Messaging

Messages are the mechanisms by which funds transfers are affected.

They are the lifeblood of cash management.
Messages can be unstructured or structured.
Information in structured messages falls into clearly defined fields or codes.
Computers can automatically read structured messages.
TELEX, SWIFT, GCN are messaging systems

TELEX:

Generally unstructured messages

Not secure
Messages are garbled and unreliable
Susceptible to fraud

SWIFT:

Established by Banks
Universally followed
Reliable and secure
BIC coding system
Constant improvement

GCN:

Global Communications System

Basically used for branch to branch communication
Proprietary system of Citibank
Cheaper than Swift messaging system
Secure
5 digit code for ID
 S.W.I.F.T

The Society for Worldwide Interbank Financial Telecommunication

("SWIFT") operates a worldwide financial messaging network. Messages are
securely and reliably exchanged between banks and other financial institutions
using MT Types.

The majority of international interbank messages use the SWIFT network. As of

April 2008 SWIFT linked 8,612 financial institutions in 209 countries, as on Sep
2008 (YTD) 2,529,575,207 messages have been exchanged between financial
institutions.

SWIFT is a cooperative society under Belgian law and it is owned by its member
financial institutions. SWIFT has offices around the world. SWIFT headquarters
are located in La Hulpe, Belgium, near Brussels.

It was founded in Brussels in 1973, supported by 239 banks in 15 countries. It

started to establish common standards for financial transactions and a shared data
processing system and worldwide communications network. Fundamental
operating procedures were established in 1975 and the first message was sent in
1977.

How does SWIFT work?

A physical telecommunications network connects all members of Swift to each

other.

This physical network is the same as that used for telephone and fax
communication, and is usually provided by the Telecom providers in each
members country.

Swift communication Software is installed on computers in each members

location.

Swift works in much the same way as the Internet, and it enables members to send
messages to each other.

The message structure, format and contents are common across banks - only the
method of viewing the messages differs.

Message Types:

There are totally 186 message types which are used by SWIFT currently. The list is as
below:
MT103 (FT), MT202 (FT) and MT300 (FX) are the most widely used Cash Management
Message Types.

1 - Customer payments and cheques (MT103)

2 - Payments between financial institutions (MT202)
3 - Financial trading/treasury
4 - Collection and cash letters
5 - Securities
6 - Precious metals and syndication's
7 - Documentary credits and guarantees
8 - Traveller Cheques
9 - Cash management and customer status

MT1XX: Customer payments and cheques

MT101: REQUEST FOR TRANSFER
MT102: MASS PAYMENTS MESSAGE
MT103: SINGLE CUSTOMER CREDIT TRANSFER
MT104: CUSTOMER DIRECT DEBIT
MT110: ADVICE OF CHEQUE
MT111: REQUEST FOR STOP PAYMENT OF A CHEQUE
MT112: STATUS OF A REQUEST FOR STOP PAYMENT OF A CHEQUE
MT191: REQUEST FOR PAYMENT
MT192: REQUEST FOR CANCELLATION
MT195: QUERIES
MT196: ANSWERS
MT198: PROPRIETARY MESSAGES
MT199: FREE FORMAT MESSAGE
MT2XX: Payments between financial institutions

MT200: FINANCIAL INSTITUTION TRANSFER FOR ITS OWN ACCOUNT

MT201: MULTIPLE FINANCIAL INSTITUTION TRANSFER
MT202: GENERAL FINANCIAL INSTITUTION TRANSFER
MT203: MULTIPLE GENERAL FINANCIAL INSTITUTION TRANSFER
MT204: FINANCIAL MARKETS DIRECT DEBIT MESSAGE
MT205: FINANCIAL INSTITUTION TRANSFER EXECUTION
MT206: CHEQUE TRUNCATION MESSAGE
MT207: REQUEST FOR FINANCIAL INSTITUTION TRANSFER
MT210: NOTICE TO RECEIVE
MT256: ADVICE OF NON-PAYMENT OF CHEQUES
MT290: ADVICE OF CHARGES, INTEREST AND OTHER ADJUSTMENTS
MT291: REQUEST FOR PAYMENT OF CHARGES, INTEREST, AND EXPENSES

