Settlement transaction types
PLAC: Placement
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PLAC marks a settlement that belongs to the placement of a new issue: the instrument is delivered to the investors or intermediaries that took it up in the primary market.
- Code
- PLAC
What PLAC means
In a placement the issuer, through its agent or arranger, sells newly issued securities to investors. The settlement of those primary market allocations is flagged PLAC, so that custodians and CSDs can tell them from secondary market trades.
PLAC is the general code. When the issue goes through a syndicate of underwriters led by a lead manager, SYND is more specific; short and medium term paper issued under a programme without a syndicate is NSYN. The creation of new shares or depositary receipts is ISSU.
When you see it
What to do next
- Use PLAC for primary allocations. Once the instrument trades in the secondary market, purchases and sales are TRAD.
- In T2S markets the transaction type is not one of the matching fields, so the code on your instruction does not stop it matching. Some markets do match on it: Clearstream states that for KDPW (Poland) the SETR indicator is a mandatory matching criterion. There, agree the code with your counterparty, or both instructions stay unmatched with reason SETR (see unmatched settlement instructions).
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//PLAC. 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//PLAC) 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.