SETTLEMENT AND ISO 15022

STANDARDS:

SPAIN
MARKET PRACTICE

Issued on behalf of the Spanish Market Practice Group

Finalized: April 2001

Last Updated: January 2008
Spanish Market Practice Templates for Settlement

Table of Content

Spanish Market Practice Templates for Settlement......................................................................... 1

Table of Content.............................................................................................................................. 1
1 Introduction ................................................................................................................. 2
2 The Needed Elements.................................................................................................. 2
3 Illustration of the common elements used :................................................................. 5
4 Country Specifics: Put-through. .................................................................................. 7
5 Securities lending and borrowing settlement: ............................................................. 8
6 SUC FIXED INCOME matching system.................................................................. 18
7 ADR settlement Instructions: .................................................................................... 21
8 Contingent upon linkages: ......................................................................................... 23
9 Extension to Settlement Confirmation and Free of Payment .................................... 26

Changes to previous version (dark blue)

V5.0
Addition Recommendation for put-trough instructions Page 7.
June 2002
Addition of market practice requirements for more detailed
scenarios not covered by version 5.0.
V5.1
Addition - Securities Lending / Borrowing settlement Instruction Page 8
March 2003
- ADR Settlement Page 21
- Linkages Page 23
V5.2 ADR settlement. Change of code CONV into RELE for
Correction Page 21
April 2003 release / cancellation into local. Error correction.
V5.3 Deletion of SR 2003 references.
Cosmetic n/a
August 2004 PSET BIC change in illustrations.
V5.4 Clarification of the use of parties following the introduction
Clarification Page 2-3
March 2005 of a new matching engine at the ES CSD.
V5.5 Description of the new Securities lending/borrowing
Clarification Page 8-17
October 2005 process.
V5.6
Addition Description of the Fixed Income matching system. Page 18
April 2007
V5.7
Modification Contingent upon linkages compliance to global MP Page 23
January 2008

1
1 Introduction

This document refers to equities and fixed income vanilla trades in a custody environment.

2 The Needed Elements

ES
Business element name Data Content Format
Sender’s Message Reference 16x
Settlement Date 8!n
Trade Date 8!n
Identification of Financial Instrument ISIN1!e12!c
Quantity of Financial Instrument to be settled 4!c/15d with
4!c = UNIT for equities
4!c = FAMT for fixed
income
Safekeeping account to be credited or debited 35x
Delivering or Receiving agent BIC (1)
Client of Delivering or Receiving agent BIC (1)
Place of settlement BIC
Settlement Amount (including currency) 3!a15d

2.1 Country specifics.

(1) The new CSD system (S.U.C.) operational guidelines specifically require the transmission of
11 digits party identifiers from Spanish agents to the CSD in the instructing party(ies) and clients
of the receiving/delivering agent fields.
Based on this requirement and in order to avoid misinterpretations of the information received
from the clients, the ES NMPG required 11 digit BIC codes in these fields.
The ES NMPG however understands that the above requirement may impact instructing parties
outside Spain. Therefore, the Spain NMPG has decided to publish the following market practice
rules:
- 11 digit BIC codes is always the preferred option. 8 digit BIC codes filled with "XXX" will be
considered also as 11 digits BIC codes and routed to the CSD system.
- In case 8 digit BIC codes are received with no end filling, your Spanish agent will, with no
responsibility on its side and only in order not to stop any instruction, fill this code with "XXX"
at the end and route the instruction.

2
Illustration:

3
4
3 Illustration of the common elements used :

• Securities used: ES0123456789

• Parties and safekeeping accounts relationships as follows :

fund manager FMXXCC22XXX fictional Bank Identifier Code (BIC)

ABCD fictional account with its global

custodian
broker BRYYCC22ABC fictional Bank Identifier Code (BIC)

99857 fictional account with its local agent

global custodian GCXXDD22XXX fictional Bank Identifier Code (BIC)
A1B2 fictional account with its
subcustodian/local agent

subcustodian/local SCXXES22XXX fictional Bank Identifier Code (BIC)

agent of the global
custodian (1) 21354 fictional account with the central
securities depository
local agent of the SCYYES22XXX fictional Bank Identifier Code (BIC)
broker (2)
88888 fictional account with the central
securities depository
Example of PSET IBRCESMM[SCL]

• Trade Date is: 01 March 2005

• Settlement Date is: 04 March 2005
• Settlement amount is: EUR300000,
• Sender’s Reference is: 21324

5
 Detailed Field Name Data Field Example
Content

Start of block GENL :16R:GENL

Sender's Reference 16x :20C::SEME//21324
Function of the message 4!c :23G:NEWM
End of block GENL :16S:GENL

Start of block TRADDET :16R:TRADDET

Settlement Date 8!n :98A::SETT//20050304
Trade Date 8!n :98A::TRAD//20050301
Identification of the ISIN1!e12!c :35B:ISIN ES0123456789
Financial Instruments
End of block TRADDET :16S:TRADDET