MT3XX: Financial trading/treasury

MT300: FOREIGN EXCHANGE CONFIRMATION

MT303: FOREX CURRENCY OPTION ALLOCATION INSTRUCTION
MT304: ADVICE INSTRUCTION OF A THIRD PARTY DEAL
MT305: FOREIGN CURRENCY OPTION CONFIRMATION
MT306: FOREIGN CURRENCY OPTION CONFIRMATION
MT307: ADVICE/INSTRUCTION OF A THIRD PARTY FX DEAL
MT308: INSTRUCTION FOR GROSS/NET SETTLEMENT OF THIRD PARTY FX DEALS
MT320: FIXED LOAN/DEPOSIT CONFIRMATION
MT321: INSTRUCTION TO SETTLE A THIRD PARTY LOAN/DEPOSIT
MT330: CALL/NOTICE LOAN/DEPOSIT CONFIRMATION
MT340: FORWARD RATE AGREEMENT CONFIRMATION
MT341: FORWARD RATE AGREEMENT SETTLEMENT CONFIRMATION
MT350: ADVICE OF LOAN/DEPOSIT CONFIRMATION
MT360: SINGLE CURRENCY INTEREST RATE DERIVATIVE CONFIRMATION
MT361: CROSS CURRENCY INTEREST RATE SWAP CONFIRMATION
MT362: INTEREST RATE RESET/ADVICE OF PAYMENT
MT364: SINGLE CURRENCY INTEREST RATE DERIVATIVE TERMINATION/REOCUPING
CONFIRMATION
MT365: CROSS CURRENCY INTEREST RATE SWAP TERMINATION/RECOUPONING
CONFIRMATION
MT380: FOREIGN EXCHANGE ORDER
MT381: FOREIGN EXCHANGE ORDER CONFIRMATION
MT390: ADVICE OF CHARGES, INTEREST, AND OTHER ADJUSTMENTS
MT391: REQUEST FOR PAYMENT OF CHARGES, INTEREST AND OTHER EXPENSES

MT4XX: Collection and cash letters

MT400: ADVICE OF PAYMENT

MT405: CLEAN COLLECTION
MT410: ACKNOWLEDGEMENT
MT412: ADVICE OF ACCEPTANCE
MT416: ADVICE OF NON-PAYMENT/NON-ACCEPTANCE
MT420: TRACER
MT422: ADVICE OF FATE AND REQUEST FOR INSTRUCTION
MT430: AMENDMENT OF INSTRUCTIONS
MT450: CASH LETTER CREDIT ADVICE
MT455: CASH LETTER CREDIT ADJUSTMENT ADVICE
MT456: ADVICE OF DISHONOUR
MT490: ADVICE OF CHARGES, INTERESTM AND OTHER ADJUSTMENTS
MT491: REQUEST FOR PAYMENT OF CHARGES, INTEREST AND EXPENSES

