Exemple de Tranzactii SWIFT

Page
INTRODUCTION
Automating the wheel of fortune 5
Laying the foundation for end-to-end processing 9
Traffic evolution in S.W.I.F.T.s Category 3 messages 12
I PLAYERS AND CONNECTIVITY 19
Categories of Related Players 21
List of Participants 22
II HEADING FOR STRAIGHT-THROUGH PROCESSING 31
SSI/FX Directory 32
S.W.I.F.T. Training for the Treasury Markets 37
S.W.I.F.T.s PARTNER SOLUTIONS 41
SWIFTReady Label Programme 42
S.W.I.F.T. Accredited Services Programme 45
S.W.I.F.T. Facilities Programme 46
Partner Solutions contacts details 48
Treasury Applications known to S.W.I.F.T. 50
III MATCHING AND NETTING PRODUCTS 61
Accord overview 63
Accord Matching Service 65
Accord Netting Service 70
Accord Matching and Netting Subscribers 73
IV INFRASTRUCTURE PROJECTS 89
CLS 91
London Clearing Houses SwapClear 93
Contents
2
V STANDARDS 95
Information about S.W.I. F.T. Standards 96
Standards Release 2000 (SR 2000) 98
New developments: Collateral Management Messages 99
CATEGORY 3 MESSAGES 101
1. Foreign Exchange 103
2. Money Markets 117
3. OTC Derivatives 131
4. Common Group Message 179
Examples 181
CATEGORY 6 MESSAGES 253
1. Precious Metals 255
2. Syndication 265
Examples 273
3
Disclaimer
The information contained in this binder is designed to provide its users
with examples that closely resemble actual use of S.W.I.F.T.s services.
However, all examples contained in this binder are entirely fictitious.
While the names, BICs, and other information regarding financial
institutions and other entities may be real, any similarity between the
transactions described in this binder and real transactions processed on
the S.W.I.F.T. network is coincidental.
All extracts used in this binder from official S.W.I.F.T. documentation,
including, but not limited to, the official User Handbook, the BIC
Directory and the By-Laws are to be used for the purposes of this binder
only and should not be considered as complete.
S.W.I.F.T. hereby disclaims any liability for the use of the information
contained in this binder.
Copyright. S.W.I.F.T. s.c., 1999. All rights reserved.
No part of this publication may be copied or reproduced, sold or
transferred to any person, in whole or in part, in any manner or form or
on any media, without the prior written permission of S.W.I.F.T.
4
5
Automating the wheel of fortune
For a market that trades in financial instruments, taking informed risks is
part of the business. At S.W.I.F.T. we believe that educated gambles are
the domain of the front office. With automated tools, we can take the
risk out of your back office operations. We can reduce your costs. And
we can also speed up your processing.
S.W.I.F.T. is focusing its efforts in the trading market on creating end-
to-end standard communication and processing for key players. Our
approach is based on the belief that totally efficient trading can only be
achieved once the entire transaction cycle has been automated.
The hallmark of our service offering is a secure, reliable, global network
which is the vehicle for transporting universally recognised, structured
messages. The result is standardised machine-readable communications.
S.W.I.F.T.s messages in the treasury and derivatives range currently
cover nearly all currency and interest rate products, including spot
foreign exchange, forwards, options and swaps. The International Swaps
and Derivatives Association (ISDA) endorses all our messages in the
swaps and derivatives range. Messages have been enhanced to more
fully reflect today's trading practices and to facilitate greater end-to-end
processing.
Even so, full automation is dependent upon users having up-to-date,
accurate operational data. We intend to supply that information in
support of standing settlement instructions. S.W.I.F.T. Treasury
Directory, enables authenticated, and structured, exchange of these
instructions, allowing you to increase your matching rate and reduce the
possibility of incorrect payments.
In 1996 the G-10 central banks launched a major campaign to reduce
foreign exchange settlement risk with a strong call to action for FX
players worldwide.
6
While the launch of CLS (Continuous Linked Settlement System) is the
most notable industry level effort to reduce settlement exposure,
S.W.I.F.T. has a range of tools to help the individual banks to realise
their full risk-reducing potential. The S.W.I.F.T. solutions are developed
to support your business needs and include besides the network,
messaging and directories, the industrys leading confirmation matching
service Accord as well as Accord bi-lateral netting service. Some 460
institutions use the Accord matching service today.
Furthermore, S.W.I.F.T. has been selected to provide all the networking
components to the CLS system. The S.W.I.F.T. CLS member network
services encompass the three areas of communication within the CLS
system: the transaction input, real-time operational information and
messaging for liquidity and funding provision.
The BIS report on settlement risk in the OTC derivative market, issued
in September 1998, served as a catalyst for automation initiatives in the
market. Many market-makers are in the process of updating their
workflow and automating the generation and matching of trade
confirmations. S.W.I.F.T. messages and Accords matching service are
the de-facto standard in the market for this activity. Accord also serves
as the matching gateway for London Clearing Houses SwapClear
service (a central clearing service for interest rate swaps).
S.W.I.F.T. is also developing and planning the implementation of XML-
based standards to eventually replace its current FIN syntax in the world
of financial messaging. A Secure IP Network (SIPN) is being built and
will carry the first interactive messages for the CLS Bank as they begin
their testing in 2000.
All information in this document reflects the situation at the end of 1999
- the time of going to print. Message standards are as per Standards
Release for 2000 (SDR2000). Our products and services are evolving
and we like to encourage you to check our web-site from time to time to
keep abreast with up-grades and changes: www.swift.com
7
S.W.I.F.T. is in an excellent position to help you prepare to prepare
through a combination of initiatives in value-added communications,
standards, STP, partner solutions, and operational information products
in the field of Treasury and Derivatives .
This binder is designed to help you get the most from S.W.I.F.T. and the
universal language of S.W.I.F.T. standards, and we hope you will find it
useful. Better use of message standards will enable you to reduce
settlement risk, and is the first step to automating the commercial 'wheel
of fortune'.
8
9
Laying the foundation
for end-to-end processing
To provide players in foreign exchange, money markets and derivatives
with all the tools they need to achieve end-to-end STP (or straight-
through) processing, S.W.I.F.T. is focusing its attention on five key
areas.
Connecting
As a starting point you need to be able to connect to your counterparties'
computers to be able to communicate. In less than 25 years we have built
a network of truly global connectivity. Today more than 3000
institutions send and receive category 3 messages. In order to include all
market participants the non-bank financial institutions and corporate
counterparties are allowed to exchange confirmations with their bank
counterparties over the S.W.I.F.T. network since June 1999.
Communicating
The next step is to enable you to communicate in a universally
recognised language. As a neutral, trusted third-party cooperative
organisation S.W.I.F.T. is the standards authority that and has been at
the forefront of developing standardised alphanumeric message formats
that are machine readable.
Operational Information
But what use are message standards if you use different data from your
counterparties, or even incorrect data? To achieve straight-through
processing, you need to ensure that the right data is included in the
messages. To achieve higher STP rates S.W.I.F.T. has developed a
family of Operational Information Services (OIS) to provide centralised
electronic directories, like the Treasury Directory, Bic Database Plus and
the Payments Directory to enable accurate, up-to-date information in a
secure and authenticated environment.
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Value-Added services
With clean data you can maximise the potential of further computer
operated services to save you time, cut costs and reduce risk. For
instance you can use our service, AccordTM to check that the trade
confirmations you send to your counterparties correspond with the
confirmations you receive. You can also use Accord to net the deals you
transact with your counterparties on a bilateral basis during a day, and so
reduce the payments you need to make to one per currency, and per deal
type.
Partnering
To assist vendors in providing S.W.I.F.T. enabled products and services,
S.W.I.F.T. s Partner Solutions team provides SWIFTReady
accreditation to measure the compatibility of vendor products and
services with S.W.I.F.T. solutions. Through this programme, the Partner
Solutions team assists customers to achieve end-to-end automation
through identification and implementation of S.W.I.F.T. enabled vendor
products.
Market Infrastructures
The financial industry of today is considerably more complex than five
or ten years ago. In an increasingly competitive environment our
customers continually need to look at ways to manage and reduce risk,
to control costs, and conduct their back office operations more
efficiently. Market-wide efficiencies in risk management and STP will
require market players to directly or indirectly to participate in treasury
market infrastructures.
The March 1996 BIS report and subsequent progress reports on FX
settlement risk have helped to spur the industry to create and build the
CLS system. The momentum generated by this initiative is continuing to
build into more sophisticated systems for the non-direct market
participants (third parties).
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Infra-
structure
Projects
Heading for
Straight-Through Processing
Standards
Players and Connectivity
Matching and
Netting Products
Another BIS report, the September 1998 report on settlement risk in the
OTC derivative markets, also helped to push market makers toward
automation and drove support for central clearing initiatives like London
Clearing Houses SwapClear. S.W.I.F.T.s messaging and matching
services are the gateway into the SwapClears system.
At the industry level, infrastructure projects will continue to develop,
connecting groups of financial institutions together to achieve more
sophisticated operational tasks. Consensus through market best practices
and critical mass are key to the success of these industry infrastructures.
S.W.I.F.T. will work with the industry in support of these initiatives by
applying nearly a quarter of a century's experience in automation.
12
Traffic evolution in S.W.I.F.T.s
Category 3 messages
CATEGORY 3 MESSAGE EVOLUTION
In the last five years, S.W.I.F.T.s Category 3 message traffic has grown
by more than 36 percent. This increase represents about 25 millions
messages.
In 1999 over 97 million foreign exchange, money markets and
derivatives messages in category 3 were exchanged over the S.W.I.F.T.
network. This volume represents almost 10 percent of the total traffic
volume.
The usual steady growth pattern in the category 3 traffic changed
dramatically in 1999 as the global performance of the treasury messages
traffic was down 18 percent compared to the 1998 figures. S.W.I.F.T.
traffic was substantially impacted by major market changes in the same
period: mergers in the banking community led to fewer players,
introduction of euro reduced the number of currencies traded, structural
concentration of FX trading business.
While the market value of traded currencies has stayed at the peak level
of approx.USD 1.5 trillion/day the value of single deals has become
larger and the number of transactions lower. Another contributing factor
is that the expected shift to trading in emerging currencies has not yet
materialised.
(See figure 1)
13
0
20000
40000
60000
80000
100000
120000
Category 3 Message Evolution 1994-1999
Messages sent (in thousands)
1994 1995 1996 1997 1998 1999
est.
Figure 1
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MESSAGE USE PER MARKET:
FOREIGN EXCHANGE, MONEY MARKETS AND DERIVATIVES
According to BIS the global average daily foreign exchange trading in
spot, outright forward and FX swaps has been estimated at
USD 1.5 trillion*, this is a progress of 26 percent from 1995 to 1998. In
the same time period, the traffic of FX confirmations exchanged over the
S.W.I.F.T. network grew by 38 percent. Today over 80 percent of all
interbank FX deals are confirmed with a S.W.I.F.T. message.
In 1999, the FX traffic trend turned down and was 18 percent below the
volume of 1998. The money market messages followed the same trend
with a decrease of 19 percent versus 1998.
The daily turnover of the OTC derivatives market reached in April 1998
USD 362 billions*, growing 83 percent from April 1995. During the
same period the S.W.I.F.T. derivatives message volume grew by
62 percent compared to 1995.
In 1999 the growth of the currency options confirmations reached
5 percent compared to 1998. For the IRS traffic, we saw an increase of
105 percent. Again, following the market trend, the traffic of FRAs has
shown a negative trend of -16 percent.
* Source: BIS report, May 1999
(See figure 2)
15
Message Distribution for Category 3 in 1999
The graphic illustration below shows the internal distribution of
messages by the three major market segments within the category 3.
Foreign Exchange
71%
Others including
OTCDerivatives
11%
Figure 2
Money
Markets
18%
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GEOGRAPHIC DISTRIBUTION FOR CATEGORY 3MESSAGES
Foreign Exchange
GB with London is the worlds leading centre for foreign exchange,
representing around 32 percent of the global market. Londons
contribution in terms of sent and received messages across S.W.I.F.T.
is also significant, reflecting the importance of this market.
In 1999 the following five countries contributed for two thirds of
S.W.I.F.T.s foreign exchange confirmation traffic: GB, US, Singapore,
Switzerland and Hong Kong. The role southern Europe in the treasury
market trading has clearly declined in the last years as the concentration
has driven the business into fewer trading places.
Money Markets
The seven biggest users of Loans and Deposits messages are on the other
hand concentrated in Europe, contributing for 57 percent of the total
traffic for money market transactions. These countries include GB,
Switzerland, Luxembourg, Netherlands, Italy, Belgium and France.
Derivatives
In terms of Forward Rate Agreements, again GB ranks as the largest
user accounting for 34 percent. Denmark, Norway and US are the next
largest users with 32 percent of S.W.I.F.T.s business. For the Interest
Rate Swap market, GB and US account for the two thirds of the traffic in
1999. Belgium, France and Japan follow in the ranking. The major part
of the increase is generated by GB and US, the IRS traffic in these two
market was multiplied by three between 1998 and 1999.
The confirmations of currency option deals has progressed 5 percent.
This traffic is dominated by the US users followed by GB and
Switzerland. These three countries account for 70 percent of the
currency option traffic. In the top 10 countries, the best performance
comes from Hong Kong with 41 percent of growth and US 22 percent.
* Source: BIS/Central Banks
(See Figure 3)
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Americas
18%
Asia Pacific
21%
Europe,
Middle East
& Africa
40%
GB
21%
Figure 3
Geographic Distribution for Category 3in 1999
The graphic illustration below is the combined distribution of all market
segments in the category 3.
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19
Before you can establish the ground rules for straight-through processing
you need to have a link to all the counterparties with whom you deal. To
enable this, S.W.I.F.T. has expanded its network to give you truly 'global
connectivity' . There are the banks and financial institutions; in excess of
6,700 of them in more than 184 countries linked to S.W.I.F.T. Since
June 1999 there are two new categories of participants on the network:
the corporate or non-financial institution Treasury Counterparties and
Treasury ETC Service Providers.
The category of participant Treasury Counterparty extends the service
of electronic confirmations to corporate and non-bank financial entities
active in the treasury markets for foreign exchange, money markets and
derivatives. Large corporates will now be able to confirm their own
trades directly with financial institutions connected to S.W.I.F.T.
The category of participant Treasury ETC Service Providers will
enable all other Treasury counterparties to confirm trades indirectly over
S.W.I.F.T. in a standard and secure mode through a Treasury ETC
service provider.
Infra-
structure
Projects
Heading for
Standards
Matching and
Netting Products
20
Corporate and non-bank financial entities joining S.W.I.F.T. in one of
these categories will now be able to exchange electronic treasury
confirmations with their bank counterparties over the S.W.I.F.T.
network. This addresses regulatory concerns about unconfirmed deals or
deals confirmed in a non-automated format in the non-interbank market,
a growing part of professional foreign exchange dealing.
This means you can automate your trades and transactions from start to
finish a more reliable and cost-effective alternative to telex or fax.
S.W.I.F.T. now connects banks and money brokers, corporate treasury
counterparties and treasury ETC-providers, securities broker-dealers
and investment management institutions, clearing institutions and
depositories, recognised exchanges, trust and fiduciary service
companies, and subsidiary providers of custody and nominees all the
players in the chain that you need to do business with.
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Categories of related players
The following categories of S.W.I.F.T. users can send/receive the Forex,
Money Markets and OTC Derivatives messages (Category 3).
Banks
Trading Institutions
Money Brokers
Securities Broker-Dealers
Investment Management Institutions
Clearing Systems and Central Depositories
Recognised Exchanges
Trust and Fiduciary Service Companies
Subsidiary Providers of Custody and Nominees
An organisation applying to become a player in one of these categories
will be accepted provided:
It fulfils the criteria applicable to the category for which
it is applying.
It follows the acceptance procedure as laid down in the
S.W.I.F.T. By-Laws.
It is accepted by S.W.I.F.T. as user.
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Australia
Harlow Butler (Australian) Pty Ltd
France
Jacques Pollak et Compagnie SNC
Viel et Compagnie
MONEY BROKERS
Total: 3 Money Brokers
Treasury Markets Participants
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TRADING INSTITUTIONS
Cayman Islands
Goldman Sachs Financial Products U.S., L.P.
Ireland
Garanti Financial Services Plc
RMB International (Dublin) Ltd
West Euro Finance Ltd
Japan
Goldman Sachs Trading Finance Japan Co.
Mexico
Bankers Trust Casa de Cambio
United States
AIG Financial Products Corp.
Banque Worms Capital Corporation
BBL (USA) Financial Markets, Corp
Caisse des Dpts et Consignations, CDC Capital Inc.
DLJ Capital Funding
Fortis (USA) Financial Markets Llc
Fuji Capital Markets Corporation
GFX Corporation
Goldman Sachs Capital Markets, L.P.
Goldman Sachs Mitsui Marine Derivative Products, L.P.
ING Baring U.S. Capital Markets Llc
J. Aron and Company
Lehman Brothers Commercial Corp.
Lehman Brothers Holdings Inc.
Lehman Brothers Special Finance
Merrill Lynch Capital Services Inc.
Morgan Stanley Capital Group Inc.
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Morgan Stanley Capital Services Inc.
Morgan Stanley Derivative Products Inc..
Salomon Brothers Holding Company
Salomon Forex Inc.
Smith Barney Commercial Corp.
Total: 28 Trading Institutions
TRADING INSTITUTIONS
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Brazil
Bolsa de Mercadorias and Futuros BM and F
Bolsa de Valores de Sao Paulo
France
Gestitres S.A.
Socit des Bourses Franaises
Germany
Deutsche Brse AG
DTB Deutsche Terminbrse
Hong Kong
Hong Kong Futures Exchange Ltd
Italy
Borsa Italiana S.P.A.
Societa per il Mercato dei Titoli di Stato SPA-MTS S.P.A.
Kazakhstan
Kazakhstan Stock Exchange
Portugal
Bolsa de Derivados do Porto
Russian Federation
Moscow Interbank Currency Exchange
RECOGNISED EXCHANGES
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Singapore
Singapore International Monetary Exchange Ltd
South Africa
Johannesburg Stock Exchange, The
Spain
Meff Renta Fija S.A.
Sweden
OM Stockholm AB
Ukraine
Joint Stock Bank Clearing House
United Kingdom
I.S.M.A. - The International Securities Markets Association
The London Stock Exchange
United States
Board of Trade Clearing Corp.
Chicago Mercantile Exchange
Total: 21 Recognized Exchanges
RECOGNISED EXCHANGES
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Argentina
Caja de Valores S.A.
Mercado de Valores de Buenos Aires S.A.
Australia
Austraclear Ltd
Belgium
BXS
Brazil
Central Depositories and Clearing
CLC - Camara de Liquidacao ec Custodia S.A
Canada
Canadian Depository for Securities Ltd
Czech Republic
Univyc Plc
Denmark
VP (The Danish Securities Centre)
Egypt
MISR for Clearing, Settlement and Depositories
Finland
Finnish Central Securities Depository Ltd
CENTRAL DEPOSITORIES AND CLEARING
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France
Matif S.A.
Sicovam S.A.
Germany
Deutsche Brse Clearing AG
Greece
Central Securities Depository S.A.
Hungary
Kozponti Elszamolohaz es Ertektar (Budapest), RT
India
Stock Holding Corp. of India Ltd
Indonesia
Kustodian Sentral Efek Indonesia PT
Ireland
BGB Finance (Ireland) Plc
Italy
Monte Titoli S.P.A.
Societa Interbancaria per l'Automazione (SIA) S.P.A.
Japan
Japan Securities Clearing Corp.
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Korea, Republic of
Korea Securities Depository
Latvia
Latvian Central Depository, The
Lebanon
Midclear S.A.L.
Mexico
S.D. Indeval, SA de C.V.
Netherlands
Nederlands Centraal Instituut voor Giraal Effectenverkeer B.V.
Nederlands Interprofessioneel Effectencentrum NIEC B.V.
Poland
National Depository for Securities
Portugal
Interbolsa-Associacao para a Prestacao de Servicos AS Bolsas de V
Russian Federation
Depository Clearing Company
Micex Settlement House
Singapore
The Central Depository (Pte) Ltd
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South Africa
Strate Ltd
Spain
Servicio de Compensacion y Liquidacion de Valores
Sweden
Vardepapperscentralen VPC AB
Switzerland
SIS Segaintersettle AG
Taiwan
Taiwan Securities Central Depositor y Co. Ltd
Ukraine
JSC Interregional Securities Union
United Kingdom
CRESTCO Ltd
The London Clearing House Ltd
United States
Intl Securities Clearing Corp.
MBS Clearing Corporation
The Depository Trust Company
The Options Clearing Corp.
Total: 44 Central Depositories and Clearing
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Heading for
In the quest for end-to-end processing you not only need to use
standards, you need to ensure that the correct data is included in the
messages. S.W.I.F.T.'s expanding range of cross-market electronic
directories will provide you with accurate, up-to-date information in a
secure and authenticated environment.
Moreover, these services will use a common infrastructure (a common
message type, common workstation application and a central server at
S.W.I.F.T.). This means you will be able to maximise the return on your
initial investment and add services in the future with relative ease.
For the foreign exchange, money markets and derivatives market,
S.W.I.F.T. launched in July 1997 the standing settlements instructions
(SSI) directory which will enable you to exchange authenticated and
structured SSIs. This will in turn increase your matching rate and reduce
the possibility of incorrect payments.
For Standards section, please go to page 95
Infra-
structure
Projects
Heading for
Standards
Matching and
Netting Products
32
Standing Settlement Instructions/
Foreign Exchange Directory
(SSI/FX Directory)
Overview
Information plays a key role in helping financial institutions to increase
automation and reduce costs. That is why S.W.I.F.T. has developed a
range of directories and operational information services. These services
will give institutions the necessary information to support financial
transactions and provide better guarantees to their end customers. By
increasing straight-through processing, institutions will be able to reduce
risk and save costs.
The SSI/FX Directory allows its subscribers to exchange Standing
Settlement Instructions (SSI) related to Foreign Exchange Money
Market and Derivatives Trades in an authenticated and processable
format with their counterparties.
SSI/FX Directory Service
S.W.I.F.T.'s SSI/FX Directory service addresses the problems
institutions currently experience when communicating SSI's and their
updates. The S.W.I.F.T. Broadcast is not authenticated and has too wide
a distribution for disseminating SSIs, while other means (like sending
the instructions by post) cannot be used effectively to inform all
counterparties. Manual processing of these unstructured and ambiguous
updates is labour intensive and often prone to errors. With the new
service, subscribers can exchange SSIs in a cost effective, authenticated
and processable format with all their S.W.I.F.T. counterparties.
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One message informs all counterparties
Subscribers do not need to organise time consuming and expensive
mailings to advise their counterparties. The service can forward SSIs to
all their S.W.I.F.T. counterparties, including non-Subscribers.
Subscribers can monitor the forwarding and maintain a delivery status.
Authenticated dissemination
The service will forward authenticated messages to Subscribers and
forward non-authenticated messages to non-Subscribers. Subscribers
only need to exchange one authenticator key with S.W.I.F.T. to be able
to forward authenticated messages to all other Subscribers. Subscribers
can also request a direct acknowledgement from non-Subscribers.
Update SSIs automatically
Subscribers can save time and money currently spent on manual
processing and re-keying errors by interfacing SSIs received directly
into their internal applications.
Accurate SSIs
Because the Central Database holds accurate and up-to-date SSIs,
Subscribers will be able to increase their matching rates and reduce the
possibility of incorrect payments.
Euro Edge
Subscribers can use the service to easily and quickly change their
clearing relationship when the euro currency replaces several other
European currencies.
The benefits
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Off-the-shelf solution
Subscribers that use the optional Directory Services Application (DSA)
have a complete and ready made solution to exchange and manage SSIs.
The DSA's import and export facility enables them to use the Service
quickly without having to substantially modify their internal
applications. Subscribers can also use the DSA to maintain SSIs not
directly received via the Service.
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Informing Counterparties of SSIs
Subscribers can inform their counterparties of SSIs and SSI updates.
A Subscriber can send an SSI Update in an MT 293 to the Central
Database. The Central Database then forwards the SSI Update to the
designated S.W.I.F.T. Users, in an MT 293 to other Subscribers and in a
textual MT 999 to non-Subscribers. The Subscriber can monitor the
forwarding.
Receiving SSIs from other Subscribers
Subscribers can receive SSIs from other Subscribers and apply them
automatically to internal applications or databases. Subscribers can
optionally restrict SSIs being forwarded to them.
Display, Search, Sort and Print Information
Subscribers will be able to display, search, sort and print information
stored on the Directory Services Application (DSA). The use of DSA is
optional.
Query and Answer
Subscribers can query the Central Database to retrieve SSIs.
Validate Information and Keep SSIs up to date
The Workstation and the Central Database perform validations and keep
SSIs stored up to date according to their effective date.
Provide a Secure Environment
The Service provides a secure environment.
