ALERT: Examples of Parties and Roles in a Settlement Chain
Following are some examples that demonstrate how a buyer/seller should populate ALERT when it does not self-clear in a market, requiring more entities to be involved in effecting settlement. These examples apply throughout these market/business rules information.
These examples show the recommended practice for these specific fields, and do not consider other information required in specific markets. For full documentation on the market-specific guidelines that the SMPG has established for settlement and reconciliation messages, visit www.smpg.info.
These examples use fictitious data and are intended for illustration purposes only.
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In this example:
- Deutsche Bank maintains its own local-agent network.
- In France, Deutsche Bank uses Credit Suisse, Paris.
Table 3 shows its settlement chain.
| Role | Entity |
|---|---|
| Buyer/seller | Deutsche Bank |
| Local agent | Credit Suisse, Paris |
| PSET | Euroclear France |
In this example:
- Fidelity uses Citibank, New York as a global custodian.
- Citibank is a global custodian that maintains its own network of sub-custodians.
- In France, Citibank, New York uses Citibank, Paris as its local agent.
Table 4 shows its settlement chain.
| Role | Entity |
|---|---|
| Buyer/seller | Fidelity |
| Custodian | Citibank, New York |
| Local agent | Citibank, Paris |
| PSET | Euroclear France |
In this example:
- Capital Group uses Union Bank of California as a global custodian.
- Union Bank of California private-labels the global custody services of Bank of New York, New York.
- Bank of New York, New York maintains a local agent network in over 100 markets.
- In France, it uses Banque Paribas, Paris as its local agent.
Table 5 shows its settlement chain.