Start of block FIAC :16R:FIAC

Quantity of Financial 4!c/15d :36B::SETT//xxxx/15000,
Instrument
Safekeeping Account 35x :97A::SAFE//xxxxxxxxx
End of block FIAC :16S:FIAC

Start of block SETDET :16R:SETDET

Settlement Transaction Type 1!a :22F::SETR//TRAD
Indicator

IDENTIFICATION OF PARTIES WILL VARY ACCORDING TO THE SETTLEMENT

CHAIN
OF ACCOUNTS

Start of block AMT :16R:AMT

Settlement amount 3!c15d :19A::SETT//EUR300000,
End of block AMT :16S:AMT

End of block SETDET :16S:SETDET

3.1 Settlement Chain should at least contain:

Delivering or Receiving agent BIC

Client of Delivering or Receiving agent BIC
Place of Settlement BIC

3.2 Example:

Start of block SETPRTY :16S:SETPRTY

Party (Delivering agent) BIC :95P::DEAG//SCYYES22XXX
End of block SETPRTY :16S:SETPRTY

Start of block SETPRTY :16R:SETPRTY

Party (Seller) BIC :95P::SELL//BRYYCC22ABC
End of block SETPRTY :16S:SETPRTY

Start of block SETPRTY :16R:SETPRTY

Party (place of settlement) BIC :95P::PSET//IBRCESMM[SCL]
End of block SETPRTY :16S:SETPRTY

6
4 Country Specifics: Put-through.

Put-through information becomes necessary when a direct (telephone) trade has been made
between parties, skipping the legal requirement in Spain of going through an organized market in
order to exchange beneficial ownership.
When the 2 parties deliver the instructions to their correspondent local custodians to exchange the
securities, they warn about the necessity of a put-through operation, to be actually done by either
of the local sub custodians.
Only in the very rare case that the necessity of the put-through is already known and
acknowledged by the instructing account owner (message sender) at the time of sending of its
instructions to the local sub-custodian, the following formatting was agreed by the Spain NMPG:
MT 542:
16R:GENL
20C::SEME//1049722
23G:NEWM
16S:GENL
16R:TRADDET
98A::SETT//20020419
98A::TRAD//20020416
35B:ISIN ES0177040013
ALTADIS SA
16S:TRADDET
16R:FIAC
36B::SETT//UNIT/2508,
97A::SAFE//111111
16S:FIAC
16R:SETDET
22F::SETR//TRAD
22F::BENE//YBEN Accepting put-through before delivery and accepting
the corresponding charges.
16R:SETPRTY
95P::REAG//SCXXES22XXX
16S:SETPRTY
16R:SETPRTY
95P::BUYR//BRYYCC22ABC Registration Name for the purchase side.
O 95Q::BUYR//Morgan Exact registration name for the purchase side in
R Stanley and Co., N.Y. which the stock must be registered before
ABCD Account delivering to SCXXES22
97A::SAFE//99857 Account number of the final receiver where the
securities will be deposited once put-through has
been made and delivery completed. OPTIONAL FIELD.
16S:SETPRTY
16R:SETPRTY
95P::PSET//IBRCESMM[SCL]
16S:SETPRTY
16S:SETDET

7
5 Securities lending and borrowing settlement:

IMPACT: This procedure will have a major impact on Spanish custodians

Testing period for Spanish Custodians: from 22.08.2005 to 14.10.2005
Implementation will finally take place on 21st. November 2005.

This matching system is based in the same principles that the Unified Matching System (SUC)
for transfers between participants under the same beneficiary, which is already in force since last
March.

Some different features interesting to the customers are:

FORE WORD: It must be stated very clearly that the counterpart to be instructed refers to the
actual registration of the loan, not the instructing party.

5.1 LOAN MATURITY DATE

The information concerning the maturity date of a loan term will be optional.
a) If a client includes this date on the ISO 15022 instruction, the information will be released to
the market.
b) If no date is included then no information will be released when the loan is transmitted.

It is important to note that if a maturity date is included in the transmission, it automatically

becomes matching criteria and MUST coincide with the date instructed by the counterparty. The
maturity date can be included in one of the following fields (please also see examples below):

REPO SEQUENCE
:98A::TERM//YYYYMMDD (preferred option)
OR
TRADDET SEQUENCE
:70E::SPRO//TERM YYYYMMDD

If it is decided not to populate this field, the consequences are going to be the following:
¾ The counterpart’s instruction sent to Iberclear must also leave the field unpopulated, in order
for the instructions to match within the matching system.
¾ Should the counterpart’s instruction reflect the maturity date, the instructions will not match
and to sort out the mismatch the local custodian will follow the procedure bilaterally agreed
with their customers.