Key features of the SSI/FX Directory Service
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SSI/FX DIRECTORY SERVICE
Workstation
Application
Subscriber Subscriber
Non-
Subscriber
Central
Database
SSI Directory Subscribers
MT 293 MT 293
MT999
MT 296/996
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S.W.I.F.T. Training for the Treasury
Markets
To help you optimise your S.W.I.F.T. products and services in the
treasury markets, S.W.I.F.T. Customer Education has developed a range
of classroom courses and technology-based training solutions.
Our training services cover:
Standard instructor-based courses
Technology-based training
In-house training sessions
The topics covered in our Treasury Markets training range from the
standards category 3 messages to the use of Accord for matching and
netting and CLS.
The aim of these courses is to provide you with the knowledge to help
you minimise the risk of error, and reduce your operating costs.
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Six courses are available in several languages worldwide.
Forex & Money Markets (one day)
Learn how to complete and read messages for foreign exchange and
fixed loan/deposit contracts.
Understand the advantages of the Common Reference for automated
reconciliation.
Derivatives (one day)
Learn how to create and read the S.W.I.F.T. messages for OTC options,
Forward Rate Agreements and interest rate swaps.
Operating Accord Confirmation Matching (two days)
This course teaches you how to get the most from Accord in your own
environment and provides you with all you need to know about its
matching functionality.
Gain a complete overview of how Accord matching works, from
getting started through to problem and exception handling.
Hands-on training at an AccordWorkstation terminal: you complete a
number of increasingly more complex exercises using the menus and
commands to cover all aspects of the day-to-day operating of
confirmation matching.
Practical real-life exercises to test your knowledge.
Instructor-Based Courses
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Managing Accord Confirmation Matching (two days)
If you are responsible for managing Accord within your institution, this
course will help you learn how to customise the various functionality
options to support your specific business needs.
Gain a complete overview of all tasks related to the organisation,
customisation, housekeeping functions and supervision of Accord.
Hands-on training at an AccordWorkstation terminal. You are guided
through all the functions that offer a number of choices and need a
decision, as well as the tools that enable you to monitor the results.
Practical real-life exercises cover a variety of complex potential
problems.
Accord Netting (one day)
Gain a complete overview of the netting functionality in Accord.
Hands-on practical training at an AccordWorkstation terminal. You
are guided through all the menus and commands, performing the
different tasks related to the netting of confirmations.
Interest Rate Swaps and Confirmation Matching (one day)
This course will teach business analysts how to construct MT 360 Single
currency interest rate derivative confirmation and MT 362 Interest rate
reset/advice of payment that can be matched effectively in Accord.
40
Training CD-Rom for CLS
The CD-Rom is aimed specifically at those responsible within the CLS
Member institution for the implementation, integration and operation of
the CLS Member Server. The CD-Rom is also of use to anyone
requiring information on how S.W.I.F.T. is contributing to the CLS
solution.
In-house Training sessions
We develop customised training solutions that are tailored to your
institutions specific needs. These can be held at your premises as part of
our in-house service.
Visit us at www.swift.com/education
If you would like to see our latest course schedule or register for any of
our courses, or if you simply want to know whats new, then visit us at
www.swift.com/education. This site is updated regularly to ensure that
you have access to the very latest information.
Technology-Based Training
41
The Partner Solutions department is responsible for establishing and
maintaining business relationship at all levels between S.W.I.F.T. and
external partner vendors.
One of the principle aims of Partner Solutions is to improve
communication and the sharing of information between S.W.I.F.T. and
providers of applications and services for the Treasury industry.
Partner Solutions seek to help our members to achieve end-to-end
automation, by enabling vendor applications, which are cost-effective
and easier to implement, focussing on SWIFT-readiness, traffic
automation and STP.
In the Treasury market we have identified over 100 vendors that supply
applications that are, or should be, able to send and process S.W.I.F.T.
messages. Partner Solutions will seek to work with all such vendors
within the framework of our established Programs and Projects, as
described in this section.
On page 51 you will find a list of Treasury application providers sorted
by market segment.
Partner Solutions
42
In 1997, we performed a detailed analysis of our third-party vendors and
the services they provide. As a result, we established our 'Partner
Solutions' programme, which helps customers implement S.W.I.F.T.
standards, products and services. We motivate and assist our partners to
develop SWIFTenabled and easy-to-implement solutions that increase
our customers' straight-through processing rate and reduce their
operational risk.
As part of the 'Partner Solutions' programme we introduced an
accreditation process which applies an objective criteria and assessment
of applications, so that the vendor, our partner, is in a much better
position to assess the type of solution needed in his customers
S.W.I.F.T. environment.
With the 'SWIFTReady' accreditation we measure the compatibility of
vendor products and services with S.W.I.F.T. solutions. We then form
bilateral agreements with partners and assign 'SWIFTReady' Gold and
Silver labels depending on their level of compatibility.
The Label process helps direct the development of applications to better
support S.W.I.F.T. message types, the industry strategy for STP and
integration throughout the financial transaction chain. The criteria have
been fully researched, go to a level of very fine detail, and are updated
each year. They are public domain and are fully described in the Partner
Solutions CD-ROM, Partnering with S.W.I.F.T. The Partner Solutions
Programme.
Those applications that satisfy these criteria, and who have a minimum
of five installed users, would be eligible for a SWIFTReady Gold or
Silver Label. The Label is granted for one year only and is then renewed
based on new product releases and support for any changes in the related
SWIFT message standards and services.
SWIFTReady Label Programme
43
This will help ensure that products are available that support S.W.I.F.T.
message standards and evolve with changing business needs of the
S.W.I.F.T. community. S.W.I.F.T. will work closely with selected
vendors who commit to:
Promote S.W.I.F.T. network traffic, services and products.
Allow S.W.I.F.T. access to customer sites to validate their product.
Pro-actively work with S.W.I.F.T. to satisfying customer needs.
Give proof of S.W.I.F.T. enabled functionality and customer
satisfaction.
Implement new/modified S.W.I.F.T. MTs, services, and products
relevant to the application.
As to date, June 1999, we have granted labels to the following treasury
related products in the categories of Derivatives, Multi-Market,
Electronic Banking, Middleware and Reconciliation. (See table on
next page.)
For the latest list please contact your local Partner Solutions
representative. All vendors are welcome to apply for the label validation
process. This requires completion of a questionnaire, a minimum of five
installed sites, validation of criteria satisfied and customer reference
follow-up.
44
MARKET VENDOR PRODUCT
Derivatives
GOLD Infinity - Infinity Message Manager
A Sungard Company
Multi-Market
GOLD Commercial Banking IBAS
Applications (CBA)
MPCT Solutions ATLAS
SILVER Financial Objects IBIS
Electronic Banking
GOLD ICM Bankquest
Middleware
GOLD HIE Cloverleaf
Mint Mint
Neon NeoNet/MQSI
TSI Software Messenger
Neon Copernicus
STC DataGate
LOGOS-CSE Trafix
Provida ProSwitch
TSI Software Mercator FS
CSK X-GEN
Reconciliation
GOLD Geac SMARTStream Reconciliations
Placid Placid CARAT
Management Data FTMS
Surecomp Perfect Match
SILVER City Networks METRO
Microbank Intellimatch
Swallow Technology SMART
Provida ProCon
45
S.W.I.F.T. Accredited Services
Programme
Within the Partner Solutions programme there is also the S.W.I.F.T.
Accredited Services label for companies that provide consultancy and
training services that contribute to the implementation of a S.W.I.F.T.
solution. These companies will have demonstrated a sufficient
experience of relevant projects and are willing to enter into annual
renewed Business Plan agreements with S.W.I.F.T.
As to date, December 1999, we have accredited the following Service
Providers.
CATEGORY PROVIDER
Provider of S.W.I.F.T. Accredited Services
ISI-Dentsu Japan
Simon Murby Associates UK
IBM Banking, Finance & UK
Securities Consulting Group
Cap Gemini Espana S.A. Unipersonal Spain
Teleinformatica Spain
March 86 UK
Alti France
Debis Systemhaus Germany
CSC Ploenzke Germany
CMG Pecom Germany
CBSI France
AMS UK
Jeremiah Associates US
The Summit Group US
46
S.W.I.F.T. Facilities Programme
In parallel to the Label processes, and available to all vendors, are the
facilitation services provided by Partner Solutions to help third party
applications become more SWIFTenabled. To this end S.W.I.F.T.
provides access to User Handbooks, training, software, consultancy
assistance and even a dedicated support resource.
The partner and S.W.I.F.T. need to offer a total solution, one thats well
integrated, well validated, and that caters for specific customer needs for
S.W.I.F.T message processing. Together we can build the solutions our
customers require. We see vendor solutions as an essential part of the
'total' solution that customers need to achieve end-to-end and straight-
through processing, and to reduce the cost and risk of processing
transactions in a S.W.I.F.T. environment.
47
K I would like S.W.I.F.T. Partner Solutions to help me with advice
and information concerning products in the Treasury market.
Please contact me to discuss my requirements.
K I would like to recommend the Product: ____________________
from Company: _______________________________________
as meeting my requirements to process and generate S.W.I.F.T.
Treasury messages.
Please contact me for further details.
K I would like to discuss with S.W.I.F.T. Partner Solutions how
Product: _____________________________________________
from Company: _______________________________________
could better meet my requirements to process and generate
S.W.I.F.T. Treasury messages.
K I would like to correct the details provided in the Treasury
Binder/Solutions Directory concerning
the Product: __________________________________________
from Company: _______________________________________
Your N am e : __________________________________________
Title : __________________________________________
N am e of Institution : __________________________________________
BIC : __________________________________________
Telephone N um ber : __________________________________________
A ddress : __________________________________________
__________________________________________
__________________________________________
Please send or fax this form to one of the Partner Solutions contacts
given in this section
PARTNER SOLUTIONS REPLY FORM
48
HEADQUARTERS PARTNERSOLUTIONS
For further enquiries about Partner solutions, please contact S.W.I.F.T.
at one of the following addresses.
Telephone E-mail address
Patrik Neutjens +32 2 655 3593 patrik.neutjens@swift.com
Philippe Lecomte +32 2 655 3919 philippe.lecomte@swift.com
Steven Palstermans +32 2 655 4099 steven.palstermans@swift.com
Sam Romilly +32 2 655 3582 sam.romilly@swift.com
Paul Verheyden +32 2 655 3267 paul.verheyden@swift.com
Jenny Bosquet +32 2 655 3965 jenny.bosquet@swift.com
Partner Solutions address
S.W.I.F.T. s.c.
Avenue Adle 1
B-1310 La Hulpe
Belgium
Partner Solutions fax number
+32 2 655 4802
Generic e-mail address
partner.solutions.generic@swift.com
REGIONAL PARTNER SOLUTIONS
Americas Europe North (incl. Scandinavia)
Greg Gorup Graham Bright
Christy Kohler Allan Spalding
Brendon Dibella
200 Park Avenue, 38th Floor 7th Floor, The Corn Exchange
New York NY 10166 55 Mark Lane
United States London EC3R 7NE
United Kingdom
Tel: +1 212 455 1800 Tel: +44 20 7762 2000
Fax: +1 212 455 1817 Fax: +44 20 7762 2222
Partner Solutions contact details
49
Germany, Austria, Switzerland, France, Monaco
Liechenstein, Benelux
Frank Smits Sido Bestani
Michel Eber
Avenue Adle 1 4 rue Auber
B-1310 La Hulpe 75009 Paris
Belgium France
Tel: +32 2 655 3111 Tel: +33 1 53 43 2300
Fax: +32 2 655 3752 Fax: +33 1 53 43 2390
South Europe (ES,PT) South Europe (IT)
Xavier Perez-Tasso Serge Hauspy
Edificio Cuzco IV Avenue Adle 1
Paseo de la Castellana 141, 20A B-1310 La Hulpe
28046 Madrid Belgium
Spain
Tel: +34 91 570 4776 Tel: +32 2 655 3111
Fax: +34 91 570 5875 Fax: +32 2 655 3752
Asia Pacific (HK) Asia Pacific (SG)
Paul Chan Andrew Lai
36th Floor, Vicwood Plaza 80 Robinson Road #16-02
199 Des Voeux Road Central Singapore 068898
Hong Kong
Tel: +852 2 107 8700 Tel: +65 326 8000
Fax: +852 2 107 8733 Fax: +65 326 8099
Asia Pacific (AU) Asia Pacific (JP)
Ian Johnston Tetsuji Nishimura
Level 29, The Chifley Tower 2nd Floor AIG Building
2 Chifley Square 1-3, Marunouchi 1-Chome
Sydney 2000 Chiyoda-ku, Tokyo 100-0005
Tel: +61 2 9375 2191 Tel: +81 3 5223 7400
Fax: +61 2 9375 2156 Fax: +81 3 5223 7439
Emerging markets
Elie Lasker
Georges Bertinchamps
Avenue Adle 1
B-1310 La Hulpe
Belgium
Tel: +32 2 655 3111
Fax: +32 2 655 3752
NB: e-mail addresses for S.W.I.F.T.
employees have all the same format:
firstname.lastname@swift.com
50
Treasury Applications known to
S.W.I.F.T.
The following applications provide support for S.W.I.F.T. Treasury
message standards in some form or other. This is a high level and all
encompassing list and we do not claim to have included every
application. You are invited to return the attached form in this Binder
with details of any vendor and their application that supports S.W.I.F.T.
in the Treasury industry which you feel we should seek to develop a
closer relationship with.
Details on many of these products can be found in the Solutions
Directory (3rd Edition) available on CD-ROM or accessible at the
S.W.I.F.T. Internet site www.swift.com.
To obtain a free copy of the CD-ROM, please return the attached form in
this binder.
51
VENDOR PRODUCT
Aqua Global Solutions Aqua Transaction Management
Banksoft MUST Message Formatter
Bremer Associates Inc. DIGMAS
CSK Switzerland X-Gen
Datawise Training and Consultancy SWIFTWise
Services Ltd
Datawise Training and Consultancy SWIFTWise Message Broker
Services Ltd
Heliograph Ltd HelioGraph Message Broker
HIE Cloverleaf
Lothbury Software Ltd Lothbury Interbank Message
Origination/Repair
Mint Mint
Muscato Corp. Engin (Enterprise Generic Integrator)
New Era of Networks (NEON) MQSI 1.x,
NEONet 4.x
New Era of Networks (NEON) Copernicus
Prime Associates, Inc. (The) Prime Enterprise Messaging
System
Provida ProSwitch
Middleware
52
VENDOR PRODUCT
DataGate
Software Technologies Corporation (STC) Enterprise
Edition
Steria Informatic SA/AG Bibob
SyMTec Solutions Limited SWIFTLink Manager
Synergy Financial Systems Ltd SWIFT-Objects
TELINO METABROKER
Trace Financial Cloverleaf
TSI International Software Messenger
TSI International Software Mercator FS
Wilco International Ltd Wilco Enterprise Broker
Middleware
53
VENDOR PRODUCT
Banksoft SMART Confirmation Matching
City Networks Ltd Metro
GEAC SMARTStream
Reconciliations
Management Data FTMS
Microbank Intellimatch
Placid Placid CARAT
Provida ProCon
Surecomp Development Limited Perfect Match
Swallow Technology SMART
Reconciliation
54
VENDOR PRODUCT
Treasury
B+S Banksysteme GmbH Base System, Risk Management
BSP Software Banking Partners GmbH BSP Innova
CCK Treasury Systems Pty Ltd Infinity
DBS Financial Systems Ltd dbs DealManager for Windows
Diasoft 5NT Diasoft Dealing 5NT
Digitec GmbH dlll
Financial Software Systems Spectrum
Groupe Logos Xenos-Interbank Operations
Infinity
Infinity - A Sungard Company Message
Manager
Ipacri Estero/ Cambi Sigede
IPI (Intuitive Products International Corp.) Scrittura
KORDOBA Gesellschaft fr Kordoba-AG
Bankensoftware Gmbh & Co. KG
Monro Business Softwares FxTreasure
MUREX Currency+, MxEquity, MxRates,
MxCom
OMR Systems Trading Assistant
Rolfe & Nolan RISC
SAG Systemhaus GmbH ABAG/ABAG 2000
Sanchez Computer Associates Profile/Anyware
Spot Systems, Inc. Foreign Exchange Trading
Spot Systems, Inc. eFX Trading System
Summit Systems Inc. Summit
Surecomp Development Limited IMMS
Wall Street Systems Wall Street System
Forex and Money Markets Applications
55
VENDOR PRODUCT
Multimarket
ABIS Systems Ltd ABIS 7.3.c
The Money
ACI - Applied Communications Inc. Transfer
System
Alldata Banken Orga GmbH MBS - Ausland
Ares International Corporation AresBank
AXA a.s. AXA DBS
B+S Banksysteme GmbH Foreign Business
Basys Software GmbH Basys-IBP
Bavaria Banken Software GmbH IBP - International Banking Package
BOSS LAB (subsidiary of BSI/Generali) THE BOSS
Burford International Applications Ltd Courier
Callatay and Wouters s.a. Thaler
IBAS - Intl
Commercial Banking Applications (CBA) Banking Auto-
mation System
COMP Rzeszow S.A. Defbank Pro
Criterion Banking Software Bankware
ERI Bancaire Olympic Banking System
Financial Network Services Pty Ltd BANCS
Financial Objects PLC ActiveBank S2
Financial Objects PLC IBIS
GIFTS
GIFTS Software, Inc. (Global Integrated Funds Transfer &
Telecommunications System)
56
VENDOR PRODUCT
Groupe Logos XENOS
Groupe Logos APPLIBANQUE
Groupe Logos BANKMICRO
ICL Bankwide
International Computer Systems BANKS
(London) ICS
ISYS SA Informatique Bancaire BEST II
Midas-Kapiti International Midas DBA
Midas-Kapiti International Equation DBA
Milvus Software Limited Databank Diamond
MIS Banking Systems Ltd CAPITAL
Mpct Solutions Atlas
Platinum Technology Hellas LAMDA-SWIFT
(ex Jurda Hellas) (ex Idols/w*SWIFT)
PROMOSOFT BM - Bank Manager
PROMOSOFT MM - Money Market Manager
SAMIC Samic Euro
SFS-IFS Consultancy & Information NSG (Naturn S.W.I.F.T. Gateway)
Technologies Ltd
Simcorp Ltd TMS 2000
SyMTec Solutions Limited SwiftLINK Prepare
System Access SYMBOLS V5.0
Temenos Systems s.a. TEMENOS GLOBUS
TKS-Banking Solutions SA Quartz Generation for Advanced
Banking
Top Business Machine Co, Ltd TOPIBS
Unisys Corp. FBA Urbis
57
VENDOR PRODUCT
Electronic Banking
Alterna Technologies Group Inc. Auros Cash and Treasury
Management System
GIFTS Software, Inc. GIFTSWEB - Electronic Banking
Securities
110 Ltd Salerio
ACT Financial Systems NOVA
Desysif Desysif
Igefi s.a. Informatique Gestion & Finance MultiFonds Front End
Synopsys RIMS
Payments
EFIS Euro
ABK/EFiS - EDI Finance Service GmbH Finance
info-system
ACTIS GmbH (Groupe Sligos) Paba/Q
Aran Limited Diameter
INVERSIA LTD Bank-XXI
58
VENDOR PRODUCT
Treasury
B+S Banksysteme GmbH Base System, Risk Management
Digitec GmbH dlll
Documentum Documentum Docsolution for
Swaps & Derivatives
Financial Software Systems Spectrum
Infinity
Infinity - A Sungard Company Message
Manager
IPI (Intuitive Products International Corp.) Scrittura
Lothbury Software Ltd Lothbury FRAs
Monro Business Softwares FxTreasure
MUREX Currency+, MxEquity, MxRates,
MxCom
OMR Systems Trading Assistant
SAG Systemhaus GmbH ABAG/ABAG 2000
Summit Systems Inc. Summit
Surecomp Development Limited IMMS
Wall Street Systems Wall Street System
Multimarket
The Money
ACI - Applied Communications Inc. Transfer
System
B+S Banksysteme GmbH Foreign Business
Basys Software GmbH Basys-IBP
Bavaria Banken Software GmbH IBP - International Banking Package
BOSS LAB (subsidiary of BSI/Generali) THE BOSS
Burford International Applications Ltd Courier
Derivatives
59
VENDOR PRODUCT
IBAS - Intl
Commercial Banking Applications (CBA) Banking Auto-
mation System
ERI Bancaire Olympic Banking System
Financial Objects PLC IBIS
Financial Objects PLC ActiveBank S2
GIFTS
GIFTS Software, Inc. (Global Integrated Funds Transfer &
Telecommunications System)
ICL Bankwide
Midas-Kapiti International Midas DBA
Milvus Software Limited Databank Diamond
Mpct Solutions Atlas
Platinum Technology Hellas LAMDA-SWIFT
(ex Jurda Hellas) (ex Idols/w*SWIFT)
PROMOSOFT BM - Bank Manager
PROMOSOFT MM - Money Market Manager
SAMIC Samic Euro
Simcorp Ltd. TMS 2000
SyMTec Solutions Limited SwiftLINK Prepare
System Access SYMBOLS V5.0
Temenos Systems s.a. TEMENOS GLOBUS
Unisys Corp. FBA Urbis
Derivatives
60
VENDOR PRODUCT
Electronic Banking
Alterna Technologies Group Inc. Auros Cash and Treasury
Management System
GIFTS Software, Inc. GIFTSWEB - Electronic Banking
Securities
Igefi s.a. Informatique Gestion & Finance MultiFonds Front End
Derivatives
61
Matching and Netting Products
With clean data you can maximise the potential of further computer
operated services to save you time, cut costs and reduce risk. When a
foreign exchange, money market or derivatives deal is struck between
two counterparties, both parties confirm by sending the appropriate MT
3xx via S.W.I.F.T. If at least one of them subscribes to our Accord
TM
service then S.W.I.F.T. will automatically copy both confirmations to its
central matching system. Accord will check that the trade confirmations
correspond, i.e. match, in terms of certain fields in the confirmation
message.
On AccordWorkstation, messages that do not match, or nearly match,
are highlighted in a user-friendly way. In addition, AccordWorkstation
acts as a digital assistant to the staff in the back-office in charge of
exception handling.
.
Infra-
structure
Projects
Heading for
Standards
Matching and
Netting Products
62
You can also use Accord to bilaterally net the settlements related to
foreign exchange deals with your counterparties, thereby reducing your
payment costs and capital adequacy requirements. Not only is it a
reliable solution, but it gives you flexibility in reporting options, and
number of counterparties. The benefits of bilateral netting have obtained
widespread recognition: central banks are pressing financial institutions
to find ways to reduce their FX settlement risk, and their
recommendations include private sector netting solutions like Accord.
63
Accord overview
Foreign exchange, money markets and OTC derivatives deals are often
made during peak surges in activity, when the pressure is high,
international lines may not be at their clearest, and where language
differences can stand in the way of communication clarity. A single
inverted figure, a misplaced decimal point or a misunderstood date can
put a deal at risk.
Of course, each telephone deal is normally followed up by a formal
confirmation. But matching confirmations manually demands meticulous
paperwork to ensure perfect agreement. Even then, the routine nature of
this task still means errors can creep through.
What you require is a system which automatically and instantly
highlights potential contradictions, monitors the status of deals, and
provides a fundamental measure of exposure. Accord provides a fail-safe
system for matching confirmations of foreign exchange and money market
d e a l s .
An Accord subscriber can benefit from the confirmation matching
service independently of whether their counterparties subscribe to the
service. Also, a subscriber has the choice of selecting only the matching,
matching for some transactions, or match only those that are to be netted.
The benefits
Reduced risk
The usage of reliable matching system helps you avoid late or wrong
payments, and related risks of interest charges and penalties. Accord has
proved so reliable that S.W.I.F.T. accepts responsibility/liability for any
matching errors that occur when the confirmations are carried on the
S.W.I.F.T. network. If you subscribe to our netting service, and a legally
enforceable bilateral contract exists, both you and your counterparty can
benefit from reduced risk in settlement, liquidity and credit.
64
Reduced cost, increased capacity
By automating your back office, you can increase your efficiency and
profitability with faster, more accurate processing. Accord automatically
validates and reconciles contracts, making peak days as manageable for
your back-office as any average day of trading. Accord netting means
you can reduce your payment and operational costs, and the volume of
work your treasury office undertakes in settling payments. In the same
way payment netting can reduce your nostro costs.
Lower capital adequacy requirements
Accord netting allows you to handle the increase in trading activity,
without being constrained by large capital adequacy requirements.
Up-to-date management information
Accord gives you an exact position on the status of your deals, with up-
to-date information. This knowledge enables you to enjoy better
management and control of your operation.
Very low hardware and software investments and/or maintenance
costs
The AccordWorkstation software is supplied free of charge to all Accord
Subscribers; all it requires is a Windows NT PC.
The following pages describe how the service works. There is also a list
of current subscribers for your information.
65
Accord Matching Service
Over the last few years, the volumes of forex trading, and the complexity
of most derivatives confirmations have increased significantly. It has
become essential for treasury back-offices to use automatic confirmation
matching and exception handling systems.
When it comes to choosing a matching system, youll want to choose one
that is as reliable as the S.W.I.F.T. network you use to exchange
confirmations. S.W.I.F.T. offers you Accord, the fail-safe matching and
exception handling solution for foreign exchange, money market and
derivatives confirmations.
