Professional Documents
Culture Documents
SWIFT Handout
SWIFT Handout
What is SWIFT
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a
Introduction to the SWIFT system non-state actor and one of the non-state form of regulation that had a profound
impact on how the modern world was shaped.
• SWIFT serves the financial services sector for over last four decades primarily
as a proprietary communications platform, a provider of products and services,
and a standards developer
• The system was originally designed to gradually replace the inefficient telegram
Veena Hingarh and telex messaging systems for international payments. Now SWIFT forms a
core part of the global financial services infrastructure serving more than 200
countries and territories and over 10,000 financial and non-financial customers.
SWIFT is more than a widely used provider of financial services considering the
extent to which this non-state “society” has overseen the creation of an extensive
and highly developed form of communication and regulation, and unique example
of “creeping global governance”.
1
3/10/2018
The Citi Chimney Sweep • SWIFTNet FIN and a range of other products and messaging services are
delivered using SWIFTNet, an IP-based messaging platform which acts as a
During the 1960s, at Citibank London, handwritten payment instructions “single window environment” for the messaging needs of SWIFT users.
were typed on a form which was then folded, put in a canister, and sent
via a vacuum tube to the authorization/confirmation section on the floor
above. After a particularly busy morning, staff in the payment section
found themselves without the confirmation necessary to complete
transactions. A staff member went to the second floor to investigate, to be
met by a bemused confirmation section who had been waiting for
payment instructions. The vacuum tube between the two floors had
become jammed and remained so until staff enlisted the services of a
chimney sweep who cleared the blockage and restored payment
processing in Europe that day.
2
3/10/2018
3
3/10/2018
4
3/10/2018
Message blocks
A message consists of blocks enclosed in curly braces. 1. Basic header block containing information about message
The first colon separates the block name and content. source.
The block content can consist of sub-blocks. A typical
SWIFT. user-to-user message may consist of: • The Basic header block
{1:F01TESTBIC12XXX0360105154} contains five fixed-
1: BASIC HEADER BLOCK length fields:
2: APPLICATION HEADER BLOCK - F — Application ID
3: USER HEADER BLOCK
- 01 — Service ID
4: TEXT BLOCK
5: TRAILER BLOCK - TESTBIC12XXX — Logical terminal address of the message
source
- 0360 — Session number
- 105154 — Sequence number
2. Application header block with - 1057 — Input time 3: Optional User header block contains sub-blocks with optional
information about message - 130214 — Input date processing instructions. In this example the block
type and destination of the - TESTBIC34XXX — Logical {3:{103:CAD}{108:2RDRQDHM3WO}} the sub-block 103
message. terminal address of the specifies a Service identifier and 108 a Message user
message destination reference.
• This block can be either of
- 2626 — Session number
type Input or Output. The 4: Text block with the actual content of the message. The
- 493828 — Sequence number
instant Output block format of the text block is described later.
- 130214 — Output date
{2:O5641057130214TESTBIC
- 1757 — Output time 5: User trailer block. The trailer consists of sub-blocks. In the
34XXX262649382813021417
- N — Priority example {5:{CHK:C77F8E009597}} it contains a Checksum.
57N} contains a set of fixed-
length fields: • An input block has a different
- O — Direction structure and consists of six
- 564 — Message type fixed-length fields.
5
3/10/2018
Understanding SWIFT Message: The MT Message Understanding SWIFT Message: The MT Message
The content of block 4 (Text block) is often referred as MT Message. MT stands • In this example, the field :19B::NETT//USD3333, represents
for message type — a three digit number found in block 2. - an Amount (type 19) expressed as currency and amount (option B) with content
:NETT//USD3333,.
• The message type specifies the purpose and structure of the message. The
specification of MT message from the category 5xx (Securities Markets) • The 35B is an example of a multi-line field:
Understanding SWIFT Message: The MT Message Appendix: MT 1XX: Customer Payments and Cheques
SWIFT MT Description
• The MT message is logically divided into sequences — fields between
MT 101 Request for Transfer
:16R:<name> and :16S:<name>. Sequences can be repeated and nested. The MT 102 Multiple Customer Credit Transfer
MT 102+(STP) Multiple Customer Credit Transfer (STP)
order and compulsory use of fields and sequences is strictly defined for every
MT 103 Single Customer Credit Transfer
MT type by its schema. MT 103+ (REMIT) Single Customer Credit Transfer (REMIT)
MT 103+ (STP) Single Customer Credit Transfer (STP)
• Fields MT 104 Direct Debit and Request for Debit Transfer Message (STP)
MT 105 EDIFACT Envelope
- A field consists of type, option and content.
