Settlement transaction types
INSP: Move of Stock
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INSP marks a move of stock into or out of a pooled account. It is typically used when securities instead of cash are used to buy or redeem units of a fund.
- Code
- INSP
What INSP means
In an in-specie subscription the investor transfers securities into the fund’s pooled account and receives fund units instead of paying cash; in an in-specie redemption the fund hands out securities instead of cash. Citi’s field 22F guide describes INSP this way and notes, as the official definition of PORT does, that such moves are generally charged differently from other account transfers.
SUBS and REDM describe the settlement of the fund units themselves. PORT covers a full portfolio transition, and OWNE and OWNI cover other account transfers.
When you see it
What to do next
- Use INSP for the securities leg of an in-specie subscription or redemption, and agree the valuation date with the fund’s transfer agent, because the units issued depend on it.
- Do not send these moves as TRAD; they are not purchases or sales and should not attract trade charges.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//INSP. 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//INSP) 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.