Counterparty
Subscriber
Accord
Matching
and
Netting
Dealers
agree
on trade
Copy of the Confirmation
Accord Reports
Accord Reports
MT398, MT97x
(if subscriber)
MT3xx
Confirmations
How does Accord work?
The Accord central matching system resides in the S.W.I.F.T. network.
When both parties to a foreign exchange, money market or derivatives
deal confirm via S.W.I.F.T., Accord can match confirmations real-
time. The results of the matching process are sent to your local
AccordWorkstation. You can determine both the contents and the timing
of your matching reports, in terms of counterparty, deal time and
currency.
To use Accord, all you have to do is connect your existing S.W.I.F.T.
interface to one or more standard Windows NT
PCs, on which you run

AccordWorkstation a user-friendly, pro-active digital assistant for all
your exception handling work.
66
Accord
Workstation
Central Accord
Accord
Subscriber
Counterparty
S.W.I.F.T.
Network
MT3xxs
Subscriber
Requests
Subscribers
S.W.I.F.T.
Interface
Reports and
Responses
67
User-friendly access to your matching results
AccordWorkstation runs on any standard Windows NT
PC. It receives
all the reporting sent to you by Accord via its connection with your
S.W.I.F.T. interface, and stores this information in a local database.
Through its user-friendly graphical user interface, and its powerful
search and sort facilities, AccordWorkstation provides a constant,
updated view of your matching results. The underlying database can also
be consulted by any back-office application using standard database
connectivity tools.
Flexibility
AccordWorkstation is more than a reservoir of matching results. It
contains a complete set of tools to assist you in the exception handling
process.
For mis-matched confirmations eg, when the fields causing the mis-
match are highlighted, you can 'force' a match with just a few mouse
clicks. You can also customise your matching rules, using the mis-
match, to teach Accord to report similar mis-matches as matches.
It is also simple to tag an item to inform a colleague that a new,
corrected confirmation needs to be sent, or to ask your counterparty to
correct their confirmation. All you have to do is point at the type of
chaser message you want to send, and AccordWorkstation will take
care of expanding the corresponding template with all the relevant data,
so that your counterparty can correct their confirmation.
AccordWorkstation allows you to prioritise urgent items. You can
specify the kind of mis-matches and/or hand matches that should be
given absolute priority and once these are defined, AccordWorkstation
will constantly search for them. When such an urgent item is found, an
alarm message appears on the screen, and a special marker is attached to
the item in question.
Queries (chaser messages) exchanged between Accord subscribers do
not only end up on the printer in the Treasury back-office, but appear
directly on your screen, attached to the problem in hand.
68
Increase efficiency -
A single window on all your treasury deals
Accord can match all treasury instruments, which means you can choose
a single matching system for your treasury needs far more cost-
effective than having several. You can save on training costs,
maintenance and internal support costs of using multiple disparate
matching solutions. In this respect Accord is unique, as it allows you
to have a single window on all your treasury deals, independent of:
Counterparty: Accord does not require your counterparties to be
Accord subscribers as well; it can handle all your confirmations
sent and received over the S.W.I.F.T. network. Accord also has
special tools that can handle deals where the S.W.I.F.T.
confirmations you send correspond to a letter, fax, or telex.
The settlement method: bilaterally netted, gross, CLS, or
SwapClear
Financial instrument: Accord matches confirmations for foreign
exchange, money market, and derivatives deals:
- MT 300 Foreign exchange confirmation
- MT 305 Foreign currency option
- MT 320 Fixed loan/deposit confirmation
- MT 324 Liquidation notice for fixed loan or deposit
- MT 330 Call/notice loan/deposit confirmation
- MT 340 Forward rate agreement confirmation
- MT 341 Forward rate agreement settlement confirmation
- MT 360 Single currency interest rate swap confirmation
- MT 361 Cross currency interest rate swap confirmation
- MT 362 Interest rate swap reset
- MT 392 Request for cancellation
69
Reliability
If you subscribe to Accord, you can significantly reduce your
operational risk, as you can rely on a central matching system with near
100 percent uptime, and matching results that are guaranteed. In fact, the
matching results obtained by Accord have proved to be so reliable that
S.W.I.F.T. accepts financial liability for all matches it reports to its
Accord subscribers. Accord safeguards all your confirmations and
maintains a historical trace of their matching results until seven days
after maturity. It has also been designed to seamlessly handle the highest
of traffic volumes. Any possibilities for fraud are virtually eliminated by
using a central matching system operated by a neutral party.
Increase straight-through processing (STP)
Accord gives you exactly what you need to feed matching results
directly into other applications for further processing, thus increasing
STP. It has sophisticated tools that incrementally increase your
automatic matching rate and provide perfectly reliable matching results.
Cost effective
Accords total cost of ownership compares very favourably to any
local matching system. Because Accord is centrally managed by
S.W.I.F.T., you can save on the resources you would otherwise need to
keep a local matching engine operational, maintain message standards
changes within that application and provide the support it would require
internally. With Accord, you have a remotely deployed fall-back
solution in case there is a serious problem with the machine, the
software, or with the building where it is deployed.
For more information on the Accord Matching service, please contact
your local sales office listed in the inside front cover.
70
Accord Netting Service
If you conduct multiple deals with one counterparty, you may run the
risk of carrying a high level of exposure on your books at the end of each
trading day. When your trading activity grows, you may run the risk of
equally increased capital adequacy requirements. Netting is a natural
solution for such problems. If the way you currently net implies a daily
manual reconciliation of a few net balances (or even matching results)
for each of your netting counterparties, the operational costs and the
costs associated with possible operational risk and delays in payments
may be eroding your profit margins. S.W.I.F.T. offers you Accord
Netting, the fail-safe matching and netting solution for foreign exchange
transactions.
How does Accord Netting work?
The Accord netting service is based on the Accord central matching
system. When two parties agree to net on a bilateral basis using Accord
Netting, both parties to a foreign exchange deal confirm via S.W.I.F.T.,
and Accord matches confirmation to be netted in real-time. The results
of the matching process are sent to your local AccordWorkstation. You
can determine both the contents and the timing of of your matching
reports, in terms of counterparty, deal time and currency. At a pre-agreed
cutoff time (per currency), Accord calculates the net balances and
identical netting reports are then sent to each of the parties involved.
These reports include:
MT 970 - Netting statement
MT 971 - Netting Balance Report
MT 972 - Netting Interim Statement
71
Reduce payment and operational costs
By netting all the deals you make with one counterparty for a given
value date, only one payment is required for that same counterparty.
This enables you to reduce the volume of work in your treasury office in
settling payments. Payment netting also reduces your nostro costs. When
you net your payments, you only need to send or receive one payment to
a specific counterparty for each currency, instead of one for each trade
you make with them. As a result, you only have one debit/credit posted
to your nostro account, thus reducing your reconciliation costs.
Reduce counterparty risk
Accord Netting also supports netting by novation provided that the
proper legal documents have been exchanged between the counterparties
and that they have rigorously established their operational reporting
procedures. When netting by novation, the actual contracts are
aggregated, not just the settlements. Consequently your legal obligation
to your counterparty changes when you enter into a deal together. For
example, instead of being obligated for 10 separate contracts at the end
of the dealing day, you are legally obligated for only one 'novated'
contract.
Reduce capital adequacy requirements
The Basle Capital Agreement provides a formula for reducing capital
requirements for counterparties who have in place legally enforceable
netting contracts. These reductions in capital requirements for netted
transactions mean substantial cost savings for any financial institution.
They can also have a favourable impact on trading limits as well as
balance sheet management.
72
Accord Netting
To fully benefit from netting, it is necessary that both counterparties
receive identical netting information from a single, reliable source that is
guaranteed. Accord's Bilateral Netting service offers a reliable source
of netting information for all your foreign exchange deals. S.W.I.F.T.
takes financial liability for the accuracy and completeness of all
Accord netting reports, so that you can rely on them as input for
further automatic processing, thus reducing operational risk and
increasing STP. If you subscribe to S.W.I.F.T.s Accord Bilateral
Netting service, you can confirm, match, net, and settle your deals, using
one single supplier that takes financial liability for all subsequent stages
of the value chain
.
For more information on the Accord Netting service, please contact your
local sales office listed in the inside front cover.
73
Accord Matching and Netting
Subscribers
Andorra
Andorra Caixa dEstalvis i Pensions de Barcelona
Australia
Melbourne National Australia Bank Ltd
Perth Bank of Western Australia
Sydney Citibank Limited
Commonwealth Bank of Australia
Dresdner International Financial Markets
Macquarie Bank Limited
Rothschild Australia
Reserve Bank of Australia
State Street Bank and Trust Co. Sydney Branch
Schroders Australia Ltd
St. George Bank Limited
State Bank of New South Wales Ltd
Socit Gnrale Australia Ltd
Westpac Banking Corporation
Austria
Vienna ABN AMRO sterreich
Bahamas
Manama Arab Banking Corporation (BSC)
Banque Nationale de Paris
Belgium
Antwerp AN-HYP Savings Bank Belgium
Brussels ABN AMRO Bank NV (Belgian Branch)
Bacob Savings Bank s.c.
Banca Monte Paschi Belgio S.A.
Banque Nationale de Belgique
74
Banque Paribas Belgique S.A
Belgolaise
BNP Belgique
Crdit Commercial de France
Generale Bank
KredietBank
Socit Gnrale Alsacienne de Banque
Bermuda
Hamilton Bank of Bermuda Limited
Bank of N.T. Butterfield and Son Ltd
Botswana
Gaborone First National Bank of Botswana
Canada
Montral Crdit Lyonnais
Toronto State Street Trust
Cayman Islands
Bahrain Investcorp Trading Limited
New York Meritia Bank
Geneve Banque Multi Commerciale
China
Beijing Bank of China
Shangai Bank of Communications
Croatia
Zagreb Zagrebacka Banka DD
Czech Republic
Prague Crdit Lyonnais
ING Bank N.V. Prague Branch
Komercni Banka g.s.
Socit Gnrale
75
Denmark
Copenhagen Den Danske bank
Jyske Bank A/S
Unibank A/S
Tallinn Habsapank Ltd
Finland
Helsinki Svenska Handelsbanken
Merita Bank
Okobank
Postipankki
France
Paris AXA Banque
Banca Commerciale Italiana
Banco Central Hispano
Banco Santander
Bank Polska Kasa Opieki S.A.
Banque Bruxelles Lambert France
Banque de France
Banque de lIle de France
Banque Franaise du Commerce Extrieur
Banque Indosuez
Banque Paribas France
Banque SanPaolo
Banque Sudameris
Banque Worms
Bayerische Vereinsbank
C.P.R. Billets S.A., Paris
Caisse Centrale des Banques Populaires
Caisse des Dpts et Consignations
Caisse Nationale de Crdit Agricole
Caixa Geral de Depositos
Cariplo Banque S.A.
CDC - GESTITRES - EUROTITRES
CDC Marchs
Cie Financire de CIC et de l'Union Europenne
Compagnie Financire Edmond de Rothschild Banque
Compagnie Parisienne de Rescompte
76
Crdit Commercial de France
Crdit du Nord
Crdit Industriel et Commercial de Paris
Crdit local de France
Crdit Lyonnais
Crdit Suisse First Boston
Dexia Banque Prive France
Lloyds Bank s.a.
Midland Bank PLC, Paris Branch
Monte Paschi Banque S.A.
Rabobank France
Socit Gnrale France
Thomson CSF
Total S.A.
Union de Banques Arabes et Franaises
Via Banque
Perpignan Caixa dEstalvis de Catalunya
Germany
Braunschweig Volkswagen Bank Gmbh
Frankfurt American Express Bank GMBH
BFG Bank
Commerz-Financial Products Gmbh
LHB Internationale Handelsbank A.G.
Rabobank Deutschland AG
Schweizerischer Bankverein AG
Muenchen State Street Bank Gmbh
Saarbrucken Banque Nationale de Paris
Stuttgart Mercedes-Benz Finanz Gmbh
Wolfsburg Volkswagen A.G.
Greece
Athens Agricultural Bank of Greece
Credit Bank S.A.
EuroMerchant bank S.A.
77
Guernsey
St. Peter Port Bank of Bermuda (Guernsey) Ltd
N.M. Rothschild & Sons (C.I.) Ltd
Royal Bank of Canada (Channel Islands) Ltd
Hong Kong
Hong Kong American Express Bank Ltd
Bank of Bermuda Ltd
Banque Indosuez
Banque Paribas
Cassa di Risparmio delle Provincie Lombarde S.p.A.
Crdit Lyonnais
FNB (Asia) Limited
ING Bank N.V.
MeesPierson N.V.
Mitsubishi Trust and Banking Corporation
National Australian Bank Limited
Rabobank Hong Kong Branch
Sanwa Hong Kong
Sin Hua Bank LTD
Socit Gnrale
Standard Chartered Bank
State Street Bank & Trust Company
The Tokai Bank Limited
Tokai Asia Limited
Hungary
Budapest Central-European International Bank Ltd
Crdit Lyonnais Bank Hungary
Hungarian Foreign Trade Bank -
Magyar Kulkereskedelmi Bank
Magyar Nemzeti Bank
RaboBank
Isle of Man
Douglas Bank of Bermuda Ltd
78
Israel
Lod Bank Leumi Le Israel
Italy
Arezzo Banca Popolare dell' Etruria e del Lazio
Bergamo Credito Bergamasco S.P.A.
Biella Banca Sella
Bologna Cassa di Risparmio in Bologna
Bolzano Banca Popolare dell Alto Adige/
Suedtiroler VolksBank
Cassa di Risparmio di Bolzano S.P.A.
Raiffeisenkasse Voels am Schlern/
Cassa Raiffeisen Fie allo Sciliar
Brescia Banca San Paolo Di Brescia
Credito Agrario Bresciano
Cuneo Banca Regionale Europa
Firenze Cassa Di Risparmio Di Firenze
Genova Banca Carige S.P.A.
Lecce Banca del Salento
Lodi Banca Popolare di Lodi
Lucca Cassa di Risparmio di Lucca
Milano Banca Akros
Banca Commerciale Italiana
Banca Popolare Commercio e Industria
Banco Bilbao Vizcaya S.A.
Banco di Sardegna
Banque Paribas - Italy
Bayerische VereinsBank
Credito Italiano
IMI Bank
Istituto Centrale delle Banche Popolari Italiane
Novaljubljanska Banka DD
Republic National Bank of New York
Montebelluna Banca Popolare di Asolo E Montebelluna
79
Piacenza IMI Bank
Pisa Cassa di Risparmio di Pisa
Reggio Emilia Cassa Di Risparmio Di Reggio Emilia
Roma Banca d'Italia
Banca Nazionale del Lavoro
Iccrea SPA
Ufficio Italiano dei Cambi
San Miniato Cassa Di Risparmio Di San Miniato S.P.A.
Sondrio Credito Valtellinese s.c.a.r.l.
Teramo Cassa di Risparmio Della Provincia di Teramo
Torino Banca Cassa di Risparmio di Torino
Instituto Bancario San Paolo di Torino
Trieste Cassa Marca Spa
Venezia Cassa di Risparmio di Venezia
Verona Cassa di Risparmio di Verona Vicenza Belluno e Ancona
Vicenza Banca Popolare Vicentina
Ivory Coast
Abidjan African Development Bank
Japan
Tokyo Asahi Bank LTD
Bank of Yokohama
Banque Indosuez
Banque Paribas - Japan
Chuo Trust and Banking Co
Daiwa International Trust Bank Ltd
Fuji Bank Limited
Industrial Bank of Japan, Ltd
Mitsui Trust and Banking Co
National Australia Bank Ltd
Nikko Trust and Banking Corporation
Nippon Credit Bank Limited
Nomura Securities
80
Norinchukin Bank
Sakura Bank
Socit Gnrale Tokyo Branch
State Street Bank and Trust Company
Sumitomo Bank
Sumitomo Trust & Banking Co., Ltd
The Tokai Bank Ltd
Yasuda Trust and Banking Co.
Jersey
Paris Socap Ltd
St Helier Morgan Grenfell Limited
UBS (CI) Ltd
(Formerly Union Bank of Switzerland (C.I.) Ltd)
Union Bank of Switzerland, Jersey Branch
ABN AMRO Bank Jersey
Cantrade Private Bank Switzerland
Kuwait
Kuwait National Bank of Kuwait S.A.K.
Liechtenstein
Vaduz Bank in Liechtenstein Aktiengesellschaft
Luxembourg
Luxembourg Bank Handlowy International
Bank of Bermuda
Banque Cogeba-Gonet
Banque de Luxembourg
Banque et Caisse d'Epargne de l'Etat Luxembourg
Banque Indosuez
Banque Internationale Luxembourg s.a.
Banque Paribas Luxembourg S.A.
Banque Paribas, Succursale de Luxembourg
Bayerische Landesbank International SA
Crdit Europen S.A.
Crdit Lyonnais
81
Crdit Suisse
Dai-Ichi Kangyo Bank (Luxembourg) S.A.
Den Danske Bank International, S.A.
DG Bank
Discount Bank and Trust Company (Luxembourg Branch)
Discount Bank S.A.
HypoBank International
IMI Bank s.a.
Rabo Bank Luxembourg
Republic National Bank of New York (Luxembourg)
San Paolo Lariano Bank
WestLB International SA
Malaysia
Kuala Lumpur Bank Bumiputra Malaysia Berhad
Public Bank Berhad
Malta
Sliema Bank of Valletta Limited
Mexico
Mexico Banca Serfin
Banco JP Morgan S.A.
Banco Nacional de Mexico
Bancomer S.A.
Chase Manhattan Bank Mexico
Monaco
Monaco Compagnie Mongasque de Banque S.A.M.
Crdit Suisse
Republic National Bank of New York
Namibia
Windhoek First National Bank of Namibia
82
Netherlands
Amsterdam ABN AMRO (Rotterdam Branch)
Bank Mendes Gans
Banque de Suez Nederland N.V.
Dai Ichi Kangyo Bank Nederland
ING Bank
Istituto San Paolo di Torino
Socit Gnrale
United Garanti Bank Intl NV
Eindhoven Philips Electronics N.V.
Utrecht Rabobank Nederland
New Zealand
Wellington Bank of New Zealand
Norway
Bergen A/S Bergens SkillingsBank
Oslo Norske Hydro
Trondheim Fokus Bank ASA
Poland
Warsaw Bank Handlowy W Warzawie SA
ING Bank N.V. Warsaw Branch
Socit Gnrale Succursale de Varsovie
Portugal
Lisboa Banco de Portugal
Banco Espirito Santo e Commercial de Lisboa S.A.
Banco Nacional Ultramarino
Banco Portugues Do Atlantico
Barclays Bank Plc
Caixa Geral de Depositos
83
Republic of Korea
Seoul Arab Bank PLC
Banque Indosuez
ING Bank N.V.
Nara Banking Corporation
Socit Gnrale
Romania
Bucharest Romanian Commercial Bank
Russian Federation
Moscow Bank Austria
Crdit Suisse
Saudi Arabia
Riyadh Arab National Bank
Singapore
Singapore ABN- AMRO
American Express Bank Ltd
Banque Indosuez
Barclays Bank Plc
Cassa di Risparmio delle Provincie Lombarde
Credito Italiano SPA Singapore Branch
DBS Bank Ltd
Government of Singapore Investment Corporation
Istituto Bancario San Paolo di Torino
Mitsubishi Trust and Banking Corporation, Singapore
Monetary Authority of Singapore
National Australia Bank Ltd
Northern Trust Company
Sanwa Bank Limited
Socit Gnrale
The Tokai Bank Limited
84
Slovakia
Bratislava IstroBanka A.S.
Slovenia
Koper Splosna Banka Koper D.D
Ljubljana Ljubljanska Banka D.D.
South Africa
Johannesburg ABSA Bank Ltd
First National Bank of Southern Africa
Investec Bank Limited
Nedbank
Socit Gnrale South Africa Ltd
UAL Merchant Bank Limited
Spain
Alicante Banco de Alicante S.A.
Barcelona Caixa d'Estalvis I Pensions de Barcelona
Caixa dEstalvis de Catalunya
Madrid Banco Bilbao Vizcaya
Banco Cooperativo Espanol
Banco Exterior de Espana
Banco Santander s.a.
BANKINTER
Banque Indosuez
Banque Paribas Spain
Barclays Bank Plc
Barclays Bank S.A.
Caja De Ahorros De Galicia
Caja Postal
CARIPLO, s.p.a. - Sucursal en Espana
Mondragon Caja Laboral Popular
Valencia Caja de Ahorros de Valencia, Castellon y Alicante
85
Sweden
Goteborg Nordbanken
Malmo Nordbanken
Stockholm Nordbanken
Svenska Handelsbanken
Swedbank
Switzerland
Basel Bank CIAL (SCHWEIZ)
Bank for International Settlements
Geneva ANZ Grindlays Bank Plc
Banque Baring Brothers (Suisse) s.a.
Banque Multi Commerciale
Banque Prive Edmond de Rothschild s.a.
Banque SCS Alliance
Compagnie de Gestion et de Banque Gonet S.A.
Crdit Lyonnais Switzerland
Darier Hentsch & Cie
Discount Bank and Trust Company
Kredietbank
Lombard, Odier & Cie
Merrill Lynch Bank (Suisse)
Pictet and Cie
Republic National Bank of New York (Suisse) s.a.
Socit Bancaire Julius Baer S.A.
Union Bancaire Prive, CBI-TDB
United Overseas Bank
Lausanne Renault Finance
Tetra Laval Finance and Treasury B.V.
Lugano Banca del Ceresio
CCM Banca di Credito Commerciale e Mobiliare S.A.
Zurich Banque Multi Commerciale
Rahn & Bodmer, Banquiers
Sogenal Zrich
UeberseeBank AG
86
Taiwan
Taipei American Express Bank Limited
Thailand
Bangkok Siam Commercial Bank Public Co
Turkey
Istanbul Iktisat Bankasi T.A.S.
KogBank A.S.
Yapi ve Kredi Bankasi A.S.
United Kingdom
Bournemouth Chase Manhattan
Edinburgh TSB Bank Scotland
London ABSA Bank Limited
Allied Trust Bank
Alpha Credit Bank
ANZ Bank
Arab Bank Plc
Banco do Brasil
Banco Nacional Ultramarino
Banque Indosuez
Banque Nationale de Paris PLC
Barclays Bank
Bayerishe-Hypotheken und Wechsel Bank
BFG Bank AG
BZW Securities Ltd
Crdit Lyonnais
Crdit Suisse Financial Products
Credito Italiano
Discount Bank and Trust Company
Enskilda London
First National Bank of Chicago
Industrial Bank of Japan
Lloyds Bank Plc
Merrill Lynch International
87
Midland Global Markets
N.M. Rothchild & Sons Limited
Natwest Markets
Northern Trust Company
Omnicom Finance LTD
Private Bank Limited
Royal and Sun Alliance Investment Management Ltd
Standard Chartered Bank Ltd
State Street Bank and Trust Company
Sumitomo Trust and Banking Co. Limited
Swedbank
Tokai Capital Markets Limited
Tokai Bank Europe Limited
Tokyo-Mitsubishi International
United Bank of Kuwait
Warburg Dillon Read
Westdeutsche LandesBank GiroZentrale London Branch
Poole American Express Bank
United States
Atlanta Sun Trust Bank
Boston State Street Bank and Trust Company
Chicago Nothern Trust Company
Chase Bank of Texas, National Association
Cincinnati Fith Third Bank
Detroit Comerica bank
New York American Express Bank Ltd
ANZ Bank
Banca Nazionale del Lavoro
Banco Bilbao Vizcaya
Banco Portugues Do Atlantico
Banco Santander
Banque Indosuez-NY
Banque Worms Capital Corporation
Chase Manhattan
88
Crdit Lyonnnais
Credito Italiano
DG Bank, New York
Federal Reserve bank of New York
Fuji Capital Markets Corporation
Giro Credit Bank AG.
Meritia Bank (All Offices, New York Branch)
Meritia Bank (Int. Banking facility)
Morgan Stanley Trust Co
MTB Bank
Royal Bank of Scotland PLC
Sakura Bank
Sanwa Bank Ltd
Sumitomo Trust and Banking Company
Svenska Handelsbanken
Philadelphia First Union National Bank
Washington Inter American Development Bank
Winston-Salem Wachovia Bank
Vanuatu
Hong Kong Banque Nationale de Paris
Zimbabwe
Harare Stanbic Bank Zimbabwe Ltd
89
S.W.I.F.T.s global connectivity, message standards, electronic data
dictionaries and matching and netting services will help you improve
your operational efficiency. But sometimes a concerted industry
initiative is required to address issues that can only be tackled at a
market level.
One such example is the infrastructure created by the industry to
eliminate the settlement risk which can occur when foreign exchange
trades are settled. In 1995, a group of 20 large foreign exchange trading
banks (the G20) got together to consider how the private sector might
develop a solution to the problem of settlement risk. The result of this
study was the Continuous Linked Settlement (CLS) concept.
