First-response guide for settlement incidents: failing instructions, unmatched trades, NAKed messages, blocked SWIFT queues and CSDR penalty issues.
- Open the fails monitor filtered on settlement date <= today.
- Sort by ageing then by nominal; anything failing 4+ business days is buy-in risk under CSDR.
- For each fail, read the latest reason code from the sese.024 status history.
¶ Fail reason codes — meaning and action
| Code |
Meaning |
Action |
| LACK |
Insufficient securities in our depot |
Check pending receipts and unbooked realignments; consider borrow or partial |
| MONY |
Insufficient cash (counterparty or us) |
Alert treasury / chase counterparty |
| CLAC |
Counterparty lack of securities |
Chase counterparty, evaluate buy-in timeline |
| LINK |
Linked instruction pending |
Resolve the linked instruction first |
| DKNY / unmatched |
Counterparty does not recognise or details differ |
Compare fields below |
Compare our instruction with the counterparty allegement: ISIN, quantity, settlement amount (accrued interest and day count are the usual culprits), settlement date, place of settlement BIC, safekeeping account. A wrong place of settlement almost always comes from an SSI static data error — check the last SSI update and its four-eyes validation.
- A NAKed instruction never existed CSD-side: fix the root cause (format, BIC, static data) and use the 'resend' action — do NOT cancel/re-create, that generates duplicates once the original is replayed.
- If a whole batch is NAKed, suspect a static data change (SSI, place of settlement) made the previous day.
- Check the connector status between GLOSS and the SWIFT gateway (certificate renewals are a classic cause).
- Look for a poison message looping in rejection (invalid characters in narrative fields); quarantine it, then restart the connector.
- After release, verify the market cut-offs still can be met; if not, warn the settlements manager immediately.
Default indicator is PART on T2S eligible instructions. Verify the parameter after every release (it has been reset before). Pending instructions can be switched via sese.030 modification. Opting out (NPAR) increases penalty exposure — requires counterparty-level justification.
- Daily LMFP/SEFP amounts feed from the CSD; reconcile monthly against the CSD penalty report.
- Duplicate penalty records usually come from a feed replay without prior purge of the business date.
- Appeals: within the CSD deadline, with the evidence pack (instruction history, statuses, timestamps).
- Never leave a 4+ day fail without a documented action plan (buy-in exposure).
- Any SSI change the day before a mass rejection is guilty until proven innocent.
- One replay = one prior purge check. Idempotence first.
Fails > 5 business days or buy-in notice received → settlements manager + L2 same day. Suspected GLOSS defect → SS&C case with message samples.