Settlement instructions are normally transmitted from bank's settlement system via some secure method like SWIFT.
System Used
Rather than using transmitting settlement instructions to the custodian from counterparty's system, it can send in an automated way by the authorized third party directly to custodian. This reduces risk of issuing any wrong settlement instruction of trade.
Content of Instruction include
Names - of issuer, issuer's custodian, counter-party, counter-party's custodian
Dates - value/settlement date
Account numbers - of both custodian in deal
Settlement basis - DVP or FOP
Quantity of bonds and net cash settlement value
Information related to securities - security identifier, iso code of currency
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