Infrastructure Projects
Infra-
structure
Projects
Heading for
Standards
Matching and
Netting Products
90
In July 1997 the G20 banks formed a company, CLS Services Ltd
(CLSS), to develop and build the CLS System. In December 1997,
CLSS acquired the share capital of ECHO and Multinet International
Bank (MIB) to create a single industry facility for reducing settlement
and pre-settlement risk in the foreign currency markets. A separate
company, the CLS Bank, will be formed to provide the CLS service.
Following the recent recapitalisation of the company, CLSS now has 60
shareholder institutions from 14 countries.
S.W.I.F.T. supports CLSS by providing key components of the
infrastructure used by CLSS to deliver a set of integrated services which
enable foreign exchange settlement risk reduction.
91
CLS Bank will provide payment-versus-payment settlement for foreign
exchange transactions. Elimination of settlement risk is achieved by
simultaneously settling the two currency legs of a transaction across the
books of the CLS Bank. Both sides of the transaction are settled, or
neither side is settled.
S.W.I.F.T. will provide the CLS Member Network, using its current FIN
messaging service and its new interactive communication service,
SWIFTNet InterAct. CLS Members can input transactions using the
standard S.W.I.F.T. MT 300 message, which is copied to CLS Bank for
settlement. Optionally, they will be able to use the Accord Matching
service for matching confirmations prior to submission to CLS Bank.
Real-time operational information will be provided by CLS Bank via
S.W.I.F.T.'s new highly secure and extremely reliable worldwide private
IP network.
CLS
Transaction input OIS/MIS
FIN
FIN Copy
Next
Generation
Accord
CLSBank
92
In addition to settling foreign exchange deals conducted between CLS
Members, CLS Bank will settle deals involving non-CLS Members, that
is, third parties. Third parties will need to submit their foreign exchange
transactions to the CLS Member they use for settlement (which will in
turn process these transactions and input them in CLS if it accepts to
settle them).
S.W.I.F.T. will offer messaging and matching services to support this
communication flow. In addition, S.W.I.F.T. can support the flow of
operational information back to the third party via FIN, or via the
SWIFTNet InterAct service.
93
London Clearing Houses SwapClear
The London Clearing House launched their SwapClear service during
the second half of 1999.
SwapClear will offer the inter-bank swap market a range of services
which aim to increase trading opportunities by reducing credit lines,
regulatory capital requirements and operating costs thereby increasing
return on investment. This cost-effective, centralised clearing facility for
the plain vanilla swaps market will use S.W.I.F.T. confirmation
messages and Accord as the central matching gateway into the clearing
service.
SwapClear
member
Matching
information
Matching
information
SwapClear
member
Deal
Swap & FRA confirmations
MT34n and MT36n
Accord
(Matching)
LCH/SwapClear
Copies of
confirmations
94
Trades will be dealt in the traditional way, processed through an
automated workflow, confirmed with a S.W.I.F.T. message and matched
in Accord. Information about matched transactions will be sent back to
the SwapClear members, as well as being forwarded to SwapClear for
further processing and clearing. LCH acts as the central counter-party to
each trade.
95
Standards
There is little point in providing you with links to markets and players if
we are not providing you with the means to communicate clearly and
succinctly with any one of your business partners anywhere in the world.
This is where standards come in.
S.W.I.F.T. is at the forefront of standards development. Because our
messages are ISO standard (International Standardization Organization),
they are universally accepted, cutting across language barriers.
As you will find in this binder, we have a comprehensive range of
standards to support foreign exchange, money markets and over the
counter (OTC) derivatives.
Infra-
structure
Projects
Heading for
Standards
Matching and
Netting Products
96
Where to find detailed information
about S.W.I.F.T. Standards?
S.W.I.F.T. standards change constantly to meet the evolving needs of the
business community. If you wish to stay abreast of changes to standards,
our official vehicle for communicating this information is the
S.W.I.F.T. User Handbook.
The S.W.I.F.T. User Handbook guarantees that you receive advance
information about all standards releases months in advance, to enable
you to plan and prepare for the new standards when they go live on the
S.W.I.F.T. network. This information is particularly useful for
programmers.
Each year, subscribers to the S.W.I.F.T. User Handbook automatically
receive the following standards-related information:
The high-level information on the following years standards release.
This is issued more than 12 months in advance;
The Standards Release Guide with all the advance information on the
coming years standards release. This is issued 9 months in advance
to allow developers time to complete development by the time the
standards go live on the S.W.I.F.T. network;
The S.W.I.F.T. User Handbook, which consolidates all the message
standards information, including changes and corrections that have
been made since the last edition. This is issued at least one month
before the standards release;
Category Usage Guidelines, which accompany the standards
reference books and contain useful guidelines and additional
information on how to use S.W.I.F.T. message standards.
97
You can subscribe to the full set of the S.W.I.F.T. User Handbook.
This entitles you to all the books on S.W.I.F.T. standards, plus general
information about S.W.I.F.T. and the FIN service. This information is
also available on CD-ROM.
If you are only interested in standards for the treasury markets, you can
subscribe to the following books only, Category 3 Treasury Markets
Foreign Exchange, Money Markets and Derivatives, Category 6
Treasury Markets Precious Metals, Category 6 Treasury Market
Syndications. This entitles you to all the advance information
mentioned above, an updated book once a year, plus the Category 3
Usage Guidelines.
To order this information, you should contact S.W.I.F.T. Customer
Order Services, SWHQBEBBCOS, Tel: 322 655 3777 or Fax: 322 655
3009.
98
All standard formats in this binder are following the Standards Release
2000 formats that are effective from November 2000.
The following messages change: MT 320, MT 330, MT 350, MT 340
and MT 341.
MT 324 and MT 335 are deleted and a new MT 306 is introduced.
Functionbalities of the MT 324 and MT 335 will be included in the MT
320 and MT 330 respectively.
Standards Release 2000 (SR 2000)
99
New developments:
Collateral Management Messages
The financial industry is currently focused on the management of many
types of risk. Collateral, in the form of cash or securities, is often used as
guarantee for financial transactions to mitigate risk between
counterparties.
The need for collateral between parties can arise from various types of
transactions:
Foreign exchange, money markets and derivatives transactions.
Securities transactions - including securities lending and repurchase
agreements.
Payment support and RTGS related needs such as in the case of
TARGET.
In order to guarantee trades or counterparty credit limits, the financial
industry has developed specific schemes or contracts to set the
framework for pledging collateral. Recent examples include
developments by ISDA for derivatives and ISMA for repurchase
agreements.
In addition, the actual management of collateral, whether cash or
securities, requires that collateral be pledged, evaluated and marked-to-
market in order to evaluate the represented guarantee. Custodian banks
and central depositories are the key players in these activities. Finally,
collateral will have to be settled via payments for cash or securities
settlement.
In order to address this range of issues, the S.W.I.F.T. Standards
Collateral Management Working Group has been organised to cover all
roles of the collateral chain including the Securities, Payments and
Treasury markets and includes representation from all major countries
and professional organisations.
100
The new messages cover the following:
Message flows
Request for collateral and answer to the request
Proposal of collateral and answer to proposal
Mark to market report for both the collateral and the underlying
transactions
Collateralised products
Derivatives trading and foreign exchange
Payments/settlements
Credit line support
Repurchase agreements
Securities lending and borrowing
Tri-party deals
Cross-product
Types of collateral
Securities
Cash
Other bank guarantees.
The implementation of collateral messages is planned as part of the
Standards Release 2000 that will be effective in November 2000.
101
Category 3
FX, Money Markets and
OTC Derivatives Messages
MONEY MARKETS
MT 320- 330 - 350
OTC DERIVATIVES
MT 305 - 306 - 340 - 341
360 - 361 - 362 - 364
365
FOREIGN EXCHANGE
MT 300 - 303 - 304
COMMON GROUP
MESSAGES
MT 390 - 391 - 392 - 395
396 - 398 - 399 - 935
The messages within this category are confirmations of information
already known to both parties. They handle only the contract part of the
business and are not used for the transfer of funds, which takes place by
other means.
The other messages within this category are messages which instruct or
advise on the details relating to a forex trade.
In this section you will find message descriptions for messages in groups
FX, Money Markets and OTC Derivatives followed by selected
examples of messages.
The 23 messages in this category can be logically distributed as follows:
102
CATEGORY 3: FX, MONEY MARKETS AND OTC DERIVATIVES
MESSAGES
Page
FXINSTRUCTIONS AND CONFIRMATION 103
MT 300 Foreign Exchange Confirmation 105
MT 303 Forex/Currency Option Allocation Instruction 109
MT 304 Forex/Instruction of a Third Party Deal 113
MONEY MARKETS 117
MT 320 Fixed Loan/Deposit Confirmation 119
MT 330 Call/Notice Loan/Deposit Confirmation 123
MT 350 Advice of Loan/Deposit Interest Payment 127
OTC DERIVATIVES 131
MT 305 Foreign Currency Option Confirmation 135
MT 306 Foreign Currency Option Confirmation 137
MT 340 Forward Rate Agreement Confirmation 141
MT 341 Forward Rate Agreement Settlement Confirmation 145
MT 360 Single Currency Interest Rate Derivative Confirmation 149
MT 361 Cross Currency Interest Rate Swap Confirmation 157
MT 362 Interest Rate Reset/Advice of Payment 167
MT 364 Single Currency Interest Rate Derivative Termination/ 171
Recouponing Confirmation
MT 365 Cross Currency Interest Rate Swap Termination/ 175
COMMON GROUP MESSAGES 179
MT 390 Advice of Charges, Interest and Other Adjustments
MT 391 Request for Payment of Charges, Interest and Other Expenses
MT 392 Request for Cancellation
MT 395 Queries
MT 396 Answers
MT 398 Proprietary Messages
MT 399 Free Format Message
MESSAGE EXAMPLES 181
103
MT 300 FOREIGN EXCHANGE CONFIRMATION
This message is exchanged between financial institutions which have
agreed to a foreign exchange contract.
MT303FOREX/CURRENCY OPTION ALLOCATION INSTRUCTION
This message is sent by an Instructing Party (eg, a Fund Manager) or its
authorised representative to an Executing Broker to instruct the
allocation of either a block foreign exchange trade or a block currency
option.
MT 304 FOREX/INSTRUCTION OF A THIRD PARTY DEAL
This message is sent by a Fund Manager to a Custodian Bank as an
advice of/instruction to settle a third party foreign exchange deal.
1. Foreign Exchange
104
FOREIGN EXCHANGE
ACCOUNT
WITH
INSTITUTION
ACCOUNT
WITH
INSTITUTION
FINANCIAL
INSTITUTION
FINANCIAL
INSTITUTION
(1) MT300
(6) MT950 (4) MT202
(3) MT202
(2) MT210
(5) MT910
105
MT 300 Foreign Exchange Confirmation
Scope
This message is exchanged by or on behalf of the institutions or
corporates, party A and party B, which have agreed to a foreign
exchange contract.
This message may also be sent by a money broker to the two parties
(party A and party B) for which the broker arranged the deal.
Where there are two money brokers involved in arranging a deal between
party A and party B, this message is also exchanged between these
money brokers.
This message is also used when one of the trading parties is a fund
manager as the fund manager has to specify the fund for which he is
dealing.
The message allows split settlements where the amount is too big to be
settled as a whole.
It allows:
the specification of the legal counterparties
the inclusion of a beneficiary
a split settlement
the inclusion of the underlying legal agreement.
The message may be used to:
confirm the details of a new contract between the parties
confirm an exercised foreign currency option
confirm the details of an amendment to a previously sent
confirmation
cancel a previously sent confirmation.
106
MT 300 Foreign Exchange Confirmation
M/O Tag Field Name
Mandatory Sequence A
General Information
M 15A New Sequence
M 20 Senders Reference
O 21 Related Reference
M 22A Type of Operation
O 94A Scope of Operation
M 22C Common Reference
O 17T Block Trade Indicator
O 17U Split Settlement Indicator
O 82a Party A
O 87a Party B
O 83a Fund or Beneficiary Customer
O 77D Terms and Conditions
Mandatory Sequence B
Transaction Details
M 15B New Sequence
M 30T Trade Date
M 30V Value Date
M 36 Exchange Rate
Mandatory Subsequence B1
Amount Bought
M 32B Currency, Amount
O 53a Delivery Agent
O 56a Intermediary
M 57a Receiving Agent
Amount Sold
O 56a Intermediary
O 58a Beneficiary Institution
(continued on next page)
107
MT 300 Foreign Exchange Confirmation (continued)
M/O Tag Field Name
Optional Sequence C
Optional General Information
M 15C New Sequence
O 29A Contact Information
O 24D Dealing Method
O 84a Dealing Branch Party A
O 85a Dealing Branch Party B
O 88a Broker Identification
O 71F Brokers Commission
O 26H Counterpartys Reference
O 21G Brokers Reference
O 72 Sender to Receiver Information
Optional Sequence D
Split Settlement Details
M 15D New Sequence
M 17A Buy (Sell) Indicator
O 56a Intermediary
M 16A Number of Settlements
M = Mandatory O = Optional
108
109
MT 303 Forex/Currency Option Allocation
Instruction
Scope
This message is sent by an Instructing Party (eg, a Fund Manager) or its
authorised representative to an Executing Broker to instruct the
allocation of either a block foreign exchange trade or a block currency
option.
The MT 303 contains both the terms of the block trade and the individual
allocations.
The Executing Party will reply by sending separate MT 300s confirming
each individual allocation.
The message may be sent to cancel and amend the block trade and the
complete set of allocations.
The message may also be sent to amend a number of individual
allocations.
110
FOREX/CURRENCY OPTION ALLOCATION INSTRUCTION
FUND
MANAGER
EXECUTING
BROKER
CUSTODIAN
MT300
MT303
MT300s
MT304s
111
MT 303Forex/Currency Option Allocation Instruction
M/O Tag Field Name
Mandatoly Sequence A
General Information
M 15A New Sequence
M 20 Sender's Reference
M 94A Scope of Operation
O 82a Fund Manager
O 87a Executing Broker
Optional Sequence B
Forex Transaction Details
M 15B New Sequence
M 30T Trade Date
M 30V Value Date
M 36 Exchange Rate
M 32B Currency, Amount Bought
M 33B Currencv, Amount Sold
Optional Sequence C
Currency Option Details
M 15C New Sequence
M 23B Identification of the Option
M 17A Buy (Sell) Indicator
M 30T Trade Date
O 30X EarliestExercise Date
O 30F Final Settlement Date
M 29C Expiry Location
M 13E Expiry Date and Time
M 32B Underlying Currency and Amount
112
MT 303Forex/Currency Option Allocation Instruction (continued)
M/O Tag Field Name
M 36A Strike Price
M 33B Counter Currency and Amount
M 39P Premium Price
M 30P Premium Payment Date
M 34B PremiumCurrency and Amount
Repetitive Optional Sequence D
Allocation Details
M 28C Entry Number, Page Number
M 21A Reference of Individual Allocation
M 83a Fund
Mandatory Subsequence D1
Amount Bought
O 56a Intermediary
Manclatory Subsequence D2
Amount Sold
M 33B Currency, Amount Sold
O 56a Intermediary
Optional Subsequence D3
Premium
O 34B Premium Currency and Amount
O 56a Intermediary
O 57a Receiving Agent
113
MT 304 Advice/Instruction of a Third Party
Deal
Scope
This message is sent by a fund manager to a custodian bank as an advice
of/instruction to settle a third party foreign exchange deal.
The definition of third party must be agreed up front between the fund
manager and the custodian relative to deals executed by the custodians
treasury area on behalf of the fund manager.
It is used to:
provide details about a new deal
provide a settlement notification
amend a previously sent message
cancel a previously sent message.
Use of this message type requires Message User Group (MUG)
registration.
114
ADVICE/INSTRUCTION OF A THIRD PARTY DEAL
FUND
MANAGER
EXECUTING
BROKER
CUSTODIAN
MT300
MT304
115
MT304Advice/Instruction of a Third Party Deal
M/O Tag Field Name
General Information
M 15A New Sequence
M 94A Scope of Operation
O 17O Open Indicator
O 17F Final Close Indicator
O 17N Net Settlement Indicator
M 83a Fund
M 82a Fund Manager
M 87a Executing Broker
Forex Transaction Details
M 15B New Sequence
M 30T Trade Date
M 30V Value Date
M 36 Exchange Rate
M 53a Delivery Agent
O 56a Intermediary
M 33B Currency, Amount Sold
0 53a Delivery Agent
O 56a Intermediary
116
MT304Advice/Instruction of a Third Party Deal (continued)
M/O Tag Field Name
Optional Sequence C
M 15C New Sequence
O 21A Reference to the Associated Trade
O 21G Executing Broker's Reference
Optional Sequence D
Accounting Information
M 15D New Sequence
M 21P Reference to Previous Deals
M 17G Gain (Loss) Indicator
M 32G Currency, Amount
Optional Sequence E
Net Amount to be Settled
M 15E New Sequence
M 17G Gain (Loss) Indicator
M 32G Currency, Amount
O 56a Intermediary
O 58a BeneficiaryInstitution
117
2. Money Markets
MT 320 FIXED LOAN/DEPOSIT CONFIRMATION
agreed to a fixed loan/deposit contract.
MT 330 CALL/NOTICE LOAN/DEPOSIT CONFIRMATION
agreed to a call/notice loan/deposit contract.
MT 350 ADVICE OF LOAN/DEPOSIT INTEREST PAYMENT
This message is sent by a financial institution involved in a loan/deposit
contract to advise the beneficiary of an interest payment and of the basis
of the interest calculation.
118
MONEY MARKETS
ACCOUNT WITH
INSTITUTION
ACCOUNT WITH
INSTITUTION
Statements
(MT950)
Interest
Payments
Confirmation
of Credit
(MT910)
Funds Transfer
(MT950)
BORROWER LENDER
Loan/Deposit Confirmations
(MT320/330)
Advice of Interest Payment
(MT350)
119
MT 320 Fixed Loan/Deposit Confirmation
Scope
corporates, party A and party B, who have agreed to a fixed term
loan/deposit contract.
A money broker may also send this message to the two parties
(party A and party B) for which he arranged the deal.
If there are two money brokers involved in arranging a deal
between party A and party B, this message can also be exchanged
between these money brokers.
The message is used to confirm/notify the details of:
a new contract between the parties
an amendment to a previously agreed contract
the cancellation of a confirmation
a rolled over/renewed contract between the parties
the maturity of a contract.
120
General Information
M 15A New Sequence
M 22B Type of Event
O 21N Contract Number Party A
O 82a Party A
O 87a Party B
O 83a Fund or Instructing Party
Transaction Details
M 15B New Sequence
M 17R Party A's Role
M 30T Trade Date
M 30V Value Date
M 30P Maturity Date
M 32B Currency and Principal Amount
O 32H Amount to be Settled
O 30X Next Interest Due Date
M 34E Currency and Interest Amount
M 37G Interest Rate
M 14D Day Count Fraction
O 30F Last Day of the First Interest Period
O 38J Number of Days
MT 320 Fixed Loan/Deposit Confirmation
M/O Tag Field Name
121
MT 320 Fixed Loan/Deposit Confirmation (continued)
M/O Tag Field Name
Mandatory Sequence C
Settlement Instructions for Amounts Payable by Party A
M 15C New Sequence
O 86a Intermediary 2
O 56a Intermediary
Mandatory Sequence D
Settlement Instructions for Amounts Payable by Party B
M 15D New Sequence
O 56a Intermediary
Optional Sequence E
Settlement Instructions for Interests Payable by Party A
M 15E New Sequence
O 56a Intermediary
Optional Sequence F
Settlement Instructions for Interests Payable by Party B
M 15F New Sequence
O 56a Intermediary
122
MT 320 Fixed Loan/Deposit Confirmation (continued)
M/O Tag Field Name
Optional Sequence G
Tax Information
M 15G New Sequence
M 37L Tax Rate
M 33B Transaction Currency and Net Interest Amount
O 36 Exchange Rate
O 33E Reporting Currency and Tax Amount
Optional Sequence H
Additional Information
M 15H New Sequence
O 71F Broker's Commission
O 26H Counterparty's Reference
O 21G Broker's Reference
123
MT 330 Call/Notice Loan/Deposit
Confirmation
Scope
This message is sent by or on behalf of the institution or corporate, party
A and party B, who have agreed to a call/notice loan/deposit contract.
the cancellation of a confirmation
an increase or decrease in the balance of the account, in an already
agreed contract
a change in the interest rate
a change in the period of notice
the closing of a contract, ie, final redemption of the loan/deposit
balance to zero and all interest paid.
124
MT 330 Call/Notice Loan/Deposit Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 22B Type of Event
O 82a Party A
O 87a Party B
Transaction Details
M 15B New Sequence
M 17R Party A's Role
M 30T Trade Date
M 30V Value Date
M 38A Period of Notice
O 32B Currency and Balance
O 32H Amount to be Settled
O 30X Interest Due Date
O 34E Currency and Interest Amount
M 37G Interest Rate
O 30F Last Day of the Next Interest Period
O 38J Number of Days
125
MT 330 Call/Notice Loan/Deposit Confirmation (continued)
M/O Tag Field Name
Settlement Instructions for Amounts Payable by Party A
M 15C New Sequence
O 56a Intermediary
Settlement Instructions for Amounts Payable by Party B
M 15D New Sequence
O 56a Intermediary
Optional Sequence E
Settlement Instructions for Interests Payable by Party A
M 15E New Sequence
O 56a Intermediary
Optional Sequence F
Settlement Instructions for Interests Payable by Party B
M 15F New Sequence
O 56a Intermediary
126
MT 330 Call/Notice Loan/Deposit Confirmation (continued)
M/O Tag Field Name
Optional Sequence G
Tax Information
M 15G New Sequence
M 37L Tax Rate
O 36 Exchange Rate
O 33E Reporting Currency and Tax Amount
Optional Sequence H
M 15H New Sequence
O 26H Counterparty's Reference
127
MT 350 Advice of Loan/Deposit Interest
Payment
Scope
This message is sent by or on behalf of the institution or corporate, party
A who has borrowed cash from the institution or corporate, party B.
It is used to inform that an interest amount has been paid to the account
of the beneficiary with the receiving agent mentioned in the message.
The message may also be used to notify the details of:
an amendment to a previously agreed advice
the cancellation of an advice.
128
General Information
M 15A New Sequence
O 82a Party A
O 87a Party B
Interest Information
M 15B New Sequence
M 30G Interest Period
M 32B Currency and Principal Amount
M 30V Value Date of Interest Payment
M 34B Currency and Interest Amount
M 37J Interest Rate
O 30F Next Interest Payment Date
Settlement Instructions
M 15C New Sequence
O 56a Intermediary
MT 350 Advice of Loan/Deposit Interest Payment
M/O Tag Field Name
129
MT 350 Advice of Loan/Deposit Interest Payment (continued)
M/O Tag Field Name
Optional Sequence D
Tax Information
M 15D New Sequence
M 37L Tax Percentage
O 36 Exchange Rate
5O 33E Reporting Currency and Tax Amount
130
131
3. OTC Derivatives
MT 305 FOREIGN CURRENCY OPTION CONFIRMATION
This message is exchanged between financial institutions to confirm a
foreign currency option contract.
MT 306 FOREIGN CURRENCY OPTION CONFIRMATION
corporates, party A and party B, which have agreed to a foreign currency
option contract.
MT 340 FORWARD RATE AGREEMENT CONFIRMATION
agreed to a Forward Rate Agreement (FRA).
MT 341 FORWARD RATE AGREEMENT SETTLEMENT CONFIRMATION
This message is exchanged between the financial institutions involved in
a Forward Rate Agreement to confirm the settlement details when the
settlement rate has been fixed.
MT 360 SINGLE CURRENCY INTEREST RATE SWAP CONFIRMATION
This message is exchanged by or on behalf of the financial institutions,
party A and party B, who have agreed to a single currency interest rate
swap contract. This message is also used to confirm caps, floors and
collars.
MT 361 CROSS CURRENCY INTEREST RATE SWAP CONFIRMATION
This message is exchanged by or on behalf of the financial institution,
party A and party B, who have agreed to a cross currency interest rate
swap contract.
132
MT 362 INTEREST RATE RESET/ADVICE OF PAYMENT
This message is exchanged between financial institutions to confirm the
reset rates of the floating interest rate(s) in a single or cross currency
interest rate swap. Should it be necessary, resulting payments can also be
advised. In addition, this message can be used to advise the payment of
interest at the end of an interest period when there is no reset of interest
rates.
MT 364 SINGLE CURRENCY INTEREST RATE DERIVATIVE
TERMINATION/RECOUPONING CONFIRMATION
corporates, party A and party B, which have agreed to the termination,
partial termination or recouponing of a single currency interest rate
swap, a cap, a collar or a floor.
MT 365 CROSS CURRENCY INTEREST RATE SWAP
TERMINATION/RECOUPONING CONFIRMATION
partial termination or recouponing of a cross currency interest rate swap.
