Settlement transaction types
CNCB: Central Bank Collateral Operation
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CNCB marks a delivery or receipt of collateral to or from a national central bank for central bank credit operations, such as monetary policy lending and intraday credit.
- Code
- CNCB
What CNCB means
Banks that borrow from their central bank have to put up eligible collateral. In the euro area this goes through the national central banks of the Eurosystem. Securities moved into or out of the central bank’s collateral accounts for that purpose carry CNCB, which keeps them apart from commercial collateral and from repos with market counterparties.
CNCB is a single code for both directions. Commercial collateral uses COLO and COLI, and repos with market counterparties use REPU or RVPO. The ECB’s collateral management harmonisation group looked at these codes when it reviewed how settlement transaction types are used for securities financing and collateral.
When you see it
- On MT542 or sese.023 deliveries from a bank’s account to its central bank’s collateral account, and on the return receipts.
- In custodian code lists: Citi’s field 22F guide supports it for some regions.
What to do next
- Use CNCB only when the counterparty is a central bank acting for its credit operations. Follow your central bank’s own instructions on accounts and deadlines, which take precedence over general market practice.
- Under EU CSDR, CSDs report settlement fails per type of transaction (purchase or sale, collateral management, securities lending and borrowing, repo, other), and custodians such as BNY pass the instructed SETR code to the CSD for that reporting. A financing or collateral movement sent as TRAD lands in the wrong bucket.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//CNCB. The SETR qualifier is mandatory, so every instruction carries one code (format:4!c/[8c]/4!c; with a data source scheme a proprietary code may be sent instead). - Repeated in the confirmations MT544, MT545, MT546 and MT547 (sequence E,
:22F::SETR//CNCB) and in the MT548 status advice (sequence B, where SETR is mandatory when the sequence is present). - Optional in the statements: MT536 subsequence B1a2 and MT537 subsequences B2b and C2.