MT5XX: Securities

MT500: INSTRUCTION OF REGISTER

MT501: CONFIRMATION OF REGISTRATION OR MODIFICATION
MT502: ORDER OF BUY OR SELL
MT503: COLLATERAL CLAIM
MT504: COLLATERAL PROPOSAL
MT505: COLLATERAL SUBSTITUTION
MT506: COLLATERAL AND EXPOSURE STATEMENT
MT507: COLLATERAL STATUS AND PROCESSING ADVICE
MT508: INTRA POSITION ADVICE
MT509: TRADE STATUS MESSAGE
MT510: REGISTRATION STATUS AND PROCESSING ADVICE
MT513: CLIENT ADVICE OF EXECUTION
MT514: TRADE ALLOCATION INSTRUCTION
MT515: CLIENT CONFIRMATION OF PURCHASE OR SALE
MT516: SECURITIES LOAN CONFIRMATION
MT517: TRADE CONFIRMATION AFFIRMATION
MT518: MARKET SIDE SECURITIES TRADE CONFIRMATION
MT519: MODIFICATION OF CLIENT DETAILS
MT524: INTRA POSITION INSTRUCTION
MT526: GENERAL SECURITIES LENDING/BORROWING MESSAGE
MT527: TRIPARTY COLLATERAL INSTRUCTION
MT528: ETC CLIENT SIDE SETTLEMENT INSTRUCTION
MT529: ETC MARKET SIDE SETTELEMENT INSTRUCTION
MT535: STATEMENT OF HOLDINGS
MT536: STATEMENT OF TRANSACTIONS
MT537: STATEMENT OF PENDING TRANSACTIONS
MT538: STATEMENT OF INTRA POSITION ADVICES
MT540: RECEIVE FREE
MT541: RECEIVE AGAINST PAYMENT
MT542: DELIVER FREE
MT543: DELIVER AGAINST PAYMENT
MT544: RECEIVE FREE CONFIRMATION
MT545: RECEIVE AGAINST PAYMENT CONFIRMATION
MT546: DELIVER FREE CONFIRMATION
MT547: DELIVER AGAINST PAYMENT CONFIRMATION
MT548: SETTLEMENT STATUS AND PROCESSING ADVICE
MT549: REQUEST FOR STATEMENT/STATUS ADVICE
MT558: TRIPARTY COLLATERAL STATUS AND PROCESSING ADVICE
MT559: PAYING AGENTS CLAIM
MT564: CORPORATE ACTION NOTIFICATION
MT565: CORPORATE ACTION INSTRUCTION
MT566: CORPORATE ACTION CONFIRMATION
MT567: CORPORATE ACTION STATUS AND PROCESSING ADVICE
MT568: CORPORATE ACTION NARRATIVE
MT569: TRIPARTY COLLATERAL AND EXPOSURE STATEMENT
MT574: TRIPARTY COLLATERAL AND EXPOSURE STATEMENT
MT575: STATEMENT OF COMBINED ACTIVITY
MT576: STATEMENT OF OPEN ORDERS
MT577: STATEMENT OF NUMBER
MT578: SETTLEMENT ALLEGEMENT
MT579: CERTIFICATE NUMBERS
MT581: COLLATERAL ADJUSTMENT MESSAGE
MT582: REIMBURSEMENT CLAIM OR ADVICE
MT584: STATEMENT OF ETC PENDING TRADES
MT586: STATEMENT OF SETTLEMENT ALLEGEMENTS
MT587: DEPOSITORY RECEIPT INSTRUCTION
MT588: DEPOSITORY RECEIPT CONFIRMATION
MT589: DEPOSITORY RECEIPT STATUS AND PROCESSING ADVICE
MT590: ADVICE OF CHARGES, INTERST, AND OTHER ADJUSTMENTS
MT591: REQUEST FOR PAYMENT OF CHARGES, INTEREST, AND EXPENSES

MT6XX: Precious metals and syndication's

MT600: PRECIOUS METAL TRADE CONFIRMATION

MT601: PRECIOUS METAL OPTION CONFIRMATION
MT604: PRECIOUS METAL TRANSFER/DELIVERY ORDER
MT605: PRECIOUS METAL NOTICE TO RECEIVE
MT606: PRECIOUS METAL DEBIT ADVICE
MT607: PRECIOUS METAL CREDIT ADVICE
MT608: STATEMENT OF A METAL ACCOUNT
MT609: STATEMENT OF METAL CONTRACTS
MT643: NOTICE OF DRAWDOWN/RENEWAL
MT644: ADVICE OF RATE AND AMOUNT FIXING
MT645: NOTICE OF FEE DUE
MT646: PAYMENT OF PRINCIPAL AND/OR INTEREST
MT649: GENERAL SYNDICATED FACILITY MESSAGE
MT690: ADVICE OF CHARGES, INTEREST, AND OTHER ADJUSTMENTS
MT691: REQUEST FOR PAYMENT OF CHARGES, INTEREST, AND OTHER EXPENSES