133
OTC DERIVATIVES
ACCOUNT
WITH
INSTITUTION
ACCOUNT
WITH
INSTITUTION
FINANCIAL
INSTITUTION
FINANCIAL
INSTITUTION
Confirmation
134
INTEREST RATE SWAPS
INVESTOR/INSTITUTION
Swap Confirmation
Transfer
FINANCIAL
INSTITUTION
FINANCIAL
INSTITUTION
Transfer
INVESTOR/INSTITUTION
Settle-
ment
CORRESPONDENTS
Confirmation
of Credit
Confirmation
of Credit
Interest
Payment
Interest
Payment
Settle-
ment
135
MT 305 Foreign Currency Option
Confirmation
Scope
agreed to a foreign currency option contract.
136
MT 305 Foreign Currency Option Confirmation
M/O Tag Field Name
M 20 Transaction Reference Number
M 21 Related Reference
M 22 Code/Common Reference
M 23 Further Identification
M 30 Date Contract Agreed/Amended
O 31C Earliest Exercise Date
M 31G Expiry Date
O 31E Final Settlement Date
M 26F Settlement Type
M 32B Underlying Currency and Amount
M 36 Strike Price
M 33B Counter Currency and Amount
M 37K Premium Price
M 34a Premium Payment
O 53a Sender's Correspondent
O 56a Intermediary
M 57a Account With Institution
137
MT 306 Foreign Currency Option
Confirmation
Note: This message will eventually replace the MT 305. As long as the
MT 305 exists, the MT 306 can only be used for exotic options and not
for vanilla deals.
Scope
corporates, party A and party B, which have agreed to a foreign currency
option contract.
The confirmed transaction is covered by an ICOM (International
Currency Option Master from the British Bankers Association), ISDA
(International Swaps and Derivatives Association), Deutsche
Rahmenvertrag, IFEMA, FEOMA or AFB (Association Franaise de
Banques) Master Agreement. These agreements are either signed or
under negotiation. The message also caters for deals that are not covered
by the above agreements.
A money broker may also send this message to the two parties (party A
and party B) for which he arranged the deal.
If there are two money brokers involved in arranging a deal between
party A and party B, this message can also be exchanged between these
money brokers.
a new contract between the parties,
an amendment to a previously agreed contract,
the cancellation of a confirmation,
a trigger event: knock-in/knock-out of an option, hitting of a trigger
level,
the close out of an option.
138
MT 306 Foreign Currency Option Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 21N Contract Number Party A
O 21B Contract Number Party B
M 12F Option Style
M 12E Expiration Style
M 17A Barrier Indicator
M 17F Non-Deliverable Indicator (NDO)
M 22K Type of Event
O 30U Date of Trigger Hit
O 29H Location of Trigger Hit
M 82a Party A
M 87a Party B
M 77H Type, Date, Version of the Agreement
O 77D Additional Conditions
O 14C Year of Definitions
Transaction Details
M 15B New Sequence
M 17V Buy (Sell) Indicator
M 30T Trade Date
M 30X Expiration Date
M 29E Expiration Location and Time
O 30F Final Settlement Date
O 37K Premium Price
M 30V Premium Payment Date
139
MT 306 Foreign Currency Option Confirmation (continued)
M/O Tag Field Name
M 34B Premium Currency and Amount
O 84a Calculation Agent
Settlement Instructions for Payment of Premium
M 15C New Sequence
O 56a Intermediary
Optional Sequence D
Vanilla Block
M 15D New Sequence
O 30P Earliest Exercise Date
O 30Q Intermediate Exercise Date
M 26F Settlement Type
M 32B Put Currency and Amount
M 36 Strike Price
M 33B Call Currency and Amount
Optional Sequence E
Payout Amount
M 15E New Sequence
M 33E Currency, Amount
O 30H Touch Payment Date
O 56a Intermediary
140
MT 306 Foreign Currency Option Confirmation (continued)
M/O Tag Field Name
Optional Sequence F
Barrier Block
M 15F New Sequence
M 22G Type of Barrier
M 37J Barrier Level
O 37L Lower Barrier Level
M 30G Barrier Window Start Date and End Date
O 29J Location and Time for Start Date
O 29K Location and Time for End Date
Optional Sequence G
Trigger Block
M 15G New Sequence
M 22J Type of Trigger
M 37U Trigger Level
O 37P Lower Trigger Level
M 32Q Currency Pair
Optional Sequence H
Non Deliverable Option Block
M 15H New Sequence
M 14S Settlement Rate Source
M 32E Settlement Currency
Optional Sequence I
M 15I New Sequence
141
MT 340 Forward Rate Agreement
Confirmation
Scope
corporates, party A and party B, who have agreed to a forward rate
agreement (FRA).
The confirmed transaction is covered by an ISDA (International Swaps
and Derivatives Association), Deutsche Rahmenvertrag, FRABBA
(British Bankers' Association) or AFB (Association Franaise de
Banques) Master Agreement. These agreements are either signed or
under negotiation.
A money broker may also send this message to the two parties (party A
and party B) for which he arranged the deal.
money brokers.
the cancellation of a confirmation.
142
MT 340 Forward Rate Agreement Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 23D Type of FRA
M 82a Party A
M 87a Party B
O 14C Year of Definitions
Transaction Details
M 15B New Sequence
M 30T Trade Date
M 32B Currency, Notional Amount
M 30F Effective Date
M 30P Termination Date
M 37M Fixed Rate
M 14F Floating Rate Option
143
MT 340 Forward Rate Agreement Confirmation (continued)
M/O Tag Field Name
Optional Subsequence B1
AFB and FRABBA Details
M 30V Fixing Date
M 38D Contract Period
Other Details
M 38G Designated Maturity
M 14D Floating Rate Day Count Fraction
M 17F FRA Discounting
M 18A Number of Repetitions
M 22B Financial Centre
Settlement Instructions for Settlement Amount Payable by Party B
M 15C New Sequence
O 56a Intermediary
Settlement Instructions for Settlement Amount Payable by Party A
M 15D New Sequence
O 56a Intermediary
144
MT 340 Forward Rate Agreement Confirmation (continued)
M/O Tag Field Name
Optional Sequence E
M 15E New Sequence
145
MT 341 Forward Rate Agreement Settlement
Confirmation
Scope
corporates, party A and party B, who have agreed to a forward rate
agreement (FRA).
It is used to confirm the settlement details of the forward rate agreement
when the settlement rate has been fixed on the fixing date.
The message is also used to confirm/notify:
an amendment to a previously agreed settlement message
the cancellation of a settlement message.
146
MT 341 Forward Rate Agreement Settlement Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 23D Type of FRA
M 82a Party A
M 87a Party B
Transaction Details
M 15B New Sequence
M 30T Trade Date
M 30F Effective Date
M 37M Fixed Rate
AFB and FRABBA Details
O 30V Fixing Date
O 38D Contract Period
147
MT 341 Forward Rate Agreement Settlement Confirmation
(continued)
M/O Tag Field Name
Settlement Instructions for the Settlement Amount
M 15C New Sequence
M 37R Settlement Rate
M 34E Settlement Currency and Amount
O 56a Intermediary
148
149
MT 360 Single Currency Interest Rate
Derivative Confirmation
Scope
corporates, party A and party B, which have agreed to a single currency
interest rate swap, a cap, a collar or a floor. The confirmed transaction is
covered by a BBAIRS (British Bankers Association Interest Rate
Swap), ISDA (International Swaps and Derivatives Association) or AFB
(Association Franaise de Banques) Master Agreement.
The message also covers deals which are not part of an ISDA, AFB or
BBAIRS Master. In this case, party A and party B must have another
bilateral agreement in place.
money brokers.
The MT 360 may be used to:
confirm the details of a new transaction between the parties
correct a previously sent confirmation
150
MT 360 Single Currency Interest Rate Derivative Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 23A Identification of the Swap
M 30T Trade Date
M 30V Effective Date
O 14A Business Day Convention
M 82a Party A
M 87a Party B
O 17A Collateral Agreement Indicator
M 14C Year of Definitions
Optional Sequence B
Fixed Interest Payable by Party B
M 15B New Sequence
O 37U Fixed Rate
O 37N Details of Interest Rate
Interest Details
M 30F Payment Date
O 32M Currency, Payment Amount
151
(continued)
M/O Tag Field Name
O 17F Period End Date Adjustment Indicator
O 14D Day Count Fraction
M 14A Business Day Convention
Optional Sequence C
Floating Interest Payable by Party B
M 15C New Sequence
O 37J Cap Rate
O 37L Floor Rate
Optional Subsequence C1
Interest Details
M 14J Reset Date Specification
O 14G Averaging Frequency and Method
M 38E Designated Maturity
M 30F Payment Date
M 17F Period End Date Adjustment Indicator
O 37R Spread
152
(continued)
M/O Tag Field Name
Compounding Details
M 22D Compounding Type
M 30X Compounding Date
Interpolation for Stub Periods
O 38G First Stub Period, Interpolation Period
O 38H Last Stub Period, Interpolation Period
Payment Instructions for Interest Payable by Party B
M 15D New Sequence
O 56a Intermediary
O 86a Second Intermediary
Optional Sequence E
Fixed Interest Payable by Party A
M 15E New Sequence
O 37U Fixed Rate
Optional Subsequence E1
Interest Details
M 30F Payment Date
153
(continued)
M/O Tag Field Name
Optional Sequence F
Floating Interest Payable by Party A
M 15F New Sequence
O 37J Cap Rate
O 37L Floor Rate
Optional Subsequence F1
Interest Details
M 30F Payment Date
O 37R Spread
Compounding Details
154
(continued)
M/O Tag Field Name
Mandatory Sequence G
Payment Instructions for Interest Payable by Party A
M 15G New Sequence
O 56a Intermediary
Optional Sequence H
Amortising Schedule
M 15H New Sequence
M 30G Variable Notional Start and End Date
M 32U Outstanding Notional Currency and Amount
Optional Sequence L
Additional Amounts Payable by Party B
M 15L New Sequence
M 22E Type of Payment
M 30F Payment Date
M 32M Currency, Payment Amount
155
(continued)
M/O Tag Field Name
O 56a Intermediary
Optional Sequence M
Additional Amounts Payable by Party A
M 15M New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence N
M 15N New Sequence
156
157
MT 361 Cross Currency Interest Rate Swap
Confirmation
Scope
corporates, party A and party B, which have agreed to a cross currency
interest rate swap covered by a BBAIRS (British Bankers Association
Interest Rate Swap) or an ISDA (International Swaps and Derivatives
Association) Master Agreement.
The message also covers deals which are not part of an ISDA or
BBAIRS Master. In this case, party A and party B must have another
bilateral agreement in place, except under AFB (Association Franaise
de Banques) Master (until the AFB does define the interbank
confirmation for cross currency swaps, the MT 361 cannot be used to
confirm such transactions).
money brokers.
confirm the details of a new transaction between the parties
correct a previously sent confirmation
158
MT 361 Cross Currency Interest Rate Swap Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 30T Trade Date
O 14A Business Day Convention
M 32B Party B, Currency and Notional Amount
M 33B Party A, Currency and Notional Amount
M 82a Party A
M 87a Party B
O 17A Collateral Agreement Indicator
M 14C Year of Definitions
Optional Sequence B
M 15B New Sequence
O 37U Fixed Rate
Interest Details
M 30F Payment Date
159
MT 361 Cross Currency Interest Rate Swap Confirmation (continued)
M/O Tag Field Name
Optional Sequence C
Floating Interest Payable by Party B
M 15C New Sequence
O 37J Cap Rate
O 37L Floor Rate
Interest Details
M 30F Payment Date
O 37R Spread
160
M/O Tag Field Name
Compounding Details
Payment Instructions for Interest Payable by Party B
M 15D New Sequence
O 56a Intermediary
Optional Sequence E
M 15E New Sequence
O 37U Fixed Rate
Optional Subsequence E1
Interest Details
M 30F Payment Date
161
M/O Tag Field Name
Optional Sequence F
Floating Interest Payable by Party A
M 15F New Sequence
O 37J Cap Rate
O 37L Floor Rate
Interest Details
M 30F Payment Date
O 37R Spread
Compounding Details
162
M/O Tag Field Name
Mandatory Sequence G
Payment Instructions for Interest Payable by Party A
M 15G New Sequence
O 56a Intermediary
Optional Sequence H
Amortising Schedule for Party B
M 15H New Sequence
Optional Sequence I
Amortising Schedule for Party A
M 15I New Sequence
163
M/O Tag Field Name
Optional Sequence J
Exchanges of Principal Payable by Party B
M 15J New Sequence
M 22X Type of Exchange
M 30F Payment Date
O 56a Intermediary
Optional Sequence K
Exchanges of Principal Payable by Party A
M 15K New Sequence
M 22X Type of Exchange
M 30F Payment Date
O 56a Intermediary
164
M/O Tag Field Name
Optional Sequence L
Additional Amounts Payable by Party B
M 15L New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence M
Additional Amounts Payable by Party A
M 15M New Sequence
M 30F Payment Date
165
M/O Tag Field Name
O 56a Intermediary
Optional Sequence N
M 15N New Sequence
166
167
MT 362 Interest Rate Reset/Advice of
Payment
Scope
This message is exchanged by or on behalf of the financial institutions,
party A and party B, which have agreed to a single or cross currency
interest rate derivative transaction, including caps, collars and floors.
It is used to advise the reset of the interest rate and/or to advise a
resulting interest payment.
This message may be used to:
advise the details of the determination of the floating interest rate(s)
advise the details of the payment of interest at the end of an interest
period
cancel a previously sent reset/advice
correct errors in a previously sent reset/advice.
168
MT 362 Interest Rate Reset/Advice of Payment
M/O Tag Field Name
General Information
M 15A New Sequence
M 22B Type of Event
M 82a Party A
M 87a Party B
Optional Sequence B
Interest Rate/Principal Payable by Party B
M 15B New Sequence
M 33F Calculation Notional Currency and Amount
M 30X Period Start Date
O 30Q Period End Date
M 37G Reset Rate
O 37J Cap Rate
O 37L Floor Rate
M 37R Spread
M 37M Total Rate
M 30F Payment Date
O 32H Currency, Interest Amount
O 33E Currency, Principal Exchange Amount
169
MT 362 Interest Rate Reset/Advice of Payment (continued)
M/O Tag Field Name
Optional Sequence C
(Net) Amount(s) Payable by Party B
M 15C New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence D
Interest Rate/Principal Payable by Party A
M 15D New Sequence
M 33F Calculation Notional Currency and Amount
M 30X Period Start Date
O 30Q Period End Date
M 37G Reset Rate
O 37J Cap Rate
O 37L Floor Rate
M 37R Spread
M 37M Total Rate
M 30F Payment Date
O 32H Currency, Interest Amount
O 33E Currency, Principal Exchange Amount
170
MT 362 Interest Rate Reset/Advice of Payment (continued)
M/O Tag Field Name
Optional Sequence E
(Net) Amount(s) Payable by Party A
M 15E New Sequence
M 30F Payment Date
O 56a Intermediary
171
MT 364 Single Currency Interest Rate
Derivative Termination/Recouponing
Confirmation
Scope
partial termination or recouponing of a single currency interest rate swap,
a cap, a collar, or a floor. The terminated/recouponed transaction is
covered by a BBAIRS, ISDA or AFB or another bilateral agreement.
This message may be used to:
confirm the details of the partial or full termination of an existing
transaction between the parties
confirm the details of the recouponing of an existing transaction
correct a previously sent termination/recouponing
cancel a previously sent termination/recouponing.
172
MT 364 Single Currency Interest Rate Derivative Termination/
M/O Tag Field Name
General Information
M 15A New Sequence
M 22B Type of Event
M 30T Termination/Recouponing Trade Date
M 30Q Termination/Recouponing Effective Date
M 30P Original Termination Date
M 30V Original Effective Date
M 32B Current Currency, Notional Amount
M 82a Party A
M 87a Party B
O 22D Accrual of Interest Specification
O 32G New Currency, Notional Amount
Optional Sequence B
M 15B New Sequence
M 37U Current Fixed Rate
O 37P New Fixed Rate
Optional Sequence E
M 15E New Sequence
173
MT 364 Single Currency Interest Rate Derivative Termination/
Recouponing Confirmation (continued)
M/O Tag Field Name
Optional Sequence L
Fee Payable by Party B
M 15L New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence M
Fee Payable by Party A
M 15M New Sequence
M 30F Payment Date
O 56a Intermediary
174
175
MT 365 Cross Currency Interest Rate Swap
Termination/Recouponing Confirmation
Scope
partial termination or recouponing of a cross currency interest rate swap.
The terminated/recouponed transaction is covered by a BBAIRS, ISDA
or another bilateral agreement.
confirm the details of the partial or full termination of an existing
transaction between the parties
confirm the details of the recouponing of an existing transaction
correct a previously sent termination/recouponing
cancel a previously sent termination/recouponing.
176
MT 365 Cross Currency Interest Rate Swap Termination/Recouponing
Confirmation
M/O Tag Field Name
General Information
M 15A New Sequence
M 22B Type of Event
M 30T Termination/Recouponing Trade Date
M 30Q Termination/Recouponing Effective Date
M 30P Original Termination Date
M 30V Original Effective Date
M 32B Party B, Current Currency, Notional Amount
M 33B Party A, Current Currency, Notional Amount
M 82a Party A
M 87a Party B
O 22D Accrual of Interest Specification
O 32G Party B, New Currency, Notional Amount
O 33E Party A, New Currency, Notional Amount
Optional Sequence B
M 15B New Sequence
177
Confirmation (continued)
M/O Tag Field Name
Optional Sequence E
M 15E New Sequence
Optional Sequence J
Re-exchange of Principal Payable by Party B
M 15J New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence K
Re-exchange of Principal Payable by Party A
M 15K New Sequence
M 30F Payment Date
O 56a Intermediary
Optional Sequence L
Fee Payable by Party B
M 15L New Sequence
M 30F Payment Date
O 56a Intermediary
178
Confirmation (continued)
M/O Tag Field Name
Optional Sequence M
Fee Payable by Party A
M 15M New Sequence
M 30F Payment Date
O 56a Intermediary
179
4. Common Group Messages
In addition to specific Category 3 messages, Common Group Messages
are available for this category.
These are:
MT 390 Advice of Charges, Interest and Other Adjustments
MT 391 Request for Payment of Charges, Interest and Other Expenses
MT 392 Request for Cancellation
MT 395 Queries
MT 396 Answers
MT 398 Proprietary Message
MT 399 Free Format Message
180
181
Examples of Messages
182
MT300Foreign Exchange Confirmation
Narrative - Spot Deal
Message 1 - FXConfirmation
On 22 January 1996, Crdit Suisse, Zurich buys 100,000 GBP against
USD from Berliner Bank, Berlin. The rate is 1,6632. The deal is agreed
via telephone.
On 24 January 1996, Berliner Bank will transfer the pounds to Crdit
Suisses account with Midland Bank, London.
Crdit Suisse will transfer the dollars to Berliner Banks account with
Chase Manhattan Bank.
Example 1
183
Information flow
Sender - Receiver
Counterparty
Receiving
Agent
57a
(MT 202)
(MT 202)
(MT 910/950)
(MT 910/950)
MT
300
MT
300
57a
Receiving
Agent
Receiver - Sender
Counterparty
Berliner
Bank
Berlin
Chase
Manhattan
New York
Midland
Bank
London
Crdit
Suisse
Zurich
Example 1
Sender CRESCHZZ
Receiver BEBEDEBB
Message Type 300
Message text
General Information :15A:
Senders Reference :20:REF1A
Type of Operation :22A:NEWT
Common Reference :22C:BEBEBB6632CRESZZ
Transaction Details :15B:
Trade Date :30T:19960122
Value Date :30V:19960124
Exchange Rate :36:1,6632
Currency, Amount Bought :32B:GBP100000,00
Receiving Agent :57A:MIDLGB22
Currency, Amount Sold :33B:USD166320,00
Receiving Agent :57A:CHASUS33
Optional General Information :15C:
Dealing Method :24D:PHON
184
S.W.I.F.T. Message 1 - FX Confirmation
Crdit Suisse sends a message to Berliner Bank confirming the deal.
Explanation Format
Example 1
185
S.W.I.F.T. Message 1 - FX Confirmation
Berliner Bank sends a message to Crdit Suisse confirming the deal.
Explanation Format
Sender BEBEDEBB
Receiver CRESCHZZ
Message Type 300
Message text
Senders Reference :20:REF1B
Common Reference :22C:BEBEBB6632CRESZZ
Currency, Amount Bought :32B:USD166320,00
Currency, Amount Sold :33B:GBP100000,00
Dealing Method :24D:PHON
Example 1
186
Narrative - Spot Deal
Refer to User Handbook for the following formats.
Message 2 - Notice to Receive
Berliner Bank sends an MT 210 Notice to Receive to Chase Manhattan
Bank, providing notification of the amount which is to be received from
Crdit Suisse in settlement of the deal.
Message 3 - General Financial Institution Transfer
Crdit Suisse will request Chase Manhattan Bank to credit Berliner Bank
with the funds, value 24 January 1996.
Message 4 - General Financial Institution Transfer
Berliner Bank will request Midland Bank to credit Crdit Suisse with the
funds, value 24 January 1996.
Message 5 - Statement of Account/Confirmation of Credit
On 24 January 1996, Chase Manhattan Bank credits Berliner Bank with
the funds.
This transaction will appear as follows on the MT 950 Statement
Message for the account:
:61:960124C166320,00S910BEBEBB6632CRESZZ//36836522A
In addition, Chase Manhattan Bank, prior to the statement, may send an
MT 910 Confirmation of Credit.
Message 6- Statement of Account/Confirmation of Credit
On 24 January 1996, Midland Bank credits Crdit Suisse with the funds.
This transaction will appear as follows on the MT 950 Statement
Message for the account:
:61:960124C100000,00S910BEBEBB6632CRESZZ//356739MM
In addition, Midland Bank, prior to the statement, may send an MT 910
Confirmation of Credit.
Example 1
187
Information flow
Example 1
Midland
Bank
London
Chase Manhattan
New York
Crdit
Suisse
Zurich
Berliner
Bank
Berlin
(1) MT300
(6) MT950 (4) MT202
(3) MT202
(2) MT210
(5) MT910
188
Forex transaction arranged via a money broker, the broker confirms
to both parties
Narrative
On 9 October 1995, the Money Broker Harlow Butler Hong Kong,
(HBUTHKHH) arranges the following deal between INSACOLO and
BANBCTLT.
The terms of the deal are:
INSACOLO buys 10,000,000 GBP against USD
Rate: 1.831
BANBCTLT buys the USD
Value date: 11 October 1995
INSACOLO will transfer the USD to BANBs account at Chase
Manhattan Bank, New York
BANBCTLT will transfer the GBP to INSAs account at Midland
Bank, London.
.
Example 2
189
Information flow
(1) MT 300 (2) MT 300
(3) MT 300
(4) MT 300
BANBCTLT INSACOLO
Example 2
Harlow Butler
190
Harlow Butler sends a message to INSACOLO to confirm the deal
with BANBCTLT.
Explanation Format
Sender HBUTHKHH
Receiver INSACOLO
Message Type 300
Message text
Senders Reference :20:BR9981
Scope of Operation :94A:BROK
Common Reference :22C:HBUTHH1831INSALO
Party A :82A:INSACOLO
Party B :87A:BANBCTLT
Currency, Amount Bought :32B:GBP10000000,
Dealing Method :24D:BROK
Broker Identification :88A:HBUTHKHH
Brokers Commission :71F:GBP200,
Example 2
191
Harlow Butler sends a message to BANBCTLT to confirm the deal
with INSACOLO.
Explanation Format
Sender HBUTHKHH
Receiver BANBCTLT
Message Type 300
Message text
Senders Reference :20:BR3551
Scope of Operation :94A:BROK
Common Reference :22C:BANBLT1831HBUTHH
Party A :82A:BANBCTLT
Party B :87A:INSACOLO
Currency, Amount Sold :33B:GBP10000000,
Brokers Commission :71F:GBP200,
Example 2
192
INSACOLO sends a message to BANBCTLT to confirm the deal.
Explanation Format
Sender INSACOLO
Receiver BANBCTLT
Message Type 300
Message text
Senders Reference :20:ABC122
Common Reference :22C:BANBLT1831INSALO
Example 2
193
Sender BANBCTLT
Receiver INSACOLO
Message Type 300
Message text
Senders Reference :20:882LP
Common Reference :22C:BANBLT1831INSALO
Currency, Amount Sold :33B:GBP10000000,
BANBCTLT sends a message to INSACOLO to confirm the deal.
Explanation Format
Example 2
194
MT303 Forex/Currency Option Allocation Instruction
Bulk Forex Transaction
Narrative
On 31 October 1995, Invest Associates, a fund manager, and Goldman
Sachs agree on a foreign exchange transaction.
Invest Associates buys 3,800,000,000 JPY against USD from Goldman.
The exchange rate is 102.18 and the value date is 2 November 1995. The
USD amount of the trade is 37,189,274.
The trade has to be allocated to the following funds:
Fund JPY USD
FABC 875,100,000 8,564,298.30
FDEF 324,400,000 3,174,789.59
etc...
FYYZ 119,100,000 1,165,590.14
The total number of allocations is 15.
