Swift Im Binder 55738 012009

SWIFT for Investment Managers
– End-to-end solutions for asset management and

funds business processes
Table of contents
Section 1
03 – 09 Introduction
Section 2
11 – 19 SWIFT’s value proposition for investment managers
Section 3
21 – 64 Business areas of an investment manager and SWIFT’s solutions
Section 4
65 – 70 Initiatives and solutions
Section 5
71 – 76 Value added services: applications
Section 6
77 – 79 Standards and industry guidance
Section 7
81 – 85 Messaging
Section 8
87 – 100 Connectivity
Section 9
101 – 105 Service
Section 10
107 – 109 About SWIFT
Appendix
111 – 172 A. Details of standardised messaging
172 – 174 B. What is in it for you? Calculating your business case for SWIFT
175 – 176 C. Roadmap by Asset class and business function
177 D. Glossary
Index
179 – 185
Asset Class
Equities, FI Forex Money Markets Listed derivatives OTC derivatives Commodities Repos Syndicated Loans Cash
Translation cycle
Trading Trade Capture Trading

New!
Pre-trade / trade
(FIX and FIN) 27 66 (FIX and FIN) 27
Trade confirms
Trade confirms Trade confirms
Trade confirms Trade confirms Trade notification Credit agreement
Trade notification, Trade notification, Trade confirms Trade confirms
Trade notification Trade notification (FIN+FpML), (FpML)
Affirmation Affirmation
29 31 31 29 37 36 and 70 29 33
Post-trade / pre- Affirmation
settlement
Pre-settlement matching
29 and 67
Allocation processing as well as confirmation matching, SSI - New!

66 and 67
Settlement
Settlement
Clearing & Settlement & Recon Settlement Settlement Settlement
& Recon
Settlement & Recon CLS 3rd Party & Recon & Recon & Recon
(FIN+FpML)
39 and 42 service 40 39 39 and 42 39 39
Payments
50
Cash Settlement Cash Settlement

Cash management Cash Reporting Cash Reporting Cash Reporting Cash Reporting Cash Reporting
Cash Reporting Cash Reporting
52 52 52 52 52 52 52
Exception
Management 55
Data distribution Data distribution

44 44 Agent notices
Asset servicing (FpML)
Corporate Actions Corporate Actions (Corporate Actions)
& administration 45 45 45 33
Proxy voting
47
Total Portfolio Valuation (TPV) - New!

Portfolio
Administration 49 and 68
Collateral Management
57
Collateral Management - New!

Collateral
management 68
Portfolio reconciliation - New!

68
Securities Financing Securities Financing
New! New!
Securities Financing
69 69
Transaction Transaction Transaction Transaction
Regulatory Reporting
Reporting 59 Reporting 59 Reporting 59 Reporting 59
Planned solutions The numbers refer to the page number in this binder
Available solutions
1
Dear investment manager,
You are at the forefront of every securities transaction. Multiple communication flows, many
counterparties, a wide range of asset classes and continuously increasing volumes are
putting a strain on your business environment and increasing operational risk. By using
SWIFT you benefit from secure and resilient electronic messaging, gaining access to a single,
low cost way of communicating with all your counterparties. You also participate in the
creation of industry standards and market practices. Leveraging SWIFT enables you to
automate your processing environment by supporting straight-through processing for
internal and external communication.
Automation with SWIFT enables you to achieve three key benefits:

Gain competitive advantage
Improve risk control
Improve your bottom line
In the following pages, you will find a description of how these benefits can be realised:
the SWIFT value proposition for your institution. We know that every investment manager
is different, so we will work with you to determine how SWIFT can best help you achieve
these benefits.
This book is designed to let you know why one of SWIFT’s investment manager clients
has said: “SWIFT has really changed the business.”
Please contact us to discuss how your institution can best benefit from SWIFT.
Yours faithfully,
The SWIFT Markets team
If you also manage hedge funds,

a specific value proposition is available
to complement this document.
Section 1 – Introduction
“The scalability we get through SWIFT automation is huge.

We would not have been able to support our growth and stay
in this business without it.”
Investment Manager on SWIFT
3
1 Executive summary
The SWIFT guide for Investment Managers (IMs) is designed to provide existing and
potential users with an overview of our product and service offering. This guide focuses
on IMs, highlighting their specific business needs and requirements, and offers
suggestions of ways in which IMs can use SWIFT to gain operational efficiencies, improve
STP and reduce risks and costs.
1.1 Investment Manager (IM)

The term ‘IM’ within this guide also applies to asset managers, fund managers, portfolio
managers and hedge funds managers.
1.2 SWIFT
SWIFT is an industry-owned co-operative supplying secure, standardised messaging
services and connectivity to more than 8,700 financial institutions in 209 markets.
Collectively, these institutions, active in payments, securities (equities, fixed income and
derivatives), treasury (foreign exchange, money markets and derivatives) and trade
services markets, exchange millions of messages valued in trillions of dollars every
business day.
SWIFT consistently delivers quantifiable value and proven technical excellence to its users
through its comprehensive messaging standards, the security, reliability and availability of
its messaging platform and its role in advancing STP.
1.3 SWIFT in the investment management market

Over the course of our history, more and more securities institutions have joined SWIFT.
Today, investment managers, broker/dealers, custodians, securities depositories, clearing
organisations, exchanges, central counterparties, matching utilities, electronic trade
confirmation providers, proxy voting service providers, distributors, transfer agents and
fund administrators, rely on SWIFT to reduce the complexity, risk and cost of their
domestic and international transactions. SWIFT facilitates standardised communications
and processing at all levels of the lifecycle:
for equities, fixed income, OTC and listed derivatives, FX and money markets,
commodities, repos, syndicated loans and investment funds transactions.
from trade order through to settlement and asset servicing, including payment,
portfolio administration and cash management.
SWIFT also facilitates standardised communication for securities financing and collateral
management.
For the purposes of this guide, an investment manager (IM) is defined as an institution
responsible for making decisions to buy, hold or sell financial instruments. IMs include
insurance companies, hedge fund managers and government institutions which also have
this responsibility
4
SWIFT’s support for asset management and investment funds processing lifecycles
Payments, Cash Management,

Asset Servicing...
Collateral Payments
Management
Portfolio Cash
Administration Management
Asset Servicing
Regulatory
reporting
Reconciliation
Account
Management
Funds
processing
Asset Classes covered: equities, fixed income, forex, money markets, cash, listed
derivatives, commodities, OTC derivatives, repos, syndicated loans
Funds covered: investment, money market, hedge funds, alternative funds and pension funds.
SWIFT messages, based on ISO standards, provide enhanced straight-through

processing and risk management in a consistent, coherent and uniform way. New
messages are being designed in XML for use on SWIFTNet, our advanced IP-based
messaging platform. SWIFT’s priority is to drive standards convergence of alternative
messaging protocols, the ISO 20022 business models, and harmonise market practices
to enhance STP at an industry level.
5
1.4 Investment managers’ needs and how SWIFT can help

Introduction
Mitigate risk
Investment managers are dealing with an expanding range of asset types, a growing
number of counterparties and escalating transaction volumes. They are also carrying an
increased risk and compliance burden. There is a need to deploy innovative investment
strategies to compete – but also to control operational risks and costs, and ensure
scalability, perhaps through operational outsourcing.
SWIFT can help investment managers meet these challenges by providing a single, low
cost way of communicating across all counterparties - including broker/dealers,
custodians and fund distributors - in an automated way, and supporting a large range of
asset classes across the funds, equity, fixed income and alternative spaces. Leveraging
SWIFT’s services enables an investment manager to eliminate costly and error-prone
manual processes and multiple communications protocols, and to increase international
reach.
As new regulation such as MiFID and Basel II impacts operating and investment
practices, SWIFT’s solutions for collateral and risk exposure management and standards
for transaction reporting can help investment managers cope with regulatory and
compliance demands in a cost-effective way.
6
“By automating the operations processes, operations staff can

focus on more challenging tasks. Job satisfaction increases and
staff turnover drops.”
Operational efficiency
Business drivers High straight through processing (STP) rates are expected, and scalable
processing platforms are becoming crucial to support growth.
The obligation to reduce costs must also be met.
Market needs There is a need to reduce fax and other proprietary communications and to
achieve high STP rates. This drives a need for scalable processing platforms
to support growth.
How SWIFT can help SWIFT offers standards for the entire lifecycle of a transaction to eliminate
costs associated with supporting multiple formats and connections to clients,
service providers and peers across products.
Risk management and compliance
Business drivers Risk management and compliance have become a critical part of your core
business as regulation drives new operating and investment practices.
Market needs To cope with a shift of business emphasis towards derivatives products,
handle the additional burden of new regulations and reporting requirements,
and make management of exposure across asset classes a priority.
How SWIFT can help By providing a consistent industry solution for collateral and risk exposure
management and standards for transaction reporting and regulatory
compliance.
New instruments and more counterparts
Business drivers You are investing more widely in derivatives and exotic financial products. You
are also interacting with an ever-more diverse community of counterparts,
many of which you have not directly chosen to have business relationships
with, but which have been acquired as counterparts as a result of investment
mandates you have won.
Market needs Your back office needs to become more flexible to handle new, more
complex, asset classes. Time to market becomes a critical element in order to
ensure you are supporting the competitive needs of your front office.
How SWIFT can help SWIFT supports a broad range of asset classes across equity, fixed income
and alternative investments and provides connectivity to a wide array of
counterparties for standardised messaging.
7
Operational outsourcing
Business drivers Focus on your specific areas of expertise and reduce your operational costs
by outsourcing areas of the business that fall outside your core competencies
to specialised providers.
Market needs Accurate, timely and consistent reporting becomes crucial in order to
maximise the benefits of the outsourcing.
How SWIFT can help We can ensure consistency of communication connectivity and messaging
standards to all counterparts. This enables maximum efficiency, reduced risk
and optimum timeliness of information.
Data management and reporting requirements
Business drivers You are required to prove best execution in response to regulation imposing
new levels of transparency on the market, so you need a solid strategy for
managing the variety of data you handle, including client and counterparty
data and market data.
Market needs To prevent further proliferation of isolated databases and ensure a seamless
integration of different data sources as a prerequisite for efficient risk
management and operational efficiency. To improve consistency of data.
How SWIFT can help Standardised messaging ensures the consistency in data management which
can readily be provided directly to regulators.
8
1.5 The Value of SWIFT to Investment Managers
SWIFT’s portfolio allows

industry players to
automate their business
processes and
communications, thereby
achieving STP. The true
benefits of automation and
STP to IMs are lower
costs and lower risks.
Through SWIFT, IMs are
able to conduct their
business in a value for
money, secure,
standardised and
automated fashion.
Provide solutions: Whether your business is payments, treasury, trade or securities;

whether you work for a small local brokerage or a global multi-service bank; SWIFT
enables you to automate and standardise your transactions end-to-end. Our solutions
can help lower your costs, mitigate your risk and increase your service levels.
Refer to section 3
New initiatives: SWIFT is continuously working with the industry to understand the
need of its customers and enhance or develop new solutions accordingly.
Refer to section 4
Provide applications: Whether provided by SWIFT or a third party, your SWIFT
connection offers access to a wealth of applications.
1. Accord – Enabling real-time matching and exception handling for foreign
exchange, money market and derivative confirmations.
2. Affirmation application.
3. Industry applications – Banking Market Infrastructures: In payments, more than 60
clearing systems, carrying from 500 to over 300,000 payments a day, rely on SWIFT
for the secure messaging connectivity and common message standards essential to
their smooth operation. Securities Market Infrastructures: Today, SWIFT is the
messaging hub for many clearing and settlement systems in payments, securities,
foreign exchange and derivatives.
Refer to section 5
Facilitate standards and market practice: in co-operation with the securities,
payments and treasury industries, facilitate the development of standards and
practices used in the aforementioned messaging.
Refer to section 6
9
Provide messaging: allowing IMs and their counterparties to automate the delivery
and receipt of information required to conduct their business, ranging from equity
trade execution and settlement through to foreign exchange and money movements.
Refer to section 7
Provide connectivity: allowing IMs and their counterparties (e.g. Broker / Dealers,
Custodians, Electronic Trade Confirmation Providers, Banks, (International) Central
Securities Depositories, Transfer Agents, Fund Administrators and others) to
communicate with each other over a single network.
Refer to section 8
Provide services:
Partner programme
As a SWIFT customer, how can you be sure that you are buying a solution from a
third-party supplier that is compliant with SWIFT? How do you choose a company to
help you with your SWIFT-related integration, implementation and training and be
certain that they have the expertise to perform the job? SWIFT’s certification
programmes and partnerships help you to answer these questions.
Business Assessment programme
The Business Assessment Programme provides dedicated teams of experienced
consultants to analyse your business flows or your infrastructure, or both. Their
recommendations help you reduce your total cost of ownership, lower your
operational and reputational risk and identify opportunities for business growth.
Industry initiatives
SWIFT supports the community by contributing to various industry-wide initiatives
that are key to investment managers. These include:
— Giovannini Barriers. In its 2003 report, the Giovannini Group, as advisor to the
European Commission, published a report identifying 15 barriers to efficient EU
cross-border clearing and settlement. The Giovannini Group, under the
chairmanship of Dr. Alberto Giovannini, CEO of Unifortune SGR SpA, stated that
SWIFT, through the Securities Market Practice Group (SMPG), should define a
solution to eliminate Barrier 1, which cites national differences in information
technology and interfaces used by clearing and settlement providers
— MiFID. The Markets in Financial Instruments Directive (MiFID or Directive 2004/39/EC)
was implemented on 1 November 2007. MiFID gives investment firms an effective
‘single passport’, allowing them to operate throughout the EU on the basis of
authorisation in their home Member State. MiFID’s objective is to remove cross-
border trading barriers and increase competition, leading to the creation of a single
market in investment services throughout the EU. MiFID will have an impact on the
trading of all asset classes including cash equities, fixed income and derivatives.
The financial institutions that are directly impacted are investment managers (when
providing portfolio management services – collective investment schemes are out of
scope), stock exchanges and broker/dealers. SWIFT analysed the impact of MiFID on
the relevant ISO 15022 and ISO 20022 financial message standards that it supports.
The resulting changes are now available for use.
Refer to section 9
Section 2 – SWIFT’s value proposition
for investment managers
11
2 SWIFT’s value proposition for

investment managers
By relieving operational burden, SWIFT allows investment managers to focus on their core
business of performance. Because SWIFT’s solutions for investment managers span
multiple asset classes and provide reach to counterparts globally, SWIFT also enables
investment managers to pursue innovative investment strategies, while effectively
managing risk, in order to maximise gains.

SWIFT enables investment managers to achieve higher rates of STP directly reducing
operational risk. SWIFT also supports investment managers in improving operational
processes around higher-risk instruments, and in achieving compliance with regulations
i.e. meeting more stringent requirements through improvement of STP.

SWIFT supports investment managers in improving STP. This empowers investment
managers to maximise their profitability by reducing their operational costs.

Improve operational efficiency
“We started using SWIFT about a year ago. Efficiency-wise it
has been unbelievable. Now we are able to reach about 90%
straight through processing (STP) for outgoing messages.”
Investment manager using SWIFT
Increase automation and STP SWIFT provides a single communication platform enabling
seamless integration across your front, middle and back-office
systems
+ Reduce risk and cost Automation via SWIFT leads to a reduction in manual
processing, errors and failed trades. This reduces risk and cost
+ Improve op erational control Automation enables you to focus on exception processing.

