settlement agents will notify their relevant counterparties overseas of the amount in principle. PSS will transmit the amount to the Book Entry Transfer System (BETS) for corresponding types of securities to be settled. ore information is here 9

11 2.2.5 Transfer of JGBs For the transfer of JGBs, please consult with your local custodian on the details Other JGB settlement methods (registered form and physical form) Settlement in L/T and physical form is still available. In settlement no code specifying form is required, provided that safekeeping account for L/T is segregated from that of Book-entry. (For such L/T s to be registered, an account must have been opened previously with the BOJ). Requirement in instruction regarding the form of JGB varies according to local agents Transfer of Convertible Bonds/Corporate Bonds* at JASDEC In order to determine the correct interest amount and redemption amount, any of the book transfer of CB on one business day prior to the coupon payment/maturity date will be prohibited. This rule is applied to trade settlements. *Definition of Corporate Bonds: see clause Pair-off Settlement Pair-off process in Japan does not follow Pair-off arket Practice document. Local agents do not offset trades nor settle Net Gain Loss amount. When a trade is paired-off cancel instruction of the original trade is always required Repo Settlement Repo settlement is treated as normal and free of payment settlement in Japan. In consequence two free of payment instructions representing opening leg and closing leg are necessary. Populating Repo Sequence is not required. Chronology (Common Case) Issuing date is not always payment date+3. It may happen that both days are consecutive. 10

12 Transaction Processing Command (T530) PSS dose not have the process changed by transaction processing command. Transaction processing command cannot be used in Japan, and T530 is not required. 11

13 3. Statement of Holdings (T535) 3.1 Elements In blue letters are the fields of sequences utilized by all the Japanese custodians. In green letters are the fields of sequences utilized by the Japanese custodians according to the Service Agreement. In red letters are the fields of sequences not utilized by any Japanese custodians. Sub balance codes, which are never be used in Japan, are deleted. Field Qualifier Definition Format Qualifiers and codes andatory Sequence A - General Information 16R GENL Start of General Information Sequence GENL 28E Page number / Continuation indicator :5n/4!c LAST ORE ONLY 13A STAT Statement Number :4!c//3!c STAT O 20C SEE Sender's Reference Number :4!c //16x SEE 23G Function of the message :4!c NEW CANC 98a Preparation Date A or C PREP O Statement Date/ Time STAT 22F Indicator(Complete/Updates Indicator) CODE Indicator(Statement Frequently Indicator) :4!c/[8c]/4!c SFRE Indicator(Statement Basis) STBA Indicator(Statement Type) STTY Optional Subsequence A1 Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Reference Number of Linked Transaction :4!c//16x PREV RELA 16S LINK End of Linkages Information Sequence LINK 95a ACOW Account Owner P or R ACOW O 97a SAFE Safekeeping Account A or B SAFE 17B Activity Flag :4!c//1!a ACTI AUDT O CONS 16S GENL End of General Information Sequence GENL Optional Sequence B - Sub - safekeeping Account 16R SUBSAFE Start of Sub safekeeping Account Subsequence SUBSAFE 95a ACOW Account Owner P or R ACOW O 97a SAFE Account A or B SAFE O 94a Place of safekeeping B or C or F SAFE O CUST ICSD NCSD SHHE Swift O or 12

14 Flag (If Seq A :17B::CONS is N, 17B ACTI :4!c//1!a ACTI O Seq B :17B::ACTI is not allowed) Optional Sequence B1 - Financial Instrument 16R FIN Start of the Financial Instrument Sequence FIN 35B - Identification of the Financial Instrument [ISIN1!e12!c][4*35x] 22H CAOP Indicator(Corporate Action Option Code) :4!c//4!c CAOP O 90a Price(Indicative Price or arket Price) :4!c//4!c/15d INDC O RKT 94B PRIC Price/Source of Price :4!c/[8c]/4!c[/30x] PRIC O 98a PRIC Date/Time - price Quotation Date/Time :4!c//8!n PRIC O 93B Balance *See below 1 :4!c/[8c]/4!c[N]15d AGGR AVAI NAVL Optional Subsequence B1b - Sub-Balance *See below 2,3,4,5 16R SUBBAL Start of Sub-Balance Subsequence SUBBAL 93a Balance B or C AWAS BLCA BLOK CLEN DIRT DRAW LOAN ARG NOI OTHR PECA PEND REGO RSTR SPOS TRAN UNRG 94a SAFE Place of safekeeping :4!c/[8c]/4!c[30x] SAFE O PRIC PLIS 90a Price A or B or E ACTU O DISC DISC INDC RKT PRCT PRE PRE UKWN YIEL 98a Date/Time PRIC O 99A DAAC Number Count O 19A Amount ACRU O HOLD 70C SUBB Sub-balance details / narrative :4!c//4*35x SUBB O 16S SUBBAL End of Sub-Balance Subsequence SUBBAL O O 13