MT 106 EDIFACT Envelope
- The format of the content is determined by the type and option and is consistent MT 107 General Direct Debit Message
across all MT types. MT 110 Advice of Cheque(s)
MT 111 Request for Stop Payment of a Cheque
- The specification can be found on the ISO 15022 homepage as a component MT 112 Status of a Request for Stop Payment of a Cheque
sequence and a list of subfields. For Rate 92F the specification is MT 121 Multiple Interbank Funds Transfer (EDIFACT FINPAY Message)
• :4!c//3!a15d (Qualifier)(Currency Code)(Amount). MT 190 Advice of Charges, Interest and Other Adjustments
MT 191 Request for Payment of Charges, Interest and Other Expenses
- The first part specifies the format — colon, exactly four characters followed by two MT 192 Request for Cancellation
slashes, exactly three characters and up to 15 digits (including a decimal comma). MT 195 Queries
MT 196 Answers
- In parentheses are names of the subfields — the part before the slashes is Qualifier, MT 198 Proprietary Message
the three letters are Currency code and the number is the Amount. MT 199 Free Format Message
6
3/10/2018
Appendix: MT 2XX: Financial Institution Transfers Appendix: MT 3XX: Treasury, Forex, MM, Derivative
SWIFT MT Description
SWIFT MT Description MT 300 Foreign Exchange Confirmation
MT 200 Financial Institution Transfer for its Own Account MT 303 Forex/Currency Option Allocation Instruction
MT 304 Advice/Instruction of a Third Party Deal
MT 201 Multiple Financial Institution Transfer for its Own Account MT 305 Foreign Currency Option Confirmation
MT 202 General Financial Institution Transfer MT 306 Foreign Currency Option Confirmation
MT 307 Advice/Instruction of a Third Party FX Deal
MT 203 Multiple General Financial Institution Transfer MT 308 Instruction for Gross/Net Settlement of Third Party FX Deals
MT 204 Financial Markets Direct Debit Message MT 320 Fixed Loan/Deposit Confirmation
MT 321 Instruction to Settle a Third Party Loan/Deposit
MT 205 Financial Institution Transfer Execution MT 330 Call/Notice Loan/Deposit Confirmation
MT 206 Cheque Truncation Message MT 340 Forward Rate Agreement Confirmation
MT 341 Forward Rate Agreement Settlement Confirmation
MT 207 Request for Financial Institution Transfer MT 350 Advice of Loan/Deposit Interest Payment
MT 210 Notice to Receive MT 360 Single Currency Interest Rate Derivative Confirmation
MT 361 Cross Currency Interest Rate Swap Confirmation
MT 256 Advice of Non-Payment of Cheques MT 362 Interest Rate Reset/Advice of Payment
MT 290 Advice of Charges, Interest and Other Adjustments MT 364 Single Currency Interest Rate Derivative Termination/Recouponing Confirmation
MT 365 Single Currency Interest Rate Swap Termination/Recouponing Confirmation
MT 291 Request for Payment of Charges, Interest and Other Expenses MT 380 Foreign Exchange Order
MT 292 Request for Cancellation MT 381 Foreign Exchange Order Confirmation
MT 390 Advice of Charges, Interest and Other Adjustments
MT 295 Queries
MT 391 Request for Payment of Charges, Interest and Other Expenses
MT 296 Answers MT 392 Request for Cancellation
MT 395 Queries
MT 298 Proprietary Message
MT 396 Answers
MT 299 Free Format Message MT 398 Proprietary Message
MT 399 Free Format Message
7
3/10/2018
Appendix: MT 6XX: Treasury Market, Precious Metal Appendix: MT 7XX: Treasury Market, Syndication
8
3/10/2018