How to read a custody statement (MT535, MT536, MT537 and semt.002/017)

Three statements, three questions

All three are sent by the account servicer (the custodian or CSD) to the account owner, for one safekeeping account, and they share the same header structure. A statement too large for one message is split into pages: field 28E gives the page number and MORE, LAST or ONLY.

The header: what kind of statement is this?

Sequence A (GENL) tells you how to read everything below it. Read it first, because a delta statement or a trade-date-basis statement gives different numbers from a complete, settled-basis one for the same account on the same day.

• Settled basis (SETT) shows what you actually hold at the CSD. Trade-date basis (TRAD) includes trades that are agreed but not settled. Contractual basis (CONT) treats trades as settled on their intended date even if they failed. Reconcile like with like.
• With CODE//DELT, a security missing from the statement has not changed; with CODE//COMP, a missing security means a zero position.

Holdings: one block per security

Each security sits in a FIN block (sequence B1), inside a SUBSAFE block (sequence B) that names a sub-safekeeping account when the statement consolidates several. The block starts with the ISIN and description in 35B, may describe the instrument in an FIA block (maturity, coupon, factors for asset-backed bonds), then gives price, balances and values.

Quantities are typed: UNIT for a number of shares or units, FAMT for the face amount of a bond, AMOR for the amortised face amount. A bond position of FAMT/2000000, is a nominal of 2,000,000, not 2,000,000 bonds.

Prices are in 90a: :90A::MRKT//PRCT/99,75 is 99.75 percent of face value, :90B::MRKT//ACTU/AED12,6 is AED 12.60 per unit. The source of the price is in :94B::PRIC// and its date in :98A::PRIC//. Values follow in 19A: HOLD (holding value, quantity times price), ACRU (accrued interest) and BOOK (book value). When the value is in another currency than the account, :92B::EXCH// gives the rate used.

Balances: aggregate, available, not available, pending

The headline number is the aggregate balance :93B::AGGR//: everything the custodian holds for you in that security. It may be split into available (AVAI) and not available (NAVL) balances, and further into sub-balances in SUBBAL blocks (sequence B1b) that say why part of the position cannot be used.

• Sub-balances are reported as :93B::<qualifier>//UNIT/<qty> or, with option C, :93C::<qualifier>//UNIT/NAVL/<qty>, where the middle code says whether that sub-balance is available or not.
• Pending sub-balances matter for settlement: a sale that is failing with LACK often turns out to be stock that sits in BLOK, LOAN or PENR.

A complete MT535, line by line

The custodian CUSTAEADXXX reports end-of-day settled positions on 22 October 2026 to the fund FUNDLULLXXX for account ZAG-SAFE-0001. Three securities: 90,000 shares of AEZAGT000016 worth AED 1,134,000.00 (after the sale in the settlement lifecycle guide), 50,000 shares of AEZAGT000024 of which 10,000 are blocked, and a USD 2,000,000 nominal eurobond XS00ZAGT0013 valued at 99.75 percent with USD 12,500.00 accrued interest. The statement total is in AED.

• GENL: one page, statement number 296, positions as at 22 October 2026, daily, complete, custody statement on a settled basis, activity present, not consolidated.
• First FIN block: price AED 12.60, aggregate and available 90,000 units, holding value 90,000 x 12.60 = AED 1,134,000.00.
• Second FIN block: 50,000 units in total, 40,000 available, 10,000 not available because they are blocked (the SUBBAL block); value 50,000 x 8.20 = AED 410,000.00.
• Third FIN block: face amount 2,000,000 at 99.75 percent = USD 1,995,000.00, plus USD 12,500.00 accrued interest reported separately; converted at 3.6725 AED per USD for the statement total.
• ADDINFO: total holdings value of the statement, AED 1,134,000.00 + 410,000.00 + 7,326,637.50 = AED 8,870,637.50.

{1:F01CUSTAEADAXXX0000000000}{2:I535FUNDLULLXXXXN}{4:
:16R:GENL
:28E:1/ONLY
:13A::STAT//296
:20C::SEME//CS26102200901
:23G:NEWM
:98A::STAT//20261022
:22F::SFRE//DAIL
:22F::CODE//COMP
:22F::STTY//CUST
:22F::STBA//SETT
:97A::SAFE//ZAG-SAFE-0001
:17B::ACTI//Y
:17B::CONS//N
:16S:GENL
:16R:SUBSAFE
:16R:FIN
:35B:ISIN AEZAGT000016
ZAGTRADER TEST HOLDING PJSC
:90B::MRKT//ACTU/AED12,6
:98A::PRIC//20261022
:93B::AGGR//UNIT/90000,
:93B::AVAI//UNIT/90000,
:19A::HOLD//AED1134000,
:16S:FIN
:16R:FIN
:35B:ISIN AEZAGT000024
ZAGTRADER TEST PROPERTIES PJSC
:90B::MRKT//ACTU/AED8,2
:98A::PRIC//20261022
:93B::AGGR//UNIT/50000,
:93B::AVAI//UNIT/40000,
:93B::NAVL//UNIT/10000,
:16R:SUBBAL
:93C::BLOK//UNIT/NAVL/10000,
:16S:SUBBAL
:19A::HOLD//AED410000,
:16S:FIN
:16R:FIN
:35B:ISIN XS00ZAGT0013
ZAGTRADER TEST 4.5 PCT NOTES 2031
:90A::MRKT//PRCT/99,75
:98A::PRIC//20261022
:93B::AGGR//FAMT/2000000,
:93B::AVAI//FAMT/2000000,
:19A::HOLD//USD1995000,
:19A::ACRU//USD12500,
:92B::EXCH//USD/AED/3,6725
:16S:FIN
:16S:SUBSAFE
:16R:ADDINFO
:19A::HOLS//AED8870637,5
:16S:ADDINFO
-}