15 99A DAAC Number of days accrued :4!c//[N]3!n DAAC O 19A Amount :4!c//[N]3!a15d ACRU O HOLD O 92B EXCH Exchange Rate :4!c//3!a/3!a/15d EXCH O 70E HOLD Holdings Narrative :4!c//10*35x HOLD O 16S FIN End of the Financial Instrument Sequence FIN 16S SUBSAFE End of Sub-safekeeping Account Subsequence SUBSAFE Optional Subsequence C - Additional Information 16R ADDINFO Start of Additional Information Sequence ADDINFO 95a Party :4!c//4!a2!a2!c[3!c] EOR O ERE O 19A Amount :4!c//[N]3!a15d HOLP O HOLS O 16S ADDINFO End of Additional Information Sequence ADDINFO 1 In Japan, the total of sub-balances does not necessarily match the aggregate balance. 2 In case JASDEC holdings and bearer bond holdings should reside in the same account, resently the breakdown can only be indicated by repeating the Sub-balance sequence. The method should be consulted with the local custodian. 3 It will be up to the local agent whether the breakdown of the balance will be provided or not. Also, in case such information is provided, it will be up to the local agent where and how it should be stated in this sequence. 4 Bonds that have entered the transfer suspension period will be stated in sequence B1a. However, whether such information will be provided, will be up to the local agent. 5 The breakdown of bearer form and registered form will be stated in sequence B1a. However, whether such information will be provided, will be up to the local agent. (Note) In Japan, "statement of holdings" means "custody statement". Optional Sub-sequence B1a Financial Instrument Attributes is not available. 3.2 Examples Equities andatory Sequence A - General Information :16R:GENL :28E:00001/ONLY :20C::SEE//0001 :23G:NEW :98A::PREP// :98A::STAT// :22F::SFRE//DAIL :22F::CODE//COP :22F::STTY//CUST :22F::STBA//SETT :97A::SAFE//A1B1 :17B::ACTI//Y Bonds andatory Sequence A - General Information :16R:GENL :28E:00001/ONLY :20C::SEE//0002 :23G:NEW :98A::PREP// :98A::STAT// :22F::SFRE//NTH :22F::CODE//COP :22F::STTY//CUST :22F::STBA//SETT :97A::SAFE//C1D1 :17B::ACTI//Y 14

16 :17B::CONS//N :17B::CONS//N :16S:GENL :16S:GENL Optional Sequence B - Sub - safekeeping Account Optional Sequence B - Sub - safekeeping Account :16R:SUBSAFE :16R:SUBSAFE Optional Sequence B1 - Financial Instrument Optional Sequence B1 - Financial Instrument :16R:FIN :16R:FIN :35B:ISIN JP :35B:ISIN JP373300P080 N.T.T NEC(11) :90B::RKT//ACTU/JPY531000, :90B::RKT//ACTU/JPY107, :93B::AGGR//UNIT/1255, :93B::AGGR//FAT/ , Optional Subsequence B1a - Sub-Balance Optional Sequence B1a - Sub-Balance :16R:SUBBAL :16R:SUBBAL :93C::NOI//UNIT/AVAI/1245, :93C::NOI//FAT/AVAI/ :16S:SUBBAL :70C::SUBB//BOOK ENTRY , BEARER :16R:SUBBAL FOR , :93C::REGO//UNIT/NAVL/10, :16S:SUBBAL :16S:SUBBAL :19A::HOLD//JPY , :19A::HOLD//JPY , :16S:FIN :16S:FIN Optional Sequence B1 - Financial Instrument Optional Sequence B1 - Financial Instrument :16R:FIN :16R:FIN :35B:ISIN JP579200AQ33 :35B:ISIN JP TURKEY REPUBLIC(8) OROZOFF :90B::RKT//ACTU/JPY98,8 :90B::RKT//ACTU/JPY205, :93B::AGGR//FAT/ , :93B::AGGR//UNIT/56028, Optional Sequence B1b - Sub-Balance Optional Subsequence B1b - Sub-Balance :16R:SUBBAL :16R:SUBBAL :93C::NOI//FAT/AVAI/ , :93C::NOI//UNIT/AVAI/56000, :16S:SUBBAL :16S:SUBBAL :19A::HOLD//JPY , :16R:SUBBAL :16S:FIN :93C::RSTR//UNIT/AVAI/28, :16S:SUBSAFE :16S:SUBBAL :19A::HOLD//JPY , :16S:FIN :16S:SUBSAFE 15