Invest Associates instructs Goldman to use their standing settlement
instructions.
Example 3
195
Information flow
Example 3
MT300
MT303
MT300s
Invest
Associates
Goldman
Sachs
196
S.W.I.F.T. Message - Invest Associates instructs Goldman to use their
standing settlement instructions.
Explanation Format
Sender INVTUS33
Receiver GOLDUS33
Message Type 303
Message Text
Sender's Reference :20:123
Scope of Operation :94A:FORX
Common Reference :22C:GOLD330218INVT33
Fund Manager :82A:INVTUS33
Executing Broker :87A:GOLDUS33
Contact Information :29A:/NAME/JOHN SMITH/
PHON/212-1234567
Forex Transaction Details :15B:
Currency, Amount Bought :32B:JPY3800000000,
Example 3
197
S.W.I.F.T. Message (continued)
Explanation Format (continued)
Example 3
Entry Number, Page Number :28C:1
Reference of Individual Allocation :21A:Al
Fund :83J:/NAME/FABC
Receiving Agent :57J:/SSIS/
Reference of Individual Allocation :2lA:A2
Fund :83J:/NAME/FDEF
etc...
Reference of Individual Allocation :2lA:Al5
Fund :83J:/NAME/FYYZ
Currency, Amount Bought :32B:JPY11910OOOO,
198
S.W.I.F.T. Message - Goldman replies by sending 15 individual MTs
300 to Invest Associates as follows:
Explanation Format
1.
Sender GOLDUS33
Receiver INVTUS33
Message Type 300
Message Text
Sender's Reference :20:ABCFXl0311
Related Reference :21:NEW
Common Reference :22:NEW/GOLD330218INVT33
Trade Date :30:951031
Exchange rate :36:102,18
Sender to Receiver Information :72:FUND/FABC
Value Date, Currency, Amount Bought :32R:950211USD8564298,30
Account with Institution :57D:SSI
Value Date, Currency, Amount Sold :32B:950211JPY875100000,
Example 3
199
Explanation Format
2.
Sender GOLDUS33
Receiver INVTUS33
Message Type 300
Message Text
Sender's Reference :20:DEFFXl0311
Sender to Receiver Information :72:/FUND/FDEF
Accountwith Institution :57D:SSI
etc...
Example 3
200
Explanation Format
... 15.
Sender GOLDUS33
Receiver INVTUS33
Message Type 300
Message Text
Sender's Reference :20:YYZFX10311
Sender to Receiver Information :72:/FUND/FYYZ
Example 3
201
MT304 Advice/Instruction of a Third Party Deal
Settlement Contract
Narrative
On 10 January 1995, Rothschild Asset Management (fund manager) and
Lloyd Treasury, London (Executing Broker) agree on a forex deal with
the following terms.
Rothschild buys 1,606,004.41 AUD against GBP at the rate of 2.0446.
The value date is 9 July 1995. The amount in GBP is 785,485.87.
Rothschild advises its custodian, State Street, London of this deal and
instructs them to settle it.
Rothschild executes this deal on behalf of fund XYZ with account
number: AUSQ7B9. The AUD are expected from Westpac in Sydney
and the GBP will be paid to Lloyds Treasury in London.
Example 4
202
S.W.I.F.T. Message
Explanation Format
Sender ROTHGB2A
Receiver SBOSGB2X
Message Type 304
Message Text
Scope of Operation :94A:ASET
Fund :83J:/ACCT/AUSQ7B9
/NAME/FUND XYZ
Fund Manager :82J:/ABIC/ROTHGB2A
/NAME/ROTHSCHILD
ASSET MANAGEMENT
Executing Brok :87J:/ABIC/LOYDGB22TSY
/NAME/LLOYD TREASURY
Currency, Amount Bought :32B:AUD1606004,41
Delivery Agent :53J:/ABIC/WPACAU2S
/NAME/WESTPAC,SYDNEY
/ACCT/LLY0001978
Receiving Agent :57J:/ABIC/LOYDGB22TSY
/NAME/LLOYDS TREASURY
/GBSC/301557
/ACCT/00001933
Beneficiary Institution :58J:/ABIC/LOYDGB22TSY
/NAME/LLOYDS TREASURY
Contact Information :29A:/NAME/SARA-JANE
/PHON/634-2596
Example 4
203
Forward Contract
Narrative
FUMAUS33, a fund manager, arranged three foreign exchange contracts
with Morgan Guaranty New York (Executing Broker). All three trades
are to settle on 23 March 1995. Instead of making three individual
payments to Morgan, the fund manager has netted the three trades and
instructed the custodian to pay the difference. The GBP amounts net to
zero and the custodian is instructed to pay 2,873.83 to Morgan.
The fund manager is acting on behalf of ABC fund with account number
12345.
First Deal
The first deal was agreed on 17 February 1995.
FUMA sells 6,017,543.00 GBP against USD at the rate of 1.58.
The USD amount is 9,507,717.94.
Second Deal
The second deal was agreed on 2 March 1995.
FUMA sells 6,299,876.00 GBP against USD at the rate of 1.588.
Third Deal
The third deal is the closing of the two other deals. It was agreed on 21
March 1995.
FUMA buys 12,317,419.00 GBP against USD at the rate of 1.584325.
The payments of the three deals are netted. This results in a GBP amount
of zero and a USD amount of 2,873.83 to be paid to Morgan.
Example 5
204
S.W.I.F.T. Message - First Deal
Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
Message Text
Scope of Operation :94A:AFWD
Open Indicator :17O:Y
Net Settlement Indicator :17N:Y
Fund :83J:/ACCT/12345
/NAME/ABC FUND
Fund Manager :82J:/ABIC/FUMAUS33
/NAME/F.M.
Executing Broker :87J:/ABIC/MGTCUS33
/NAME/MORGAN GUARANTY
/CLRC/ABA-021000238
Delivery Agent :53J:/NETS/
Receiving Agent :57J:/NETS/
Contact Information :29A:/NAME/RICHARD JONES
/PHON/212-1234567
Example 5
205
S.W.I.F.T. Message - Second Deal
Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
Message Text
Open Indicator :17O:Y
/NAME/ABC FUND
/NAME/F.M.
/CLRC/ABA-021000238
TradeDate :30T:19950302
Currency, Amount B ought :32B:USD10004203,04
Contact Information :29A:/NAME/RICHARD JONES/
PHON/212-1234567
Example 5
206
S.W.I.F.T. Message - Third Deal
Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
Message Text
Open Indicator :17O:N
Final Close Indicator :17F:Y
/NAME/ABC FUND
/NAME/F.M.
/CLRC/ABA-021000238
Contact Information :29A:/NAME/RICHARD JONES/
PHON/212-1234567
Reference to Previous messages :15D:
Reference to Previous Deal :2lP:1
Reference to Previous Deal :21P:2
Example 5
207
Example 5
S.W.I.F.T. Message - Third Deal (continued)
Gain (Loss) Indicator :17G:N
Currency, Amount :32G:USD2873,83
Net Amount to be settled :15E:
Gain (Loss) Indicator :17G:N
Currency,Amount :32G:USD2873,83
Receiving Agent :57J:/ABIC/MGTCUS33
/CLRC/ABA-021000238
Beneficiary Institution :58J:/ABIC/FUMAUS33
208
MT320 Fixed Loan/Deposit Confirmation/Loan Confirmation
Narrative
On 7 December 1998, Banque Indosuez, Paris, agrees to lend FRF
50,000,000 to Citibank, Zurich, at a rate of 9.5 percent for a period of 6
months.
Value 9 December 1998, Banque Indosuez, Paris will credit the funds to
the account it services for Citibank, Zurich (1).
At maturity, Citibank, Zurich, will transfer the principal from its Paris
branch to Banque Indosuez, Paris (2). Banque Indosuez, Paris, will debit
Citibanks account for the interest when due (3).
Example 6
209
Information flow
Sender - Receiver
Lender
Interest
(2)
(1)
MT
320
MT
320
53a
Delivery
Agent
Receiver - Sender
Borrower
Citibank
Zurich
Citibank
Paris
Banque
Indosuez
Paris
(3)
Example 6
210
S.W.I.F.T. Message from Banque Indosuez, Paris
Explanation Format
Sender BSUIFRPP
Message Type/Priority 320
Receiver CITICHZZ
Message Text
Sequence A: General Information :15A:
Senders reference :20:LD910818
Type of Event :22B:CONF
Common Reference :22C:BSUIPP0095CITIZZ
Sequence B: Transaction Details :15B:
Senders role :17R:L
Maturity Date :30P:19990609
Currency Code/ :32B:FRF50000000,00
Amount (1)
Currency Code/ :34E:NFRF2375000,00
Amount (2)
Interest Field :37G:9,5
Day Count Fraction :14D:360/360
Sequence C: Settlement Instructions :15C:
for amounts payable by the sender
Receiving Agent (3) :57A:BSUIFRPP
Sequence D: Settlement Instructions :15D:
for amounts payable by the Receiver
Delivery Agent (4) :53A:CITIFRPP
Notes:
(1) The currency code and amount of the deposit.
(2) The currency code and amount of interest.
(3) The financial institution at which the contract amount is to be deposited.
Banque Indosuez, Paris, will credit the amount of the deposit to the accountit
services for Citibank, Zurich.
Example 6
211
S.W.I.F.T. Message from Citibank, Zurich
Explanation Format
Sender CITICHZZ
Receiver BSUIFRPP
Message Text
Senders reference :20:TR832688
Common Reference :22C:BSUIPP0095CITIZZ
Senders role :17R:B
Maturity Date :30P:19990609
Currency Code/ :32B:FRF50000000,00
Amount (1)
Currency Code/ :34E:FRF2375000,00
Amount (2)
Interest Field :37G:9,5
Day Count Fraction :14D:360/360
for amounts payable by the sender
Delivery Agent (4) :53A:CITIFRPP
Sequence D: Settlement Instructions :15D:
for amounts payable by the receiver
Notes (continued):
(4) The financial institution from which the Borrower will transfer the
principalamount when due. At maturity, Citibank, Zurich, will pay the
principal amount through its Paris office.
(5) The financial institution to which the funds will be transferred when due.
Example 6
212
MT305 Foreign Currency Option Confirmation
Narrative
A German exporter is expecting to receive USD 100,000 in mid-March
1992. At the time when it decides to hedge the transaction, on 26
November 1991, the spot rate is 0.5795 DEM/USD. Due to the
uncertainty relative to the rate in the future, the exporter decides to
hedge the transaction to secure the future DEM amount. Feeling that the
price of the dollar might go down, the German exporter decides to buy a
put option (ie, acquires the right, but not the obligation to sell USD
against DEM at a predetermined price).
The German exporter buys, on 26 November 1991, a USD 100,000 OTC
(over-the-counter) put option from Dresdner Bank, Frankfurt, at a strike
price of 0.5905 expiring on 16 March 1992 at 4.00 p.m.
In turn, to hedge its now open option position, Dresdner Bank,
Frankfurt, buys on the same day a DEM/USD put from Citibank, New
York, for the same underlying amount of USD 100,000. In this way,
Dresdner Bank, Frankfurt, limits the profits or losses to the purchase
price of the option. The premium price of the DEM/USD put purchased
by Dresdner Bank, Frankfurt, is equal to 2.25 percent of the underlying
currency and amount. The deal expiring on 16 March 1992 has a strike
price of 0.5897.
Example 7
213
Information flow
Example 7
Counter Party
MT
305
MT
305
Counter Party Citibank
New York
Dresdner
Bank
Frankfurt
Premium (MT 950)
214
S.W.I.F.T. Message from Dresdner Bank, Frankfurt
Explanation Format
Sender DRESDEFF
Message Type 305
Receiver CITIUS33
Message Text
Transaction Reference Number :20:FX4567
Code/Common Reference :22:NEW/CITI335897DRESFF
Further Identification (1) :23:BUY/PUT/E/USD
Date Contract Agreed :30:911126
Expiry Details :31G:920316/1600/CHICAGO
Final Settlement Date :31E:920318
SettlementType :26F:PRINCIPAL
Underlying Currency and Amount :32B:USD100000,
Strike Price :36:0,5897
Counter Currency and Amount :33B:DEMl69577,75
Premium Price :37K:PCT2,25
Premium Payment (2) :34P:911129USD2250,
Account With Institution :57A:CITIUS33
(See notes on next page)
Example 7
215
S.W.I.F.T. Message from Citibank, New York
Explanation Format
Sender CITIUS33
Message Type 305
Receiver DRESDEFF
Message Text
Transaction Reference Number :20:FOR17864
Code/CommonReference :22:NEW/CITI335897DRESFF
Further Identification (1) :23:SELL/PUT/E/USD
Date Contract Agreed :30:911126
Expiry Details :31G:920316/1600/CHICAGO
Final Settlement Date :31E:920318
Settlement Type :26F:PRINCIPAL
Underlying Currency and Amount :32B:USD100000,
Counter Currency and Amount :33B:DEMl69577,75
Premium Price :37K:PCT2,25
Premium Payment (2) :34R:911129USD2250,
Account With Institution :57A:CITIUS33
Note:
(I) Specfies, from the Sender's point of view, whether the option is bought or
sold, put or call. Indicates also the style and the underlying currency.
(2) The letter option indicates from the Sender's point of view, the direction of
the premium payment. It consists of the value date, the currency code and the
amount of the premium payment.
Example 7
216
MT306Exotic Option Confirmation
Note
The MT 306 supports and number of structured features which lead to an
option contract being defined as exotic. Other types of exotic option
that are included within the scope of the MT 306 include:
Various exercise styles American, European, Bermudan
Binary options
Digital options
Notouch options
All of the above types can have single or double barriers features which
can knock-in a contract into existence or on the contrary knock-out a
contract out of existence. Additionally, all options can be deliverable,
where principal currency amounts are exchanged upon exercise or non-
deliverable where the difference between spot and strike prices are
calculated and one netted payment is effected.
In order to illustrate the use of the message, we have used the most
common exotic structure a single barrier with a knock-in feature.
Narrative
On 7 December 1999, UBS Warburg Dillon Read, London, purchases a
USD call option with a single knock-in barrier from Chase NY. The
expiration style is European. The contract amount is for 1,000,000 USD
against a put currency of EUR. The strike price is 0.98 and the option
will expire on 1 March, 2000.
The option contract will be knocked in or triggered into existence only
if a barrier price of 0.97 has occurred. The confirmation will be made in
accordance with a signed ISDA Master Agreement between the two
parties and ISDA definitions will be applicable.
Example 8
217
Information flow
Sender - Receiver
Premium
payment
MT
306
MT
306
Receiver - Sender Chase
New York
UBSWarburg
Dillon Read
London
Example 8
218
S.W.I.F.T. Message from UBS Warburf Dillon Read, London
Explanation Format
Sender UBSWGB2L
Receiver CHASUS33
Message Text
Senders reference :20:TGL3226532636
Scope of Operation :94A:BILA
Common Reference :22C:CHAS330098UBSW2L
Contract Number Party A :21N:19990328PHOEBE
Option Style :12F:VANI
Expiration Style :12E:EURO
Barrier Flag Y or N :17A:Y
Non Deliverable Flag :17F:N
Party A :82A:UBSWGB2L
Party B :87A:CHASUS33
Terms and Conditions (1) :77H:ISDA/19990601//1998
Buy/Sell Indicator :17V:B
Expiration Date :30X:20000301
Expiration Location and Time :29E:USNY/1700
Final Settlement Date :30F:20000603
Premium Payment Date :30V:19991209
Premium Currency and Amount :34B:USD2800,00
Calculation Agent :84A:UBSWGB2L
(See Notes on next page)
Example 8
219
S.W.I.F.T. Message from UBS Warburf Dillon Read, London (contd)
Example 8
Explanation Format
for payment of premium
Receiving Agent (2) :57A:CHASUS33
Sequence D: Vanilla Block :15D:
Settlement Type :26F:PRINCIPAL
Put Currency and Amount :32B:EUR980000,
Call Currency and Amount :33B:USD1000000,
Sequence F: Barrier Block :15F:
Type of Barrier :22G:SKIN
Barrier Level :37J:0,97
Barrier Window Start & End Date (3) :30G:19991207/20000301
Notes:
(1) Trade confirmation is pursuant to the 1998 ISDA definition signed by the
parties on 1 June, 1999.
(2) The seller of the option is Chase NY and they will be the beneficiary of the
premium payment.
(3) Barrier window specifies the period by which the spot price must hit the
barrier level. If a window is not specified with the option contract, then the
trade date and expiration date are used in this field.
220
MT340Forward Rate Agreement Confirmation
Narrative
On 5 January 2000, ABN Amro Bank, Amsterdam, and Lloyds Bank,
London, engage in a Forward Rate Agreement in which ABN Amro
Bank is the seller of the FRA and Lloyds Bank is the buyer.
The terms of the contract, are as follows:
Terms ISDA
Currency/Amount USD 25,000,000
Effective Date 5 April 2000
Termination Date 5 October 2000
Contract Rate 4.00 (percent p.a. on an actual/
365 basis)
Payment to ABN Amro Bank Account 331-0987-2 Chase New York
Payment to Lloyds Citibank New York
Example 9
221
Information flow
Sender - Receiver
Seller
Receiving
Agent
57a
Receiving
Agent
Receiver - Sender
Buyer
Lloyds
London
Citibank
New York
Chase
New York
ABN Amro
Bank
Amsterdam
MT
340
MT
340
57a
Example 9
222
S.W.I.F.T. Message
Explanation Format
Sender ABNANL2A
Receiver LOYDGB22
Message Text
Senders Reference :20:22.11.870
Common Reference :22C:ABNA2A0004LOYD22
Type of FRA :23D:FLOATFIXED
Contract Number Party A :21N:FRA123
Party A :82A:ABNANL2A
Party B :87A:LOYDGB22
Type, Date, Version of the Agreement :77H:ISDA/19990601//1998
Year of Definitions :14C:1998
Currency, Notional Amount :32B:USD25000000,
Effective Date :30F:20000405
Termination Date :30P:20001005
Fixed Rate :37M:4,00
Floating Rate Option :14F:USD-LIBOR-ISDA
Designated Maturity :38G:6M/6M
Floating Rate Day Count Fraction :14D:ACT/365
FRA Discounting :17F:N
Number of Repetitions :18A:2
Financial Centre :22B:GBLO
Financial Centre :22B:USNY
Settlement Instructions for settlement :15C:
amount payable by party B
Receiving Agent :57A:/331-0987-2
CHASUS33
Settlement Instructions for settlement :15D:
amount payable by party A
Receiving Agent :57A:CITIUS33
Example 9
223
MT341 Forward Rate Agreement Settlement Confirmation
Narrative
Following the establishment of the settlement rate on the fixing date
ABN Amro Bank and Lloyds Bank exchange confirmation to confirm
the settlement details of the Forward Rate.
Agreement described below:
Currency/Amount USD 25,000,000
Effective Date 5 April 2000
Termination Date 5 October 2000
Contract Rate 4.00 (percent p.a. on an actual/
365 basis)
Buyers Name Lloyds Bank, London
Sellers Name ABN Amro Bank, Amsterdam
Settlement Rate 3.20942
Settlement Sum USD 99,386.85
Payment to ABN Amro Account number 331-0987-2,
Chase New York
Example 10
224
Information flow
Seller
Receiving
Agent
Buyer Loyds
London
Chase
New York
ABN Amro Bank
Amsterdam
MT
341
MT
341
Example 10
225
S.W.I.F.T. Message from ABN Amro
Explanation Format
Sender ABNANL2A
Message Type 341
Receiver LOYDGB22
Message Text
Senders Reference :20:22.11.870/SETT
Common Reference :22C:ABNA2A0004LOYD22
Type of FRA :23D:FLOATFIXED
Contract Number Party A :21N:FRA123
Party A :82A:ABNANL2A
Party B :87A:LOYDGB22
Currency, Notional Amount :32B:USD25000000,
Effective Date :30F:20000405
Fixed Rate :37M:4,00
Settlement Instructions for :15C:
settlement amount
Settlement Rate :37R:3,20942
Settlement Currency and Amount :34E:USD99386,85
Receiving Agent :57A:/331-0987-2
CHASUS33
Example 10
226
MT360 Fixed/Flating Single Currency Interest Rate Derivative
Confirmation
Narrative
On 12 December 1994, Chase New York and Barclays Bank London
enter into an ISDA swap agreement with each other.
The terms of the contract are:
Chase pays the floating interest every 6 months, based on LIBOR
Barclays pays the fixed interest on a yearly basis at 6 percent
Notional amount = 50,000,000 DEM.
The swap is not compounded, not amortised, there are no stub periods,
there is no averaging, the calculation dates are adjusted to the payment
dates and the swap is included in the collateral agreement.
Example 11
227
Confirmation
Information flow
Fixed
Barclays Bank
London
Chase Manhattan
Bank
New York
Sender - Receiver
Counterparty
Receiving
Agent
Receiver - Sender
Counterparty
MT
360
MT
360
57a
Floating
57a
Example 11
228
Confirmation
S.W.I.F.T. Message from Chase New York
Explanation Format
Sender CHASUS33
Message Type 360
Receiver BARCGB2L
Message Text
Senders Reference :20:TW9235
Common Reference :22C:BARC2L9912CHAS33
Identification of the Swap :23A:FLOATFIXED/NET
Contract Number Party A :21N:SCS001
Effective Date :30V:19941214
Business Day Convention :14A:MODIFIEDF
Currency, Notional Amount :32B:DEM50000000,00
Party A :82A:CHASUS33
Party B :87A:BARCGB2L
Fixed Interest Payable by Party B :15B:
Fixed Rate :37U:6,
Payment Date :30F:19951214
Period End Date Adjustment Indicator :17F:Y
Day Count Fraction :14D:30E/360
Example 11
229
Example 11
Confirmation
S.W.I.F.T. Message from Chase New York (continued)
Explanation Format
Financial Centre :22B:DEFR
Payment Instructions for Interest :15D:
Payable by Party B
Receiving Agent :57A:CHASDEFX
Floating Interest Payable by Party A :15F:
Floating Rate Option :14F:DEM-LIBOR-BBA
Reset Date Specification :14J:FIRST
Designated Maturity :38E:6M
Day Count Fraction :14D:ACT/360
Spread :37R:N0,2
Payment Instructions for Interest :15G:
Payable by Party A
Receiving Agent :57A:BARCDEFF
Optional General Information :15N:
/PHON/212-1234567
230
Example 12
Confirmation
Narrative
Idem example 11, except that there is an initial stub period and that the
notional amount is amortised over the 5 years (the notional amount is
decreased by 10.000.000 DEM per year) of the contract. The rate for the
stub period is interpolation between the 4M and the 5M Libor.
231
Example 12
Confirmation
Explanation Format
Sender CHASUS33
Message Type 360
Receiver BARCGB2L
Message Text
Contract Number Party A :21N:SCA001
Fixed Interest Payable by Party B :15B:
Fixed Rate :37U:6,
Day Count Fraction :14D:30E/360
Payable by Party B
Spread :37R:N0,2
First Stub Period, Interpolation Period :38G:4M/5M
Payable by Party A
Amortising Schedule :15H:
232
Confirmation
Explanation Format
Example 12
233
Confirmation
Explanation Format
Variable Notional Start and End Date :30G:19950116/19951214
Amount
Outstanding Notional Currency and :32U:DEM50000000,00
Amount
Amount
Amount
Amount
/PHON/212-1234567
Example 12
234
Example 13
Confirmation
CAP
Narrative
On 12 December, Chase New York sells a cap of 8 percent over 5 years
against 6M LIBOR to Barclays Bank, London.
The notional amount is 50,000,000 DEM.
Barclays pays a premium of 102,000 DEM to Chase.
235
Confirmation
Explanation Format
Sender CHASUS33
Message Type 360
Receiver BARCGB2L
Message Text
Identification of the Swap :23A:CAPSELLER
Contract Number Party A :21N:CP001
Payable by Party B
Receiving Agent :57D:NONE
Cap Rate :37J:8,
Example 13
236
Confirmation
Explanation Format
Example 13
Spread :37R:N0,2
Payable by Party A
Additional Amounts Payable by :15L:
Party B
Type of Payment :22E:PRMP
Currency, Payment Amount :32M:DEM102000,00
/PHON/212-1234567
237
Example 14
Confirmation
Forward Rate Agreement Confirmation
Narrative
On 9 January 1997, Chase New York buys an FRA from Barclays Bank
London
Currency: FRF
Notional amount: 250,000,000
Rate: 3.805 percent
Effective date: 17 December 1997
End date: 16 December 1998
Day Count Fraction: Actual/360
Floating Rate Option: FRF-LIBOR-BBA
Settlement date: 17 December 1997
Business Days: Paris
238
Example 14
Confirmation
Explanation Format
Sender CHASUS33
Message Type 360
Receiver BARCGB2L
Message Text
Senders Reference :20:FRA001
Identification of the Swap :23A:FRABUYER
Contract Number Party A :21N:558699
Currency, Notional Amount :32B:FRF250000000,00
Floating Interest Payable by Party B :15C:
Floating Rate Option :14F:FRF-LIBOR-BBA
Designated Maturity :38E:1Y
Financial Centre :22B:FRPA
continued on next page)
239
Example 14
Confirmation
Explanation Format
Payable by Party B
Receiving Agent :57A:CHASFRPP
Fixed Interest Payable by Party A :15E:
Fixed Rate :37U:3,805
Financial Centre :22B:FRPA
Payable by Party A
Receiving Agent :57A:BARCFRPP
/PHON/212-1234567
240
Example 15
MT361 Fixed/Floating Cross Currency Interest Rate Swap
Confirmation
Narrative
On 12 December, Chase New York and Barclays Bank London enter
into an ISDA cross currency swap agreement with each other.
