2.7.2 SWIFT Requested Settlement Currency

This topic provides information on SWIFT requested settlement currency.

The transaction will be processed as per the information contained in the requested settlement currency tag of the Swift incoming order message <ReqdSttlmCcy>. While processing the order message the system will extract the value of the tag ReqdSttlmCcy from the incoming order messages. The messages which will be enhanced to support the <ReqdSttlmCcy> tag are as follows:

• RedemptionOrderV04 setr.004.001.04
• RedemptionBulkOrderV04 setr.001.001.04
• SubscriptionOrderV04 setr.010.001.04
• SubscriptionBulkOrderV04 setr.007.001.04
• SwitchOrderV04 setr.013.001.04

The tag value of the ReqdSttlmCcy must contain the valid settlement currency code, for instance, HKD, USD etc. If the tag value contains the value other than the maintained currencies in the system, then the transaction will be rejected with the rejection code as NCRR- Unrecognised or invalid Settlement Amount Currency.

Upon receipt of the settlement currency code value, the system will check if bank account is maintained at UH level for the currency maintained in the tag. If bank account is not maintained, i.e., default corresponding account is maintained for the unit holder then the system will reject the order instruction with the rejection code as NCRR- Unrecognised or invalid Settlement Amount Currency. The order Instruction Status message (OrderInstructionStatusReportV04 setr.016.001.04) will be generated with the rejection Code as NCRR.

If the tag value for < ReqdSttlmCcy> is present in the message and bank account is maintained for the UH for the settlement currency present in < ReqdSttlmCcy> tag, then the settlement currency code mentioned in the tag < ReqdSttlmCcy> will be considered as the transaction currency for the transaction. The system will apply the exchange rate if requested settlement currency is different from the pricing currency.

In case of switch transaction, the above rules will be applied to the redemption leg and the value will override the transaction currency of redemption leg.

The system will consider the default exchange rate source ID maintained at general operating rules level of the fund. If no default exchange rate is maintained at fund general operating rules, then system will consider the segment level default exchange rate source maintained in Module Defaults Setup screen. For instance, if the user wants any specific FX rate required for AMG funds then user needs to maintain the default source ID for AMG funds, then that source ID will be used to get the exchange rate. This is applicable for both amount based and unit based transactions.

The < ReqdSttlmCcy> tag will be provided for the <RedLegDtls> section of the switch confirmation message which contains the Transaction currency.