17 4. Statement of Transactions (T536) 4.1 Elements In grey are the fields of sequences utilized by the Japanese custodians according to the Service Agreement Field Qualifier Definition Format Qualifiers and codes Swift O or andatory Sequence A - General Information 16R GENL Start of General Info Sequence GENL 28E Page number / Continuation 5n/4!c LAST indicator. ORE ONLY 13A STAT Statement Number :4!c//3!c STAT O 20C SEE Sender's Reference Number :4!c//16x SEE 23G NEW Function of the message 4!c[/4!c] NEW 98a PREP Preparation Date A or C PREP O 69a STAT Statement Period A or B STAT 22F Statement Basis :4!c/[8c]/4!c STBA Statement Frequency Indicator SFRE O Complete Updates Indicator CODE O Optional Subsequence A1 - Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B O 20C Reference Number of Linked :4!c//16x PREV Transaction RELA CORP 16S LINK End of Linkages Subsequence LINK 97a SAFE Safekeeping Account A or B 17B Flag :4!c//1!a ACTI CONS 16S GENL End of General Info Sequence GENL Optional Sequence B - Sub Safekeeping Account 16R SUBSAFE SUBSAFE 97a SAFE Safekeeping Account A or B O 17B ACTI Flag (If Seq A :17B::CONS is N, Seq B :17B::ACTI is not allowed.) :4!c//1!a ACTI O Optional Subsequence B1- Financial Instrument 16R FIN Start of the Financial Instrument Sequence 35B Identification of the Financial Instrument [ISIN1!e12!c] [4*35x] 90a Price A or B INDC O RKT 94B PRIC Place / Source of price :4!c/[8c]/4!c[/30x] PRIC O 98a PRIC Date/Time - Price Quotation Date/Time A or C PRIC O 93B First opening balance :4!c/[8c]/4!c/[N]15d FIOP O Intermediary Opening Balance INOP FIN 16

18 Final closing balance FICL Intermediary Closing Balance INCL andatory Subsequence B1a - Transaction 16R TRAN Start of Transaction Subsequence TRAN andatory Subsequence B1a1- Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Ref Number of Linked :4!c//16x POOL Transaction PREV RELA 16S LINK End of Linkages Subsequence LINK Optional Subsequence B1a2 - Transaction Details 16R TRANSDET Start of Transaction Details Subsequence TRANSDET 94a Place B or F TRAD O SAFE O 36B PSTA Quantity of financial instrument/posting Qty. :4!c//4!c/15d PSTA 99A DAAC Number of days accrued :4!c//[N]3!n DAAC O 19A Posted cash amount :4!c//[N]3!a15d PSTA O ACRU 22a Transaction Indicator H or F TRAN Receive Deliver Indicator REDE Payment Indicator PAY Corporate Action Event Indicator CAEV O Type of Settlement Transaction SETR O TRCA O STCO O 98a Date/Time A,B or C ESET SETT O 25D OVE Status code / ovement status :4!c/[8c]/4!c OVE O 70E TRDE Transaction details narrative :4!c//10*35x O Optional Subsequence B1a2a - Settlement Parties 16R SETPRTY Start of Settlement Parties Subsequence SETPRTY 95a Party P,R or Q BUYR DEAG DECU PSET REAG RECU SELL 97a SAFE Safekeeping Account A or B SAFE O 20C PROC Processing Reference :4!c//16x PROC O 16S SETPRTY End of Settlement Parties SETPRTY Subsequence 16S TRANSDET End of Trans. Details Subsequence TRANSDET 16S TRAN End of Transaction Subsequence TRAN 16S FIN End of the Financial Instrument. FIN Subsequence 17

