Settlement transaction types
RODE: Return of Delivery Without Matching
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RODE marks the return of securities after a rejected delivery without matching: securities that arrived without the receiver’s matching instruction are sent back.
- Code
- RODE
What RODE means
Some settlement systems let a participant deliver securities free of payment to another account without the receiver sending a matching instruction. If the receiver does not accept such a delivery, the securities go back to the deliverer, and that return movement is flagged RODE so it is linked to the original delivery rather than read as new business.
RODE is not the code for a normal return of a loan (SECL or SECB) or of collateral (COLI or COLO). In ISO 20022, sese.023 also has a separate SttlmParams/DlvryRtrRsn element for the reason a delivery is returned.
When you see it
- On free deliveries back to the original deliverer after an unexpected delivery, and on the matching confirmations.
What to do next
- Reference the original delivery in the linkages so both sides can close the item. If you receive a RODE, check why your delivery was refused, usually a wrong account or no agreement with the receiver.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F,
:22F::SETR//RODE. 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//RODE) 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.