Problems that do arise are identified and can be acted upon
immediately. The result is an improvement in operational control.
A benefit of automation is facilitated management of internal

and external regulatory compliance
= Increased operational efficiency

12

Reduce cost and time to market
“Before we had SWIFT, we had proprietary terminals all over

the place. Staff needed to be trained on all the different
systems and data was rekeyed all day long. Now, we simply
have one system.”
Improve scalability By automating your business processing environment, through

the use of message standards and a single method of
communication, you will reduce the impact of volatility in
transaction volumes. Automation provides you with a scalable
processing environment.
+ Increase reusab ility SWIFT messages enable standardisation across all asset
classes, even alternatives.
With SWIFT you can communicate with all your counterparties

(8,500 institutions in 209 markets) SWIFT’s solutions can be
reused as you expand your business focus into new and
different areas.
+ Reduce cost and time New business expansion is easily undertaken in an automated
environment. This is due to reduced costs and time needed to
bring new business products to market.
= Reduced cost and time to market

13

Improve customer service
“If we were to report everything over fax, we would probably

need twice as many people to do this. We have increased our
traffic tenfold without really increasing the headcount.”
Increase service monitoring An increase in the automation of your processing environment

allows you to focus on exception processing. This provides you
with the opportunity to increase the monitoring of the
transactions you carry out on behalf of your clients. You will be
able to improve your reporting on positions and activity to your
clients.
+ Reduce errors and An automated environment reduces the risk of manual

processing errors and you will discover errors that do occur
much sooner.
You will be in a better position to provide problem resolution to

customers. Ultimately, the quantity and associated cost of
errors and failed trades will be reduced.
+ Reduce cost and time With a higher level of service monitoring and a reduction in
errors and failed trades, you will be better able to focus on your
customers’ investment needs.
= Improved customer service

14

Reduce processing risks
“Without SWIFT, we would certainly need to double the

number of operations staff and maybe even more.
Fluctuations in the business cycles would cause problems
because we would have to pull in temporary staff. This would
increase the risk and further reduce efficiency.”
Reduce misinterpretation The use of standards to exchange information ensures that you
talk to your counterparties in one language. This reduces the
potential for misinterpreting information through translation
issues and rekeying errors.
+ Assured communication By using SWIFT as a communication channel, you are assured

of the identity of the sender of the information as all messages
are authenticated. You are also assured that information you
have sent to your counterparties has been safely received
because delivery is guaranteed.
+ Reduce errors and failed trades Automating the exchange of information with your
counterparties eliminates the possibility of rekeying errors and
misinterpreting trade details.
This reduces the risk of errors and failed trades
= Reduced processing risks

15

Reduce operational uncertainties
“Security and reliability are the cornerstones of SWIFT. They

will always remain SWIFT’s key values”.
SWIFT Board Member
Increase resilience With a resilient communication platform, you can conduct your
business in the certainty that you will always be able to
communicate with your counterparties, as and when required.
+ Increase control and compliance Automation, reach, trust of sender and guaranteed delivery
mean that you are in control of your operational and processing
environments.
+ Assured settlement Automating the communication flow with your counterparties

eliminates errors and the risk of misinterpreting transaction
details. You and your clients can be assured of the settlement of
transactions.
= Reduced operational uncertainties

16

Reduce capital requirements
“Operational risk is the risk resulting from inadequate or

failed internal processes, people and systems or from external
events.”
Basel II
Increase security and resilience Conduct your business with certainty that you can
communicate with your counterparties, as and when required.
The SWIFT network is highly secure and trusted, and is used by
major financial institutions in 209 markets around the world.
+ Reduce operational risk A controlled processing environment with the right level of
security will contribute to reducing your operational risk.
+ Lower reserve requirements The Basel II framework will impact a significant number of
financial institutions. For those affected, reducing your
operational risk by using the most secure messaging
infrastructure will enable you to lower your capital reserve
requirements when using advanced measurement approaches.
= Reduced capital requirements

17

Reduce processing costs
“The SWIFT model allows for better cost control and

financial predictability over competitive networks.”
Increase standardisation The use of message standards ensures that you talk to your
counterparties in one language. Standardisation is the first
logical step to take if you want to automate communication
flows.
+ Simplify communication Using standardised electronic communication and a single

communication channel, your flows will be greatly simplified,
leading to efficiency gains and ultimately a reduction in overall
processing costs.
+ Increase automation Increased automation allows you to focus on exception

processing, and ultimately, spend more time servicing your
customers.
= Reduced processing costs

18

Reduce the cost of change
“Our transaction volumes can vary significantly from one day

to the next. However, the effort involved in generating our
SWIFT based settlement instructions sent to custodians is
very limited, given the high levels of automation we have
achieved in this area. ”
Increase standardisation You can communicate with your counterparties in one

language, using standards that cover the entire business
process chain, including orders, instructions, reporting,
corporate events, payments, foreign exchange and treasury.
Standardisation gives you the means to safeguard your

operational efficiency in an ever-changing environment.
+ Increase reusab ility With one communication platform and one set of message
standards you can talk to all of your counterparties (including
brokers, custodians, exchanges and central securities
depositories). These message standards are suitable for
multiple asset classes including equities, fixed income,
investment funds, money market instruments, foreign exchange,
derivatives and financial payments. This significantly lowers the
cost of making changes to your operational and processing
environments.
+ Increase scalability With increased business from new or existing clients, your
volumes will increase. An automated processing environment
reduces the impact of an increase in volumes, providing you
with scalability. New business can be easily absorbed into your
existing environment with minimal increase in cost.
= Reduced cost of change

19

Reduce business expansion cost
“SWIFT is definitely a scalable solution. We could double our

volumes without noticing.”
Increase reach SWIFT is used by more than 8,500 financial institutions

(including investment managers, broker/dealers, custodians,
banks, securities depositories, exchanges, fund administrators
and market data providers), in 209 markets. This extensive
reach enables you to communicate with your counterparties in a
secure, low cost and automated way, 24 hours a day, 7 days a
week.
+ Increase reusab ility You can reduce cost and complexity through automated
communication with multiple counterparties across multiple
asset classes by using one communication platform and one
set of message standards. Reusing your operations and
processing environment significantly lowers the cost of
expanding your business.
+ Increase scalability Automation provides you with a scalable processing

environment, meaning you can easily absorb new business into
your existing environment. You can focus your attention on what
really matters: growing your business and providing excellent
customer service.
= Reduced business expansion cost

Section 3 – Business areas of an investment
manager and SWIFT’s solutions
“The cost of SWIFT is insignificant compared to the cost of

other more manual messaging means.”
21
3 Business areas of an investment

manager and SWIFT’s solutions
3.1 Overview
IMs are typically involved from the very beginning of the traditional equities and fixed
income transaction lifecycle (e.g. trading), through to settlement and custody related
processes. Many of an IM’s securities related business processes lead them to be
involved in payment, foreign exchange, money market and derivative related functions.
Additionally, IMs can also be involved in all aspects of investment funds distribution.
Within this section the applicable SWIFT solutions for each business area are indicated in
the SWIFT Solutions per business activity diagrams. The intention is to simply highlight
what SWIFT solutions are available. This section also highlights (where applicable) the
typical spaces (e.g. pre-trade / trade), players involved and flows between players for
each of the business areas.
Insurance
22
3.2 SWIFT solutions per business activities

Within the investment management industry, there are nine main business activities
covering pre-trade / trade to asset servicing, reporting and cash management. This
chapter will provide a high level description of the SWIFT solutions per business activity:
Pre-Trade / Post-Trade / Clearing and Securities Asset

Trade Pre-settlement settlement reporting servicing
Payments and Financing:

Portfolio Collateral securities Regulatory
administration cash Management
management lending and reporting
borrowing
Pre-Trade /Trade
IOI / Quotes Trade Trade execution,

Pre-allocation
FIN, FIX FIN, FIX FIN, FIX
Equities, Fixed Equities, Fixed Equities, Fixed

Income, Listed Income, Listed Income, Listed
derivatives derivatives derivatives
Post-Trade Pre-settement
Trade Allocation Trade affirmation, Transaction

confirmation, reporting
notification and
matching
FIN, FIX FIN, FIX, FpML FIN, FIX, FpML
Equities, Fixed Income, Listed derivatives FX,

MM and FX options
Syndicated Loans
Commodities
OTC Derivatives
23
Clearing and settlement
Settlement instructions Settlement confirmation
FIN FIN
Equities, Fixed income, Equities, Fixed income,

Listed derivatives Listed derivatives
Securities reporting
Statements of Statements of Statements of

holdings pending movements
settlements
FIN FIN FIN

income, Listed income, Listed income, Listed
Asset servicing
Data Distribution Corporate Actions Proxy Voting
FIN FIN XML

Income, Listed Income, Listed Income, Listed
Cash management
Payments initiation Cash reporting Exceptions and

investigation
FIN, XML FIN, FpML XML
Cash Cash Cash

24
Collateral management
Margin Calls Response Administration
Bi-lateral and Third party
FIN FIN FIN
OTC Derivatives, OTC Derivatives, OTC Derivatives,

Repos, Securities Repos, Securities Repos, Securities
Lending and Lending and Lending and
Exchange margin Exchange margin Exchange margin
agreements agreements agreements
Regulatory reporting
Transaction report Transaction report

and status cancellation and status
XML XML
Equities, Fixed income, Equities, Fixed income,
Listed and OTC Listed and OTC
derivatives, commodities derivatives, commodities
25
3.3 Asset Management

The current SWIFT offering per transaction cycle and asset class:
Institutional
Investors/
Funds
Regulators Investment
Manager
1
2
8
Banks 7 Investment Broker/

3
Manager Dealer
6 4
Data Custodian
Distributors
Securities
Market
Infrastructure
26
SWIFT offers different solutions depending on the asset class and the business function
following the end to end transaction lifecycle. Investment managers can phase the
implementation of these solutions by focusing on one specific area, depending on their
business requirements and priorities.
Transaction cycle Flow details Pairs Protocol Asset Class Page

Pre-trade / trade Trade 1,2,3 FIN, FIX Equities Fixed Income, Page 27
Trade execution Listed derivatives
Post-trade / pre- Trade affirmation 1, 2, 3, 4 FIN, FIX Equities Fixed Income, Page 29
settlement Trade confirmation 1, 2, 3, 4 Listed derivatives
Trade notification
Trade matching 1, 2, 3, 4 FIN, FIX options Page 31
1, 2, 3, 4 FIN, FIX Syndicated Loans Page 33
1, 2, 3, 4 FIN, FIX Commodities Page 36
1, 2, 3, 4 FIN, FpML OTC Derivatives Page 37
Clearing Settlement processing 5, 6 FIN Equities, Fixed Income, Page 39
& Settlement Listed derivatives
SWIFT CLS Third Party Not FIN Equities, Fixed Income, Page 40
Service applicable Listed derivatives
Securities Statements of holdings, 5, 6 FIN Equities Fixed Income, Page 42

reporting pending settlement Listed derivatives
instructions
and movements
Asset servicing Data Distribution 6 FIN Equities Fixed Income, Page 44

& administration Listed derivatives
Corporate actions 4 FIN Equities Fixed Income, Page 45
Listed derivatives
Proxy Voting 4 XML Equities Fixed Income, Page 47
Listed derivatives
Portfolio Collateral and exposure 4 FIN Equities Fixed Income, Page 49

Administration statement Listed derivatives
Payments Payment Initiation 4,7 FIN, XML Cash Page 50

and Cash Cash reporting 4,7 XML Cash Page 52
management Exception management 4,7 XML Cash Page 55
Collateral Collateral management 4,7 FIN Page 57
management
Regulatory 8 XML Equities Fixed Income, Page 59

rep orting Listed and OTC derivatives
SWIFT is also working on initiatives and solutions. Please refer to section 4:

initiatives and solutions
27
3.3.1 Pre-Trade/Trade: Equities, Fixed Income, Listed derivatives

These messages are typically sent between a client (e.g. IM) and a financial institution
(e.g. Broker / Dealer) to instruct a buy or sale of a security, to provide the status of the
trade, and to advise the execution of a trade between the two parties
FIN messaging
Order to buy or sell - MT 502
Trade status - MT 509
Investment Client advice of execution - MT 513 Broker /

Manager Dealer
FIX (4.4 and beyond)
Indication of Interest
Quote request
Quote from sell-side
New order (single or multi-leg)
Investment Execution report Broker /

Manager Dealer
Asset classes: Equities and Fixed Income, Listed derivatives
Industry challenges
FIX is the de facto standard for trading in most countries. However, in emerging markets
and some European countries, FIX has not yet been adopted. This is leading to a growing
demand for translation engines to map the MT 502 to a FIX Order.
Investment firms which execute transactions in any financial instruments admitted to
trading on an EU/EEA regulated market must report details of their trade to a recognised
reporting venue, (Chi-X, Boat, EuroNext Paris, Deutsche Borse, OMX, LSE). This needs
to be done as close to real time as possible
28
Solution
FIN messages
or
"FIX over SWIFT" service: Order Management System (OMS) / FIX Engine with Direct
Connection
FIX over SWIFT
Customer UL NET
Operating Centre
FIX VPN SWIFT FIX Hub

Engine box MV SIPN ULLINK
SSL
FIX over SWIFT architecture
FIX allows users to exchange the full application (business) message set contained in the
versions of the FIX protocol supported on the service. FIX protocol includes multiple
application messages, but the main messages used are those detailed below (some of
which are only available in later versions of FIX).
Although primarily used for equities transactions, with the advent of FIX 4.4, fixed income
trading and trading in other asset classes (e.g. FX, derivatives) is also now supported.
The flows shown in this section represent the main use of each message, and are just
some of the messages available. Full details explaining the use of each message can be
found in the FIX Service Description.
Benefits
Connectivity to the ULLINK FIX Hub is as a VPN type service using Secure Socket Layer
(SSL) protocol for encryption and authentication. This provides a single and secure
communication channel from Trading to Settlement, at a high speed, and offers a channel
for FIX messaging, enabling easy integration with a large community of counterparties,
plus access to leading edge value-add trading services. ULLINK has an existing
community of over 100 trading counterparty institutions that can be accessed via the FIX
over SWIFT service.
The SWIFT network allows you to reach emerging markets and any firm new to FIX can
easily benefit from FIX by using the SWIFT single-window. There are about 165 senders of
MT 502 messages with volumes of 2 million a year relating to Equities and Fixed Income.
29
3.3.2 Post/Trade, Pre-settlement: Trade confirmation: Equities, Fixed Income,

Listed derivatives
(e.g. Broker / Dealer) or service provider (e.g. electronic trade confirmation provider) to
provide early information about a deal, to instruct the allocation of a block trade, to
confirm the details of a trade, and to affirm the details of a confirmed trade.
FIN
Trade allocation instruction - MT 514
Confirmation of purchase of sale - MT 515
Investment Trade confirmation affirmation - MT 517 Broker /

Manager Dealer
FIX (4.4 and beyond)
Instruction to allocate previously sent order across accounts
Acknowledge receipt of allocation instruction
Allocation report
Investment Confirm booking of trade at account level Broker /

Manager Dealer
Affirm confirmation of allocation
Asset classes: Equities and Fixed Income, Listed derivatives

Industry challenges
In many markets a paper confirmation is required for legal and regulatory reasons. This
generates much unnecessary manual work and in many cases risk as these faxes are not
processed.
Fixed Income has extremely high levels of issue diversity and - for all but a handful of rate-
based instruments - a lack of liquidity and price continuity. The industry is going through
major changes: a new market structure with the rise of electronic venues leading to
fragmentation of liquidity; the shift from passive to active management; a proliferation of
information and services; and a trend towards use of credit instruments and more
complicated instrument types.
Trading volumes continue to grow across all asset classes as electronic trading spreads
across the world, and as increasing numbers of hedge funds appear. However, the
middle office that processes these trades remains stuck with the use of legacy and
30
manual resources. Consultancy TABB Group in September 2007 reported that: "Some of
the largest asset managers are now spending over $170 million per year on trade
processing costs alone, based on as many as 40,000+ allocations a day.” A middle office
has the choice of using a central utility or of moving to an industry standard such as FIX,
or continuing with non-STP processes such as proprietary protocols or fax.
Solution
The MT 515 is the first step in the settlement process, and is a widely supported
message with more than 2,200 receivers, growing in adoption from 1,500 users in 2005.
The entire SWIFT community is capable of receiving an MT 515.
An MT 515 informs Investment Managers of broker settlement details, ensures the
Settlement Instruction is correct and is a legally binding confirmation in many markets. It
is also the point of inter-operability between FIX and SWIFT ISO messaging - a FIX
Execution message can map into an MT 515. In the future there is the potential to
combine the SWIFT network, the ULLINK FIX Hub and SWIFT's Accord central matching
solution.
When the block trade is executed to the satisfaction of the Instructing Party, the
Instructing Party instructs the Executing Party about how the block is to be allocated
among the different funds or clients (MT 514 for Equities and Fixed Income).
The FIX over SWIFT service enables the SWIFT infrastructure to be used for FIX allocation
messages. This service will become an STP conduit into future extensions of Accord that
could support processing of these messages.
Benefits
Using standardised electronic messages ensures correct processing and reduces the risk
of settlement failure. Using fax creates the risk that an investment manager can claim they
never received the confirmation, and refuse a trade. SWIFT provides interoperability
between different syntaxes like proprietary, ISO standards and FIX. Emerging markets can
introduce a SWIFT infrastructure in phases starting with FIX and progressing through the
transaction lifecycle to clearing and settlement.
SWIFT’s strategic partnership with ULLINK gives customers the benefit of leading edge
FIX-based trading services for Best Execution and Algorithms, and access to a
community of more than 100 investing entities.
31
3.3.3 Post/Trade, Pre-settlement: Trade confirmation: FX, MM and FX options