19 16S SUBSAFE End of the Sub safekeeping Account Sequence SUBSAFE Optional Sequence C - Additional Information 16R ADDINFO Start of Additional Information. ADDINFO Sequence 95a Party P,R or Q EOR O ERE 16R ADDINFO End of Additional Information Sequence ADDINFO 4.2 Examples Equity andatory Sequence A - General Information :16R:GENL :28E:0001/ONLY :98A::PREP// :13A::STAT//001 :20C::SEE//00001 :23G:NEW :98A::PREP// :69A::STAT// / :22F::SFRE//DAIL :22F::CODE//COP :22F::STBA//SETT :97A::SAFE//A111 :17B::ACTI//Y :17B::CONS//N :16S:GENL Optional Sequence B - Sub Safekeeping Account :16R:SUBSAFE Optional Sequence B 1- Financial Instrument :16R:FIN :35B:ISIN JP N.T.T :93B::FIOP//UNIT/3455, :93B::FICL//UNIT/3466, andatory Subsequence B1a - Transaction :16R:TRAN andatory Subsequence B1a 1- Linkages :16R:LINK :13A::LINK//541 :20C::RELA//REC001 :16S:LINK Optional Subsequence B1a2 - Transaction Details :16R:TRANSDET JGB :16R:GENL :28E:0001/ONLY :98A::PREP// :13A::STAT//001 :20C::SEE//00002 :23G:NEW :98A::PREP// :69A::STAT// / :22F::SFRE//DAIL :22F::CODE//COP :22F::STBA//SETT :97A::SAFE//A222 :17B::ACTI//Y :17B::CONS//N :16S:GENL :16R:SUBSAFE :16R:FIN :35B:ISIN JP JGB222(10YR) :93B::FIOP//FAT/ , :93B::FICL//FAT/ , :16R:TRAN :16R:LINK :13A::LINK//541 :20C::RELA//REC003 :16S:LINK :16R:TRANSDET 18

20 :36B::PSTA//UNIT/1, :19A::PSTA//JPY , :22H::TRAN//SETT :22H::REDE//RECE :22H::PAY//APT :98A::ESET// Optional Subsequence B1a2a - Settlement Parties :95P::DEAG//SCYYJPJ2 :95P::SELL//BRYYCC22 :16S:TRANSDET :16S:TRAN andatory Subsequence B1a - Transaction :16R:TRAN andatory Subsequence B1a 1- Linkages :16R:LINK :13A::LINK//540 :20C::RELA//REC002 :16S:LINK Optional Subsequence B1a2 - Transaction Details :16R:TRANSDET :36B::PSTA//UNIT/10, :22H::TRAN//SETT :22H::REDE//RECE :22H::PAY//FREE :98A::ESET// Optional Subsequence B1a2a - Settlement Parties :95P::DEAG//SCYYJPJ2 :95P::SELL//BRYYCC22 :16S:TRANSDET :16S:TRAN :16S:FIN :16S:SUBSAFE :36B::PSTA//FAT/ , :19A::PSTA//JPY , :22H::TRAN//SETT :22H::REDE//RECE :22H::PAY//APT :98A::ESET// :95P::DEAG//SCYYJPJ2 :95P::SELL//BRYYCC22 :16S:TRANSDET :16S:TRAN :16R:TRAN :16R:LINK :13A::LINK//542 :20C::RELA//DEL001 :16S:LINK :16R:TRANSDET :36B::PSTA//FAT/ , :22H::TRAN//SETT :22H::REDE//DELI :22H::PAY//FREE :98A::ESET// :95P::REAG//SCYYJPJ2 :95P::BUYR//BRYYCC22 :16S:TRANSDET :16S:TRAN :16S:FIN :16S:SUBSAFE 19

21 5. T T 537 Statement of Pending Transactions Elements Field Qualifier Definition Format Qualifiers and codes andatory Sequence A - General Information 16R GENL Start of General Information Sequence GENL 28E Page number / Continuation indicator 5n/4!c LAST ORE ONLY 13a STAT Statement Number A or J STAT O 20C SEE Sender's Reference Number :4!c//16x SEE 23G NEW Function of the message NEW 98a Date/Time A or C PREP O STAT 22a Indicator(Statement Frequency Indicator) F or H SFRE O Indicator(Complete Updates Indicator) CODE O Statement Structure Type Indicator STST Optional Subsequence A1 - Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Reference :4!c//16x PREV RELA 16S LINK End of Linkages Subsequence LINK 97a SAFE Account A or B 17B ACTI Activity Flag :4!c//1!a ACTI 16S GENL End of General Information Sequence GENL Optional Sequence B - Status * see below note 1 16R STAT Start of Status Sequence STAT 25D Status :4!/[8c]/4!c IPRC TCH SETT Optional Subsequence B1- Reason 16R REAS Start of Reason Subsequence REAS 24B Reason :4!c/[8c]/4!c *see below note 2 70D REAS Reason Narrative :4!c//6*35x REAS O 16R REAS End of Reason Subsequence REAS andatory Subsequence B2- Transaction 16R TRAN Start of transaction Subsequence TRAN andatory Subsequence B2a - Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Reference Number of Linked Transaction :4!c// POOL PREV RELA TRRF CO ASRF 16S LINK End of Linkages Subsequence LINK Optional Subsequence B2b - Transaction Details Swift O or 20