Transactions (MT536) and pending items (MT537)

The MT536 covers a period (:69A::STAT//20261022/20261022 for one day) and the same account. For each security it lists every posting in a TRAN block: a linkage block that quotes your instruction reference in :20C::RELA// (and the custodian’s own reference), the posted quantity :36B::PSTA//, the activity type :22F::TRAN// (SETT settlement, CORP corporate action, COLL collateral, BOLE lending, CLAI market claim), the direction :22H::REDE// (RECE or DELI), the payment type :22H::PAYM// (APMT or FREE) and the effective settlement date :98A::ESET//. In semt.017 the same data is grouped per security and transaction.

The MT537 lists open instructions. Its header says how it is organised in :22H::STST//: STAT groups the transactions under each status, TRAN lists each transaction with its own statuses. The statuses and reasons are the same as in the MT548: matching (MTCH), settlement (SETT), processing (IPRC), with reasons such as NMAT, LACK or MONY. It is the quickest way to see every fail on the account in one message.

How to reconcile, step by step

1. Check completeness: statement numbers in sequence, all pages received (the last one says LAST or ONLY), the date and basis you expect.
2. Movements first: every settlement confirmation (MT544 to MT547) and corporate action posting (MT566) you booked for the day appears in the MT536 with the same quantity and date, and nothing appears that you did not book.
3. Positions next: for each security, your opening position plus the day’s settled movements equals the AGGR balance in the MT535. Compare on the same basis (settled with settled).
4. Securities missing on either side: a security in your books but not in a complete statement is a zero at the custodian, and vice versa. Check pending receipts, transfers between accounts and corporate actions that changed the ISIN.
5. Availability: compare NAVL and the sub-balances with your records of pledges, loans and corporate action elections. Unexpected blocks stop deliveries.
6. Valuation: compare price, price date and source with your pricing; differences in valuation are not position breaks but should be explained.
7. Open items: every instruction you hold as open is in the MT537 with the same status; follow up NMAT and PENF items the same day.
8. Log each break with its cause and owner, and clear it before the next statement. Recurring breaks of the same type point to a process fix.

Typical reconciliation breaks

• Timing: a trade settled after the custodian’s statement cut-off, or you compare a trade-date view with a settled-basis statement.
• Corporate actions: new securities or cash credited by an MT566 you did not book, or an ISIN change after a merger or split.
• Failed trades booked as settled on the intended date in your system (contractual settlement) while the custodian reports actual settlement.
• Lending and collateral: securities on loan still count in AGGR at some custodians and not at others; read the sub-balances.
• Bond quantities read as units instead of face amount, or pool factors not applied to asset-backed positions.
• More causes and fixes: MT535 reconciliation breaks.

Questions

What is the difference between MT535 and MT536?

The MT535 shows positions at a point in time. The MT536 shows the movements that settled during a period. Opening position plus MT536 movements should equal the closing MT535 position.

What does 93B::AGGR mean?

The aggregate balance: the total quantity of that security held for you in the account, before any split into available and not available. It is the figure to reconcile with your books.

What is the difference between available and not available balance?

Available (AVAI) is what you can deliver or use. Not available (NAVL) is held for you but blocked, pledged, on loan, pending registration or otherwise restricted; sub-balances in the SUBBAL blocks say why.

What does STBA//SETT or STBA//TRAD mean in an MT535?

The statement basis. SETT reports positions that have actually settled. TRAD reports positions by trade date, including agreed but unsettled trades. CONT reports on the contractual settlement date even if a trade failed.

What replaces MT535 in ISO 20022?

semt.002 Securities Balance Custody Report. The MT536 maps to semt.017 and the MT537 to semt.018. MT statements remain in use; see ISO 20022 migration.

Why does a security in my books not appear in the MT535?

With a complete statement (CODE//COMP), it means the custodian holds none: check unsettled receipts, transfers and corporate actions. With a delta statement (CODE//DELT), it only means the position has not changed.

Messages in this guide

• MT535Statement of Holdings
• MT536Statement of Transactions
• MT537Statement of Pending Transactions
• semt.002Securities Balance Custody Report
• semt.017Securities Transaction Posting Report
• MT548Settlement Status and Processing Advice
• MT544Receive Free Confirmation
• MT545Receive Against Payment Confirmation
• MT546Deliver Free Confirmation
• MT547Deliver Against Payment Confirmation
• MT566Corporate Action Confirmation

Read next

• From instruction to settled position: MT540-548, sese.023/024/025 and the statements that follow.
• Announcement, entitlement, instruction, status, payment and reversal with MT564-568 and seev messages.
• Securities messages stay on ISO 15022 alongside ISO 20022 after the November 2025 payments switch; the MT to MX map.
• MT535 reconciliation breaks
• PEND LACK (lack of securities)