(e.g. Broker / Dealer) to confirm a treasury trade between the two parties
Forex
Foreign Exchange Confirmation - MT 300*
Forex / Currency Option Allocation Instruction - MT 303
Broker /
Dealer
Investment Advice / Instruction of a Third Party Deal - MT 304
Manager
Foreign Exchange Order - MT 380
Foreign Exchange Order confirmation - MT 381

Custodian
Money markets: Loan Deposit, Call / Notice
Confirm / notify details of a contract - MT 320
Call / Notice Loan / Deposit Confirmation - MT 330

Broker /
Advice of Loan / Deposit Interest Payment - MT 350
Dealer
Investment
Manager
Instruction to Settle a Third Party Loan / Deposit - MT 321
Custodian
Forex Options
Foreign Currency Option Confirmation - MT 305
Forex / Currency Option Allocation Instruction - MT 303
Investment Foreign Currency Option Confirmation - MT 306 Broker /

Manager Dealer
For the coverage of SWIFT’s matching and affirmations applications, please refer
to the section: Applications
32
Industry challenges
Turnover in traditional foreign exchange instruments increased by an unprecedented 71%
to $3.2 trillion in 2006/7 (This compares with $1.2 trillion in 2004 and $575 billion in 2001).
All Treasury asset classes such as FX, FX options, Deposits, "call money", FRAs (resets
for FRA), Interest Rate Swaps (single and cross currency) and Exotic FX Options need to
be matched. Time pressure plus volumes of confirmations require automated solutions.
Despite CLS, over 50% of Treasury trades are still exposed to some degree of settlement
risk. The impact of mistakes can be considerable.
The industry has become a highly competitive market with shrinking margins. There is a
lack of cross-product standardisation and the high diversity of communication means with
the buy- side negatively impacts scalability and profitability. The lack of a uniform solution
for the give-up, confirmation and allocation processes makes manual interventions still a
reality. Many financial institutions confirm their treasury trades by voice or fax, or even
worse, not at all. This introduces significant operational risk and leads to increased costs
because of manual interventions and operational inefficiencies.
Solution
The Treasury messages are specifically aimed at IMs, allowing them to instruct and
confirm FX deals with Broker / Dealers and Custodians.
Additionally, the MT 300 and the MT 304 messages can be used to confirm and advise
FX trades requiring settlement through CLS (Continuous Linked Settlement (CLS™) Bank)
(see settlement section).
SWIFT has a range of MT messages supporting trade confirmations for FX (MT 300, 305,
306), and fixed term Loan/Deposit contracts (MT 320, 330). Accord (SWIFT’s matching
application) can match all of the above message types. Accord processed about
212Million MT 300 messages in 2008.
SWIFT also has an Affirmations application allowing the affirmation/confirmation of FX
trades with your broker even if they do not support MT 3xx messaging.
Benefits
The combination of standardised messaging and the Accord matching system increase
automation (STP) to reduce operational costs and risk. Meet audit and regulatory
requirements in regards to process control.
Total outsourcing of matching process to SWIFT
Matching result guaranteed identical between two users.
Ultra-reliable, in terms of matching results and uptime of service.
R&L policy: matching results are guaranteed, with financial backing
Low Total Cost of Ownership through high operator efficiency, and eliminated internal
operational tasks.
Specialised system: Integrates broker-to- broker with IM-to-broker
Broadest range of Treasury instruments of any matching engine
Third Party CLS Service: automates routing to CLS Settlement Members
Rich, efficient and easy to use interface, making it easy to find exceptions
33
3.3.4 Post Trade/Pre-settlement: Syndicated Loans
Release 1.0 (FpML 4.4)
Drawdown Notice
Interest Payment Notice
Investment Principal Repayment Notice

Manager
or On-Going Fee Payment Notice Loan Agent
Market
Infrastructure One-Off Fee payment Notice
(DTCC/EOC)
Release 2.0 (FpML 4.5)
Rollover Notice
Letter of Credit Issuance Notice
Letter of Credit Balance Notice
Investment Letter of Credit Amendment Notice Loan Agent

Manager
or Letter of Credit Termination Notice
Market
Infrastructure Pricing Change Notice
(DTCC/EOC)
34
Industry challenges
Today, the loan maintenance process is essentially manual and information is faxed
among market participants, and often followed up with phone call confirmations. This
results in millions of faxes going out into the market each month end/quarter end. Add to
this the exponential growth in loan trading volume in the secondary market and agent
banks find themselves swamped in recordkeeping requirements. All these factors lead to
manual errors, backlogs of unsettled trades and cash breaks to primary and secondary
investors.
Current market pain points
— Electronic agent messaging
— Standard reference data
— Central loan reconciliation
— Automated confirmation, closing and settlement
— Sharing of key information
Solution
SWIFT’s solution for Loans facilitates secure electronic communication for the exchange
of FpML messages. The FpML messages have been created specifically for the loans
market, with a primary focus on agent notices. The intention is to leverage SWIFT’s
services and enable the market to benefit from SWIFT’s experience in FpML. SWIFT’s
Loans solution is complementary to offerings from both Depository Trust & Clearing
Corporation (DTCC) and Euroclear in the loans market. FpML messages (XML syntax) are
transported over SWIFTNet using InterAct store and forward messaging service.
Custodian Fund Lenders

Administrator SWIFT
member
Lenders
Mail
EOC and
DTCC
Loan Lenders
Agent Alliance Lite
EOC/DTCC Lenders
webportal Service
Bureau
The Loans Closed User Group (CUG)

35
The first release, Loans 1.0 based on FpML 4.4, enables transport of agent notices
between the agent banks and the lenders. The second release, based on FpML 4.5 and
planned for March 2009, will include credit agreements, adjustments and rollover events.
SWIFT will only implement FpML final recommendation/standards.
Benefits
Removal of dependencies on the exchange of manual (paper, email and facsimile)
notifications between market participants; reducing operational risk and providing a
scalable solution for the loans market globally
Leveraging your current SWIFT investments and benefiting from SWIFT’s experience
in FpML
Managed implementation to assure smooth adaptation to new processes and
message types
Solid foundation for full, end-to-end automation of the loans market
Reduced operating cost, error rates; improved business processes
Industry scalability; well-positioned for continued product innovation
Service strategy/definition in close collaboration with industry and CUG participants
Delivery notification providing receipt of message by counterparty
Future offering: FpML

SWIFT is currently working with FpML to explore the development of standardised
messaging for physical and non physical securities. (See section 4 on initiatives and
solutions )
36
3.3.5 Post/Trade, Pre-settlement: Trade confirmation: Commodities

(e.g. Broker / Dealer) to confirm a trade between the two parties.
Current offering (mainly for precious metals and base metals)
Precious Metal Trade Confirmation – MT 600
Precious Metal Option Confirmation – MT 601
Metal Fixed Loan/Deposit Confirmation – MT 620

Broker /
Statement of Metal Contract – MT 609 Dealer
Metal Transfer/Delivery Order – MT 604 (When IM is Metal Seller)
Investment Metal Notice to Receive – MT 605 (When IM is Metal Buyer)

Manager
Metal Debit Advice – MT 606 (When IM is Metal Seller)
Metal Credit Advice – MT 607 (When IM is Metal Buyer)
Statement of Metal Account – MT 608 (When IM is Metal Buyer or Metal Seller) Custodian
Industry challenges
The relative lack of automation in commodities markets compared to financial securities
also poses operational issues for the buy-side. There is little automation in this market
and the market is growing fast.
Many financial institutions confirm their commodity trades by voice or fax, or even worse,
not at all. This introduces significant operational risk and leads to increased costs
because of manual interventions and operational inefficiencies.
Solution
SWIFT has a range of MT messages supporting commodities (MT 600, 601, 620, 609) to
confirm the trade with the Broker / Dealer. The MT 604, 605, 606, 607 and 608 are used
with the custodian to order, notice or advise.
SWIFT's reach in the securities industry with 400+ brokers and 500+ investment
managers and securities infrastructures (e.g. CME) and location in over 200 countries.
The range of MT messages supporting commodities are validated by SWIFT and some of
them are to be matched by Accord in the future. SWIFT could act as carrier, validation
and confirmation service for commodities (precious, base and liquid commodities).
Benefits
Increase automation (STP) to reduce operational costs and risk.
Meet audit and regulatory requirements in regards to process control.
Low Total Cost of Ownership through high operator efficiency, and eliminated internal
operational tasks.
Become scalable and absorb peaks
37
3.3.6 Post/Trade, Pre-settlement: OTC Derivatives
FIN messaging (IRS: Interest Rate Swaps)
Forward Rate Agreement Confirmation - MT 340
Forward Rate Agreement Settlement Confirmation - MT 341
Single Currency Interest Rate Derivative Confirmation - MT 360

Investment Broker /
Manager Cross Currency Interest Rate Swap Confirmation - MT 361 Dealer
Interest Rate Reset / Advice of Payment - MT 362
Single Currency Interest Rate Derivative Termination
/ Recouponing Confirmation - MT 364
FpML (any instrument recognised by ISDA: CDS, IRS, TRS)
Request Trade Confirmation
Modify Trade Confirmation
Cancel Trade Confirmation

Broker /
Dealer
Contract Created + Contract Cancelled
Investment Contract Novated + Contract Novated Cancelled

Manager
Contract Increased + Contract Increased Cancelled
Contract Partial Termination + Contract Partial Termination Cancelled
Contract Full Termination + Contract Full Termination Cancelled Custodian

38
Industry Challenges
The recent explosive growth in the OTC industry has exposed, but also created,
numerous areas of processing inefficiency that increase risk and raise the cost of back-
office support. To help the financial community respond to the challenge, SWIFT and the
International Swaps and Derivatives Association (ISDA) entered into an agreement in June
2006 to support FpML messaging services over SWIFTNet.
FpML is the established syntax in this market space. It is widely recognised and
promoted within the ISDA community as the standard of choice for communicating
electronic information related to OTC derivative transactions.
Many institutions within the ISDA community have implemented FpML internally. The two
organisations agreed to create a solution called FpML to transport FpML messages using
the SWIFTNet infrastructure.
Transporting FpML over SWIFTNet is the first step in a phased approach that will include
Matching of FpML in Accord. This will eventually lead to the matching of FpML
confirmations on Accord.
Solution
1. FIN mainly used for interest rate swaps.
2. FpML facilitates the exchange of FpML messages for OTC derivatives over SWIFTNet.
The intention is to leverage services to provide a flexible, multi-lateral messaging
solution for FpML messages.
FpML-compliant messages (XML syntax) are transported over SWIFTNet using the
InterAct store and forward messaging service. The first release, FpML 1.0, enabling
transport of contract notification messages between buy-side and custodians, has been
available for live traffic since October 2007.
The second release, expected in March 2008, will expand the notification messages to
include the cancellation of post-trade events. It also covers the confirmation messages
between trading counterparties and will provide validation of all transported messages.
Benefits
ISDA and SWIFT working together to:
Enable exchange of FpML messages for OTC derivatives over SWIFTNet
Encourage adoption of FpML-based messages by all parties
Increase automation for buy-side, sell-side and asset servicing
Reduce risk and cost
Meet regulatory requirements
39
3.3.7 Clearing and settlement: Securities

Investment Managers use the settlement instruction and pre-advice across products
(Equities, FX, FI, MM...) to communicate trades that they have carried out to custodians.
The custodians can then book the trades to their recordkeeping systems, and settle the
transaction in the marketplace.
(e.g. Custodian) or service provider (e.g. electronic trade confirmation provider) to provide
settlement instructions, and confirmations of settlement.
Intra-Position advice - MT 508
Intra-Position Instruction - MT 524
Receive Free Instruction - MT 540
Receive Against Payment Instruction - MT 541
Deliver Free Instruction - MT 542
Delivery Against Payment Instruction - MT 543
Receive Free Confirmation - MT 544

Investment Custodian
Manager
Receive Against Payment Confirmation - MT 545
Deliver Free Confirmation - MT 546
Deliver Against Payment Confirmation - MT 547
Settlement Status and Processing Advice - MT 548
Settlement Allegement - MT 578
Industry challenges
Clearing and Settlement has been seen as a necessary cost in the past but as margins
become tighter, it is increasingly being seen as a means to gain competitive advantage.
The Giovannini Group was that group founded in 1996 to advise the European
Commission identified 15 barriers as the source of the inefficiencies in EU clearing and
settlement. SWIFT and SMPG were identified as responsible for the elimination of Barrier
1 to eliminate national differences in information technology and interfaces used by
clearing and settlement providers by implementing an EU wide protocol. A protocol was
published by SWIFT in March 2006. The barrier should be eliminated within 5 years of the
publication of the protocol by SWIFT i.e. by March 2011.
Timely settlement of trades
Reconciliation and reporting of positions and holdings
40
Solution
The SWIFT network offers Giovannini compliant service levels and supports compliant
standards based on ISO 15022 and 20022. The replacement and extended set of
messages currently being developed under ISO 20022 will also be compliant to the
Giovannini protocol. The deadline for compliance across Europe is 2011.
A comprehensive set of messaging standards which allow for automation of the trade
settlement / clearing instruction and confirmation process.
Benefits
Clearing and settlement messaging continues to account for the highest volume of
securities traffic and therefore this is a highly automated area in the trade lifecycle.
These messages are used by more than 4,000 financial institutions worldwide
Most of the clearing houses are connected to the SWIFT network.
3.3.8 Clearing and Settlement: Forex through SWIFT CLS Third Party Service
Solution Overview
Many CLS members currently offer third party services whereby they input and settle
trades on behalf of their third-party customer(s) with CLS Bank. This requires third parties
to communicate their foreign exchange transactions to their CLS settlement members.
CLS members can use this SWIFT solution to obtain a real-time copy of an agreed
subset of confirmation messages sent by their third-party customer. SWIFT provides a
global comprehensive solution to support the communication flow between third parties
(most of whom already use SWIFT) and their CLS members, resulting in the easiest and
most cost-efficient way of settling FX trades on CLS.
The service covers all FX-related instruments supported by CLS: FX transactions
including NDFs and FX Option Premiums including NDOs (FX Option Premiums including
NDOs intended to go live in 2009).
SWIFT CLS Third Party Service User Counterparty
1 MT 300 OR 305
MT 300 OR 305
2
6 CLS THIRD PARTY

FIN MT 398 envelope message SERVICE HUB
(with copy of MT 300 or 305 sent)
MT
3
5 TRANSACTION INPUT NOTIFICATIONS
4 MT 304 or GDI CLS Bank

CLS Member
41
As the third party exchanges an MT 300 or 305 (1) with its counterparty, a copy of that
MT 300 or 305 will go to the CLS Third Party Service hub (2). The hub forwards the copy
of the MT 300 or 305 to the CLS member servicing this specific third party using an MT
398 (3). The CLS member submits the information to CLS (4) via Gross Direct Input (GDI)
or MT 304, and then receives the matching status from CLS (5). This model offers a
proven methodology and a straightforward implementation for both the third party and
the CLS member, including Nostro account reporting using FIN messages (6) which are
actively used in the market.
(3) Interact real time alternative is available
Asset Classes covered: FX, NDF (Non-Deliverable Forwards), FX Option Premiums
and NDO (Non-Deliverable Options).
About CLS
CLS is an industry initiative, represented by over 60 shareholders from the world’s largest
financial institutions, to reduce risks associated with cross-currency transactions. CLS
Bank delivers continuous linked settlement services to ensure final and simultaneous
settlement of cross-currency financial transactions. SWIFT provides the network
components to connect CLS Bank with its members and third party CLS users. For CLS
to achieve significant reduction in settlement exposures requires a critical mass of
settlement value. CLS Members need to settle trades between themselves, and also
trades with non-CLS Members (e.g. third parties).
CLS Members can offer services to third parties whereby they input and settle cross-
currency trades on behalf of their third party customer with the CLS Bank. Likewise, third
parties will need to communicate their cross-currency trades to their CLS settlement
Members.
SWIFT provides a comprehensive solution to support this communication flow, using its
existing messaging network.
Operational Information
CLS Members need to communicate with their third parties to provide operational
information (status of the trade within the CLS Bank) and cash reporting (pre-funding and
associated reporting) of trades.
SWIFT provides messaging services for this operational information, including the MT9xx
Cash Management messages, and the Cash Reporting service.
Who is eligible as a third party?
— Financial institutions that are not CLS members
— Any other SWIFT-eligible institution involved in cross-currency trading
— Corporates
Current usage?
This service is currently offered by 24 CLS settlement members to more than 300 active
users. Average volumes are close to 1 million transactions per month.
42
3.3.9 Securities reporting