22 16R TRANSDET Start of Transaction Details Subsequence TRANSDET 94a Place B,C or F TRAD O SAFE O 35B Identification of the Financial Instrument [ISIN1!e12!c] [4*35x] 36B PSTA Quantity of financial instrument/posting Qty. :4!c//4!c//15d PSTA 19A Amount :4!c//[N]3!a15d PSTA O 22a Indicator H or F TRAN REDE PAY STCO O TRCA O STA O RTGS O BENE O CASY O TCPI O REPT O ACL O BLOC O REST O SETS O CAEV O SETR O 98a Date/Time A,B or C SETT TRAD O Optional Subsequence B2b1 - Settlement Parties 16R SETPRTY Start of Settlement Parties Subsequence SETPRTY 95a Party C,P,R,Q BUYR DEAG DECU PSET REAG RECU SELL 97a SAFE Safekeeping Account A or B SAFE O 20C PROC Processing Reference :4!c//16x PROC O 16S SETPRTY End of Settlement Parties Subsequence SETPRTY 16S TRANSDET End Transaction Details Subsequence TRANSDET 16S TRAN End of Transaction Subsequence TRAN 16S STAT End of Status Sequence STAT Optional Sequence C - Transactions *see below note 3 16R TRANS Start of Transactions Sequence TRANS andatory Subsequence C1 - Linkages 16R LINK Start of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Reference Number of Linked Transaction POOL PREV RELA TRRF CO ASRF 16S LINK End of Linkage Subsequence LINK Optional Subsequence C2 - Transaction Details 16R TRANSDET Start of Transaction Details Subsequence TRANSDET 35B Identification of the Financial Instrument [ISIN1!e12!c] [4*35x] 36B PSTA Quantity of financial instrument/posting Qty. :4!c//4!c//15d PSTA 19A Amount :4!c//[N]3!a15d PSTA O 22a Indicator H or F TRAN REDE 21

23 PAY STCO O TRCA O STA O RTGS O BENE O CASY O TCPI O REPT O ACL O BLOC O REST O SETS O CAEV O SETR O 98a Date/Time A,B or C SETT TRAD O Optional Subsequence C2a - SETTLEENT PARTIES 16R SETPRTY Start of Settlement Parties Subsequence SETPRTY 95a Party C,P,R,Q BUYR DEAG DECU PSET REAG RECU SELL 97a SAFE Safekeeping Account A or B SAFE O 20C PROC Processing Reference :4!c//16x PROC O 16S SETPRTY End of Settlement Parties Subsequence SETPRTY 16S TRANSDET End Transaction Details Subsequence TRANSDET Optional Sequence C3 - Status 16R STAT Start of Status Sequence STAT 25D Status :4!/[8c]/4!c IPRC TCH SETT Optional Subsequence C3a - Reason 16R REAS Start of Reason Subsequence REAS 24B Reason :4!/[8c]/4!c *see below note 4 70D REAS Reason Narrative :4!c//6*35x REAS O 16S REAS End of Reason Subsequence REAS 16S STAT End of Status Sequence STAT 16S TRANS End of Transactions Sequence TRANS Optional Sequence D - Additional Information O 16R ADDINFO Start of Additional Information Sequence ADDINFO 95a Party P,R or Q EOR 16S ADDINFO End of Additional Information Sequence ADDINFO notes 1 If the Activity Flag (field :17B::ACTI) in sequence A General Information indicates that there is information to be reported, ie.,"y and Statement Structure Type Indicator is per transactions (field 22H::STST//STAT)", then sequence B Status is andatory and sequence C Transaction is not allowed. 2 Applicable Reason Code should be decided jointly by Account Owner and Account servicer. 3 If the Activity Flag (field :17B::ACTI) in sequence A General Information indicates that there is information to be reported, ie.,"y and Statement Structure Type Indicator is per transactions (field 22H::STST//TRAN)", then sequence C Transaction is andatory and sequence B Status is not allowed. 4 Applicable Reason Code should be decided jointly by Account Owner and Account servicer. 22

