Settlement transaction types
MKDW: Mark-Down
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MKDW marks a decrease of the position an ICSD holds at the common depository, made for custody reasons such as an issuer repurchase, a pre-release or the realignment of corporate action proceeds.
- Code
- MKDW
What MKDW means
For a global note held by a common depository, each ICSD’s share of the issue is recorded there. When that share has to go down for a custody operation, for example after the issuer buys back and cancels part of the issue, the movement is a mark-down and carries MKDW.
The increase is MKUP. Realignment of positions between depositories after cross-system settlement is REAL. Like MKUP, the code is used between ICSDs, common depositories and agents, not by investors.
When you see it
- On instructions and confirmations between ICSDs and common depositories, for example after partial redemptions or buy-backs that reduce the global note.
What to do next
- Use MKDW only for custody-driven decreases at the common depository, and keep it consistent with the corporate action or cancellation that caused it.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//MKDW. 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//MKDW) 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.