Settlement transaction types
FCTA: Factor Update
Written and maintained by ZagTrader. Last reviewed . How this page is sourced and checked
FCTA marks a movement that relates to a factor update: the position of an amortising security, such as a mortgage-backed or asset-backed bond, is adjusted to its new pool factor.
- Code
- FCTA
What FCTA means
Amortising securities repay principal over time, and their outstanding amount is expressed as an original face value times a pool factor that the issuer or agent publishes each period. When a new factor is published, holdings stated in current face change without any trade. FCTA flags movements that only reflect that update.
Principal repayments themselves are corporate action events and are announced and paid through the corporate action messages, for example with the event code PRED. Trades in the security remain TRAD.
When you see it
- On statements and confirmations from account servicers that book factor changes as settlement movements, mainly in mortgage and asset-backed securities.
What to do next
- Do not treat FCTA movements as trades in your reconciliation. Compare them with the published factor; a difference usually means one side holds an old factor.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//FCTA. 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//FCTA) 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.