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nostros and agents that have been set up for each particular contract giving rise to the notice or payment. Default nostro and agents may be allocated according to rules set up on the Nostro Settlement Defaults (NSDFM) and the Agent Settlement Defaults (AGDFM) tables.

A nostro account is defined as “our account with another bank”. In order to correctly reflect any money held with another bank, a copy of the nostro account in its own books is maintained. Nostro accounts are set up using the Nostro Details (NSTRO) table. They are identified by a nostro number and currency or a nostro name and currency.

An agent is defined as a “third party responsible for paying or receiving funds on a contract”. Agents are set up using the Agents Details (AGNTM) table. They are identified by an agent nickname. The Agents Details (AGNTM) table can also be populated from the BIC+ directory, provided by SWIFT. In this case, the “Nickname” field is set as the SWIFT address.

The entry of settlement instructions also supports the use of non-standard settlement details. These are defined at contract level by entering the code NSTD in the “Their Receive Agent” field, and linking to the Non Standard Settlement Instructions (NSDTM) screen.

For details of how to set up nostros and agents see the Settlements Guide.

Nostros and Agents are specified when entering certain contracts under the Money Market module. In order that instructions for the transfer of funds are correctly generated (using either the S.W.I.F.T. network, if applicable, or printed messages), the system ensures that only valid combinations of nostros and agents can be specified for each contract.

The following table lists and describes valid combinations of entries in the nostro and agent fields. Note the following:

• A nostro can be identified by either its name or number.

• The use of an Agent does not necessarily indicate that an account relationship exists between the bank and the agent. For example settlement messages may be sent by the bank to its pay nostro, with information for onward transmission to the client's agent. Similarly, settlement messages may be received from the client's agent by the bank's receive nostro, with information for onward transmission to the bank.

• Standard settlement instructions can be entered to use the default settings for the nostro and agent for the contract. These instructions can be applied to the contract by entering ‘SSI’ in

Note: The default settings for both the agent and the nostro can be entered using other

methods. Entering the number or name for the default agent or nostro will display the entered detail for the agent or nostro. Leaving the agent or nostro blank will result in the system applying the default, if available, or ‘T’ (To be advised).

Table 3–1. Entries in Nostro and Agent Fields - Money Market

Nostro Agent Description

Number/Name Name Your correspondent and the client's agent

are different. The agent's nickname is entered in the Agent field.

Number/Name Number/Name The client's agent is one of your

correspondents:

1. The nostro number/name in the Nostro field can be different from the nostro number/name in the Agent field. 2. If your correspondent and the client's

agent are the same, the nostro

number/name entered in the Nostro field can refer to the same nostro as that entered in the Agent field.

Number/Name S Your correspondent and the client's agent

are the same. (This is equivalent to 2. above).

Number/Name U There is no agent.

Number/Name T Your correspondent is known; the client's

agent is to be advised. If a S.W.I.F.T. message would normally have been sent, this combination will result in it not being sent - printed messages will be generated instead.

V Vostro A/C No. Posting is to be made using a vostro. The

Agent field identifies the account to be used.

D Name Posting is to be made directly from/to your

bank to/from the client's agent. You can enter either an agent's nickname or a nostro number/name in the agent field.

D U There is no agent. Posting is to be made

directly from your bank to the error suspense account. When the receive account is known, use the batch postings facility to effect the transfer.

D T Posting is to be made directly from your

bank to a client's agent who is to be advised. If a S.W.I.F.T. message would normally have been sent, this combination will result in it not being sent - printed messages will be generated instead.

Nostro Agent Description

T Name Your correspondent is to be advised; the

client's agent is known. You can enter a nostro number/name in the Agent field. This combination will result in S.W.I.F.T. messages not being sent - printed messages will be generated instead.

T U Your correspondent is to be advised and the

client doesn't have an agent. This combination will result in S.W.I.F.T. messages not being sent - printed messages will be generated instead.

T T Both your correspondent and the client's

agent are to be advised. The settlement message will be sent directly to the nostro, when entered. This nostro/agent

combination should be used with care when payment takes place at the start event. This combination will result in S.W.I.F.T. messages not being sent - printed messages will be generated instead.

C T No payment is to be made, as the payment

amount is to be compensated by a second contract.

SSI SSI The contract is to use the default nostro and

agent defined using the Agent Settlement Defaults (AGDFM) screen and the Nostro Settlement Defaults (NSDFM) screen. Number/Name/

SSI/blank

SSI The contract is to use the default agent

defined using the Agent Settlement Defaults (AGDFM) screen.

SSI Number/Name/ SSI/Blank

The contract is to use the default nostro defined using the Nostro Settlement Defaults (NSDFM) screen.

Number/Name/ SSI

NSTD Settlement instructions specific to the

contract are to be used for the agent. Enter ‘NSTD’ in the “Their Receive Agent” field and clicking “Settlement Instructions” will link to the Non Standard Settlement Instructions (NSTDM) screen.

Where:

BBBB = Four alphabetic characters representing the S.W.I.F.T. bank identifier CC = Two alphabetic characters representing the S.W.I.F.T. country code LL = S.W.I.F.T. location code

XXX = Three alphabetic/numeric characters representing the S.W.I.F.T. branch code (if applicable)