Settlement transaction types
ISSU: Issuance
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ISSU marks a settlement movement that relates to the issuance of a security, such as new shares or depositary receipts being created and delivered for the first time.
- Code
- ISSU
What ISSU means
When new securities are created, the first movement brings them into the system and delivers them to the receiving account. ISSU flags that movement. Citi’s field 22F guide links it to the issue side of a depositary receipt programme, where new receipts are created against underlying shares, and LuxCSD’s 2014 Singapore notice lists it among the accepted codes for equity instructions.
Distribution of a new bond or other instrument to investors uses PLAC, SYND or NSYN depending on how it is placed. The cancellation of depositary receipts back into local shares is RELE, and conversions between receipts and shares are CONV.
When you see it
- On receipts of newly issued shares or depositary receipts, and on the matching deliveries from the issuer’s agent or depositary.
What to do next
- Use ISSU only for movements that create a position at issuance. A purchase of the new security in the secondary market is TRAD.
- Check the market’s accepted list: Clearstream’s CSDR codes annex for the UK (CREST) notes that ISSU will not be available for user input once CREST’s penalties functionality is introduced.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//ISSU. 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//ISSU) 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.