In the equities and fixed income markets, this space covers all activity surrounding the
clearing and settlement of the executed trade. Information is typically exchanged between
an Investment Manager and a custodian. For cross- border trades, Global Custodians
and their local agents (e.g. Local Custodian) are also involved. Additionally, the Custodian
(Global or Local) will exchange instructions and confirmations with the CSD (Central
Securities Depository) in the market where the trade will settle. In place of a local CSD,
the trade could settle in an ICSD (International CSD – e.g. Euroclear, Clearstream).
Securities reconciliation gathers information for reporting on the status of the pending
settlement instruction, movements, and holdings for the specified account, at any given
point or duration in time.
Statement of holdings - MT 535
Report on the account activity - MT 536
Statements of pending transactions - MT 537

Custodian
Statements of intra position advices - MT 538
Request for interim reporting on holdings/transactions - MT 549
Investment Report on both the securities and cash activity - MT 575

Manager
Statements of open orders - MT 576
Broker /
Dealer
Note: Equivalent ISO 20022 messages are under development
Industry challenges
The Giovannini Group created in 1996 to advise the European Commission identified 15
barriers as the source of the inefficiencies in EU clearing and settlement. SWIFT and
SMPG were identified as responsible for the elimination of Barrier 1 to eliminate national
differences in information technology and interfaces used by clearing and settlement
providers by implementing an EU wide protocol. A protocol was published by SWIFT in
March 2006. The barrier should be eliminated within 5 years of the publication of the
protocol by SWIFT i.e. by March 2011.
Timely settlement of trades
Reconciliation and reporting of positions and holdings
43
Solution
The SWIFT network offers Giovannini compliant service levels and supports compliant
standards based on ISO 15022 and 20022. The replacement and extended set of
messages currently being developed under ISO 20022 will also be compliant to the
Giovannini protocol. Deadline for compliance across Europe is 2011.
settlement / clearing instruction and confirmation process.
— ISO15022/20022 message standards
— Message validation, non-repudiation and guarantee of sender
— STP improvement facilitating cost and risk reductions
— Leverage of existing FIN architecture
Benefits
The clearing and settlement messaging continue to have the highest volume of the
securities traffic
Highly automated area in the trade lifecycle
Used by more than 4,000 financial institutions worldwide
STP improvement facilitating cost and risk reductions
Most of the clearing houses are connected to the SWIFT Network
44
3.3.10 Asset servicing and administration: Data Distribution

SWIFT’s Data Distribution solution combines ISO 15022 securities messaging standards
and SWIFT connectivity to enable you to standardise your communication flows from
market data providers and market infrastructures.
Data Providers and data distribution
Investment Data Data

Manager provider provider Types of information Market
Infrastructure (Stock exchange) and
Data providers (such as custodians)
3 external data can send over SWIFT:
SWIFTNet feeds in ISO 15022
send to — Corporate action announcements
SWIFT Alliance in ISO 15022
Gateway
— Reference data
— Securities pricing information
Data fed into data — New issue and prospectus
distribution platform documents
for automatic — Shareholders meeting information
scrubbing — Trade volume information
— Index data
Scrubbed feed
goes into corporate
actions system
The vital nature of the role played by data providers and the need for accurate and
complete information have given rise to a plethora of connections and feeds going into
firms. The desire to achieve the elusive ‘golden copy’ corporate action announcement
has meant that many institutions take the same information from multiple data providers
to ensure coverage and completeness.
Data Distributors live on SWIFT
Australian Securities Exchange
DTCC
Interactive Data
London Stock Exchange
The central Depository (Pte) Ltd (Singapore)
Telekurs
Canadian Depository
Fidelity ActionsXchange
Globetax Data Services
WM Datenservice
Industry challenges
Financial institutions are grappling with multiple data sources as they seek to ensure
accuracy and completeness of vital reference and corporate actions data. To create the
45
elusive golden copy, firms must take in a range of data sources from data vendors and
market infrastructures (MIs). If there are differences in format between the sources, a
significant data cleansing exercise is required in order to create an accurate and complete
record. This makes manipulating data from proprietary feeds into a standardised format
and ensuring it is correct an expensive undertaking for firms - and the many connections
required generate a large maintenance and system overhead.
Solution
SWIFT’s Data Distribution solution addresses the problems associated with handling
multiple data sources in disparate proprietary formats by enabling data providers and MIs
to distribute market data via SWIFT to other SWIFT customers. Data providers can utilise
SWIFT through a closed user group (CUG). MIs are typically already connected to SWIFT,
and can also use the CUG.
Data providers and MIs distribute ISO 15022 corporate action messages in FileAct or FIN.
Where there is not yet an ISO standard available, such as in the case of reference data,
data providers and MIs can use other industry standards or proprietary formats, ensuring
that customers can still benefit by extracting further value from their existing investment in
SWIFT connectivity.
Benefits
Feeds received in ISO 15022, enabling STP of corporate action events — Central
maintenance of data feeds via SWIFT Standards Releases
Secure, reliable delivery, minimising risk and compliance concerns
SWIFT Service Description defining mandatory roles and responsibilities
Enabling flexibility in obtaining feeds from different providers
Operations managed by existing dedicated SWIFT operational staff
Manual data normalisation eliminated, creating a scalable processing model
Faster and simpler resolution of any data issues
3.3.11 Asset servicing and administration: Corporate Actions

These messages are typically sent between a client (e.g. Investment Manager) and a
financial institution (e.g. Custodian) to provide details of corporate actions affecting a
particular account, and instructions on voluntary events.
FIN Messaging
Corporate Action Notification - MT 564
Corporate Action Instruction - MT 565
Corporate Confirmation - MT 566
Investment Corporate Action Status & Processing Advice - MT 567 Custodian

Manager
Corporate Action Narrative - MT 568
46
Industry challenge
Investment Managers (IMs) are responsible for making the decision on any optional
corporate action announcement, on behalf of their underlying client, who they may or
may not consult. The Investment Manager is likely to have accounts held with a number
of different Custodian Banks, depending on their clients’ own preferred Custodian. The
Banks will provide this information either over SWIFT, or through their own proprietary
Custody workstations/services. The result is that for any particular corporate action
announcement, an Investment Manager has to handle multiple announcements of the
same event, from dozens (or even hundreds) of custodians. This presents a significant
reconciliation and therefore risk, issue.
With respect to corporate actions, the operational risk an asset manager is exposed to
can be characterised by its responsibility to take the appropriate steps pursuant to a
voluntary corporate actions offer in order to maximise the value to the portfolio. There
may be a number of reasons why an investment manager fails to act appropriately with
respect to a corporate action, most stemming from an operational error. Failing to
respond to an election within the timeframe allotted by the custodian will jeopardize the
asset manager’s right to participate in an event.
Forgoing the opportunity to tender shares at a premium to the current market price is a
clear risk. Most errors are a result of a poor reconciliation of the position eligible for a
corporate action, which will lead to bad entitlement calculation and potential market
claims. Other operational errors include failing to pursue a claim for an entitlement on
securities bought before the ex date, calculating the value of different options improperly,
and not updating the accounting system accurately, which leads to a miscalculation of
the net asset value of the portfolio. All of these scenarios expose the asset manager to
financial risk.
Solution
ISO15022 standardised messaging
Market practices
Benefits
Enables STP for corporate actions between counterparties
SWIFT estimates that 75% of corporate actions can be automated
Some corporate actions are too complex and will always require human intervention
Market Practice is the key to end-to-end automation – all parties playing by the same
rules
Industry research by Oxera, suggests that misinterpretation of corporate action
information by trading brokers and fund managers have led to costs to the industry
estimated to be in the region of EUR 1.6 billion – EUR 8 billion per year globally. While
figures are not available, the additional risks encountered by intermediaries, such as
custodian banks, are of equivalent proportions, with one error related to one event
capable of generating losses in the millions. An extension of the SWIFT offering, both in
terms of reach and functional coverage, would have the potential to reduce costs
associated with inefficiencies and lack of standardisation by a significant amount.
A saving of 25% just related to the trading costs outlined above would represent an
industry benefit in the region of EUR 0.4 – EUR 2 billion per annum.
47
3.3.12 Asset servicing and administration: Proxy Voting

These messages are typically sent between a client (e.g. Investment Manager) and a
financial institution (e.g. Custodian) to provide details of proxy voting affecting a particular
account, and instructions on voluntary events.
Proxy Voting core activities
1 Notification
INITIATOR
— Meeting Notification
1 Issuer Registrar/Transfer agent Issuer agent
— Meeting Cancellation
1 2 3
— Meeting Entitlement INFORMATION
Notification PROVIDER
1 Stock exchange CSD Market data provider Proxy agency
2 Voting
LOCAL MARKET
— Meeting Instruction
1 2 3 Custodian CSD Proxy agency
— Meeting Instruction
Cancellation Request
INTERMEDIARY
— Meeting Instruction Status
1 2 3 Prime broker Custodian ICSD Registrar/Transfer agent Proxy agency
3 Results INVESTOR
— Meeting Vote Execution Broker Insurance company Pension funds Hedge funds Investment manager
— Confirmation
Proxy Voting flows: core activities
— Meeting Result Dissemination
Business flows
Meeting announcement or modification meeting
Cancellation of meeting or meeting notification
Confirmation of entitlement
Voting instruction
Cancellation of Voting instruction

Investment Custodian/
Manager Status on Voting instruction Proxy Agent
Confirmation of vote execution
Results of meeting
48
Industry challenges
Investment managers are becoming increasingly aware of their role in corporate
responsibility, not least through the ethical investment process. The customers whose
assets they manage require them to act as a responsible shareholder and hence issue
clear voting instructions. Investment managers need a fast, accurate way to send voting
instructions and to get quick, reliable feedback on the final outcome of the vote.
Investment Managers see increasing commercial advantage in becoming involved in
corporate governance. However, the effort involved can be great hence the existence of
proxy agents who can vote on behalf of the investment manager.
Clients need confirmation that a vote/instruction was accepted at a shareholders'
meeting and also need results, i.e. pass/fail per resolution.
Each year more than 85,000 investor meetings are held, relating to more than USD 100
trillion in global assets. Proxy voting allows investors, through their asset servicers and
agents, to vote in these meetings. But the proxy voting function has been characterised
by non-standard, proprietary processes, with frequent manual intervention. This has
resulted in a process that is laborious, and prone to errors which increase the costs and
risks of proxy voting. Until now, industry processes have failed to provide a standardised
end-to-end audit trail that could prove that a vote was received and processed with every
intermediary, much less that the vote was actually lodged at the meeting.
Solution
SWIFT’s Proxy Voting solution eases the frustration of all participants in the proxy voting
process, by automating proxy voting information flows. Meeting notification, voting,
confirmation and results dissemination messages are defined using ISO 20022 XML-
based standards. The solution enables issuers, investors and all intermediaries in the
proxy voting chain, including custodians, exchanges, central securities depositories
(CSDs) and proxy agencies, to communicate in a fully standardised way, with all the
security and reliability of SWIFTNet. This facilitates straight-through processing for an
activity that has historically been largely manual.
Standards
The eight ISO 20022 proxy voting message standards fully support the communication
needs of core proxy voting activities. These XML messages offer a far more complete
solution in this area than the ISO 15022 corporate action messages that have been
deployed in the past for proxy voting. As compared to these earlier messages, the XML
messages accommodate today’s proxy voting complexity, and cover the complete
lifecycle of messaging required to provide a full audit trail. The ISO 20022 messages also
offer a global standards based alternative to proprietary messages, and are aligned with
the recommended solution to eliminate Giovannini Barrier One
Benefits
Proxy Agencies are committed to SWIFT for intermediary traffic, and communicate to
shareholders' (investors) via proprietary portal or ASP solutions.
Compliance with the requirements of the EU Shareholders' Rights Directive.
The use of direct SWIFT messaging to the sub-custodian or the custodian's nominee can
improve deadlines significantly - these are otherwise compressed by the time needed by
proxy agencies and custodians to manage exceptions and manual processing.
49
3.3.13 Portfolio Administration

Investment managers need to provide reliable valuations to their clients. They also need
to exchange collateral with counterparties based on mutually equivalent valuations.
— Third party collateral agents provide valuation services (e.g. Euroclear, DTCC,
Clearstream, BNY, J.P.Morgan).
Collateral and exposure statement - MT 506
Collateral and Exposure Statement
Statement of collateral and exposure
Request cancellation of previously sent statement

Collateral Collateral
Re-send previously sent statement
Taker Giver
Copy to third party Copy to third party
Portfolio reconciliation is under development, see section 4 on initiatives and

solutions
Industry challenges
Independent portfolio valuation, prominently the pricing of the underlying asset classes, is
one of the major pain-points in the derivatives space.
As experienced during the sub prime crisis, there has been an increased concern about
the reliability of the product pricing and consequently about the correct valuation of the
underlying trades.
Any delay in accessing the pricing source or incorrect valuation of underlying products
can lead to reasonable financial losses as well as reputational loss.
Solution
Valuations can be incorporated in the MT 506 - collateral and exposure statement. The
TPV project (involving custodians, fund administrators and buy-sides) is looking at ISO
20022 messages, and there are also FpML based portfolio reconciliation messages (for
use between trading partners).
Benefits
Accurate and timely valuation and pricing of the underlying transactions and collateral is
essential. Getting daily prices for various CDOs and MBSs. in a standardised and timely
manner will result in correct margin requirements and will positively impact the
downstream process within financial institutions.
50
3.3.14 Payments and cash management

3.3.14.1 Payments initiation
During the course of carrying out their securities business, IMs will need to pay away and
receive monies (e.g. with regards to settlement of trades, dividend income, etc.), and
therefore can be both the ordering customer and the beneficiary customer in the diagram
below. Payments are made through the IMs financial institution, either directly through a
Bank, or indirectly through a Custodian. An IM may also be involved in the reconciliation
of cash positions between its own records, and those of its Banks and / or Custodians.
Customer payments
Request for transfer - MT 101
Single customer credit transfer - MT 103

Investment Financial
Manager Institution
Financial Institution Transfers
Financial Institution Transfer for its Own Account - MT 200
Multiple Financial Institution Transfer for its Own Account - MT 201
General Financial Institution Transfer - MT 202
Multiple General Financial Institution Transfer - MT 203
Investment Financial Institution Transfer Execution - MT 205 Financial