5.2 COMMON/CROSS REFERENCE

The common reference will be also an optional element. If a common reference is agreed between
the two investors then this can be included in the ISO 15022 instruction. This information, if
included, will automatically become matching criteria and must coincide with the reference
indicated by the counterparty. This criterion, if included in the transmission, will basically be the
first point of matching with the counterpart. If the common reference is matched, but further

8
discrepancies are found, MT 548’s will be sent to the participants advising of the discrepant data.
If no common reference is included in the transmission, discrepant information will have to be
retrieved from the MT 578’s sent by Iberclear.

To report about this information, the local custodian will follow the procedure bilaterally agreed
with their customers.

The common/cross reference can be included in the following sequence and field (please also see
examples below):
LINK SEQUENCE
:20C::COMM//XXXXXXXXX (up to 16 digits)

Having said the above, if a party chooses not to populate this field the following must be known:
¾ The counterpart’s instruction sent to Iberclear must also leave the field unpopulated, in order
for the instructions to match within the matching system.
¾ Should the counterpart’s instruction reflect the common reference, the instructions will not
match and to report about this situation the local custodian will follow the procedure
bilaterally agreed with their customers.

5.3 IBERCLEAR`S ORIGINAL STOCK LOAN IDENTIFICATION NUMBER

The loan initiation identification number assigned by Iberclear upon the constitution of the loan
will be mandatory matching criteria upon its return. That is to say, local participants will have to
provide the Iberclear’s reference of the loan that they are ordered to return. It must be made clear
that it will be the Spanish custodians who will send the mandatory Iberclear’s identification
number 1 to Iberclear on a stock loan return trade. However, in order for local participants to
locate Iberclear’s ID number in its books, the clients should send the Trade Reference Number
(TRN) of the original stock loan on the Stock Loan Return Instruction. As both Iberclear ID
Number and the clients’ original TRN are linked together in local participants’ system, Iberclear’s
ID Number will be released to the market.

It is important to take into account that this is an obligatory matching criterion and if both parties
do not release exactly the same details then the trade will not settle.
It is therefore strongly recommended that this original stock lending TRN reference number be
included in the return instruction. It is of extreme importance to note that if the original TRN
reference is quoted by one of the parties involved, then both must include it; otherwise, the trade
will not match in the market.

The original TRN reference number must be included in the following sequence and field:
LINK SEQUENCE
:20C::PREV//XXXXXXXXX
Linking loan return to loan initiation by means of :20C::SEME of the original.

OR / PLUS

Other reference fields (such as TRRF) but only…

1
Id number is composed of a 15-digit number containing the date of issuance that is assigned by Iberclear to each
individual new stock loan upon its settlement. It is the Spanish Custodians and CSD who keep track of these Id. Numbers
in their books.

9
As far as identical reference was also provided in the loan initiation under the same
qualifier.

If there is a discrepancy between the two Iberclear ID Numbers sent to SUC Securities Lending
matching system, the local custodian will receive the discrepancy from Iberclear if a cross
reference has been matched and will report to its customer according to the procedure bilaterally
agreed. If no common reference is included in the transmission, or it does not match, discrepant
information will have to be retrieved from the MT 578’s sent by Iberclear.

As a result of the above said, it is understood that each original instruction must be cancelled
individually, not in a block.

5.4 CORPORATE ACTIONS

FOREWORD: It must be stated very clearly that Iberclear will grant the economical rights to the
owner of the securities at the time the event takes place. Any agreement on the contrary between
lender and borrower must be solved outside the system

Stock Merger, Conversions.

Upon a stock merger, conversions or other corporate actions where an ISIN code is deleted and
changed into another occurs, Iberclear will delete all open stock loans on their books and it will
be the local participants who will send instructions to Iberclear to open the loans under the new
ISIN code.
Each local participant will only have a month’s time from the corporate action event to send a
formatted ISO 15022 message, per open loan, to the SUC Securities Lending Matching system to
be matched. Upon matching Iberclear will register the loan with the details on the matched
instruction.
Local custodians will proceed as stated in the procedures bilaterally agreed with its customers.
The eliminated open loans will have to be returned outside the Securities Lending System by
means of a stock transfer between clients, using the new ISIN, if needed.

The above matching procedure is also applied in the cases where there is a client merger/take-
over, where it is necessary to transfer all the open loans from one client’s account to another.

Stock Split
If a stock loan is subject to a split, Iberclear will automatically adjust the quantity of the open
stock loan reflecting the split, while the Iberclear ID Number will remain the same.

Spin-Off
This event is unusual in Spain. However, may it take place in the future, the procedure will be
similar to that of the right issues.

Reverse Stock Split

If a stock loan is subject to a reverse stock split, Iberclear deletes the open stock loans from its
system. Procedure to follow after the deletion will be the same as in a stock merger.

Rights Issues
The SUC Securities Lending matching system will not cause an effect on the current procedure of
stock loans subject to a rights issue. The stock originating from a rights issue should be delivered

10
by the borrower as a normal stock transfer, where a put-through will be needed to have the stock
registered under the lender’s name.

