Settlement transaction types
SYND: Syndicate of Underwriters
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SYND marks the settlement of a new issue distributed through a syndicate of underwriters led by a lead manager, such as a syndicated bond, equity or warrant issue.
- Code
- SYND
What SYND means
In a syndicated issue the lead manager and the other syndicate banks take up the securities from the issuer and distribute them to investors. The closing of the issue and the deliveries from the lead manager to syndicate members and on to investors are flagged SYND.
Programme issuance without a syndicate, such as CP or MTN tranches, uses NSYN. PLAC is the general placement code, and ISSU covers the creation of new shares or depositary receipts.
When you see it
- On the lead manager’s deliveries at closing of a new issue and on the syndicate members’ receipts.
- On new issue settlements in the ICSDs, where many eurobonds are distributed through syndicates.
What to do next
- Use SYND for primary distribution through a syndicate. Allocations to end investors and their later trades should be checked against the custodian’s rules: secondary market trades 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//SYND. 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//SYND) 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.