Chase pays the floating interests every 6 months, based on LIBOR,
on 10,000,000 USD
Barclays pays the fixed interests on a yearly basis at 6 percent on
1,000,000,000 JPY
with initial and final exchange of principals.
The swap is not compounded, not amortised, there are no stub periods,
there is no averaging, the calculation dates are adjusted to the payment
dates and the swap is included in the collateral agreement.
241
Confirmation
Explanation Format
Example 15
Sender CHASUS33
Message Type 361
Receiver BARCGB2L
Message Text
Identification of the Swap :23A:FLOATFIXED/GROSS
Contract Number Party A :21N:CCS001
Party B Currency, Notional Amount :32B:JPY1000000000,
Party A Currency, Notional Amount :33B:USD10000000,00
Fixed Interests Payable by Party B :15B:
Currency, Payment Amount :32M:JPY2100000,
242
Example 15
Confirmation
Explanation Format
Financial Centre :22B:JPTO
Payment Instructions for Interests :15D:
Payable by Party B
Receiving Agent :57A:CHASJPJT
Floating Interests Payable by :15F:
Party A
Floating Rate Option :14F:USD-LIBOR-BBA
243
Example 15
Confirmation
Explanation Format
Payment Instructions for Interests :15G:
Payable by Party A
Receiving Agent :57A:BARCUS33
Exchanges of Principal Payable by :15J:
Party B
Type of Exchange :22X:INLX
Currency, Payment Amount :32M:USD10000000,00
Type of Exchange :22X:FINX
Exchanges of Principal Payable by :15K:
Party A
Type of Exchange :22X:INLX
Receiving Agent :57A:BARCJPJT
Type of Exchange :22X:FINX
/PHON/212-1234567
244
Confirmation
Explanation Format
Example 15
245
Example 16
Reset message for a Fixed/Floating Single Currency Interest Rate
Swap (see MT 360 Example 11)
Narrative
The initial rate is 5 percent. A reset message is exchanged to confirm the
rate as well as the interest amount which will be settled at the payment
date of the first floating interest payment.
246
Example 16
Explanation Format
Sender CHASUS33
Message Type 362
Receiver BARCGB2L
Message Text
Senders Reference :20:IRS1234
Type of Event :22B:RSET
Interest Rate/Principal Payable by :15D:
Party A
Calculation Notional Currency and :33F:DEM50000000,00
Amount
Period Start Date :30X:19941214
Period End Date :30Q:19950614
Reset Rate :37G:5,
Spread :37R:N0,2
Total Rate :37M:4,8
Currency, Interest Amount :32H:DEM1213333,33
(Net) Amount(s) Payable by Party A :15E:
247
Example 17
MT 364 Single Currency Interet Rate Derivative Termination/
Early termination of Fixed/Floating Single Currency Interest Rate
Swap Confirmation (see MT360 Example 11)
Narrative
On 10 January 1997 Chase New York and Barclays Bank London decide
to terminate the swap.
The agreed terms are:
The termination becomes effective on 15 January 1997
Barclays pays a fee of 5000 DEM.
248
Example 17
MT 364 Single Currency Interet Rate Derivative Termination/
Explanation Format
Sender CHASUS33
Message Type 364
Receiver BARCGB2L
Message Text
Senders Reference :20:TERM1
Type of Event :22B:TERM
Termination/Recouponing Trade Date :30T:19970110
Termination/Recouponing Effective :30Q:19970115
Date
Original Termination Date :30P:19991214
Original Effective Date :30V:19941214
Fixed Rate :37U:6,
Fee Payable by Party B :15L:
249
Example 18
MT 365 Cross Currency Interet Rate Swap Termination/Recouponing
Confirmation
Early termination of Fixed/Floating Single Currency Interest Rate
Swap Confirmation (see MT361 Example 14)
Narrative
On 10 January 1997 Chase New York and Barclays Bank London decide
to terminate the swap.
The agreed terms are:
The termination becomes effective on 15 January 1997
Barclays pays a fee of 5000 USD
The principals are re-exchanged.
250
Example 18
Confirmation
Explanation Format
Sender CHASUS33
Message Type 365
Receiver BARCGB2L
Message Text
Senders Reference :20:TERM2
Type of Event :22B:TERM
Identification of the Swap :23A:FLOATFIXED
Contract Number Party A :21N:CCS001
Termination/Recouponing Trade Date :30T:19970110
Termination/Recouponing Effective :30Q:19970115
Date
Original Termination Date :30P:19991214
Original Effective Date :30V:19941214
Party B Currency, Notional Amount :32B:JPY1000000000,
Party A Currency, Notional Amount :33B:USD10000000,00
Fixed Rate :37U:6,
Re-exchange of Principal Payable :15J:
by Party B
Re-exchange of Principal Payable :15K:
by Party A
251
Confirmation
Explanation Format
Example 18
Fee Payable by Party B :15L:
Currency, Payment Amount :B02:USD5000,00
252
253
Precious Metals Trading
and Syndication
Category 6 messages provide standards for two purposes, precious
metals trading and syndications.
Within the precious metals section, financial institutions can confirm the
details of trades or options contracts for precious metals. Additionally,
messages are available to instruct delivery or receipt of a specified
quantity of precious metal, and also to advise the debit or credit to the
appropriate metals account. A statement of account is available, as is a
statement of open contracts. Only the Precious Metal Transfer/Delivery
Order ( MT604 ) requires authentication. In addition to precious metals,
these messages can also be used for coins in gold and other metals.
Syndication messages deal with the drawdown/renewal of a facility,
setting the interest/exchange rate of a facility and the payment of
principal, interest and/or fees due on a syndication. All syndication
messages are authenticated.
For full details, see Category 6 Standards User Handbook.
254
CATEGORY 6: PRECIOUS METALS AND SYNDICATION
Page
PRECIOUS METALS 255
MT 600 Precious Metal Trade Confirmation 256
MT 601 Precious Metal Option Confirmation 257
MT 604 Precious Metal Transfer/Delivery Order 258
MT 605 Precious Metal Notice to Receive 259
MT 606 Precious Metal Debit Advice 260
MT 607 Precious Metal Credit Advice 261
MT 608 Statement of a Metal Account 262
MT 609 Statement of Metal Contracts 263
SYNDICATION 265
MT 643 Notice of Drawdown/Renewal 266
MT 644 Advice of Rate and Amount Fixing 268
MT 645 Notice of Fee Due 269
MT 646 Payment of Principal and/or of Interest 270
MT 649 General Syndicated Facility Message 272
MESSAGE EXAMPLES
Precious Metals 273
Syndication 301
255
Category 6 Precious Metals
MT 600 PRECIOUS METAL TRADE CONFIRMATION
Confirms the details of a precious metal trade and its settlement.
MT 601 PRECIOUS METAL OPTION CONFIRMATION
Confirms the details of a precious metal option contract.
MT 604 PRECIOUS METAL TRANSFER/DELIVERY ORDER
Instructs the Receiver to transfer by book entry, or physically deliver, a
specified type and quantity of precious metal to a specified party.
MT 605 PRECIOUS METAL NOTICE TO RECEIVE
Notifies the Receiver of an impending book entry transfer or physical
delivery of a specified type and quantity of precious metal.
MT 606 PRECIOUS METAL DEBIT ADVICE
Advises the Receiver of a debit entry to a specified metal account.
MT 607 PRECIOUS METAL CREDIT ADVICE
Advises the Receiver of a credit entry to a specified metal account.
MT 608 STATEMENT OF A METAL ACCOUNT
Provides the details of all bookings to a metal account.
MT 609 STATEMENT OF METAL CONTRACTS
Identifies all outstanding metal contracts, as at a specified date, for
which confirmations have been exchanged.
256
MT 600Precious Metal Trade Confirmation
Scope
This message type is exchanged between the financial institutions which
have agreed to a precious metal trade.
It is used to confirm the details of:
a new contract between the parties;
an amendment to a previously agreed contract;
the cancellation of a contract;
the settlement of a metal option which has been exercised.
This message may also be exchanged to confirm the liquidation of a
forward deal.
M/O Tag Field Name
Mandatory SequenceA - Details of the Contract
M 26C Identification of the Metal
M 33G Price per Unit
O 71C Details of Adjustments
Optional Sequence B - Precious Metal Bought
M 32F Quantity of the Metal
M 87a Receiver of the Metal
M 34P Consideration
Optional Sequence C - Precious Metal Sold
M 87a Deliverer of the Metal
M 34R Consideration
257
MT 601Precious Metal Open Confirmation
Scope
This message type is exchanged between the financial institutions which
have agreed to a precious metal option contract.
It is used to confirm the details of:
the cancellation of a contract
the surrender of an option by the Buyer (Holder) to the Seller
(Grantor) for compensation.
M/O Tag Field Name
O 31C Earliest Exercise Date
M 31G Expiry Details
M 32F Unit and Amount of the Metal
M 32B Strike Price
M 33B Premium Price
M 34a Premium Payment
258
MT 604 Precious Metal Transfer/Delivery
Order
Scope
This message is sent by the owner of a metal account or its authorised
agent to the metal Account Servicing Institution.
It is used to instruct the Receiver to transfer by book entry, or physically
deliver, specified quantities of allocated or unallocated precious metal to
a specified party.
The following guideline applies when sending an MT 604:
Each transfer/delivery order must be for the same type of metal, metal
account and value date.
M/O Tag Field Name
M 26C Identification of the Metal and the Metal Account
O 25 Further Account Identification
M 30 Value Date
O 26D Certificate Number(s) and/or Bar Number(s)
M 32F Quantity of Metal
O 82a Instructing Party
O 87a Receiver of the Metal
M 88a Beneficiary of the Metal
259
MT 605Precious Metal Notice to Receive
Scope
This message is sent by the owner of a metal account or its authorised
agent to the metal account servicing institution.
It notifies the Receiver of the impending delivery/transfer of specified
quantities of precious metal, physically or by book entry, to be held for,
or credited to, the account serviced for the Sender or the party specified
in field 88a for which the Sender is an authorised agent.
The following guideline applies when sending an MT 605:
Each notice must relate to the same type of metal, metal account
and value date
M/O Tag Field Name
M 30 Value Date
M 87a Deliverer of the Metal
O 88a Beneficiary of the Metal
260
MT 606Precious Metal Debit Advice
Scope
This message is sent by the metal account servicing institution to the
account owner or its authorised agent.
It is used to advise the Receiver of an entry which has been debited to its
account or an account for which the Receiver is an authorised agent.
M/O Tag Field Name
M 30 Value Date
O 87a Receiver of the Metal
O 88a Beneficiary of the Metal
261
MT 607 Precious Metal Credit Advice
Scope
This message is sent by the metal account servicing institution to the
It is used to advise the Receiver of an entry which has been credited to its
account or an account for which the Receiver is an authorised agent.
M/O Tag Field Name
O 26D Certificate number(s) and/or Bar Number(s)
M 30 Value Date
O 87a Deliverer of the Metal
262
MT 608 Statement of a Metal Account
Scope
This message is sent by a metal account servicing institution to the metal
It is used to advise the Receiver of transactions booked to a metal
account.
This statement message contains all bookings present in the account,
whether caused by a message received via S.W.I.F.T. or by some other
means.
M/O Tag Field Name
M 28 Statement Number/Page Number
M 60a Opening Balance
O 61 Statement Line
M 62a Closing Balance
O 64 Closing Available Balance
O 65 Forward Available Balance
263
MT 609 Statement of Metal Contracts
Scope
This message is sent by a metal trader to its counterparty.
It is a listing of all undelivered spots and/or outstanding forward
contracts, and/or unexercised options, as at a specified date.
M/O Tag Field Name
M 27 Sequence of Total
M 31C Statement Date
O 30 Date Prepared
M 68a Transaction Details
264
265
Category 6 Syndication
MT 643 NOTICE OF DRAWDOWN/RENEWAL
Provides notice of the borrower(s) request for drawdown(s)/renewal(s)
on a given date.
MT 644 ADVICE OF RATE AND AMOUNT FIXING
Specifies the interest rate and, if applicable, the exchange rate, for the
next interest period.
MT 645 NOTICE OF FEE DUE
Specifies flat and variable fees, related to one Facility, due to the
Receiver.
MT 646 PAYMENT OF PRINCIPAL AND/OR OF INTEREST
Advises of payments and/or prepayments of principal and/or of interest
on the same value date, not related to any subsequent drawing or
renewal.
MT 649 GENERAL SYNDICATED FACILITY MESSAGE
Provides for communications related to syndicated facilities for which
no specific message has been defined.
266
MT 643Notice of Drawdown/Renewal
Scope
This message type is sent by the agent of the facility to the providers of
funds.
It gives notice of the borrower(s)' request for drawdown(s)/renewal(s) on
a given date. This request may require the provision of new funds or the
reborrowing of previously disbursed funds.
The MT 643 allows for the handling of drawdown(s)/renewal(s) with
differing characteristics. It specifies the currency(ies), amount(s),
period(s) and interest rate origin(s).
267
M/O Tag Field Name
Mandatory Sequence A - Identification of the Facility
O 27 Sequence of Total
O 29A From
O 29B To the Attention of
M 88D Borrower(s)
M 32A Original Facility Amount
Optional Sequence B - Existing Drawings
M 26P Drawing Identification
O 31F Drawdown Period
O 32P Repayment of Principal
M 33a Interest Amount
O 34a Net Interest Amount
O 57a Account With Institution
Mandatory Sequence C - New Drawing(s)
M 26N Drawing Identification (New)
O 32E Selected Currency
M 31F Drawdown Period
O 31R Rate Fixing Date
M 32B Amount of Drawdown
M 33B Receiver's Participation
M T6 4 3Notice of Drawdown/Renewal
268
MT 644 Advice of Rate and Amount Fixing
Scope
This message type is sent by the agent of the facility to the providers of
funds.
It specifies the interest rate applicable for a drawdown/renewal for a
specified interest period, whether the end date of that period is set or not.
When applicable, this message type will also set the exchange rate.
M/O Tag Field Name
O 29A From
M 88D Borrower(s)
Mandatory Sequence B - Specification of the Drawing and Related Data
M 26a Drawing Identification
M 31F Interest Period
O 33B Receiver's Participation
O 36 Exchange Rate
M 37G Basis Rate
O 37M Interest Margin
O 37R Reserve Interest
O 37a Total Interest Rate
O 34a Differential Amount
269
MT 645Notice of Fee Due
Scope
This message type is sent by the agent of the facility to the signatories
thereto or to the parties to the offer.
It specifies flat and variable fees, payable on the same date, which are
due to the Receiver.
M/O Tag Field Name
Mandatory Sequence A - Identification of the Facility and Flat Fees
O 29A From
M 88D Borrower(s)
O 71B Flat Fees
Optional Sequence B - Variable Fees
M 23 Type of Fee
M 31F Fee Period
O 33B Computation Base Amount
M 34B Fee Amount
O 37a Fee Rate
Mandatory Sequence C - Summation of Fees
O 71C Summary of Variable Fees
M 33A Total Fees
O 34A Amount to be Transferred
270
MT 646 Payment of Principal and/or of
Interest
Scope
This message type is sent by the agent of a facility to the providers of
funds.
It provides advice of payments and/or prepayments of principal and/or
payment of interest on the same value date, which are not related to any
subsequent drawing or renewal. It specifies, to the Receiver, amounts
with respect to principal and/or interest.
271
M T6 4 6Payment of Principal and/or of Interest
M/O Tag Field Name
O 29A From
M 88D Borrower(s)
O 26P Drawing Identification
Optional Sequence B - Interest Calculation
O 31F Interest Period
O 33B Computation Base Amount
O 34N Interest Amount
O 37a Interest Rate
Mandatory Sequence C - Principal Payment/Sum of Interest Due
M 32A Total Principal Amount Repaid/Prepaid
O 32N Principal Amount Due to Receiver
O 33N Gross Interest Amount Due to Receiver
O 34N Net Interest Amount Due to Receiver
O 34a Total Amount Transferred
272
MT 649 General Syndicated Facility Message
Scope
This message type may be sent by any financial institution involved in a
facility to another financial institution in the facility.
It is used for any communications related to syndicated facilities for
which specific message types have not been defined.
This message type may be used throughout the life of the facility.
M/O Tag Field Name
O 29A From
M 88D Borrower(s)
O 32a Facility Amount
M 79 Narrative
273
Examples Precious Metals and
Syndication
274
Example 1
MT 600 Precious Metal Trade Confirmation
Narrative - Precious Metal Spot Deal
On 22 January 1996, Deutsche Bank AG, Frankfurt, by telephone, buys
2000 fine ounces in 9999 gold bars at USD 360.50 per ounce, loco
London, from Crdit Suisse, Zurich. On 24 January 1996, the agreed
settlement date, Credit Suisse, Zurich, will transfer the gold to the gold
account of Deutsche Bank AG, Frankfurt, held with Samuel Montagu &
Co. Ltd., London. Deutsche Bank AG, Frankfurt, will transfer USD
721,000 to the account of Crdit Suisse, Zurich, with Chase Manhattan
Bank, New York.
275
Information flow
Example 1
Dollars
Dresdner
Bank
Frankfurt
Dresdner
Bank AG
Frankfurt
Buyer
Account
with
Institution
Seller
MT
600
MT
600
(607/608)
Samuel
Montagu
& Co Ltd
London
Chase
Manhattan
Bank
New York
(202)
(910)
(210)
Deliverer
of Metal
(604)
(607/608)
Gold
276
S.W.I.F.T. Message from Deutsche Bank, Frankfurt
Explanation Format
Example 1
Sender DEUTDEFF
Message Type 600
Receiver CRESCHZZ80A
Message Text
Transaction Reference Number :20:3456345
Type of Contract :21:NEW
Code/Common Reference :22:NEW/CRESZZ3605DEUTFF
Date Contract Agreed/Amended :30:960122
Identification of the Metal :26C:/LONDON/
UNALLGOLD9999
Price Per Unit :33G:USD360,5
Sender to Receiver Information :72:/PHON/
Quantity of the Metal :32F:FOZ2000,
Receiver of the Metal :87A:SMCOGB2L
Consideration :34P:960124USD721000,
Account With Institution :57A:CHASUS33
277
Example 1
S.W.I.F.T. Message from Crdit Suisse, Zurich
Explanation Format
Sender CRESCHZZ
Message Type 600
Receiver DEUTDEFF
Message Text
Transaction Reference Number :20:F567890
Code/Common Reference :22:NEW/CRESZZ3605DEUTFF
Identification of the Metal :26C:/LONDON/
UNALLGOLD9999
Price Per Unit :33G:USD360,5
Quantity of the Metal Sold :32F:FOZ2000,
Deliverer of the Metal :87A:SMCOGB2L
Consideration :34R:960124USD721000,
278
Example 2
MT 601 Precious Metal Option Confirmation
Narrative - Precious Metal Spot Option Deal
On 23 January 1996, The Bank of Nova Scotia, Toronto, agrees, by
telephone, to purchase from Morgan Guaranty Trust Company of New
York, London, a call option of 5000 fine ounces of gold loco London in
the form of London Gold Market Good Delivery Bars (i.e., 995+ market
bars). Both counterparties have agreed to a strike price of USD 410.50
per fine ounce, and a premium price of USD 10.50. Both have agreed
that Morgan Guaranty Trust Company of New York, London, will be
paid at Chase Manhattan Bank, New York.
The exercise date is agreed for 31 May 1996.
279
Example 2
Information flow
Morgan
Guaranty
Trust
Company of
New York
London
Bank of
Nova Scotia
Toronto
Buyer
Account
with
Institution
Seller
MT
601
MT
601
Chase
Manhattan
Bank
New York
280
S.W.I.F.T. Message from The Bank of Nova Scotia, Toronto
Explanation Format
Example 2
Sender NOSCCATT
Message Type 601
Receiver MGTCGB2L
Message Text
Transaction Reference Number :20:OP56340
Code/Common Reference :22:NEW/NOSCTT4105ROTH2L
Further Identification :23:BUY/CALL/E
Identification of the Metal :2 6 C : / L O N D O N /
U N A L L G O L D 9 9 5 +
Expiry Details :31G:9605311500LONDON
Unit and Amount of the Metal :32F:FOZ5000,
Strike Price :32B:USD410,5
Premium Price :33B:USD10,5
Premium Payment :34P:960127USD52500,
281
Example 2
S.W.I.F.T. Message from N.M. Rothschild & Sons Ltd, London
Explanation Format
Sender MGTCGB2
Message Type 601
Receiver NOSCCATT
Message Text
Transaction Reference Number :20:S756868
Code/Common Reference :22:NEW/NOSCTT4105ROTH2L
Further Identification :23:SELL/CALL/E
Identification of the Metal : 2 6 C : / L O N D O N /
U N A L L G O L D 9 9 5 +
Expiry Details :31G:9605311500LONDON
Unit and Amount of the Metal :32F:FOZ5000,
Strike Price :32B:USD410,5
Premium Price :33B:USD10,5
Premium Payment :34R:960127USD52500,
282
Example 3
MT 604 Precious Metal Transfer/Delivery Order
Narrative - Precious Metal Transfer Order
On 22 January 1996, Deutsche Bank AG, Frankfurt, agrees to purchase
2000 fine ounces of gold in 9999 gold bars, Loco London, from Crdit
Suisse, Zurich. (To review the MT 600 related to this message, please
see the MT 600 Example.) Crdit Suisse, Zurich, sends a Precious Metal
Transfer/Delivery Order to Samuel Montagu & Co. Ltd., London, to
transfer 2000 fine ounces of gold to the metal account of Deutsche Bank
AG, Frankfurt, in settlement of the deal.
283
Example 3
Information flow
Deutsche
Bank AG
Frankfurt
Crdit Suisse
Zurich
Buyer
Account
with
Institution
Seller
MT
604
Samuel Montagu
& Co Ltd
London
(607/608)
(600)
(605)
284
S.W.I.F.T. Message
Explanation Format
Example 3
Sender CRESCHZZ
Message Type 604
Receiver SMCOGB2L
Message Text
Metal and Metal Account :26C:/LONDON/
UNALLGOLD9999
Value Date :30:960124
Transaction Reference Number :20:F345260
Related Reference :21:CRESZZ3605DEUTFF
Further Identification :23:TRANSFER
Beneficiary of the Metal :88A:DEUTDEFF
285
Example 4
MT 605 Precious Metal Notice to Receive
Narrative
On 22 January 1996, Deutsche Bank AG, Frankfurt, buys 2000 ounces
of gold in 9999 bars, loco London from Credit Suisse, Zurich.
On 24 January 1996, Crdit Suisse, Zurich, requests the transfer of the
gold from its gold account with Morgan Guaranty Trust Company of
New York, London, to the gold account of Deutsche Bank AG,
Frankfurt, with Samuel Montagu & Co. Ltd., London.
On 22 January 1996, Deutsche Bank AG, Frankfurt, sends a Precious
Metal Notice to Receive to Samuel Montagu & Co., Ltd., London,
providing notification of the pending transfer of gold to its account.
286
Example 4
Information flow
Deutsche Bank AG
Frankfurt
Crdit Suisse
Zurich
Deliverer of
the Metal
Receiver
MT
605
Samuel Montagu
& Co Ltd
London
(600) (604)
Sender
Morgan
Guaranty Trust
Company of
New York
London
Metal
Instructing
Party
287
S.W.I.F.T. Message
Explanation Format
Example 4
Sender DEUTDEFF
Message Type 605
Receiver SMCOGB2L
Message Text
Transaction Reference Number :20:4534567
Metal and Metal Account :26C:/LONDON/
UNALLGOLD9999
Related Reference :21:CRESZZ3605DEUTFF
Further Identification :23:TRANSFER
Quantity of Metal :32F:FOZ2000,
Instructing Party :82A:CRESCHZZ80A
Deliverer of the Metal :87A:MGTCGB2L
288
Example 5
MT 606 Precious Metal Debit Advice
Narrative
On 22 January 1996, Deutsche Bank AG, Frankfurt, purchases 2000
ounces of gold from Crdit Suisse, Zurich. Subsequently, Crdit Suisse,
Zurich, sends a Precious Metal Transfer Order to Samuel Montagu &
Co. Ltd., London, to transfer the gold to the gold account of Deutsche
Bank AG, Frankfurt, on 24 January 1996.
Samuel Montagu & Co., Ltd., London, sends a Precious Metal Debit
Advice (MT 606) to advise Crdit Suisse, Zurich, that the gold has been
debited and that the metal has been transferred to the gold account of
Deutsche Bank AG, Frankfurt.
