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Settlement transaction types

MKUP: Mark-Up

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MKUP marks an increase of the position an ICSD holds at the common depository, made for custody reasons such as a pre-release, a repurchase or the realignment of corporate action proceeds.

Code
MKUP

What MKUP means

Many international securities are issued as a global note held by a common depository for the two ICSDs. Each ICSD’s share of the issue is recorded at the common depository. When that share has to go up for a custody operation rather than a trade, for example to reflect corporate action proceeds or a pre-release, the movement is a mark-up and carries MKUP.

The decrease is MKDW. Realignment of positions between depositories after cross-system settlement is REAL. Investors do not send MKUP; it is exchanged between ICSDs, common depositories and agents.

When you see it

  • On instructions and confirmations between ICSDs and common depositories, and in custodians’ code lists (Citi supports it for some regions).

What to do next

  • If you operate depository accounts, use MKUP only for custody-driven increases at the common depository. A new issue closing uses the primary market codes such as SYND or NSYN.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F, :22F::SETR//MKUP. 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//MKUP) 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.

MX (ISO 20022)

  • sese.023: SttlmParams/SctiesTxTp/Cd = MKUP (code list SecuritiesTransactionType23Code, unchanged in sese.023.001.09 to .013). SttlmParams/SctiesTxTp/Prtry carries a proprietary code instead.
  • Echoed in sese.024 at TxDtls/SttlmParams/SctiesTxTp/Cd and in sese.025 at SttlmParams/SctiesTxTp/Cd.