Please see detailed ISO 15022 formatting examples below:

5.5 USAGE OF NEW LOAN - RETURN AND SECL-SECB QUALIFIERS.

NEW RETURN
Lender MT 542/3 SECL MT 540/1 SECL
Borrower MT 540/1 SECB MT 542/3 SECB

SAMPLE – MT 540 – NEW STOCK LOAN RECEIVE FREE OF PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:GENL
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND
YOUR
COUNTERPART (OPTIONAL)
:16R:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:70E::SPRO//TERM YYYYMMDD (OPTIONAL) *
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:REPO
:98A:TERM//YYYYMMDD (OPTIONAL) *
:16S:REPO
:16R:SETDET
:22F::SETR//SECB
:16R:SETPRTY
:95P::SELL//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS)
(MANDATORY)
OR
:95R::SELL//IBRC//Iberclear COD.
:16S:SETPRTY
:16R:SETPRTY
:95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY

11
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16S:SETDET
* ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 541 – NEW STOCK LOAN RECEIVE VS PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:GENL
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16R:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:70E::SPRO//TERM YYYYMMDD (OPTIONAL) *
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:REPO
:98A:TERM//YYYYMMDD (OPTIONAL) *
:16S:REPO
:16R:SETDET
:22F::SETR//SECB
:16R:SETPRTY
:95P::SELL//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY)
OR
:95R::SELL//IBRC//Iberclear COD.
:16S:SETPRTY
:16R:SETPRTY
:95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16R:AMT
:19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY)
:16S:AMT
:16S:SETDET
* ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 542 –NEW STOCK LOAN DELIVER FREE OF PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER

12
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:GENL
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16R:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:70E::SPRO//TERM YYYYMMDD (OPTIONAL) *
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:REPO
:98A:TERM//YYYYMMDD (OPTIONAL) *
:16S:REPO
:16R:SETDET
:22F::SETR//SECL
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16R:SETPRTY
:95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY)
OR
:95R::BUYR//IBRC//Iberclear COD.
:16S:SETPRTY
:16S:SETDET
* ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 543 – NEW STOCK LOAN DELIVER VS PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:GENL
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16R:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME

13
:70E::SPRO//TERM YYYYMMDD (OPTIONAL) *
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:REPO
:98A:TERM//YYYYMMDD (OPTIONAL) *
:16S:REPO
:16R:SETDET
:22F::SETR//SECL
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16R:SETPRTY
:95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY)
OR
:95R::BUYR//IBRC//Iberclear COD.
:16S:SETPRTY
:16R:AMT
:19A::SETT//EUR EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY)
:16S:AMT
:16S:SETDET
* ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 540 –STOCK LOAN RETURN RECEIVE FREE PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16S:LINK
:16R:LINK
:20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE
REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN
OR / PLUS
Other reference fields such as TRRF but only…
As far as identical reference was also provided in the loan initiation under the same
qualifier.
:16S:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)

14
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:SETDET
:22F::SETR// SECL
:16R:SETPRTY
:95P::PSET// IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::SELL// COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS)
OR
:95R::SELL//IBRC//Iberclear COD.
(MANDATORY)
:16S:SETPRTY
:16R:SETPRTY
:95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16S:SETDET

SAMPLE – MT 541 – STOCK LOAN RETURN RECEIVE VS PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16S:LINK
:16R:LINK
:20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE
REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN
OR / PLUS
Other reference fields such as TRRF but only…
As far as identical reference was also provided in the loan initiation under the same
qualifier.
:16S:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:SETDET
:22F::SETR// SECL
:16R:SETPRTY
:95P::PSET// IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::SELL// COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS)
OR

15
:95R::SELL//IBRC//Iberclear COD.
(MANDATORY)
:16S:SETPRTY
:16R:SETPRTY
:95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16R:AMT
:19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY)
:16S:AMT
:16S:SETDET

SAMPLE – MT 542 –STOCK LOAN RETURN DELIVERY FREE OF PAYMENT

:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16S:LINK
:16R:LINK
:20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE
REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN
OR / PLUS
Other reference fields such as TRRF but only…
As far as identical reference was also provided in the loan initiation under the same
qualifier.
:16S:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:SETDET
:22F::SETR//SECB
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY)
OR
:95R::BUYR//IBRC//Iberclear COD.
:16S:SETPRTY
:16R:SETPRTY
:95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16S:SETDET

