Does PENF mean my instruction was cancelled?

No. A failing instruction stays live and settles as soon as the cause is fixed, unless it is cancelled by both sides or by the market after its recycling period.

Who pays when a trade is PENF?

In EU markets under CSDR the failing party is charged a daily cash penalty by the CSD, which is passed to the receiving party. Outside the EU, fail charges depend on the market.

Where is PENF in ISO 20022?

In sese.024 under SttlmSts/Flng, with the reason code in Rsn/Cd/Cd.

Settlement status codes

PENF: Pending/Failing Settlement

Written and maintained by ZagTrader. Last reviewed 21 October 2026. How this page is sourced and checked

PENF means the instruction is failing: it can no longer settle on its intended settlement date. It stays live and will settle when the cause is cleared, unless it is cancelled.

Code: PENF
Kind: Status (25D)
Qualifiers: SETT

What PENF means

:25D::SETT//PENF replaces PEND once the intended settlement date can no longer be met. The instruction is not cancelled: the CSD keeps trying to settle it.

The :24B::PENF// reason names the cause, with the same codes as for PEND plus a few that only apply to fails, such as CLAT (the counterparty’s instruction came too late for settlement), MLAT (cash or securities arrived too late) and BYIY (a buy-in has started).

Under the EU CSDR settlement discipline regime, CSDs charge cash penalties on failing instructions for each business day from the intended settlement date until settlement (since 1 February 2022).

When you see it

In an MT548 at the end of, or after, the intended settlement date for instructions that did not settle.
In the MT537 as a failing item until it settles or is cancelled.
In T2S, matched instructions that have not settled after 60 business days are cancelled.

What to do next

Read the reason. For your own shortage (LACK, MONY) arrange the position or funding, or agree partial settlement.
For the counterparty’s shortage (CLAC, CMON) chase them and keep the front office informed. A long fail may lead to a buy-in.
Check whether the fail is caused by another fail (a receipt you were relying on): fix the chain from the start.
Reconcile penalties reported by the CSD against your fails list. See PENF failing settlement.

Where it appears in MT and ISO 20022

MT (ISO 15022)

MT548 sequence A2, :25D::SETT//PENF
MT548 sequence A2a, :24B::PENF//<reason>, for example :24B::PENF//CLAC
MT537 sequence B or C3, :25D::SETT//PENF, with reasons in B1 or C3a

MX (ISO 20022)

sese.024 SttlmSts/Flng, with NoSpcfdRsn = NORE or Rsn/Cd/Cd = the failing reason (FailingReason4Code in sese.024.001.12)

Questions

Does PENF mean my instruction was cancelled?: No. A failing instruction stays live and settles as soon as the cause is fixed, unless it is cancelled by both sides or by the market after its recycling period.
Who pays when a trade is PENF?: In EU markets under CSDR the failing party is charged a daily cash penalty by the CSD, which is passed to the receiving party. Outside the EU, fail charges depend on the market.
Where is PENF in ISO 20022?: In sese.024 under SttlmSts/Flng, with the reason code in Rsn/Cd/Cd.