Usage of SSN and NCSD member code - Iceland
If using the Icelandic SSN, the first line must contain the 10-digit SSN only.
Example via SWIFT MT540:
:95Q::SELL//5810080150
Kaupthing Bank
The same rule applies when sending NCSD member code which has three to five letters. The first line must be the member code and the other three lines are free text.
Example via MT540:
:95Q::DEAG//LUX
LUXCSD S.A.
Example of a delivery free of payment to a direct participant at the NCSD
ABC Bank is a customer and needs to deliver securities to Kaupthing which is an NCSD member. There are three options for the buyer field.
| ... :95Q::BUYR//5810080150 :95Q::BUYR//KAU :95P::BUYR//ESJAISRE ... :95P::REAG//ESJAISRE ... | SSN of Kaupthing NCSD member code of Kaupthing BIC of Kaupthing BIC of Kaupthing |
The system will look at the BUYR field and attempt to resolve it to an SSN. It will then take the securities out of the nominee account at NCSD and deliver them to the neutral zone under the SSN of Kaupthing. Kaupthing is responsible for retrieving the securities from the neutral zone and place them into their own account in their own zone.
Example of a delivery free of payment to an Icelandic investor
ABC Bank is a customer and needs to deliver securities to an Icelandic investor, DEF Bank, who is a customer of Kaupthing.
| ... :95Q::BUYR//0107714639 DEF Bank ... :95P::REAG//ESJAISRE ... | Buyer’s Icelandic SSN Name can be included BIC of Kaupthing |
The system will take the securities out of the nominee account at NCSD and deliver them to the neutral zone under the SSN of DEF Bank, who is the actual buyer. Kaupthing is responsible for retrieving the securities from the neutral zone and place them into DEF's bank account in Kaupthing's zone.
Example of a delivery free of payment to a foreign Icelandic investor
ABC Bank is a customer and needs to deliver securities to a foreign investor which doesn't have an Icelandic SSN but instead uses Arion as a custodian.
| ... :95Q::BUYR//5308061230 ... :95P::REAG//ARIOISRE ... | SSN of Arion’s nominee account BIC of Arion |
The system will take the securities out of the nominee account at NCSD and deliver them to the neutral zone under the SSN of Arion’s nominee account. Arion is responsible for retrieving the securities from the neutral zone and place them into their nominee account in Arion's zone.
Example of a delivery versus payment
ABC Bank is a customer and sells securities to Kaupthing. The counter party for the trade is found in the receiving agent field. The counterparty can be identified in three different ways (Options shown below)
| ... :95P::BUYR//ESJAISRE ... :95Q::REAG//KAU :95P::REAG//ESJAISRE :95Q::REAG//5810080150 ... | BIC of Kaupthing NCSD member code of Kaupthing BIC of Kaupthing SSN of Kaupthing |