16
SAMPLE – MT 543 – STOCK LOAN RETURN DELIVERY VS PAYMENT
:16R:GENL
:20C::SEME//YOUR REF NUMBER
:23G:NEWM
:98A::PREP//YYYYMMDD
:16R:LINK
:20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR
COUNTERPART (OPTIONAL)
:16S:LINK
:16R:LINK
:20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE
REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN
OR / PLUS
Other reference fields such as TRRF but only…
As far as identical reference was also provided in the loan initiation under the same
qualifier.
:16S:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT// YYYYMMDD (MANDATORY)
:98A::TRAD// YYYYMMDD (MANDATORY)
:35B:ISIN ES0000000000 (MANDATORY)
STOCK NAME
:16S:TRADDET
:16R:FIAC
:36B::SETT//UNIT/NUMBER SHS, (MANDATORY)
:97A::SAFE//A/C NUMBER (MANDATORY)
:16S:FIAC
:16R:SETDET
:22F::SETR//SECB
:16R:SETPRTY
:95P::PSET//IBRCESMMSCL
:16S:SETPRTY
:16R:SETPRTY
:95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY)
OR
:95R::BUYR//IBRC//Iberclear COD.
:16S:SETPRTY
:16R:SETPRTY
:95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY)
:16S:SETPRTY
:16R:AMT
:19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY)
:16S:AMT
:16S:SETDET

17
6 SUC FIXED INCOME matching system

6.1 Foreword/scenario:
The SUC matching system for fixed income started operations on April 12, 2007.
The following are the most important issues to be taken into consideration and specifics
applicable to account owners in their communications with account servicers.

6.2 Most important issues:

¾ The tolerance level set up by IBERCLEAR is: 10 EUR.
¾ Some fields must be populated correctly:
™ Counterparty (field REAG/DEAG). Whenever the trade is against a DIRECT
ACCOUNT HOLDER (please see candidates in below list), their BIC codes must be
included in this field.
™ Ordering party at counterparty (field RECU/DECU) 2
™ Client of counterparty, registration or holder (field BUYR/SELL) 3
¾ The use of some fields is mandatory while other remain optional; though if used they
become matching criteria. TRADE DATE IS A MANDATORY AND MATCHING
CRITERION.
¾ When an ICSD is involved in the operation (Euroclear and Clearstream), it is compulsory to
populate the participant account number.
Though it is not of compulsory use, account servicers may report allegements via MT 578. In
case your provider uses this message, please make sure your system is able to read them.

6.3 Annexes:
SAMPLE OF INSTRUCTION

:16R:GENL
:20C::SEME//YOUR REFERENCE
:23G:NEWM
:98C::PREP//YYYYMMDD
:16R:LINK
:20C::COMM//UP TO 16 CHARACTERS (OPTIONAL BUT WHEN USED IT IS A
MATCHING CRITERIA)
:16S:LINK
:16S:GENL
:16R:TRADDET
:98A::SETT//YYYYMMDD (MANDATORY)
:98A::TRAD//YYYYMMDD (MANDATORY)
:35B:ISIN ESXXXXXXXXXX (MANDATORY)
:16S:TRADDET

2
Must be published in the counterparties’ database published by CSD (Iberclear).
3
Must be published in the counterparties’ database published by CSD (Iberclear).

18
:16R:FIAC
:36B::SETT//FAMT/FACE OR NOMINAL VALUE (MANDATORY)
:97A::SAFE//123400000XXXXX (MANDATORY)
:16S:FIAC
:16R:SETDET
:22F::SETR//TRAD
:16R:SETPRTY
:95P::PSET//IBRCESMMCDE
:16S:SETPRTY
:16R:SETPRTY
:95P::REAG//XXXXXXXXXXX (SPANISH COUNTERPARTY BIC CODE) or DIRECT
ACCOUNT HOLDER BIC CODE
:16S:SETPRTY
:16R:SETPRTY
:95P::RECU//XXXXXXXXXXX (ORDERING PARTY AT COUNTERPARTY BIC CODE)
(MANDATORY IF IT IS DIFERENT OF CLIENT OF COUNTERPARTY)
:97A::SAFE//XXXXX (OPTIONAL)
:16S:SETPRTY
:16R:SETPRTY
:95P::BUYR//XXXXXXXXXXX (CLIENT OF COUNTERPARTY BIC CODE)
(MANDATORY)
:97A::SAFE//XXXXX (OPTIONAL)
:16S:SETPRTY
:16R:AMT
:19A::SETT//EURXXXXX,
:16S:AMT
:16S:SETDET

19
LIST OF EXISTING DIRECT ACCOUNT HOLDERS (April 2007):
Market BIC Long Name
Code
3800 JPMSGB2LXXX JP MORGAN SECURITIES LONDON
3801 SBILGB2LXXX CITIGROUP GLOBAL MARKETS LIMITED
3802 MLILGB3LECL MERRILL LYNCH INTERNATIONAL BANK -
LONDON
3803 DRESDEFFXXX DRESDNER BANK AG. - FRANKFURT
3804 MSLNGB2XXXX MORGAN STANLEY & CO INTL 1TD - LONDON
3805 SOGEFRPPHCM SOCIETE GENERALE PARIS
3808 BOFAGB2UXXX BANK OF AMERICA, N.A. LONDON
3809 BARCGB33XXX BARCLAYS BANK LONDON
3810 NOMAGB2LXXX NOMURA INTL PLC - LONDON
3811 EMTSGB2LXXX EURO MTS
3812 KREDBEBBXXX KBC BANK NV BRUSSELS
3815 IMITITMMXXX BANCA D'INTERMED.MOBILIARE IMI - MILAN
3817 GEBABEBB36A FORTIS BANK FINANCIAL MARKETS
3818 BBRUBEBB010 ING BELGIUM BRUSSELS
3821 COBADEFFXXX COMMERZBANK AG FRANKFURT
3823 BTECGB2LXXX BROKERTEC
3824 CSFBGB2LXXX CREDIT SUISSE FIRST BOS. (EUROPE)-LONDON
3825 CCFRFRPPXXX HSBC FRANCE
3826 DEUTDEFFXXX DEUTSCHE BANK AG FRANKFURT
3829 GSILGB2XXXX GOLDMAN SACHS INTERNATIONAL LONDON
3831 CCBPFRPPXXX NATEXIS BANQUES POPULAIRES - PARIS
3832 SLIIGB2LXXX LEHMAN BROTHERS INLT (EUROPE) - LONDON