24 5.1.2 Examples Reporting per status Reporting per transactions andatory Sequence A andatory Sequence A :16R:GENL :16R:GENL :28E:00001/ONLY :28E:00001/ONLY :20C::SEE//12345 :20C::SEE//12345 :23G:NEW :23G:NEW :98A::PREP// :98A::PREP// :98A::STAT// :98A::STAT// :22F::SFRE//DAIL :22F::SFRE//DAIL :22F::CODE//COP :22F::CODE//COP :22H::STST//STAT :22H::STST//TRAN :97A::SAFE//A1B1 :97A::SAFE//A1B1 :17B::ACTI//Y :17B::ACTI//Y :16S:GENL :16S:GENL Optional Sequence B Optional Sequence C :16R:STAT :16R:TRANS :25D::TCH//NAT Optional Sequence C1 Optional Subsequence B1 :16R:LINK :16R:REAS :13A::LINK//541 :24B::NAT//CIS :20C::RELA//NTT 1 :16S:REAS :16S:LINK Optional Subsequence B2 Optional Sequence C2 :16R:TRAN :16R:TRANSDET Optional Subsequence B2a :35B:ISIN JP :16R:LINK N.T.T :13A::LINK//541 :36B::PSTA//UNIT/2, :20C::RELA//NTT 1 :19A::PSTA//JPY10000, :16S:LINK :22F::TRAN//SETT Optional Subsequence B2b :22H::REDE//RECE :16R:TRANSDET :22H::PAY//APT :35B:ISIN JP :98A::SETT// N.T.T :98A::TRAD// :36B::PSTA//UNIT/2, Optional Subsequence C2a :19A::PSTA//JPY10000, :22F::TRAN//SETT :95P::DEAG//SCYYJPJ2 :22H::REDE//RECE :22H::PAY//APT :98A::SETT// :95P::SELL//BRYYCC22 :98A::TRAD// Optional Subsequence B2b1 :16S:TRANSDET Optional Sequence C3 :95P::DEAG//SCYYJPJ2 :16R:STAT :25D::TCH//NAT Optional Subsequence C3a :95P::SELL//BRYYCC22 :16R:REAS :24B::NAT//CIS :16S:TRANSDET :16S:REAS :16S:TRAN :16S:STAT 23

25 Optional Subsequence B2 :16S:TRANS :16R:TRAN Optional Sequence C Optional Subsequence B2a :16R:TRANS :16R:LINK Optional Sequence C1 :13A::LINK//541 :16R:LINK :20C::RELA//NTT 2 :13A::LINK//541 :16S:LINK :20C::RELA//NTT 2 Optional Subsequence B2b :16S:LINK :16R:TRANSDET Optional Sequence C2 :35B:ISIN JP :16R:TRANSDET N.T.T :35B:ISIN JP :36B::PSTA//UNIT/3, N.T.T :19A::PSTA//JPY15000, :36B::PSTA//UNIT/3, :22F::TRAN//SETT :19A::PSTA//JPY15000, :22H::REDE//RECE :22F::TRAN//SETT :22H::PAY//APT :22H::REDE//RECE :98A::SETT// :22H::PAY//APT :98A::TRAD// :98A::SETT// Optional Subsequence B2b1 :98A::TRAD// Optional Subsequence C2a :95P::DEAG//SCYYJPJ2 :95P::DEAG//SCYYJPJ2 :95P::SELL//BRYYCC22 :95P::SELL//BRYYCC22 :16S:TRANSDET :16S:TRAN :16S:TRANSDET :16S:STAT Optional Sequence C3 Optional Sequence B :16R:STAT :16R:STAT :25D::TCH//NAT :25D::TCH//ACH Optional Subsequence C3a Optional Subsequence B2 :16R:REAS :16R:TRAN :24B::NAT//CIS Optional Subsequence B2a :16S:REAS :16R:LINK :16S:STAT :13A::LINK//543 :16S:TRANS :20C::RELA//NTT 3 Optional Sequence C :16S:LINK :16R:TRANS Optional Subsequence B2b Optional Sequence C1 :16R:TRANSDET :16R:LINK :35B:ISIN JP :13A::LINK//543 N.T.T :20C::RELA//NTT 3 :36B::PSTA//UNIT/2, :16S:LINK :19A::PSTA//JPY10000, Optional Sequence C2 :22F::TRAN//SETT :16R:TRANSDET :22H::REDE//DELI :35B:ISIN JP :22H::PAY//APT N.T.T :98A::SETT// :36B::PSTA//UNIT/2, :98A::TRAD// :19A::PSTA//JPY10000, Optional Subsequence B2b1 :22F::TRAN//SETT :22H::REDE//DELI 24

