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Settlement transaction types

TRVO: Triparty Reverse Repo

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TRVO flags a settlement movement that belongs to a triparty reverse repo, seen from the party that provides the cash and receives collateral selected by a triparty agent.

Code
TRVO

What TRVO means

The cash provider in a triparty repo (often a money market fund or a bank treasury) lends cash and receives a basket of collateral that the triparty agent chooses from the giver’s securities against an agreed eligibility schedule. Movements into and out of the cash provider’s collateral account under that deal carry TRVO.

TRVO is the mirror of TRPO. In a bilateral reverse repo the cash provider instructs its own receipt and delivery with RVPO; in triparty the agent instructs and substitutes the collateral, so the cash provider mostly sees TRVO on confirmations and statements rather than on instructions it writes itself.

When you see it

  • On MT544 or MT545 confirmations of collateral received into the cash provider’s account, and on MT546 or MT547 when it goes back.
  • In MT536 and MT537 statements of the cash provider’s collateral account.

What to do next

  • Use TRVO for triparty deals only; bilateral deals are RVPO. Under EU CSDR, CSDs report settlement fails per type of transaction (purchase or sale, collateral management, securities lending and borrowing, repo, other), and custodians such as BNY pass the instructed SETR code to the CSD for that reporting. A financing or collateral movement sent as TRAD lands in the wrong bucket.
  • Expect many movements per deal: substitutions and top-ups by the agent each produce a confirmation. Reconcile on the agent’s references (:20C::TCTR or :20C::CLTR in sequence A1).
  • Some custodians never apply automatic partial settlement to this type: BNY lists SECL, SECB, SLRE, SBRE, OWNI, TURN and the repo codes among the transactions it always instructs with NPAR.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F, :22F::SETR//TRVO. 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//TRVO) 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.
  • Two-leg terms go in sequence D (block REPO) of MT540 to MT543: :98a::TERM closing date, :20C::SECO second-leg reference, :92A::REPO rate, :19A::TRTE termination amount.

MX (ISO 20022)

  • sese.023: SttlmParams/SctiesTxTp/Cd = TRVO (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.
  • sese.023 carries the triparty references in SttlmTpAndAddtlParams/TrptyAgtSvcPrvdrCollTxId and SttlmTpAndAddtlParams/ClntCollTxId.