20
 7 ADR settlement Instructions:

7.1 Foreword/scenario:
It is convenient to indicate to Spanish agent that the instruction involved is related to an ADR
operation; in some cases, this indication becomes essential for the instruction good end.

7.2 Requirement:
As from November 2003, the below codes should be used to identify that the settlement is
linked to an ADR operation:

a) When the underlying stock is aimed to be deposited with the ADR agent in Spain for ADR
issuance in the US:
Sequence E, SETDET:
- Field 22F::SETR//ISSU

b) When the underlying stock is aimed to be deposited with the ADR agent in the US for local
delivery in Spain through the Spanish agent:
Sequence E, SETDET:
- Field 22F::SETR//RELE

21
 7.2.1.1.1 Example:
The MT 540 to be sent to the Spanish agent for scenario b)

STP INSTRUCTION SETTLEMENT CONFIRMATION

MT 540 MT 544
:16R:GENL :16R:GENL
:20C::SEME//Ref2 :20C::SEME//Conf2
:23G:NEWM :23G:NEWM
:16S:GENL :16R:LINK
:16R:TRADDET :20C::RELA//Ref2
:98A::SETT//20030306 :16S:LINK
:98A::TRAD//20030303 :16S:GENL
:35B:ISIN ES0178430E18 :16R:TRADDET
:16S:TRADDET :98A::ESET//20030306
:16R:FIAC :98A::TRAD//20030303
:36B::SETT//UNIT/4000, :35B:ISIN ES0178430E18
:97A::SAFE//ABC123-D4 :16S:TRADDET
:16S:FIAC :16R:FIAC
:16R:SETDET :36B::SETT//UNIT/4000,
:22F::SETR//RELE Indication of the ADR opertaion. :97A::SAFE//ABC123-D4
:16R:SETPRTY :97A::CASH//EFG567-H8
:95P::PSET//IBRCESMM[SCL] :16S:FIAC
:16S:SETPRTY :16R:SETDET
:16R:SETPRTY :22F::SETR//RELE
:95P::DEAG//BBVAESMMXXX :16R:SETPRTY
:16S:SETPRTY :95P::DEAG//BBVAESMMXXX
:16R:SETPRTY :16S:SETPRTY
:95P::DECU//CITIUS33XXX :16R:SETPRTY
:16S:SETPRTY :95P::DECU//CITIUS33XXX
:16R:SETPRTY :16S:SETPRTY
:95P::DEI1//CUSTUS3CXXX Name of institution at DTC :16R:SETPRTY
instructing CITIUS33 to convert ADR's and deliver locally. :95P::DEI1//CUSTUS3CXXX
:97A::SAFE//nnnn DTC account number of the :97A::SAFE//nnnn
institution instructing to convert ADR's :16S:SETPRTY
:16S:SETPRTY :16R:SETPRTY
THE FOLLOWING IS AN OPTIONAL SUB-SEQUENCE. :95P::SELL//CLNTUS33XXX
IF IT IS NOT STATED, THEN PREVIOUS SUB-SEQUENCE :97A::SAFE//nnnn
MUST INDICATE SELL, AND NOT DEI1. :16S:SETPRTY
:16R:SETPRTY :16S:SETDET
:95P::SELL//CLNTUS33POR Name of the institution
instructing DEI1 to convert ADR's
:97A::SAFE//nnnn Account number of final beneficiary
at DEI1
:16S:SETPRTY
:16S:SETDET

22
 8 Contingent upon linkages:

8.1.1.1.1 Foreword/scenario:
The Spain NMPG complies to the global market practice on linkages. For more details, see
S&R Linkages Market Practice on www.smpg.info.

8.1.1.1.2 Requirement:
We indicate below the different possibilities to link instructions offered to clients making this
type of trades.