289
Information flow
Example 5
Deutsche
Bank AG
Frankfurt
Crdit Suisse
Zurich
Beneficiary of
the Metal
Receiver
MT
606
Samuel Montagu
& Co Ltd
London
(604)
Sender
Gold
(607/608)
290
Example 5
S.W.I.F.T. Message
Explanation Format
Sender SMCOGB2L
Message Type 606
Receiver CRESCHZZ80A
Message Text
Transaction Reference Number :20:T879039
Related Reference :21:F3452560
The Metal and Metal Account :26C:/LONDON/
UNALLGOLD9999
Beneficiary of the Metal :88A:DEUTDEF
291
Narrative
Example 6
On 22 January 1996, BM Investments Ltd., London, instructs its gold
Account Servicing Institution, Morgan Guaranty Trust Company of New
York, London, to deliver 2000 fine ounces of gold, good delivery bars to
Samuel Montagu & Co., London, to the account of Deutsche Bank AG,
Frankfurt, on 24 January 1996.
On 24 January 1996, Morgan Guaranty Trust Company of New York,
London, delivers the gold to Samuel Montagu & Co., Ltd., London, for
the account of Deutsche Bank AG, Frankfurt.
On 24 January 1996, Samuel Montagu sends a Precious Metal Credit
Advice (MT 607) to Deutsche Bank AG, Frankfurt, advising that its gold
account has been credited.
292
Example 6
Information flow
Deutsche Bank
AG
Frankfurt
BMInvestments
Ltd
London
Deliverer of
the Metal
Receiver
MT
607
Samuel Montagu
& Co Ltd
London
Sender
Morgan
Guaranty Trust
Company of
New York
London
Instructing
Party
(604)
293
S.W.I.F.T. Message
Explanation Format
Example 6
Sender SMCOGB2L
Message Type 607
Receiver DEUTDEFF
Message Text
Related Reference :21:NONREF
The Metal and Metal Account :26C:/LONDON/UNALLGOLD
Instructing Party :82D:BM INVESTMENTS LTD
LONDON
Deliverer of the Metal :87A:MGTCGB2L
294
Example 7
Narrative
On 1 February 1996, Samuel Montagu & Co. Ltd., London, sends its
semi-monthly statement of the metal account it services for Deutsche
Bank AG, Frankfurt.
This statement advises that Deutsche Bank's unallocated gold account
was:
Debited 10000 fine ounces on 17 January 1996 resulting from an MT
604 with a TRN of F56445677 sent by Deutsche Bank AG,
Frankfurt, following a precious metal trade with Banca Populare
Dell'Etruria, Arezzo.
Credited 2000 fine ounces on 24 January 1996 as previously advised
by an MT 607 with a Common Reference of CRESZZ3105DEUTFF
in field 21 resulting from an MT 600 between the Receiver and
Crdit Suisse, Zurich.
Debited 10000 fine ounces on 25 January 1996 resulting from an MT
604 with a TRN F65633469 sent by Deutsche Bank AG, Frankfurt,
following a precious metal trade with Dei Paschi Di Siena, Milan.
295
Example 7
Information flow
Deutsche
Bank AG
Frankfurt
Receiver
MT
608
Samuel Montagu
& Co Ltd
London
Sender
296
S.W.I.F.T. Message
Explanation Format
Example 7
Sender SMCOGB2L
Message Type 608
Receiver DEUTDEFF
Message Text
Identification of the Metal :26C:/LONDON/UNALLGOLD
Statement Number/Page Number :28:2/1
Opening Balance :60F:C960115FOZ100000,
1st Transaction :61:960117D10000,
S604F56445677
2nd Transaction :61:960125D10000,
S604F65633469
3rd Transaction :61:960124C2000,S607
CRESZZ3105DEUTFF
Closing Balance :62F:C960131FOZ82000,
297
Example 8
MT 609 Statement of a Metal Contracts
Narrative
On 1 April 1996, Credit Suisse, Zurich, prepares and sends a Statement
of Metal Contracts listing as of 29 March 1996, all undelivered spots and
unexercised gold options agreed upon with Banca Populare Dell'Etruria,
Arezzo.
The statement of outstanding metal contracts includes two undelivered
spots and an unexercised call option:
1. An undelivered spot purchased by the Sender from the Receiver for
1000 gross ounces agreed on 18 March 1996, with a maturity date of
20 March 1996, contract number GXX3001 for USD 400.5 per gross
ounce and a consideration of USD 400,500.
2. An undelivered spot purchased by the Sender from the Receiver as
agreed 22 March 1996 with a settlement date of 26 March 1996,
under contract number GXX3400, for 5000 gross ounces at USD 401
and a consideration of USD 2,005,000.
3. An unexercised call option for 5000 gross ounces, that the Sender
has sold to the Receiver as agreed 5 February 1996, European style,
for a strike price of USD 415.6, a premium price of USD 5.4 and a
premium payment of USD 27,000.
298
Example 8
Information flow
Banca Populare
DellEtruria
Arezzo
Counterparty
(Receiver)
MT
609
Crdit Suisse
Zurich
Counterparty
(Sender)
299
S.W.I.F.T. Message
Explanation Format
Example 8
Sender CRESCHZZ
Message Type 609
Receiver ARBAIT33
Message Text
Sequence of Total :27:6/1
Transaction Reference Number :20:TT8979978
Statement Date :31C:960401
Further Identification :23:SPOTS
Identification of the Metal :26C:/ZURICH/UNALLGOLD
Transaction Details :68B:960318960320GXX3001/
BGOZ1000,
USD400,5/960320USD400500,
Transaction Details :68B:960322960326GXX3400/
BGOZ5000,
USD401,/960326USD2005000,
Further Identification :23:OPTIONS
Identification of the Metal :26C:/ZURICH/UNALLGOLD
Transaction Details :68C:SELL/CALL/
E960205GOZ5000,
USD415,6USD5,4USD27000,
300
301
To facilitate the explanation of the use of an MT 643 Notice of
Drawdown/Renewal, a complete case history has been presented on the
following pages.
General Narrative
The following facility was granted to New Horizons Mining
Corporation, Sydney:
HAMBROS BANK LIMITED
NEW HORIZONS MINING CORPORATION, SYDNEY
GBP 100,000,000 Multi-currency loan
Arranger: Hambros Bank Limited
Lead Bank: Hambros Bank Limited
Participants:
Hambros Bank Ltd. (London) Amro Bank (London)
First National Bank of Boston (London)
Midland Bank plc (London) Commerzbank (London)
Commonwealth Trading Bank of Australia (London)
The Royal Bank of Scotland plc (London)
Deutsche Bank AG (London) Mitsui Bank (London)
Banque Bruxelles Lambert (Brussels)
Agent Bank: Hambros Bank Limited, London
The loan, signed in London on 13 August 1992, is available in Pounds
Sterling (GBP), Australian Dollars (AUD) and US Dollars (USD). It was
agreed between the parties that the first drawing could be requested by
the Borrower starting 1 September 1992 and that the last drawing could
be requested until 1 September 1995.
The last repayment of a drawdown must be completed as of 1 September
1996. The date for the first repayment was left open, to be agreed
between the parties.
Examples Syndication
302
Example 1
MT 643 Notice of Drawdown/Renewal
Narrative
On 20 August 1992, Peter Tanders of the Loan Administration
Department of Hambros Bank, London, acting as the agent of the
syndication, advises Hans Mueller of the International Finance
Department of Deutsche Bank AG, London (reference SY4385-00), of
the borrower's wish to drawdown GBP 40,000,000, on 1 September
1992 for an intended interest period of six months.
New Horizons Mining Corporation wishes the drawdown amount to be
segregated as follows:
GBP 20,000,000 (Drawing DS01)
GBP 20,000,000 in USD (Drawing DS02)
The interest rate (LIBOR) and the exchange rate fixing will take place
on 25 August 1992.
Deutsche Bank's share, GBP 2,400,000 (12 percent of the facility
amount), should be paid value 1 September to Hambros Bank, for credit
to account number 394-435-10.
When advised of the USD participation amount, Deutsche Bank,
London, is to credit, value 1 September, Hambros Bank, London's
account with Chase Manhattan Bank, New York.
The documentation relative to the conditions of this drawdown, as
required in the facility agreement, were incomplete at the time of the
borrower's request. Thus, the missing requirements must be completed
by the borrower before the fixing date (25 August), in order to further
consider this request.
303
Example 1-A
Information flow
MT
643
Chase Manhattan
Bank
New York
New Horizons
Mining Corp.
Sydney
Account
with
Institution
Receiver
Deutsche
Bank
London
Sender Hambros Bank
London
Borrower
Hambros Bank
London
304
S.W.I.F.T. Message A
Explanation Format
Example 1-A
Sender HAMBGB2L
Message Type 643
Receiver DEUTGB2L
Message Text
Transaction Reference Number :20:SY4385-00
Further Identification (1) :23:LOAN/DRAWDOWN
From :29A:PETER TANDERS
LOAN ADMINISTRATION DEPT
To the Attention of :29B:HANS MUELLER
INTERNATIONAL FINANCE
DEPT
Borrower :88D:NEW HORIZONS MINING
CORP SYDNEY
Facility Date/Currency/Amount :32A:920813GBP100000000,
Drawing Identification :26N:GBP/DS01
Drawdown Period :31F:920901/930228//LIBOR
Rate Fixing Date :31R:920825
Amount of Drawdown :32B:GBP20000000,
Receiver's Participation :33B:GBP2400000,
Account With Institution :57A:/394-435-10HAMBGB2L
Sender to Receiver Information :72:/REC/DRAWDOWN
SUBJECT TO
//FULFILLMENT OF REQUIRED
//SYNDICATION CONDITIONS
Selected Currency :32E:USD
305
Example 1-A
Sender to Receiver Information :72:/REC/DRAWDOWN
SUBJECT TO
//FULFILLMENT OF REQUIRED
//SYNDICATION CONDITIONS
Note:
(1) This message refers to a LOAN DRAWDOWN.
(2) The first drawdown (DS01) is for six months for GBP 20,000,000,
GBP 2,400,000 of which is Deutsche's participation. The rate will be fixed
on 25 August.
(3) The second drawdown (DS02) is for six months for GBP 20,000,000,
GBP 2,400,000 of which is Deutsche's participation. The currency of the
drawdown is USD. The rate will be fixed on 25 August.
306
Example 1-B
Narrative
On 24 August 1992, Hambros Bank Ltd., London, the agent of the
syndication, confirms to Deutsche Bank AG, London (reference
SY4385-A1), that the borrower has completed all the required
documentation relative to the requested drawdown, as determined in the
Facility Agreement.
307
Example 1-B
Information flow
MT
649
New Horizons
Mining Corp.
Sydney
Receiver
Deutsche
Bank
London
Sender Hambros Bank
London
Borrower
(643)
308
S.W.I.F.T. Message B
Explanation Format
Example 1-B
Sender HAMBGB2L
Message Type 649
Receiver DEUTGB2L
Message Text
Transaction Reference Number :20:SY4385-A1
Related Reference :21:SY4385-00
DEPT
CORP SYDNEY
Narrative :79:WE CONFIRM THAT ALL
CONDITIONS HAVE BEEN
FULFILLED
309
Example 1-C
MT 644Advice of Rate and Amount Fixing
Narrative
On 25 August 1992, Hambros Bank Ltd., London, notifies Deutsche
Bank AG, London (reference SY4385-01), of the rates that have been
fixed on that date, as follows:
1. Drawing DS01 for GBP 2,400,000
Interest Rate = 10 3/8 PCT plus 1/2 PCT margin
2. Drawing DS02 for GBP 2,400,000 in US Dollars
Exchange Rate = 1.5210
Deutsche Bank Participation = USD 3,650,400
310
Example 1-C
Information flow
MT
644
Receiver
Deutsche
Bank
London
Sender Hambros Bank
London
(643)
311
S.W.I.F.T. Message C
Explanation Format
Example 1-C
Sender HAMBGB2L
Message Type 644
Receiver DEUTGB2L
Message Text
DEPT
CORP SYDNEY
Interest Period :31F:920901/930228
Basis Rate :37G:10,375
Interest Margin :37M:0,5
Total Interest Rate :37B:10,875
Receiver's Participation :33B:USD3650400,
Note:
(1) Refers to drawing DS01.
312
Example 1-D
MT210Notice to Receive
Narrative
Hambros Bank Ltd., London, sends a Notice to Receive to Chase
Manhattan Bank, New York (reference N43674), concerning the USD
3,650,400 Chase will receive from Deutsche Bank, London, value 1
September 1992, in cover of Deutsche Bank's participation in the USD
drawing.
Note:
On the value date, Deutsche Bank will forward the GBP 2,400,000
(Drawing DS01), directly to Hambros Bank, or through the domestic
clearing system.
313
Example 1-D
Information flow
MT
210
Deutsche Bank
London
Receiver
Chase
Manhattan Bank
New York
Sender Hambros Bank
London
Ordering
Institution
(643)
(202)
314
S.W.I.F.T. Message D
Explanation Format
Example 1-D
Sender HAMBGB2L
Message Type 210
Receiver CHASUS33
Message Text
Transaction Reference Number :20:N43674
Account Identification :25:1988
Currency Code/Amount :32B:USD3650400,
Ordering Institution :52A:DEUTGB2L
315
Example 1-E
MT202General Financial Institution Transfer
Narrative
Deutsche Bank, London, value 1 September 1992, orders its New York
correspondent, Citibank (reference TR12345), to transfer the USD
3,650,400 to Chase Manhattan Bank, New York, in favour of account
1988 - Hambros Bank, London.
316
Example 1-E
Information flow
MT
202
Citibank
New York
Receiver
Deutsche
Bank
London
Sender
Hambros Bank
London
Account
with
Institution
Beneficiary
Institution
Chase
Manhattan Bank
New York
317
S.W.I.F.T. Message E
Explanation Format
Example 1-E
Sender DEUTGB2L
Message Type 202
Receiver CITIUS33
Message Text
Transaction Reference Number :20:TR12345
Value Date/Currency/Amount :32A:920901USD3650400,
Beneficiary Institution :58A:/1988
HAMBGB2L
318
Example 1-F
MT910 Confirmation of Credit
Narrative
Note:
The payment will be received by Chase Manhattan Bank, New York, via
a S.W.I.F.T. MT 205 or an equivalent domestic clearing message.
Chase Manhattan Bank, New York, will credit Hambros Bank, London,
with the funds.
The statement line for this credit on the customer statement (MT 950)
will appear as:
:61:920901C3650400,S910SY4385-00//G96118418
In addition, prior to the statement, Chase Manhattan Bank may send a
Confirmation of Credit as shown on next page.
319
MT910 Confirmation of Credit
S.W.I.F.T. Message F
Explanation Format
Example 1-F
Sender CHASUS33
Message Type 910
Receiver HAMBGB2L
Message Text
Transaction Reference Number :20:G96118418
Account Identification :25:1988
Value Date/Currency/Amount :32A:920901USD3650400,
Ordering Institution :52A:DEUTGB2L
Intermediary :56A:CITIUS33
320
Note:
To review the terms and condition of the syndication and previous
drawing(s) to which this message refers, please see case history for the
MT 643 example.
General Narrative
The renewal of the two drawings maturing 28 February 1993, was
requested by the Borrower, New Horizons Mining Corp, Sydney. One of
the drawings will be renewed in the same currency, which is different
from the base currency, the other one will be switched to another
currency, also different from the base currency of the Facility.
Drawing DS01 for GBP 20,000,000, will be renewed in USDs (DS03)
for an additional interest period of one year (from 28 February 1993, to
28 February 1994). Deutsche Bank's participation will be the equivalent
in US Dollars of GBP 2,400,000.
Drawing DS02 for GBP 20,000,000, previously withdrawn in US
Dollars, will be renewed in USDs (DS04) for an additional interest
period of three months (from 28 February 1993, to 29 May 1993).
Deutsche Bank's participation will be the equivalent in US Dollars of
GBP 2,400,000.
Interest and exchange rates will be fixed on 19 February 1993. The
details regarding the USD participation amounts will then be
communicated to Deutsche Bank, London.
Since one of the drawings previously denominated in GBP is being
renewed in USD, Deutsche Bank will be repaid for its GBP (2,400,000)
participation, plus the accrued interest (GBP 130,500 less additional
costs of GBP 1,140.41). The resulting amount will be credited to
Deutsche Bank's account with Hambros Bank, London.
321
The USD interest amount due to Deutsche Bank on 28 February 1993,
on its USD participation in the first drawdown, will be offset against the
increase in Deutsche Bank's participation in the renewal of the first
drawing, and its USD participation due to the currency switch of the
second drawing. As February 28, 1993, is a Saturday, the net amount
will be paid, value 2 March 1993, to Hambros Bank's account number
1988 with Chase Manhattan Bank, New York. The details of the
amounts due will be provided to Deutsche Bank, together with the rates,
on 19 February.
322
Example 2-A
MT643 Notice of Drawdown/Renewal
Narrative
On 16 February 1993, Hambros Bank Ltd., London, advises Deutsche
Bank AG, London (reference SY4385-02), of the borrowers wish to
renew the two drawings within the first tranche, maturing on 28
February 1993.
323
Example 2-A
Information flow
MT
643
New Horizons
Mining Corp.
Sydney
Receiver
Deutsche Bank
London
Sender Hambros Bank
London
Borrower
Chase
Manhattan Bank
New York
Account with
Institution
Principal
(USD)
Principal
+ Interest
(GBP)
324
Explanation Format
Example 2-A
Sender HAMBGB2L
Message Type 643
Receiver DEUTGB2L
Message Text
Further Identification (1) :23:LOAN/RENEWAL
DEPT
CORP SYDNEY
Drawing Identification :26P:GBP/DS01
Repayment of Principal :32P:930302GBP2400000,
Interest Amount :33P:930302GBP130500,
Details of Adjustments :71C:ADDITIONAL COSTS
GBP1140,41
Net Interest Amount :34P:930302GBP129359,59
Interest Amount :33P:930302USD199637,25
Sender to Receiver Information :72:/REC/INTEREST WILL
BE OFFSET//AGAINST THE
INCREASE IN YOUR
//USD PARTICIPATION
(2)
(3)
325
Selected Currency :32E:USD
Account With Institution :57A:/1988
CHASUS33
Selected Currency :32E:USDDRAWDOWN PERIOD
Account With Institution :57A:/1988
CHASUS33
Note:
(1) This message refers to a LOAN RENEWAL.
(2) The first existing drawing (DS01) which is due 2 March 1993.
Total payment will be GBP2,529,359.59 (Principal of 2,400,000 plus interest
of 130,500, less costs of 1,140.41).
(3) The second existing drawing (DS02) which is due 2 March 1993.
The USD amount will be netted against the amount of the renewal.
(4) The first renewal (DS03) is for one year in USD dollars. The amount is the
USD equivalent of GBP 20,000,000, GBP 2,400,000 of which is Deutsche's
participation. The rate will be fixed on 19 February.
(5) The second renewal (DS04) is for three months in USD dollars. The amount
is the USD equivalent of GBP 20,000,000, GBP 2,400,000, of which is
Deutsche's participation. The rate will be fixed on 19 February.
Example 2-A
(4)
(5)
326
Example 2-B
MT644Advice of Rate and Amount Fixing
Narrative
On 19 February 1993, Hambros Bank Ltd., London, notifies Deutsche
Bank AG, London (reference SY4385-03), of the fixed interest/exchange
rates and amounts relative to the renewal of the two drawings.
1. Drawing DS03 for GBP 2,400,000 in USD
Deutsche Bank Participation = USD 3,405,600
2. Drawing DS04 for GBP 2,400,000 in USD
Deutsche Bank Participation = USD 3,405,600.00
Less Principal and interest of Previous USD Drawing = 3,850,031.25
Differential Amount = (444,431.25)
The net amount of USD 2,961,168.75 (3,405,600 less 444,421.25) is to
be paid in accordance with the instructions provided in the previous MT
643.
327
Example 2-B
Information flow
MT
644
Receiver
Deutsche
Bank
London
Sender Hambros Bank
London
(643)
328
S.W.I.F.T. Message B
Explanation Format
Example 2-B
Sender HAMBGB2L
Message Type 644
Receiver DEUTGB2L
Message Text
DEPT
CORP SYDNEY
Differential Amount :34R:930302USD444431,25
Sender to Receiver Information :72:PLEASE REMIT NET
AMOUNT OF USD 2961168,75
(1)
(2)
329
Note:
On 2 March 1993, Deutsche Bank will remit USD 2,961,168.75 to
Chase Manhattan Bank, New York, in accordance with the instructions
received from Hambros Bank, London.
Example 2-B
330
Example 3
MT645 Notice of Fee Due
Narrative
Note:
drawing(s) to which this message refers, please see the examples for MT
643 and MT 644.
Bank AG, London (reference SY4385-F1), of the fees due on the first
drawdown and for the period from 1 September 1992, to 28 February
1993:
Commitment Fees = GBP 450
(1/8 percent of the unused portion of the Facility)
On receipt of the funds from the Borrower, Hambros will credit
Deutsche Bank's account.
331
Example 3
Information flow
MT
645
New Horizons
Mining Corp.
Sydney
Receiver
Deutsche Bank
London
Sender Hambros Bank
London
Borrower
Fees
(950)
332
S.W.I.F.T. Message
Explanation Format
Example 3
Sender HAMBGB2L
Message Type 645
Receiver DEUTGB2L
Message Text
Transaction Reference Number :20:SY4385-F1
DEPT
CORP SYDNEY
Type of Fee (1) :23:COMMITMENT FEE
Fee Period (2) :31F:920901/930228
Computation Base Amount (3) :33B:GBP60000000,
Fee Amount (4) :34B:GBP450,
Fee Rate (5) :37B:0,00125/SEE72
Sender to Receiver Information :72:FEE IS BASED ON 1/8
PCT OF THE UNUSED PORTION
OF THE FACILITY
Total Fees :33A:930302GBP450,
333
Example 3
Note:
(1) The fee referred to in this sequence is a commitment fee.
(2) The period which the fee in this sequence covers is from 1 September 1992,
to 28 February 1993.
(3) The currency code and amount on which the fee has been calculated is
GBP 60,000,000.
(4) The amount of the fee, based on the base amount and interest rate, is
GBP 450.
(5) The interest rate used to calculate the fee is 1/8 PCT
334
Example 4
MT646 Payment of Principal and/or Interest
Narrative
Note:
drawing(s) to which this message refers, please see case history for
MT 643 and MT 644 examples.
Bank AG, London (reference SY4385-B1), of the repayment of principal
and interest corresponding to the first GBP drawing (DS01) of GBP
20,000,000, of which Deutsche Bank's participation was GBP 2,400,000.
Deutsche Bank is to be repaid principal plus the accrued interest on 2
March 1993.
335
Example 4
Information flow
MT
645
New Horizons
Mining Corp.
Sydney
Receiver
Deutsche Bank
London
Sender Hambros Bank
London
Borrower
Funds
(950/910)
Funds
336
S.W.I.F.T. Message
Explanation Format
Example 4
Sender HAMBGB2L
Message Type 646
Receiver DEUTGB2L
Message Text
Transaction Reference Number :20:SY4385-B1
Further Identification (1) :23:REPRINCINT
DEPT
CORP SYDNEY
Computation Base Amount (2) :33B:GBP2400000,
Interest Amount (3) :34N:GBP130500,
Interest Rate :37B:10,875
Total Principal Amount Repaid :32A:930302GBP20000000,
Total Principal Due to Receiver :32N:930302GBP2400000,
Gross Interest Due to Receiver :33N:930302GBP130500,
Net Interest Due to Receiver :34N:930302GBP126097,09
Total Amount Transferred (4) :34R:930302GBP2526097,09
Details of Adjustments (5) :71C:/WITX/GBP3262,50
ADDITIONAL COSTS
GBP1140,41
337
Note:
(1) This message refers to the repayment of principal and interest
(REPRINCINT).
(2) The amount of Deutsche Bank's participation on which the interest is
calculated.
(3) The interest amount due to Deutsche Bank.
(4) The total amount transferred to Deutsche Bank (GBP 2,400,000 + 130,500 -
1,140.41 - 3,262.50)
(5) The explanation of adjustments to the total principal and interest.
Example 4
338
Example 5
MT649General Syndicated Facility Message
Narrative
Note:
To review the terms and conditions of the syndication to which this
message refers, please see the example for MT 643.
On 24 August 1992, Hambros Bank Ltd., London, the agent of the
syndication, confirms to Deutsche Bank AG, London (reference
SY4385-A1), that the borrower has completed all the required
documentation relative to the requested drawdown, as determined in the
Facility Agreement.
339
Example 5
Information flow
MT
649
New Horizons
Mining Corp.
Sydney
Receiver
Deutsche Bank
London
Sender Hambros Bank
London
Borrower
(643)
340
S.W.I.F.T. Message
Explanation Format
Example 5
Sender HAMBGB2L
Message Type 649
Receiver DEUTGB2L
Message Text
Transaction Reference Number :20:SY4385-A1
DEPT
CORP SYDNEY
Narrative :79:WE CONFIRM THAT ALL
CONDITIONS HAVE BEEN
FULFILLED
341
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