MT7XX: Documentary credits and guarantees

MT700: ISSUE OF A DOCUMENTARY CREDIT

MT701: ISSUE OF A DOCUMENTARTY CREDIT
MT705: PRE-ADVICE OF A DOCUMENTARY CREDIT
MT707: AMENDMENT TO A DOCUMENTARY CREDIT
MT710: ADVICE OF A THIRD BANKS DOCUMENTARY CREDIT
MT711: ADVICE OF A THIRD BANKS DOCUMENTARY CREDIT
MT720: TRANSFER OF A DOCUMENTARY CREDIT
MT721: TRANSFER OF A DOCUMENTARY CREDIT
MT730: ACKNOWLEDGEMENT
MT732: ADVICE OF DISCHARGE
MT734: ADVICE OF REFUSEL
MT740: AUTHORISATION TO REIMBURSE
MT742: REIMBURSEMENT CLAIM
MT747: AMENDMENT TO AN AUTHORISATION TO REIMBURSE
MT750: ADVICE OF DISCREPANCY
MT752: AUTHORISATION TO PAY, ACCEPT OR NEGOTIATE
MT754: ADVICE OF PAYMENT/ACCEPTANCE/NEGOTIATION
MT756: ADVICE OF REIMBURSEMENT OR PAYMENT
MT760: GUARANTEE
MT767: GUARANTEE AMENDMENT
MT768: ACKNOWLEDGEMENT OF A GUARANTEE MESSAGE
MT769: ADVICE OF REDUCTION OR RELEASE
MT790: ADVICE OF CHARGES, INTEREST, AND OTHER ADJUSTMENTS
MT791: REQUEST FOR PAYMENT OF CHARGES, INTEREST AND OTHER EXPENSES

MT8XX: Traveller Cheques

MT800: T/C SALES AND SETTLEMENT ADVICE (SINGLE)

MT801: T/C MULTIPLE SALES ADVICE
MT802: T/C SETTLEMENT ADVICE
MT810: T/C REFUND REQUEST
MT812: T/C REFUND AUTHORISATION
MT813: T/C REFUND CONFIRMATION
MT820: REQUEST FOR T/C STOCK
MT821: T/C INVENTORY ADDITION
MT822: TRUST RECEIPT ACKNOWLEDGEMENT
MT823: T/C INVENTORY TRANSFER
MT824: T/C INVENTORY DESTRUCTION/CANCELLATION NOTICE
MT890: ADVICE OF CHARGES, INTEREST, AND OTHER ADJUSTMENTS
MT891: REQUEST FOR PAYMENT OF CHARGES, INTEREST, AND OTHER EXPENSES

MT9XX: Cash management and customer status

MT900: CONFIRMATION OF DEBIT

MT910: CONFIRMATION OF CREDIT
MT920: REQUEST MESSAGE
MT935: RATE CHANGE ADVICE
MT940: CUSTOMER STATEMENT MESSAGE
MT941: BALANCE REPORT
MT942: INTERIM TRANSACTION REPORT
MT950: STATEMENT MESSAGE
MT960: REQUEST FOR SERVICE INITIATION MESSAGE
MT970: NETTING STATEMENT
MT971: NETTING BALANCE REPORT
MT972: NETTING INTERIM STATEMENT
MT973: NETTING REQUEST MESSAGE
MT985: STATUS ENQUIRY
MT986: STATUS REPORT
MT990: ADVICE OF CHARGES, INTEREST, AND OTHER ADJUSTMENTS
MT991: REQUEST FOR PAYMENT OF CHARGES, INTEREST, EXPENSES
MT992: REQUEST FOR CANCELLATION
MT999: FREE FORMAT MESSAGE
Messages that are pertaining to a Outgoing Funds Transfer:

MT103 - Customer Wire Transfer: This message is sent only when the remitter or the
beneficiary is an individual.

MT103+ - Customer Wire Transfer: This is similar to MT103 with guidelines to

facilitate STP.

MT202 - Bank Wire Transfer: This is message is sent only the funds transfer is between
two banks/financial institutions.

MT300 - Foreign Exchange confirmations: This message is confirmation of FX done by

dealers of two financial institutions.

MT320 Money Market Confirmations: This message is confirmation of placement

done by dealers of two financial institutions.

MT199 Free Format Message: This is an unstructured tested/authenticated message

wherein the details can be given in the text format. Tested message can be sent to another
bank only if the bank which is initiating the message has got a bilateral key arrangement
with the receiving bank.

MT999 Free Format Message: This is similar to MT199 except for the fact that this is
a untested/un-authenticated message. This message can be sent to any bank participating
in the SWIFT network

MT910 Credit Confirmation: This message is usually sent by the correspondent bank
confirm that the credit has been posted to the nostro account.

MT940 Account Statement: This is statement of the account sent from one bank to
another.

MT950 Account Statement: This is statement of the account sent from bank to the
customer.