Manager Institution
Request for Financial Institution Transfer - MT 207
Notice to Receive - MT 210
XML (will be available in the future)
PaymentStatusReport
PaymentCancellationRequest
CustomerPaymentReversal
Manager CustomerDirectDebitInitiation Institution
51
Industry Challenges
Financial institutions and regulators continue to seek better control of the risks associated
with the explosive growth in the value of trading. Globally, risk managers are being asked
to measure, monitor and reduce exposure.
Solution
settlement / clearing instruction and confirmation process for Deliveries/Receipt against
Payment
Customer Payments: Category 1 messages deal with payments, or information about
payments, in which the ordering party or the beneficiary, or both, are not financial
institutions.
Financial Institution Transfers: Category 2 messages deal with payments, or information
about payments, in which all parties in the transaction are financial institutions.
— ISO 20022 message standards
— Leverage of existing FIN architecture
New ISO 20022 messages also cover cash payments related to derivatives.
The MT 103 is sent by, or on behalf of, the financial institution of the ordering customer,
directly or through (a) correspondent(s), to the financial institution of the beneficiary
customer. It is used to convey a funds transfer instruction in which the ordering customer
or the beneficiary customer, or both, are non- financial institutions from the perspective of
the Sender. In order to allow better reconciliation, the MT 103 supports full charges
transparency and structured remittance information and an unambiguous indication of the
interbank amount booked by the Sender/to be booked by the Receiver. The MT 103
gives the Sender the ability to identify in the message the level of service requested, i.e.
what service is expected from the Receiver for a particular payment, e.g. SWIFTPay,
Standard or Priority or any other bilaterally agreed service. The message also allows for
the inclusion of regulatory information in countries where regulatory reporting is
requested.
The MT 202 is sent by or on behalf of the ordering institution directly, or through
correspondent(s), to the financial institution of the beneficiary institution. It is known as
the cover associated with the MT 103
Benefits
The SWIFT network is primarily known for payments and used throughout the financial
industry in over 200 countries. More than 60 clearing systems, some carrying over 300k
payments a day, rely on SWIFT for the secure messaging connectivity and common
message standards essential to their smooth operation. TARGET2 participants use the
full set of messaging services: FIN, FIN Copy, InterAct, FileAct and Browse. They decided
to use the matured and reliable SWIFT messaging services for the communication
between the banking community and the Target2 SSP.
52
3.3.14.2 Cash Reporting

Cash management and payment status details are exchanged using the Category 9 FIN
messages or XML cash management messages. These messages are exchanged
between financial institutions, either on behalf of themselves, other financial institutions, or
customers.
Intra Day, FIN
Notification of debit to account - MT 900
Notification of credit to account - MT 910
Balance Report - MT 941

Account Account
Owner Interim Transaction Report - MT 942 Servicer
Intra Day, XML
Get/Return Account
Get/Return Transaction
Account BankToCustomer Account Report Account

Owner Servicer
End of day, FIN
Customer Statement Message - MT 940
Statement of detailed entries booked to account - MT 950

Account Account
Owner Servicer
End of day, XML
BankToCustomerStatement
BankToCustomerAccountReport
Account Account
Owner Servicer
53
Industry challenges
The need for standardised solutions is driven by:
— centralisation of liquidity management and treasury functions
— growing volumes of cross-border payments
— increasing volumes of 'time-payments' (payment versus payment, delivery versus
payment, real-time gross settlement systems)
— emergence of cross-border real-time payment settlement systems, in addition to
existing domestic systems
— increasing regulatory pressure on managing credit risk.
Solution
1. FIN messaging: SWIFT has a set of messages for end-of-day and intra-day cash
statements.
2. Cash Reporting focuses on the need for financial institutions to obtain real-time
account balance and transaction information from one or more service providers.
Cash Reporting supports the treasury management and intraday reconciliation business
processes.
The granular real-time information provided in the MXs offers the following substantial
benefits:
Just-in-time transaction management: Customers can control reconciliation
processes through use of selection criteria. For example, customers can set ranges
to sort the transactions by type or date.
Detailed transaction information: Customers can obtain detailed transaction
information during reconciliation. This information includes transaction number,
payment amount, and transaction description.
Transaction tracking: Customers can track high-value and risky transactions.
Multi-currency support: Customers can reconcile transactions in real-time across all
currencies and time zones.
Cash Reporting messages provide an industry-wide solution for the exchange of
transactional and balance information between an account owner and its account
servicing institution.
Benefits
Improved monitoring of global cash positions helps prevent accounts from inadvertently
being overdrawn or funds being left in accounts overnight. The customer's ability to
decide earlier in the day whether it must borrow funds, or whether to invest excess cash
results in better intraday liquidity management.
An investment manager can receive true end-to-end information in real-time from its cash
correspondents for transactions and balances. This gives a consolidated and
instantaneous view of all positions in all currencies.
54
From an IM’s perspective, the benefits are:

Liquidity Management – Real-time provision of information relating to incoming and
outgoing funds enhances the ability of an IM to manage its intraday liquidity position.
Risk Management – By integrating positions from multiple business areas, across
multiple currencies, it is possible to present a complete overview of exposure in real-
time.
Shorter reconciliation cycles – Improve error detection and resolution processes,
enabling cost reductions linked to more efficient intraday reconciliation.
End-to-end standardisation – Improve end-to-end STP through interoperability and
full automation across the entire life cycle of the payment transaction.
55
3.3.14.3 Exceptions and Investigations
Case Assignment Case Assignment

1 2
Financial Financial Financial
institution institution institution
B C D
Notification Of Assignment Case Assignment
3 4
Notification Of Investigation Notification Of Investigation

6 5
Resolution Of Investigation Resolution Of Investigation Resolution Of Investigation

9 8 7
Case assignment message

There is one specific 'case assignment' message for each of the four business activities:
RequestToCancelPayment
RequestToModifyPayment
Investment UnableToApply Account

Manager Servicer
ClaimNonReceipt
Case management message
AdditionalPaymentInformation
ResolutionOfInvestigation
NotificationOfCaseAssignment
RejectCaseAssignment
CancelCaseAssignment
RequestForDuplicate
Duplicate
Investment Account
Manager ProprietaryFormatInvestigation Servicer
DebitAuthorisationResponse
DebitAuthorisationRequest
CaseStatusReportRequest
CaseStatusReport
56
Industry challenges
The industry still faces a lot of manual payments investigations handling (i.e. payment
cancellation, modification, claim non receipt, unable to process payment). Follow-up is
primarily done over the phone. The widespread use of free format combined with the lack
of industry practice rules are the main blocking factors for further automation.
The long turnaround times and the lack of transparency/control on ongoing investigations
entails operational and financial risk. Moreover, the cost of dealing with enquiries varies
according to the level of automation within each organisation. Their average staff-related
cost per enquiry has fallen by 50 percent.
Solution
The solution is composed of three common components: SWIFT XML Standards,
messaging services and applications.
Exceptions and Investigations allows you to perfectly automate your enquiries process as
it provides you with a very strict business and communication protocol. A clear definition
of the actors, their roles, the communication flows and exchanged messages guarantee
higher STP rates while a clear rulebook endorses industry practice and best usage. The
solution results from the combination of ISO 20022 standards, a market practice
rulebook, our InterAct messaging service and a close partnership with third-party
application vendors.
The message standards cover all automatable enquiries generated either before or after
payment settlement, whether handled in a production, an investigations or a reconciliation
department. They cater for four main types of enquiries:
— Request for cancellation
— Request for modification
— Unable to apply
— Beneficiary claims non-receipt
The Exceptions and Investigations standards provide a strict business protocol. Actors,
roles and communication flows between parties are clearly specified and adhered to,
allowing smooth, predictable and streamlined enquiry management. These four
Exceptions and Investigations enquiries are generically supported by the case
management concept and workflow. In addition, rules such as the unique case ID and
the ‘nobypass’ are applied, thus ensuring straight-through processing of enquiries.
For each type of enquiry, a specific workflow defines the set of messages to be
exchanged between the parties involved in the original payment transaction. A total of 16
SWIFT XML standards messages have been developed to support the four main
exceptions and investigations activities.
Benefits
Get transparency on your enquiries
Support central accounting/treasury management
Reduce your enquiry cost
Allow better control of payables and receivables
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3.3.14 Collateral Management

These messages are typically sent between a collateral giver and a collateral taker to
provide details of collateral instructions, claims, substitutions of specific securities used as
collateral and reporting statements.
Collateral is required to ensure and to maintain the exposure coverage on OTC Derivative,
Repos, Securities Lending and Exchange margin agreements so that it remains balanced
in line with market fluctuations.
Resulting collateral messaging is conducted
(1) with collateral giver/taker
(2) with Triparty Agents.
Collateral margining and maintenance results in settlement movements for
cash/stock/bonds - covered elsewhere in other SWIFT messaging flows.
Bi-lateral
Margin Calls
Collateral Claim return - MT 503
Claim new/additional - MT 503
Response
Collateral proposal - MT 504
Collateral Status and Processing Advice (Response) - MT 507
Collateral administration
Taker Collateral Substitution - MT 505 Giver
Collateral and Exposure Statement - MT 506
Copy to third Copy to third

party party
58
Tri-party
Triparty Collateral Instruction – MT 527
Triparty Collateral Status and Processing – MT 558
Triparty Collateral and Exposure Statement - MT 569

Collateral Tri party
Taker/Giver Agent
Copy to third Copy to third

party party
Industry challenges
Growth in the number of legal agreements covering OTC Derivatives, Repo, Lending &
Borrowing transactions and exponential growth in the underlying trading portfolio sizes
directly impact the required number of margin movements and coverage activities. This
results in:
a) Operational risk: Lack of standardisation could result in failure to claim/ respond margin
requirements in a timely manner and at required frequency,
b) Potential loss of trading: Due to short-comings of process management, insufficient
exposure coverage can lead to blocking of trading lines
c) Regulatory challenges: Operations are for the first time considered in Basel II and FSA
is looking into the benefits of Collateral Management as credit mitigating factor.
Solution
SWIFT seeks to standardise processes with ISO 15022 messages. Adopting SWIFT
messages can reduce the manual/human error rate, but also frees up FTE effort and time
to focus on exception management. It also can help meet regulatory requirements, and
reduce costs in the face of increased business growth.
The settlement process is covered by the MT 54x.
Benefits
A comprehensive set of messaging standards which allow for automation of the
margining and negotiation process.
— ISO15022 message standards
— Leverage existing FIN architecture
— Majority of target clients are already SWIFT users: leverage existing product and
standards familiarity
— Possible extension of ISDA endorsement (based on joint work on FpML)
59
3.3.15 Regulatory reporting
Transaction report and status

TransactionReport
TransactionReportStatus
Intermediary
(eg, reporting agent)
or
Reporting institution Regulator
Direct reporting
Transaction report cancellation and status

TransactionReport
TransactionReportCancellationRequest
TransactionReportCancellationStatus
Intermediary
(eg, reporting agent)
or
Reporting institution Regulator
Direct reporting
Transaction reporting messaging suite,

using the UNIFI (ISO 20022) methodology
Transaction reporting flows

There can be up to three participants in the process - investment firms (reporting entities)
that provide the reports, regulators that receive and analyse the data, and intermediaries
that, in some but not all cases, act as report collectors on behalf of regulators.
As the diagram above indicates, there are three clear spaces in terms of messaging:
— between reporting entities and either intermediaries (such as exchanges) or directly to
regulators
— between intermediaries and regulators
— inter-regulator report sharing. This is being carried out exclusively on the system
developed by the Committee of European Securities Regulators (CESR).
60
Industry challenges
The picture of transaction reporting in the EU and EEA markets post-MiFID is a
complicated one, with greater reporting obligations to more regulators than was the case
previously. There is no uniform approach from individual market regulators about how
they collect these reports, either in terms of message formats or message channels.
MiFID also permits individual regulators to request additional data fields and to widen the
scope of reporting according to local market practice or requirements.
And this is only the first step. Although the solution meets the transaction reporting
challenge of MiFID, the service is also focused on helping customers satisfy regulatory
reporting requirements in markets worldwide.
Solution
SWIFT’s Transaction Reporting solution enables reporting entities to meet their
transaction reporting obligations, including those for MiFID (Markets in Financial
Instruments Directive). Transaction Reporting combines standardised messaging with a
standard platform, SWIFT’s FileAct store and forward service.
Benefits
Using SWIFT for transaction reporting will provide certainty for firms in terms of security
of delivery as well as consistency of data structuring for their reporting.
— reduced risk from structured data format and security of delivery
— reduced cost from re-use of existing SWIFT connection and non-proprietary data
standards.
The firm that operates without SWIFT will find the new regulatory requirements costly to
deal with, as it struggles with the inefficiency of non-standard data formats and multiple
connectivity mechanisms.
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3.4 Funds
End
Investors
(I)CSD Distributors
9 2
Banks 8
Concentrator
Investment 3
Manager
7 4
6
5
Transfer Trustee
Agents
Fund Sub Advisor

Administrator
SWIFT enables fully automated transaction processing and reporting between many
counterparties in the business cycle. The following diagrams illustrate how funds players
can utilise the Funds message set, and highlights the Investment Manager’s potential
involvement with the flow reference number quoted in the diagram above:
Note: It is recognised that an IM can play several of the roles depicted in the above diagram.
62
Pairs 1 2 3 4 5 6 7 8 9
Transaction cycle
1. Account management a a a a a
2. Order flows a a a a a
3. Transfers a a a a
4. Price report a a a a a
5. Cash forecast a a a
a a a a a a a a a
a a a a
6. Statements
(holdings or transactions)
7. Commissions a a a a
8. FPP (Fund Processing Passport) a a a a a
9. Payments a
10. Settlement a a
11. Corporate Actions a a
3.4.1 Funds flows

Current release
Account Opening Instruction
Orders (Subscriptions, Redemptions, Switches)
Transfers
Price Report
Cash forecast
Statements of holdings or transactions
Commissions
Investment Counterpart
Manager FPP (Funds Processing Passport)
Payments*
Settlement*
Corporate Actions*
63
Commission management
The functions involved in providing details of commissions (trailer or transaction related) to
fund distributors. These messages are in scope for future release and will become
available in the near future.
Related flows: Payments, settlement and corporate actions
For payments relating to investment funds transactions, the ISO 15022 payment
messages (see Chapter 3.3.14) on FIN can be used.
For settlement, Delivery versus payment style messages have not yet been built in the
Funds product as at publication. This is an area where market evolution will drive their
production. The existing model, which fits the standard operational processes used in the
global investment funds landscape, is to use a subscription or redemption message
which is linked to a specific payment message through the use of reference numbers.
For corporate actions and entitlement events of investment funds, the FIN based MT 56x
ISO 15022 corporate action messages (see chap 3.3.11). Payments, settlement and
Corporate Action messages specifically for investment funds have not been designed in
the new XML syntax.
Industry challenges
As an investment manager you put a great deal of effort into the search for distributors
who are willing to encourage their customers’ to invest into your mutual funds range. In
this fast growing business you are continually creating new products and unlocking new
distribution channels across the globe to satisfy the diversity of investor needs.
The challenge for the industry is to develop an infrastructure which can support the
anticipated growth in business. Already today the resulting order flows are highly manual
(e.g. 50% by fax in Europe, 90% by fax in Asia) and highly expensive. Directly related to
this is a high error risk due to manual rekeying of activity throughout the transaction
chain.
Solution
The Funds business solution enables you to communicate with your counterparties
using open, non-proprietary message standards in XML syntax that comprehensively
cover your flows. These XML based standards are recognised by industry leaders and
market associations as the de-facto investment funds industry market standards and are
part of the ISO 20022 XML standards.
Benefits of the SWIFT solution

Minimise risk, reduce costs
Distributors, fund management companies and transfer agents that have implemented
SWIFT in order to automate their fund distribution processes have reduced their
operational cost of handling orders by 50% to 70%. By automating this also removes the
risks associated with manual errors, lost faxes, or any doubts regarding the origin of an
instruction.
Improve customer service
Automating order capture eliminates errors, allowing information to be transported, stored
and reported in a timely and secure manner. Distributors that have implemented SWIFT
64
for order placement have been able to extend sales cut off times in their branches as the
burden of manual handling is removed. Fund management companies and transfer
agents also vastly improve their ability to meet the reporting needs of their distribution
networks.
Achieve scalability
SWIFT’s scalable and robust messaging platform can easily be deployed to support high
volumes and a large number of counterparties. This removes the burden and high cost of
developing and maintaining proprietary solutions for each counterparty. That scalability is
critical in the funds industry where order volumes may spike at particular times in the
year, or more regularly, just before the daily deadline. Automation nullifies the impact of
these spikes.
Access trading partners worldwide
With over 8,400 financial institutions, including the majority of players in the funds
community, SWIFT provides a single window allowing you to connect with your
counterparties directly, or via a concentrator or market infrastructure, using consistent
message standards. Transfer agents, custodian banks, broker- dealers, insurance
companies and fund administrators are just some of the players actively using SWIFT
today. In addition, other distribution channels, such as financial advisors can be reached
directly through closed user groups or indirectly via concentrator platforms such as fund
supermarkets.
Implementing end-to-end automation
SWIFT’s global partnering program now provides access to accredited Enterprise
Application Integration (EAI) providers, business application vendors, integration
specialists and consultants specialising in the investment fund industry. This ensures that
the leading fund accounting, transfer agency, order management systems and EAIs are
SWIFT enabled, facilitating end-to- end straight-through processing across your existing
systems.
Section 4 – Initiatives and solutions
65
4 Initiatives and solutions