IMPORTANT NOTES:
- In case none of the alternatives is used or they are used in the wrong way, the members of
the Spain NMPG cannot guaranty neither STP treatment of the linked trades or usage of
specific securities for the rest of linked instructions.
The members of the Spain NMPG will decline all kind of responsibilities in case all or some
of the linked instructions cannot be settled or are settled late due to the client’s non-
compliance with any of the alternatives stated below.
- When linked instructions are received, systems may automatically look for ALL linked
trades. This process is done during a maximum period of time, established by each member of
the Spain NMPG. In case any of the linked instructions is not found, ALL THE REST
received may be rejected and new instructions must be issued in that case.

Fields related:
1.-
Sequence A
Field 99B::TOSE//Number of total instructions linked.
Field 99B::SETT//Current instruction number out of total linked.

2.-
Sub-sequence A1
Field 22F::LINK//INFO
To be optionally used along with field 20C::POOL//

3.-
Sub-sequence A1
Field 22F::LINK//BEFO
Field 22F::LINK//AFTE
Field 22F::LINK//WITH
To be populated at the minimum in the second and following messages. If possible, should be
populated in all messages.

4.-
Sub-sequence A1
Field 20C::POOL//common reference applied to all the linked instructions

! General Applicable Rule:

Client trades in which final beneficiary (registration) is involved or is to be kept throughout
all the trades life, must always bear sequence F, OTHRPRTY as follows:

95P::INVE//Bic code of beneficiary OR 95Q::INVE//Name of beneficiary

97A::SAFE//XXXXXX Beneficiary sub-account number at agent receiving
the instructions.

23
Any of the below alternatives is possible and STP treated, regardless of compulsory use of
the Geneneral Applicable Rule described above if necessary:

a) 1 + 2 + 3 + 4 PREFERRED OPTION
b) 1 + 3 + 4
c) 1 + 2 + 4
d) 1 + 4
e) 3

24
 8.1.1.1.3 Illustrations:
STP MKT.INSTRUCTION STP CLIENT-SIDE STP CLIENT-SIDE MKT. CONFIRMATION SETTLEMENT CLIENT-SIDE SETTLEMENT CLIENT-
INSTRUCTION A INSTRUCTION B CONFIRMATION A SIDE CONFIRMATION A