26 :95P::REAG//SCYYJPJ2 :95P::BUYR//BRYYCC22 :16S:TRANSDET :16S:TRAN :16S:STAT :22H::PAY//APT :98A::SETT// :98A::TRAD// Optional Subsequence C2a :95P::REAG//SCYYJPJ2 :95P::BUYR//BRYYCC22 :16S:TRANSDET Optional Sequence C3 :16R:STAT :25D::TCH//ACH :16S:STAT :16S:TRANS 5.2 T548 Settlement Status and Processing Advice Elements Field Qualifier Definition Format Qualifiers and codes andatory Sequence A - General Information 16R GENL Start of General Information Sequence GENL 20C SEE Sender's Reference Number :4!c//16x SEE 23G Function of the essage 4!c[/4!c] INST CAST 98a PREP Date/Time A or C PREP O andatory Subsequence A1 - Linkages 16R LINK 0BStart of Linkages Subsequence LINK 13a LINK Linked essage A or B LINK O 20C Reference :4!c//16x POOL PREV RELA TRRF CO 16S LINK End of Linkages Subsequence LINK Repetitive andatory Subsequence A2 - Status 16R STAT Start of Status Sequence STAT 25D Status :4!/[8c]/4!c IPRC TCH SETT CPRC Optional Subsequence A2a - Reason 16R REAS Start of Reason Subsequence REAS Swift O or 25

27 24B Reason :4!c/[8c]/4!c * see below 1 70D REAS Reason Narrative :4!c//6*35x REAS O 16R REAS End of Reason Subsequence REAS 16S STAT End of Status Sequence STAT 16S GENL End of General Information Sequence GENL Optional Sequence B - Settlement Transaction Details 16R SETTRAN Start of Transaction Details Subsequence TRANSDET 94a Place B,C or F TRAD O 35B Identification of the Financial Instrument [ISIN1!e12!c] [4*35x] SAFE 36B SETT Quantity of Financial Instrument to be Settled :4!c//4!c//15d SETT 19A Amount :4!c//[N]3!a15d OCT O SETT 97a SAFE Account A or B 22a Transaction Indicator F or H TRAN Receive Deliver Indicator REDE Payment Indicator PAY Settlement Transaction Indicator STCO O Party Capacity Indicator TRCA O Securities Real-Time Gross Settlement Indicator STA O Registration Indicator RTGS O Beneficial Ownership Indicator BENE O Cash Settlement System Indicator CASY O Tax Capacity Party Indicator TCPI O Repurchase Type Indicator REPT O arket Side Indicator ACL O Block Trade Indicator BLOC O Restrictions REST O Settlement System Indicator SETS O Corporate Action Event Indicator CAEV O Type of Settlement Transaction SETR O 98a Date/Time A,B or C SETT EXSE ADEL TRAD 70E SPRO Settlement Instruction Processing Narrative :4!c//10*35x SPRO O Optional Subsequence B1 - Settlement Parties 16R SETPRTY Start of Settlement Parties Subsequence SETPRTY 95a Party C,P,R,Q BUYR DEAG DECU PSET REAG RECU SELL 97a SAFE Safekeeping Account A or B SAFE O 20C PROC Processing Reference :4!c//16x PROC O O O O O 26