SWIFT’s services and products cover a wide range of business processes in the
securities, investment funds, payments and treasury areas of the financial industry.
Transaction cycle Equities Fixed FX, MM Listed Commodities OTC Repos Funds
Income, derivatives Derivatives
Pre-trade / Trade FPP (Funds

trade capture Processing
4.2 Passport) 4.11
FX and securities post trade/pre-settlement: Allocation processing as well as confirmation matching - 4.3 and 4.4
SSIs - 4.6
Post-trade / Securities Securities Securities

pre- pre- Pre- Pre-
settlement settlement settlement settlement
Light connectivity - 4.1
matching matching matching

4.5 4.5 4.5
Clearing Commodities
& Settlement 4.10
Portfolio TPV (Total Portfolio Valuation)

Administration 4.7
Collateral Collateral management and portfolio reconciliation

management 4.8
Financing: lending Securities Financing

and borrowing 4.9
SWIFT is continually working with the securities industry to bring new products and
services to our existing, as well as potentially new, users. The following initiatives are
under way to increase our offering across new instruments and to cover more business
functions throughout the transaction lifecycle:
4.1 Light connectivity

Alliance Lite is the latest addition to our connectivity products suite. It complements our
well known products in the Alliance family, but is fundamentally different. It is a SWIFT
Internet-based service that provides direct, secure and low cost access to SWIFT
messaging services. New customers do not have to install SWIFT specific connectivity
products at their premises, but can access the Alliance Lite web-service using their
standard Internet connection with a SWIFT-issued hardware security token.
Alliance Lite will support both manual operations through a standard Internet browser
with message data entry and business features, and integration with the back-office
through a lightweight auto-client. It is positioned for low volume customers.
66
4.2 Trade capture

As part of its intention to capture trades closer to the source, SWIFT has entered into a
partnership with Bloomberg to jointly provide a front-to-back office multi-asset class
product in full application service provider (ASP) mode.
As part of the agreement, Bloomberg will provide its buy-side clients with direct securities
settlement notification services, direct transfer agent access for mutual funds orders and
FX messaging, all via SWIFT. In addition, any investment manager using Bloomberg’s
OMS will be able to benefit from matching and automatic nostro agents notifications
services straight from the Bloomberg terminal through integration with Accord. The
results of each of the processing steps will be retrieved and monitored on the Bloomberg
terminal.
The service will be rolled out in a series of phases during 2009 and 2010.
4.3 Automating FX Allocations

There is no current standard automated market practice used by investment managers
for communicating the allocation to their counterparties. Executing brokers typically have
to cope with a mixture of faxes, emails, spreadsheets and phone conversations etc, all of
which are manually intensive.
The SWIFT FIN MT 303 is an FX allocation instruction that can be used by the
investment manager to instruct its counterparty of the allocation details for a block FX
deal.
The MT 303 will be routed by the receiving bank to the relevant system, which can be
enhanced to automatically generate the necessary allocated trades and feed them
through to the FX back-office processing environment, thereby providing a straight-
through process for FX allocations.
Through implementation of a standard process using the MT 303 and replacing faxes,
emails and other proprietary communication mechanisms, both the investment
management and broker community can improve efficiency, cut costs and reduce risks.
4.4 FX and securities post-trade/pre-settlement

As part of SWIFT’s post-trade/pre-settlement programme, SWIFT is in the process of
defining a solution to streamline, automate and standardise messaging flows between
brokers and their buy-side clients. The buy-side clients in this context include investment
managers, hedge fund managers and hybrids.
The solution will cover all buy-side to broker flows as well as being cross-asset class
(ie. FX and securities). These will include confirmations (and associated matching as
appropriate), give-up notifications, allocations, payments, statements and custodian
notifications sent by the buy-side to their Brokers. This initiative sits amongst a broader
portfolio of initiatives to improve processing with the buy-side.
Two key components of this solution offering are envisaged to be lighter connectivity for
the buy-side (i.e. “Alliance Lite” supporting relevant message types) and more flexible
commercial models to be supported for both brokers and their buy-side clients.
67
4.5 Securities Pre-settlement Matching: Accord

The new Accord Securities Pre-Settlement Matching Solution will be launched in 2009.
It initially supports two different market segments:
1. Prime Brokers
SWIFT is working with six of the world’s major prime brokers to develop and operate a
centralised pre-settlement matching solution. The Accord service will be used to match
details of trades originating from the global hedge fund community. These equities and
fixed income trades are made between a hedge fund and an executing broker.
The hedge fund manager sends the details to the prime broker who inputs them to
Accord to match against the confirmations sent by the counterparty to the trade — the
executing broker. SWIFT and the prime brokers are working together to ensure the wider
community of brokers worldwide takes advantage of the new solution. The executing
broker sends trade and settlement details for each hedge fund allocation in an MT 515
message to Accord to be matched with an MT515 sent by the prime broker. The Accord
solution reduces costs in the industry required to manage the numbers of exceptions,
provides a single solution for the whole community and improves service to the hedge
fund clients.
2. Broker to Broker
The initial release also supports the confirmation matching of over-the-counter (OTC) trades
for fixed income and equities made between the brokers themselves, that are not
automatically cleared by an exchange or trading platform. The solution replaces those trade
confirmations sent by fax, with electronic confirmations that can be automatically matched.
The specification for Accord has taken these needs into account, so that the solution for
prime brokers can also be used for broker-to-broker confirmations, with no impact on
functionality or operations. Any type of institution that wants to confirm their trades
automatically instead of using fax could potentially use this solution e.g. buy-side,
corporates et cetera. Each trading entity can now send trade and settlement details of their
OTC trades in an MT 515 message to Accord to be matched with an MT 515 sent by the
counterparty to the trade. The Accord solution here again reduces costs in the industry
required to manage the numbers of exceptions, reduces reliance on fax confirmations,
removes risk of fraud with electronic confirmations, and opens up the possibility to reduce
the trade cycle period.
These two new securities services establish Accord as a multi-asset class
matching service, and open up many new opportunities for SWIFT’s community
within the securities industry.
4.6 Standing Settlement Instructions (SSI)

In order to progress the standardisation of market practice with regards to SSIs, SWIFT
intends to produce a set of ISO 20022 messages for usage in 2009 to enable market
participants to notify their counterparties of a change in their SSIs in a standardised
manner. These messages will include all asset classes.
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4.7 Total Portfolio Valuation

Industry challenges
Currently, staff spend hours reconciling and recalculating portfolio valuations. Cross time-
zone issues create significant delays. Nobody goes home until the NAV is done; failure is
not an option.
Solution
SWIFT’s Funds service exists and is designed to cater for all funds. The TPV message
has significant use among funds players and effectively consolidates a number of existing
Funds messages.
Messages within the TPV suite of messages will include:
Request for Statement or Report
Total Portfolio Valuation Report
Cancellation of Total Portfolio Valuation Report
Accounting Statement of Holdings*
Accounting Statement of Holdings Cancellation*
Cash Account Management Report*
Cash Account Management Report Cancellation
General Ledger Report
Cancellation of General Ledger Report
* Asterisk denotes that an ISO 20022 message currently exists or is under final review
The official release of this solution is scheduled for Q4 2008.
4.8 Collateral management and portfolio reconciliation

SWIFT continues to follow a separate approach towards bilateral and triparty collateral
management due to the distinct requirements of the underlying products and market
segments.
Next steps:
Triparty Collateral Management
SWIFT’s Standards department is currently working on the reverse engineering of Triparty
messages to ISO 20022. As part of the ongoing EU Securities Harmonisation efforts and
Removal of Giovannini Barrier 1 study, Triparty collateral messages have been identified
as “core” messages to be reverse engineered to ISO 20022.
SWIFT Standards has created the initial version of the Business Validation Document.
This document will be further discussed with the leading triparty agents and involved
parties such as triparty system participants during September 2008. Timelines and
deliverables are still in progress.
Bilateral Collateral Management
The differences in communication methods and the content of information exchange
between margin requirements and dispute resolution has led SWIFT to focus on the
collateral management process and portfolio reconciliation as two distinct projects.
69
1. Collateral management process:

Due to the existing solution offering and the strength of the organisation, the market sees
a role for SWIFT in the following areas:
Priority 1: “agree and process call” – This step contains the issuance of the margin calls
to cover different types of exposure and the consecutive negotiation of the margin call
(agreement/disagreement of the call amount, proposal of collateral and settlement
instructions). All these communications are part of the so-called “margin call workflow”
which are typically performed via non-standard email exchanges.
Priority 2: “provide reporting” – This is indicated to be a secondary priority area due to the
lack of content agreement in the market. Although market players indicate the importance
of common reporting standards, there is also a strong trend towards providing flexible
reporting solutions meeting clients’ needs.
Our aim is to leverage the usage of the existing FIN messages as well as investigating the
market appetite for an ISO 20022 based suite of messages.
2. Portfolio reconciliation:
Lack of data standardisation next to the valuation discrepancies is one the main root
causes of portfolio discrepancies. Within this scope, SWIFT has been approached to play
a role as a standards organisation working together with other standards bodies such as
ISDA, for FpML.
As a messaging solution, we will continue to promote MT 506 – Collateral & exposure
statement message – as well as actively participate in FpML portfolio reconciliation
initiatives.
4.9 Securities Financing

Our securities financing project will cover not only securities lending and borrowing
activity but also repo and reverse repo. The project aims to cover trade confirmation and
matching, and expand on the reporting and settlement aspect for these product lines –
moving closer to the source of the trade.
At a high level, business activity will be evaluated according to three pillars:
Discovery/Query Phase: On the pre-trade trade side SWIFT will collaborate to
develop new messages together with FPL (FIX Protocol Limited).
Trade confirmation and matching: SWIFT is at the early stages of investigating the
market requirement for securities lending and borrowing trade confirmation and
matching. The aim is to leverage the matching functionality of Accord.
Settlement and reporting: there are ongoing initiatives to build MT 54x in ISO 20022
to cover specifically securities financing transactions.
SWIFT is also at the early stages of market consultation on reporting requirements,
fees and rebates, recalls and buy-ins.
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4.10 Commodities
SWIFT is currently actively contributing to the activities of the FpML Commodities
Working Group where structures have already been finished for a Commodity Underlyer,
Commodity Swaps (fix/float and float/float) and Commodity Options. The Group is
currently looking at physically settled commodity trades.
As SWIFT is already carrying FpML messages on the network. It is the intention to
eventually do the same with commodity messages.
The Category 6 MT messages were expanded in the 2008 Standards Release to now
cover some base metals, and Standards is investigating possibility of expanding these to
be used with other commodities as well.
4.11 Funds distribution

The FPP ( Funds Processing Passport) is a standardised factsheet, containing all the
operational information required to correctly initiate a subscription/redemption into an
investment fund. The passports are created by the fund promoters and distributed via
various channels, including data providers. SWIFT is analysing the creation of a single
point of entry for collecting and/or distributing the FPP. These messages are in scope for
future release and will become available in the near future.
Section 5 – Value added services: Applications
“It was great to find a product on which we have to do no IT

work. SWIFT develops an industry standard for matching,
and all we do is plug it in. As it changes, we don’t play a part
in the development work; we just get a better solution. In a
brokerage house, a software solution that is seamless to
management is an absolute godsend.”
Dennis Sweeney, CoTreasurer Europe & Middle East, Newedge Group
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5 Applications
5.1 SWIFT’s Accord matching application
Enabling real-time matching and exception handling for foreign exchange, money market
and derivative confirmations
SWIFT’s Accord matching application is a fail-safe matching and exception handling
solution for your foreign exchange, money market and OTC derivative confirmations also
Equities and FI. Deployed on fault tolerant, duplicated hardware, and made accessible
through SWIFT’s secure IP network, Accord provides you with the combined benefits of
both a central and an in-house system, whether or not your counterparty is also an
Accord user.
Accord is unique in that it allows you to have a single window on all your treasury and
derivative deals, independent of:
Settlement method: bi-laterally-netted, gross, CLS or SwapClear
Financial instrument: Accord matches confirmations for foreign exchange, money
market and derivative deals
Counterparty: Accord does not require your counterparties to be Accord subscribers
as well; it can handle all your confirmations sent and received over the SWIFT
network. Accord can also process messages that were not exchanged via the
SWIFT network like affirmations of brokers.
How does it work?
When a foreign exchange, money market or derivatives deal has been agreed, both
parties confirm this deal by sending the appropriate SWIFT confirmation message. If
either or both parties are Accord subscribers, SWIFT copies these messages to the
central Accord matching service. Accord matches all confirmations in real-time. As
confirmations, corrections and cancellations are received, Accord automatically updates
the matching status in real-time.
Reduce risk
Reduction in operational risk is a key factor in the organisation of a foreign exchange,
money market or derivatives back office. Increased regulatory scrutiny has also
suggested not only that operational risk should be measured, and kept to a minimum, but
also that specific amounts of regulatory capital be put aside to mitigate it.
Accord subscribers significantly reduce operational risk through their reliance on a central
matching system. Accord safeguards all confirmations, and maintains a historical trace of
all matching results. When both parties to a deal are subscribers to Accord, there is
100% certainty that the matching results will be identical for both parties.
Reduce cost
By subscribing to Accord rather than using a local matching system, IMs can save on the
resources normally required to keep a local matching system operational, maintain
message standard changes, and provide the support it would require internally. A central
matching solution also means that your usage of it is scaleable between a few hundred
confirmations per month and several thousand per day.
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The following instruments with their respective message types are currently matched in
Accord:
Message Types FX MM Derivatives EQ/FI Commodities
MT 300
MT 305
MT 306
MT 320
MT 330
MT 340
MT 341
MT 360
MT 361
MT 362
MT 392
MT 515 Q2 2009
MT 600 Planned
The service will be extended to cover the matching of IRS (Accord currently already
matches IRS in FIN format) and CDS.
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5.2. SWIFT’s Affirmations application

Currently, many buy-side treasury market deals are either confirmed by email or fax or not
confirmed at all. The operational and settlement risk introduced by this manual process is
unacceptable in today’s market environment. SWIFT’s Affirmations application shows the
details of all your trades with all your counterparties on a single screen. Accepting or
rejecting them is done by a simple mouse click. As a result, your exposure to risk from
unconfirmed trades is eliminated.
Submitting party Affirming party
2 MT 3xx
MT 300 or 320 6 4
3
6 5 or
Central hub
Affirmations process flow
How Affirmations works

The above figure illustrates the Affirmations process flow.
1. The trade is executed between two institutions. In the context of the Affirmations
service, we refer to the two sides as submitting party (submits the trade confirmation to
the service) and affirming party (accepts or rejects the trade), either directly or via a
broker.
2. The submitting party generates an MT 3xx confirmation and sends it to the central hub
at SWIFT. To indicate that this confirmation is to be affirmed, you can use a code word in
field 72 or the Affirmations GUI.
3. The affirming party views all trades in a user-friendly GUI running inside SWIFT’s
Alliance WebStation.
4. Specific buttons allow the user to accept or reject every transaction. At any stage, a
chaser may also be sent to complement the acceptance or rejection.
5. All actions are recorded in the Affirmations database and can be reviewed at any time.
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6. The submitting party can see the resulting status of his confirmations in the GUI in real
time. Alternatively, a FIN message with the status of a trade can be sent for integration in
back office systems. An API is available for even tighter integration.
Benefits of Affirmations
Minimise risk
A reduction in the time during which there is uncertainty about a trade enables
operational risk to be minimised. Faster error detection prevents delays in processing,
allows better management of exposure and reduces settlement risk.
Reduce operational costs and improve efficiency and STP
Using Affirmations means less manual intervention, such as handling faxes. This reduces
processing costs. Operational efficiency is improved, enabling higher rates of straight-
through processing (STP). No IT staff are required, as the Affirmations application is
operated centrally by SWIFT.
Archival and audit trail
An integrated audit trail provides binding evidence of trades which are securely stored at
SWIFT. The optional Long Term Archive (LTA) enables you to outsource your data storage
to SWIFT. LTA stores all information related to a trade for a period of ten years from
maturity date. User friendly search functionality provides easy access to archived data.
Lower response time
Trades appear in real time in the graphical user interface (GUI). You can agree or disagree
within seconds. Chasers allow you to communicate instantaneously with counterparties.
Multiple asset class coverage
Affirmations supports multiple asset classes – foreign exchange (FX), FX options, money
market instruments and interest rate swaps.
Affirmations caters for the following SWIFT message types:

MT 300 - Foreign Exchange Confirmation
MT 305 - Foreign Currency Option Confirmation (vanilla)
MT 306 - Foreign Currency Option Confirmation (exotic)
MT 320 - Fixed Loan/Deposit Confirmation
MT 330 - Call/Notice Loan/Deposit Confirmation
MT 340 - Forward Rate Agreement Confirmation
MT 341 - FRA Settlement Confirmation
MT 360 - Single Currency Interest Rate Swap Confirmation
MT 361 - Cross Currency Interest Rate Swap Confirmation
MT 362 - IRS Rate Reset Confirmation

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5.3. Securities Market Infrastructures

Today, SWIFT is the messaging hub for many clearing and settlement systems in
payments, securities, foreign exchange and derivatives. Especially in clearing and
settlement, SWIFT is an established force in the Securities Market Infrastructures space.
Clearing and settlement infrastructures
A Market Infrastructure is a system administered by a public organisation (for example,
a central bank) or other public instrumentality, or a private and regulated association or
entity, that provides services to the financial industry for trading, clearing and settlement,
matching of financial transactions, and depository functions. A market infrastructure
encompasses a set of business rules and obligations, admission rules, operating rules,
business communication flows, and related communication channels.
A Securities Market Infrastructure (SMI) is an institution (frequently operating effectively
as a commercial ‘monopoly’) providing utility services to participants in the securities
markets. The mission of each Securities Market Infrastructure is to facilitate the efficient
processing of securities transactions.
For many of the leading Securities Market Infrastructure systems worldwide, SWIFT, ISO
15022 and ISO 20022 standards are central to their communications model. While the
infrastructures themselves benefit from improved productivity and operational efficiencies,
all participants gain from the reduction in risk and reduced costs for domestic and cross-
border transactions.
While most Securities Market Infrastructures use the FIN messaging service to exchange
financial data securely, cost effectively and reliably, a range of Securities Market
Infrastructures offer interactive or file transfer services using InterAct, FileAct and / or
Browse.
Securities Market Infrastructures can be divided into the following segments:
Exchanges
Matching Utilities
Clearing Houses / Central Counterparties (CCPs)
Central Securities Depositories (CSDs)
Regulators / Financial Authorities
Specific Securities Market Infrastructures and SWIFT solutions will be relevant for specific
types of securities institutions
Broker/Dealers
Clearers
Custodians
Investment Managers
Settlement Agents
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5.4. Banking Market Infrastructures

In payments, more than 60 clearing systems, carrying from 500 to over 300,000
payments a day, rely on SWIFT for the secure messaging connectivity and common
message standards essential to their smooth operation.
Financial institutions and regulators continue to seek better control of the risks associated
with the explosive growth in the value of trading. Globally, risk managers are being asked
to measure, monitor and reduce exposure.
In response, industry associations and central banks have developed market
infrastructures for clearing and settlement. Because they are multilateral, they need a
trusted third party to provide secure, reliable and proven messaging solutions. SWIFT is
increasingly used by financial institutions to fill that role.
Additionally, SWIFT is now complementing its position in the wholesale, high value
clearing market by extending its portfolio of messaging solutions to the low-value
payments and ACH market.
Proven reliability, availability and resilience make SWIFT a first choice when choosing a
market infrastructure provider in both the high and low value payments clearing markets.
Section 6 – Standards and industry guidance
“Without SWIFT we would certainly need to double the

because you would have to pull in temps. This would
77
6 Standards
6.1 Introduction
Standards are a core element and foundation block of SWIFT and its offering to the
industry. We are committed to the collaboration of efforts and convergence of standards,
so that our community can benefit from cost savings, eliminate redundancies and seize
the opportunity to expand into previously untapped markets.
SWIFT offers a range of standards, in multiple syntaxes, which facilitate the link between
front and back office operations of financial institutions. These standards lead to higher
STP rates throughout the entire securities, payments and treasury transaction chains.
In order to promote harmonisation and interoperability through common standards for the
benefit of financial services industry, SWIFT works in close co-operation with other
international standards setters and financial industry bodies.
SWIFT Standards looks to develop business standards in support of transactions in
financial markets for payments, securities, treasury and trade services. Standards are
developed at SWIFT in response to community and regulatory business requirements in
conjunction with the industry.
6.2 SWIFT Standards Industry Involvement
6.2.1 International Organisation for Standardisation (ISO)

ISO is the world’s largest developer and publisher of international standards. ISO is a
network of the national standards institutes of 157 countries, one member per country,
with a Central Secretariat in Geneva, Switzerland, that co-ordinates the system.
SWIFT is actively involved as a category “A” liaison organisation for ISO Technical
Committee 68 (TC68), responsible for financial services standards and serves as
registration authority for a number of ISO standards related to financial industry, including
the ISO 15022 and ISO 20022 message standards as well as ISO 9362 (BIC) and ISO
10383 (MIC).
6.2.2 The Giovannini Group

The Giovannini Group is a group of financial market participants, under the chairmanship of
Alberto Giovannini of Unifortune Asset Management, which advises the European
Commission on financial market issues. The group has focused on identifying inefficiencies in
EU financial markets and proposing solutions to improve market integration.
The Group has issued four reports, the last of which focused on EU cross-border clearing
and settlement arrangements. It highlighted the fragmented nature of the EU clearing and
settlement infrastructure for cross-border transactions, and made several
recommendations for the removal of barriers that would lead to the improvement of the
current environment.
“The definition of formats and protocols (for standards in financial communications)
should build on the work already accomplished by SWIFT and the Securities Market
Practice Group with the aim of removing the difficulties caused by proprietary systems
and free data fields.” Giovannini
78
SWIFT continues to work with the Giovannini Group, the European Commission and the
community to work towards the removal of barriers identified in the Giovannini reports.
6.2.3 Financial Products Markup Language (FpML)

FpML is the standards arm of the International Association of Swaps and Derivatives
(ISDA) which provides standardisation for the electronic processing and dealing of
financial derivatives instruments.
As a member of the FpML steering committee, SWIFT works closely with FpML and ISDA
on enhancing and furthering the standardisation of OTC instruments within the FpML
standard itself as well as actively working towards the development of ISO 20022
business models for the OTC business.
6.2.4 The Financial Information eXchange Protocol (FIX)

The FIX Protocol is a messaging standard developed for the electronic exchange of pre-
trade and trade messages between financial institutions, primarily investment managers,
broker/dealers and exchanges.
As a member of the FIX Global Technical Governance Board, SWIFT is an active member
of the FIX protocol organisation and supports the advancement of the standard through
participation in various working groups and committees.
SWIFT and FPL have collaborated on the development of an ISO 20022 model for the
pre-trade/trade business based on the FIX and ISO 15022 standards. Future efforts
between SWIFT and FPL will focus on extending asset class coverage and transactions
within the pre-trade/trade business model and additional models supporting post-trade
activities for listed derivatives, fixed income and cash securities.
6.3 Market Practices
6.3.1 Global Market Practice Groups

Global market practice groups are focused on creating globally harmonised market
practices in support of enhancing straight-through-processing (STP) within the financial
services industry. SWIFT currently facilitates global market practice groups for the
securities, payments and foreign exchange businesses.
6.3.2 Securities Market Practice Group (SMPG)

The SMPG focuses on harmonising market practices for the securities industry with a
concentration on settlement, reconciliation, corporate actions and investment funds. The
group’s efforts concentrate on the agreement and implementation of market practices
using the ISO 15022 and ISO 20022 standards to enhance STP. The SMPG membership
consists of representation from 35 markets consisting of investment managers,
broker/dealers, custodians, central securities depositories and regulators. Membership to
the SMPG is coordinated through localised National Market Practice Groups (NMPGs).
79
6.3.3 Payments Market Practice Group (PMPG)

The PMPG works towards harmonising market practices for the payments industry in
response to changing regulatory requirements and to further STP at the global level by
reviewing local practices for lack of clarity, incorrect implementation of standards and
differing interpretations of best practices and providing recommendation for
harmonisation.
The group concentrates on the agreement, recommendation and implementation of
market practices using the ISO 15022 and ISO 20022 standards to enhance STP in the
payments industry. The PMPG membership is an international organisation with
representatives from the three geographical regions, EMEA, Americas and Asia-Pacific.
6.3.4 National Market Practice Groups (NMPGs)

National market practice groups, similar to the global groups, are focused on creating
harmonised market practices; however they concentrate on local domestic market
harmonisation for a specific country or region. The NMPGs also serve as members to the
global market practice groups. SWIFT participates in a number of the 35 local market
practice groups globally.
Section 7 – Messaging
“Without SWIFT we would certainly need to double the

because you would have to pull in temps. This would
81
7 Messaging
SWIFT provides a range of messaging services for different needs as well as a set of
related tools to help you get the most out of them.
7.1 Transaction exchange

SWIFT offers secure, reliable and resilient, access-controlled store-and-forward
messaging services to exchange structured messages. Value added processing includes
message validation to ensure messages are formatted according to SWIFT message
standards, delivery monitoring and prioritisation.
7.1.1 FIN
FIN is SWIFT’s core store-and-forward messaging service. It enables the exchange of
individual structured financial messages in a secure and reliable way. FIN enables more
than 8,700 financial institutions in more than 209 countries to exchange financial data
securely, cost effectively and reliably. In 2007, FIN carried more than 3.5 billion messages.
Benefits FIN is a secure, reliable and resilient, access-

controlled, structured store-and-forward messaging
Messages
service. Value added processing includes message
Secure and reliable
validation to ensure messages are formatted
STP-oriented
according to SWIFT message standards, delivery
30 years of experience
monitoring and prioritisation, message storage and
retrieval. It is based on a distributed processing
architecture with full, built-in redundancy to ensure
maximum availability.
FINCopy and FINInform are value-added features on FIN that enable the automatic
duplication of selected messages to a third party.
7.1.2 FINInform
FINInform is a value added feature of FIN that automatically duplicates messages based
on predefined parameters. The flexibility of FINInform makes it an ideal solution to cater
for your copying needs in multiple business scenarios.
Benefits FINInform enables the duplication of predefined

message types sent and/or received by service
Automated message copy
participants and simultaneous copy to a third party,
Flexibility
for instance the head office of an institution, or a an
Ease of implementation
outsourcing agent.
Security and reliability
FINInform is a simple, flexible and secure solution to
cater for your intra or inter-institutional copying needs
in multiple business scenarios for example,
outsourcing, resilience and risk management.
82
7.1.3 FINCopy
FINCopy is a value added feature of FIN that enables the sender of a message to trigger
a copy to a third party for authorisation or further processing. FINCopy provides the ideal
solution for the monitoring of bilateral financial transactions by a central institution.
7.2 Bulk data exchange

SWIFT bulk data exchange services allow secure and reliable transfer of structured data,
either formatted to specified standards or free format, for immediate or deferred delivery.
7.2.1 FileAct
FileAct allows secure and reliable transfer of files and is typically used to exchange
batches of structured financial messages and large reports.
Benefits FileAct supports tailored solutions for market

infrastructure communities, closed user groups and
File transfer
financial institutions. FileAct is particularly suitable for
Secure and reliable
bulk payments, New Global Note certificates and
Flexible
associated documents, securities value-added
Low cost
information and reporting, and for other purposes,
such as central bank reporting and intra-institution
reporting. FileAct is also recommended as
replacement for the IFT service.
7.3 Interactive services

SWIFT offers interactive services that are well suited to mission and time-critical systems.
It allows for either an application to application or a person to application mode, that
requires execution in seconds.
7.3.1 InterAct
InterAct is SWIFT’s interactive messaging service supporting the exchange of messages
between two parties.
InterAct is well suited to mission- and time-critical applications such as Continuous
Linked Settlement (CLS), SWIFT’s Accord service or real-time gross settlement systems
Key features Designed to complement FileAct and FIN, InterAct
can support tailored solutions for market
Messages
infrastructures, closed user groups and financial
Secure and reliable
institutions.
STP oriented
XML-based With InterAct, institutions and communities can
exchange messages in an automated and interactive
way — an application sends a request message to
another application and receives an immediate
response message.
(RTGS).
83
Messaging
InterAct messaging features include:
Interactive exchange of messages in synchronous or asynchronous mode
Standard XML message envelopes
Trusted time and time-stamping
Support of multiple services
Support of closed user groups
XML syntax validation
Store and forward mode
Security
access control
access control management
data integrity and authentication
data confidentiality
non-repudiation of message emission
7.3.2 Browse
Browse in a secure, reliable environment: Browse combines the user friendliness of web
technology with the security features offered by SWIFTNet.
Key features Browse is based on the "https" internet standard

protocol. Designed to complement FileAct and
Browsing
InterAct, Browse offers customers the capability to
Secure and reliable
browse remote web servers using Alliance
Internet standard protocol
WebStation.
Easy integration in existing
web servers For communications of a more sensitive nature, the
Cost effective browsing capability provides direct access to the
communication service secure messaging features of InterAct and FileAct,
offering authentication, encryption and non-
repudiation. Such communication may, for example,
include a request for more details or initiation of
transaction based on the browsed data.
7.4 Directories
SWIFT publishes a number of reference data directories that are indispensable for
improving straight-through processing.
Bank and business identifiers

BIC and BEI: Identifying your financial institution
with the Bank Identifier Code (BIC).
Identifying your corporation with the Business

Entity Identifier (BEI).
84
Directories
BIC Directory BICPlus IBAN Directory
Lists the BICs issued under ISO 9362 to the A comprehensive database that combines the
financial institutions and corporates that need to BICs and their details with the national clearing
be identified in FIN payments traffic. codes of some 60 countries.
SEPA Routing Directory Countries, Curren cies, Holidays Directory
This directory tells you which beneficiary bank is Contains country specific payment processing
SEPA adherent and ready to process your information.
payments, and how you can reach it.
Services Directory IBAN Registry
A look-up tool with a file extraction facility that SWIFT registers new IBAN formats under the ISO
shows all participants in services and SWIFT 13616 standard. SWIFT publishes all registered
solutions implemented on SWIFTNet. IBAN formats (one per country) in the free
downloadable ISO 13616 IBAN Registry
document.
BIC Database Plus BIC Enqu iry Tool
The BIC Database Plus is a directory that will The BIC Enquiry Tool is a downloadable software
cease to exist in November 2008 and that cannot tool that allows you to look-up data in the
be ordered anymore. downloaded directory files.
Directory Downloads BIC Online Professional
If you are subscribed to a downloadable version of Access the online look-up tool for consulting the
a directory then you can download the data from complete BIC Directory, and the BIC history, on
this page. your internet browser (requires subscription). The
content is updated daily to reflect the urgent BIC
(de)activations. It is an ideal tool for message
preparation and repair.
Data Registration Services
Register a new or modify a BIC or BEI under ISO

9362.
Register a new IBAN format under ISO 13616.
Change your institution’s data published in

SWIFT’s directories.
85
7.5 Business intelligence

Data-driven decision making made easier
The Watch portfolio of online reporting and analytical products puts critical business
intelligence about your financial institution and SWIFT to work for you by giving you
monthly updates of your traffic flows, market shares, messaging costs and total SWIFT
expenses.
Watch Analyser Watch Reports
Watch Analyser gives you direct, easy access to For users who do not require Analyser’s
business intelligence about the global financial on-demand availability and breadth of analytical
industry. You can analyse your own total cost of power, the Watch Reports provide convenient
ownership in SWIFT and performance over SWIFT, subscriptions to the most common analyses that
and access key data about SWIFT across markets financial institutions require. With Watch Reports,
and countries. you don’t have to search for the information you
need. Now you get the latest updates each month
This means easy, instant access to critical data on how your business is doing.
that helps you to understand your own business
better.
7.6 Simulation Testing and Qualification Services (STaQS)

The Simulation Testing and Qualification Service application is a messaging testing
platform that enables customers to test MX and MT industry standards in the scope of
SWIFT’s solutions and FIN. STaQS test results are accessed using the STaQS interface.
Benefits:
Improve compliance with industry market practice
Deal with local variations in various world markets
Improve counterparty automation
Reduce manual steps and exception processing
Benchmark progress for corporate actions improvement projects
Section 8 – Connectivity
“Before we had SWIFT, we had proprietary terminals all over

the place. Staff needed to be trained on all these different
systems and data was re-keyed all day long. Now, we simply
have one system.”
87
8 Connectivity
8.1 Who can connect to SWIFT?
The following table highlights the wide variety of financial industry players who can
currently connect to SWIFT. Some players can connect directly to SWIFT (e.g. IMs,
Banks, Custodians, etc.). Others, such as Corporates (e.g. corporate customers of
Banks), are able to connect to SWIFT indirectly via such services as an MA-CUG
(member administered closed user group). This allows SWIFT Members to establish their
own closed user group.
Financial Industry Players Connect to Connect to

SWIFT Directly SWIFT Indirectly
Investment Manager
Broker / Dealer
Hedge Fund
Central Counterparty (CCP)
Exchange
Virtual Matching Utility
Electronic Trade Confirmation Provider
Custodian
[International] Central Securities Depository
Market Data Provider
Regulators
Corporates
Insurance Companies
Distributor
Investors Intermediary
Fund Administrator
Transfer Agent / Registrar
Portfolio / Fund Manager
Concentrator / Hub
Custodian / Trustee
Bank
Clearing Systems
RTGS (Real Time Gross Settlement) Systems
Treasury Counterparties
Market Infrastructures (e.g. CLS)

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8.2 Is my institution eligible to join?