MT 541 MT 543 MT 543 MT 545 MT 547 MT 547

:16R:GENL :16R:GENL :16R:GENL :16R:GENL :16R:GENL :16R:GENL
:20C::SEME//Ref3 :20C::SEME//Ref3A :20C::SEME//Ref3B :20C::SEME//Conf3 :20C::SEME//Conf3A :20C::SEME//Conf3B
:23G:NEWM :23G:NEWM :23G:NEWM :23G:NEWM :23G:NEWM :23G:NEWM
:99B::TOSE//003 :99B::TOSE//003 :99B::TOSE//003 :16R:LINK :16R:LINK :16R:LINK
:99B::SETT//001 :99B::SETT//002 :99B::SETT//003 :22F::LINK//INFO :22F::LINK//INFO :22F::LINK//INFO
:16R:LINK :16R:LINK :16R:LINK :20C::POOL//Pool1 :20C::POOL//Pool1 :20C::POOL//Pool1
:22F::LINK//INFO :22F::LINK//INFO :22F::LINK//INFO :16S:LINK :16S:LINK :16S:LINK
:20C::POOL//Pool1 :20C::POOL//Pool1 :20C::POOL//Pool1 :16R:LINK :16R:LINK :16R:LINK
:16S:LINK :16S:LINK :16S:LINK :13A::LINK//541 :13A::LINK//543 :13A::LINK//543
:16R:LINK :16R:LINK :16R:LINK :20C::RELA//Ref3 :20C::RELA//Ref3A :20C::RELA//Ref3B
:22F::LINK//BEFO :22F::LINK//AFTE :22F::LINK//AFTE :16S:LINK :16S:LINK :16S:LINK
:20C::RELA//Ref3A :20C::RELA//Ref3 :20C::RELA//Ref3 :16S:GENL :16S:GENL :16S:GENL
:16S:LINK :16S:LINK :16S:LINK :16R:TRADDET :16R:TRADDET :16R:TRADDET
:16S:GENL :16S:GENL :16S:GENL :94B::TRAD//EXCH :94B::TRAD//OTCO :94B::TRAD//OTCO
:16R:TRADDET :16R:TRADDET :16R:TRADDET :98A::ESET//20030306 :98A::ESET//20030306 :98A::ESET//20030306
:94B::TRAD//EXCH :94B::TRAD//OTCO :94B::TRAD//OTCO :98A::SETT//20030306 :98A::SETT//20030306 :98A::SETT//20030306
:98A::SETT//20030306 :98A::SETT//20030306 :98A::SETT//20030306 :98A::TRAD//20030303 :98A::TRAD//20030303 :98A::TRAD//20030303
:98A::TRAD//20030303 :98A::TRAD//20030303 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :35B:ISIN ES0178430E18 :35B:ISIN ES0178430E18
:35B:ISIN ES0178430E18 :35B:ISIN ES0178430E18 :35B:ISIN ES0178430E18 :16S:TRADDET :16S:TRADDET :16S:TRADDET
:16S:TRADDET :16S:TRADDET :16S:TRADDET :16R:FIAC :16R:FIAC :16R:FIAC
:16R:FIAC :16R:FIAC :16R:FIAC :36B::ESTT//UNIT/1000, :36B::ESTT//UNIT/500, :36B::ESTT//UNIT/500,
:36B::SETT//UNIT/1000, :36B::SETT//UNIT/500, :36B::SETT//UNIT/500, :97A::SAFE//ABC123-D4 :97A::SAFE//ABC123-D4 :97A::SAFE//ABC123-D4
:97A::SAFE//ABC123-D4 :97A::SAFE//ABC123-D4 :97A::SAFE//ABC123-D4 :16S:FIAC :16S:FIAC :16S:FIAC
:16S:FIAC :16S:FIAC :16S:FIAC :16R:SETDET :16R:SETDET :16R:SETDET
:16R:SETDET :16R:SETDET :16R:SETDET :22F::SETR//TRAD :22F::SETR//TRAD :22F::SETR//TRAD
:22F::SETR//TRAD :22F::SETR//TRAD :22F::SETR//TRAD :16R:SETPRTY :16R:SETPRTY :16R:SETPRTY
:16R:SETPRTY :16R:SETPRTY :16R:SETPRTY :95P::DEAG//DBSCESMMXXX :95P::REAG//BBVAESMMXXX :95P::REAG//BSCHESMMXXX
:95P::DEAG//DBSCESMMXXX :95P::REAG//BBVAESMMXXX :95P::REAG//BSCHESMMXXX :16S:SETPRTY :16S:SETPRTY :16S:SETPRTY
:16S:SETPRTY :16S:SETPRTY :16S:SETPRTY :16R:SETPRTY :16R:SETPRTY :16R:SETPRTY
:16R:SETPRTY :16R:SETPRTY :16R:SETPRTY :95P::SELL//DBSCESMMXXX :95P::BUYR//IRVTUS3NXXX :95P::BUYR//SBOSUS3CXXX
:95P::SELL//DBSCESMMXXX :95P::PSET//IBRCESMM[SCL] :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :97A::SAFE//NNNNNNABC :97A::SAFE//NNNNNNDEF
:16S:SETPRTY :16S:SETPRTY :16S:SETPRTY :16R:SETPRTY :16S:SETPRTY :16S:SETPRTY
:16R:SETPRTY :16R:AMT :16R:AMT :95P::PSET//IBRCESMM[SCL] :16R:SETPRTY :16R:SETPRTY
:95P::PSET//IBRCESMM[SCL] :19A::SETT//EUR567,89 :19A::SETT//EUR567,89 :16S:SETPRTY :95P::PSET//IBRCESMM[SCL] :95P::PSET//IBRCESMM[SCL]
:16S:SETPRTY :16S:AMT :16S:AMT :16R:AMT :16S:SETPRTY :16S:SETPRTY
:16R:AMT :16S:SETDET :16S:SETDET :19A::ESTT//EUR1234,89 :16R:AMT :16R:AMT
:19A::SETT//EUR1234,89 :16R:OTHRPRTY :16R:OTHRPRTY :16S:AMT :19A::ESTT//EUR567,89 :19A::ESTT//EUR567,89
:16S:AMT :95::INVE//IRVTUS3N :95::INVE//SBOSUS3C :16S:SETDET :16S:AMT :16S:AMT
:16S:SETDET :97A::SAFE//NNNNNNABC :97A::SAFE//NNNNNNDEF :16S:SETDET :16S:SETDET
:16S:OTHRPRTY :16S:OTHRPRTY

25
 9 Extension to Settlement Confirmation and Free of Payment

The set of common elements can also be used for settlement confirmation and free of
payment transaction with the following differences:

9.1.1.1.1 Free of payments

Free of payment instruction contains the same elements as for the against payment transaction
except for the elements pertaining to the settlement amounts. The settlement amount(s) is not
required.

9.1.1.1.2 Confirms
The Settlement confirmation – whether it is a free of payment or an against payment
transaction – should contain the same elements as the original instruction

PLUS:
- The reference to the original settlement instruction that was received. This is done using
the Linkage Block and the qualifier 20C::RELA//16x

EXCEPT:
- The settlement date given in the confirmation is the effective settlement date (which
might differ from the instructed settlement date as stated in the instruction). This
translates in ISO 15022 messages by using the qualifier ESET rather than SETT as
qualifier for the date field 98a.
- The quantity of financial instrument in the confirmation is the effective settled quantity.
This translates in ISO 15022 messages by using the qualifier ESTT rather than SETT as
qualifier for the quantity of financial instrument field 36B.
- The settlement amount given in the confirmation is the effective settlement amount. This
translates in ISO 15022 messages by using the qualifier ESTT rather than SETT as
qualifier for the amount field 19A.

26