28 16S SETPRTY End of Settlement Parties Subsequence SETPRTY 16S SETTRAN End of Transaction Details Sequence TRANSDET Optional Sequence C - Additional Information 16R ADDINFO Start of Additional Information Sequence ADDINFO 95a Party C,P,R,Q EOR ERE INVE 16S ADDINFO End of Additional Information Sequence ADDINFO *1 Applicable Reason Code should be decided jointly by Account Owner and Account Servicer Examples example (1) example (2) matching problem advice settlement problem advice andatory Sequence A andatory Sequence A :16R:GENL :16R:GENL :20C::SEE//12345 :20C::SEE//11234 :23G:INST :23G:INST :98A::PREP// :98A::PREP// andatory Subsequence A1 andatory Subsequence A1 :16R:LINK :16R:LINK :13A::LINK//543 :13A::LINK//541 :20C::RELA//001 :20C::RELA//002 :16S:LINK :16S:LINK Repetitive andatory Subsequence A2 Repetitive andatory Subsequence A2 :16R:STAT :16R:STAT :25D::TCH//NAT :25D::SETT//PEND Optional Subsequence A2a Optional Subsequence A2a :16R:REAS :16R:REAS :24B::NAT//CIS :24B::PEND//CLAC :16S:REAS :16S:REAS :16S:STAT :16S:STAT :16S:GENL :16S:GENL Optional Sequence B Optional Sequence B :16R:SETTRAN :16R:SETTRAN :35B:ISIN JP :35B:ISIN JP NTT SONY :36B::SETT//UNIT/1, :36B::SETT//UNIT/100, :19A::SETT//JPY , :19A::SETT//JPY500000, :97A::SAFE//C2D2 :97A::SAFE//C2D2 :22F::SETR//TRAD :22F::SETR//TRAD :22H::REDE//DELI :22H::REDE//RECE :22H::PAY//APT :22H::PAY//APT :98A::SETT// :98A::SETT// Optional Subsequence B1 Optional Subsequence B1 :95P::REAG//SCYYJPJ1 :95P::DEAG//SCYYJPJ1 27

29 :95P::BUYR//BRYYXX22 :16S:SETTRAN :95P::SELL//BRYYXX22 :16S:SETTRAN example (3) example (4) cancel completion advice instruction reject advice andatory Sequence A andatory Sequence A :16R:GENL :16R:GENL :20C::SEE//23456 :20C::SEE//13456 :23G:CAST :23G:INST :98A::PREP// :98A::PREP// andatory Subsequence A1 andatory Subsequence A1 :16R:LINK :16R:LINK :13A::LINK//543 :13A::LINK//541 :20C::RELA//003-CANC :20C::RELA//004 :16S:LINK :16S:LINK Repetitive andatory Subsequence A2 Repetitive andatory Subsequence A2 :16R:STAT :16R:STAT :25D::CPRC//CAND :25D::IPRC//REJT Optional Subsequence A2a Optional Subsequence A2a :16R:REAS :16R:REAS :24B::CAND//CANI :24B::REJT//DQUA :16S:REAS :16S:REAS :16S:STAT :16S:STAT :16S:GENL :16S:GENL Optional Sequence B Optional Sequence B :16R:SETTRAN :16R:SETTRAN :35B:ISIN JP :35B:ISIN JP NTT SONY :36B::SETT//UNIT/1, :36B::SETT//FAT/10000, :19A::SETT//JPY , :19A::SETT//JPY500000, :97A::SAFE//C2D2 :97A::SAFE//C2D2 :22F::SETR//TRAD :22F::SETR//TRAD :22H::REDE//DELI :22H::REDE//RECE :22H::PAY//APT :22H::PAY//APT :98A::SETT// :98A::SETT// Optional Subsequence B1 Optional Subsequence B1 :95P::REAG//SCYYJPJ1 :95P::DEAG//SCYYJPJ1 :95P::BUYR//BRYYXX22 :95P::SELL//BRYYXX22 :16S:SETTRAN :16S:SETTRAN 28

30 5.3 Instruction-T548-T537 atrix T540- T543 T548 T537 23G: Function 23G:Fun 25D:Status ction Code 24B: Reason Code *1 NEW INST IPRC CAND CAND CANI CANS 23G: Function 25D:Status Code 24B: Reason Code *2 NEW IPRC *3 CAND na na CANP CANP NARR CONF CANP na na CPRC - - CPRC - - PACK PACK NARR SPG REJT REJT SAFE PACK PACK NARR SPG TCH ACH - - TCH ACH - - NAT NAT CIS DON DEPT IEXE PHYS NAT NAT CIS DON DEPT IEXE PHYS SETT PEND PEND CON ONY CLAC LACK REFS SETT PEND PEND CON ONY CLAC LACK REFS PENF PENF CON ONY CLAC LACK REFS PENF PENF CON ONY CLAC LACK REFS CANC CAST CPRC CAND CAND CANI CANS CANP CANP NARR CONF DEND DEND DCAN DSET PACK PACK NARR SPG REJT REJT NRG NRGN *1 Applicable Reason Code should be decided jointly by Account Owner and Account Servicer *2 Applicable Reason Code should be decided jointly by Account Owner and Account Servicer *3 Cancelled instructions should not appear on statement 29