You can join SWIFT if your institution is in one of the following categories:
1. Full member: If you are a bank, eligible broker-dealer or a regulated investment
management institution, then you can join SWIFT as a full member.
2. Submember: If you are owned and controlled by a parent institution that is already a
member, then you can join SWIFT as a submember.
3. Participant: If you are one of many different types of institutions that play a role in the
financial industry, then you can join SWIFT as a participant. Examples include money
brokers, securities exchanges and market data providers.
4. Corporate: As a corporation, you can also join SWIFT and communicate with your
financial counterparties over the SWIFT network. Different models exist for privately
held and publicly traded companies.
8.3 Categories of SWIFT User (until September 2009)

There are three categories of SWIFT users:
A.1.1 Shareholder (Member)
An eligible organisation holding a share in S.W.I.F.T. SCRL, including banks, eligible
securities broker-dealers and regulated investment management institutions. Details
about the SWIFT membership criteria can be found in the SWIFT By-laws.
A.1.2 Non-Shareholders
A.1.2.1 Non-Shareholding Members
A Non-Shareholding Member is an organisation which complies with the eligibility criteria
of a Shareholder (Member) which has either chosen not to or is prevented from becoming
a Shareholder.
A.1.2.2 Sub-Member
An organisation more than 50 percent directly or 100 percent indirectly owned by a
Shareholder and which meets the criteria set forth in the first paragraph of Article 8 of the
Articles of Association. A Sub-Member must fall under full management control of the
Shareholder.
A.1.2.3 Participants
Categories of Participants currently accepted by SWIFT are:
Brokers and Dealers in Securities and Related Financial Instruments
Central Depositories and Clearing Institutions
Corporates
Financial Market Regulators
Fund Administrators
Investment Management Institutions
Money Brokers
Non-Shareholding Financial Institutions
Participants in a Member Administered Closed User Group
Payment System Participants
Recognised Exchanges for Securities and Related Financial Instruments
Registrar and Transfer Agents
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Representative Offices
Securities Electronic Trade Confirmation (ETC) Service Providers
Securities Market Data Providers
Securities Market Infrastructures System Participants
Securities Proxy Voting Agencies
Subsidiary Providers of Custody and Nominee Services
Trading Institutions
Travellers Cheque Issuers
Treasury Counterparties
Treasury ETC Service Providers
Trust or Fiduciary Services Companies
Note: Access to SWIFT services and products is limited depending on the type of Participant.
SWIFT’s Legal Definition of an IM

SWIFT recognises three types of IMs:
Traditional IM (e.g. investment manager, asset manager, fund manager, etc.)
Insurance Company
Government Institution
Traditional IM
The following conditions need to be fulfilled to be recognised as a Traditional IM:
i. Are primarily engaged in the management of Asset portfolios (which must be
composed, at least in part, of securities); and
ii. Are authorised by a competent regulatory authority to conduct such primary business
activity; and
iii. Are subject to relevant regulations applied by such competent regulatory authority.
iv. In countries where conditions ii) and iii) do not apply, are sponsored as an Investment
Manager by at least two-thirds of the S.W.I.F.T. SCRL shares held by the Members in
the country of origin of the applicant and either (a) by a minimum of ten Members,
or (b) by one percent of the total S.W.I.F.T. SCRL shares.
Either i), ii) and iii), or i) and iv) must apply. The support referred to in iv) (a) and (b) may be
provided by a combination of Members from and / or outside the country of origin of the
applicant.
Investment Management Institutions (including Insurance Companies and Government
Institutions)
Investment Management Institutions are institutions which:
a. are engaged in the management of asset portfolios (which must be composed, at
least in part, of securities), in connection with their primary business activity, which is
either the provision of investment management services to other persons or the
underwriting of insurance or both; and
b. are authorised by a competent regulatory authority to conduct such primary business
activity; and
c. are subject to relevant regulations applied by such competent regulatory authority;
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d. in countries where conditions b) and c) do not apply, are sponsored as Investment

Management Institutions by at least two-thirds of the S.W.I.F.T. SCRL shares held by
the members in the country of origin of the applicant and either (i) by a minimum of
ten members; or (ii) by one percent of the total S.W.I.F.T. SCRL shares.
An agency, department, or institution of a national, regional, or state government or public
international organisation (public authority) qualifies as an Investment Management
Institution if (i) primarily engaged in the management of asset portfolios (which must be
composed, at least in part, of securities) on behalf of and for the account of such public
authority and (ii) sponsored according to sub-paragraph d) above).
1. Either a), b), and c), or a) and d) must apply. The support referred to in d) (i) and (ii)
may be provided by a combination of members from and/or outside the country of
origin of the applicant.
2. Investment Management Institutions, except Insurance Companies, and Government
Institutions fulfilling the criteria as per Brokers and Dealers in Securities and Related
Financial Instruments, and Investment Management Institutions must become either a
shareholder or a non-shareholding member.
Insurance Company
The following conditions need to be fulfilled to be recognised as an Insurance Company:
i. Are engaged in the management of Asset portfolios (which must be composed, at
least in part, of securities), in connection with their primary business activity, which is
either the provision of investment management services to other persons or the
underwriting of insurance or both; and
ii. As above under Traditional IMs.
iii. As above under Traditional IMs.
iv. As above under Traditional IMs.
applicant.
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Government Institutions
The following conditions need to be fulfilled to be recognised as a Government Institution:
i. An agency, department or institution of a national, regional or state government or
public international organisation (“public authority”) qualifies as an investment
manager if primarily engaged in the management of Asset portfolios (which must be
composed, at least in part, of securities) on behalf of and for the account of such
public authority; and
ii. As above under Traditional IMs.
iii. As above under Traditional IMs.
iv. As above under Traditional IMs.
applicant.
8.3.1 SWIFT’s Legal Definition of a Fund Administrator

Fund Administrators
A Fund Administrator is an organisation which has one or more of the following activities:
a. maintains the official ownership record of all fund units,
b. provides administration of orders subscribing to and redeeming from investment funds,
c. executes, administers payments, money transfers on behalf of the fund,
d. calculates Net Asset Value, generates statements, legal reporting and reconciliations on
behalf of the fund.
For the purpose of this definition, a fund includes investment fund, hedge fund, mutual
fund, unit trust, Sicav, and collective investment vehicles.
Where the applicant is a regulated entity, it must follow the local laws and regulations as
identified by the Board with the assistance of the National Member Group.
Where the applicant is not a regulated entity, or where no regulations exist in the country
of the applicant, the BRM 092 Sponsorship Rule applies (see below).
BRM 092 Sponsorship Rule
Unless otherwise specified, the BRM (Board Report to Members) 092 Sponsorship Rule
applies to all categories of participants.
If and only if no relevant regulatory environment is in effect in the nation of the applicant,
the Board may accept the application of a participant if it is supported by:
a. at least 2/3 of the shares held by the members of the nation of the applicant, if there
are any, and
b. at least 10 members, and
c. at least one percent of the total shares issued to the membership.
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The support referred to in b) and c) above may be provided by a combination of

members from and outside the nation of the applicant.
Should licensing or authorisation be subsequently required in the nation of the participant,
the participant will have to follow these requirements to be allowed continued usage of
the SWIFT system.
8.3.2 SWIFT Categories and IMs

The following diagram outlines the different categories an IM can join SWIFT under,
depending on the specific circumstances of the IM.
Insurance Company /
Traditional IM
Government Institution
More than 50%

directly or 100%
Choose not to indirectly owned by
become a a shareholder, with
shareholder or is full management
prevented from control
Choose to become becoming a or No shares in the
a shareholder of shareholder capital of the SWIFT
Meet eligibility
SWIFT SCRL or criteria as a sub- SCRL
entitlement of less member

than 5 shares and
Are in the same
business as
Shareholder
Shareholder Non-shareholder
Sub-member Participant
Member Member
Note: Traditional IMIs can, depending on their specific circumstances, join SWIFT under any of the above
categories. Insurance Companies and Government Institutions can join SWIFT under the Participant
category.
8.4 Categories of SWIFT User (from September 2009)

The following list of user eligibility criteria will, at the time of implementation, fully
supersede the SWIFT user categories as listed above in section 8.3
Users will be categorised in three distinct groups.
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Group 1 - Supervised Financial Institution

A Supervised Financial Institution is: an entity that engages in payment, securities,
banking, financial, insurance, or investment services or activities, and that, for such
purposes is (i) licensed by or (ii) authorised by or (iii) registered with a Financial Market
Regulator, and is subject to supervision by a Financial Market Regulator as per BRM 199,
or an International, supranational, intergovernmental or national governmental body or
institution that as a main activity engages in payment, securities, banking, financial,
insurance, or investment services or activities (including central banks)
The Supervised Financial Institution will be entitled to use the services of SWIFT, as
defined by the Board of Directors.
Group 2 - Non-Supervised Entity Active in the Financial Industry

A Non-Supervised Entity active in the financial industry, is an entity which:
as a main activity, engages in payment, securities, banking, financial, insurance, or
investment services or activities to Supervised Financial Institutions and/or to third parties
unrelated to the Non-Supervised Entity, or
as a main activity, engages in services to Supervised Financial Institutions and/or to third
parties unrelated to the Non-Supervised Entity, which services support financial
transaction processing by means of communicating and processing information and
which services require the sending of messages in the Non-Supervised Entity’s own
name; and
is not subject, for such purposes, to supervision by a Financial Market Regulator;
and is a duly incorporated, validly existing and duly organised legal entity, and
is in good standing financially and with respect to compliance with applicable laws
and regulations, and
is subject to regular audits in accordance
Group 3 - Closed User Groups and Corporate Entities

Group 3 is composed of the following currently existing SWIFT user categories:
Corporate, Financial Market Regulator, Payment System Participant, Securities Market
Data Provider, Securities Market Infrastructure System Participant, Service Participant
within Member-Administered Closed User Group and Treasury Counterparty.
8.5 SWIFT Pricing and Fees

Financial institutions joining SWIFT incur fees based upon the way in which they connect
to and use SWIFT. As a co-operative, SWIFT aims to continuously lower average
message prices. SWIFT pricing is value based, allowing users to pay only for the
products and services they use. Pricing is also loyalty based; the more an institution uses
SWIFT, the lower the per unit cost (e.g. per message costs decrease as an institutions
traffic invoice increases).
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Co-operative based
Prices decrease as cost
effectiveness increases
1991 average message price 2002
Value based FIN

InterAct
The right solution for the
right need at the right price FileAct
Browse
Loyalty based
The more you use SWIFT,
the lower your unit prices
low SWIFT usage high
“SWIFT’s lowering of prices has been a continuing story, but in 2007 SWIFT took the bold
step of introducing cuts upfront, as well as giving a rebate at year end. SWIFT also
reduced prices cumulatively by 25 percent in 2007, with a combination of reduced prices
and a rebate on all messaging traffic. We also announced a further 5 percent price
reduction from January 2008.”
The various fees can be broken down into three categories:
joining and connecting to SWIFT
using SWIFT services and Business Solutions
other SWIFT services
8.5.1 Joining and connecting to SWIFT

New to SWIFT? Use the steps below to learn how to join SWIFT, connect to the SWIFT
network and become fully operational.
Step 1: Joining SWIFT
To use SWIFT, you must first join the SWIFT user community. Find out what the criteria
are and whether your institution is eligible to join.
Step 2: Connect to SWIFT
Once you are a member of the SWIFT community, you need to select and implement
your infrastructure to connect to SWIFT. Find out what your options are.
Step 3: Go live
When you have implemented and tested your infrastructure to connect to SWIFT, you are
ready to go live. Find out what you need to do to confirm your readiness to SWIFT.
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Institutions incur a variety of fees dependent on their status and type of connectivity to
SWIFT:
Up-to-date fees for all of the above can be obtained by contacting your SWIFT sales
representative.
Fee Comment
Shareholding and Registering with SWIFT Shareholder fee
BIC and BEI registration Connected SWIFT

destination (connected 8-character BIC)
connected 8-character
Publication in the BIC Directory
SWIFT User Handbook Annual recurring fee
SWIFTNet Link One-time and recurring fees
Licence extensions
Extra software copy
SWIFTNet Link alternative routing
Security Products Fee One-time and recurring fees related to the

registration and maintenance of Security Officers,
PKI certificates
Multi-Vendor Secure IP Network Connectivity fee Recurring fees dependent on the type of
connectivity (managed or dial-up), the bandwidth
and the country where the connection is
implemented
SWIFT Interfaces Dependent on whether institution uses SWIFT or

3rd party vendor interfaces
One-time and software maintenance recurring fees

dependent on volume of transferred traffic
8.5.2 Using SWIFT Services and Business Solutions

For FIN and messaging and for some of the new business solutions, fees are based on
the volume and size of transferred messages or files and are typically charged to the
sender of the message (except when otherwise specified or agreed with SWIFT).
Note: some business solutions are charged based on a flat service fee.
Outlined below is the methodology by which SWIFT Users are charged for their service
usage. For the specific charges applicable to each business solution, please contact your
SWIFT sales representative.
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The price per message is typically defined according to the following criteria:
The institution’s Global Tier determined by the institution’s overall financial contribution
related to usage of SWIFT. The more the institution uses SWIFT, the better the tier in
terms of price per message.
The route used by the transfer, either domestic, international or intra-institution.
The domestic route is defined by the country of the sender and the receiver.
Intra-institution traffic is the traffic transmitted between destinations that are part of
the same financial institution. International inter-institution traffic is all other
communication.
The optional value-added features selected for the transfer of message or file (e.g.
priority, delivery notification, etc).
The size of the transferred message.
Up-to-date fees for all of the above can be obtained by contacting your SWIFT sales
representative.
8.5.3 Other SWIFT Services

SWIFT delivers Directory, Documentation and Training services to its community. Up-to-
date fees for these services can be obtained by contacting your SWIFT sales
representative
8.6 SWIFT Connectivity Solutions

To be able to connect to SWIFTNet, users require:
a network connection to SWIFT’s secure IP network (SIPN)
SWIFTNet Link
an interface
SWIFT users can choose to manage their own technical connectivity (Direct Connectivity)
or they can outsource their connectivity either to a Service Bureau or by the use of a
shared connection (Indirect Connectivity).
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Private Shared Shared Shared

infrastructure connection infrastructure 1 infrastructure 2
Application Application Application Application Business application

EAI - integration software;
Middleware Middleware Middleware Middleware
translation
Messaging Messaging Messaging Messaging Interface software; manual
versus automation
Communication Communication Communication Communication Communications software
Network Network Network Network Network connection;

Hardware Security Module
Outsourced
Private Infrastructure Access Kit or Entry Kit
1. SWIFT Messaging software (SAA): Allowing back-office integration or

SWIFT Messaging software (SAE): allowing manual entry
2. SWIFT Communication software (SAG,SNL)
3. Network connection
Shared connection Access Kit
In addition to 3rd party vendor interface of your choice
SWIFTNet Link Kit
In addition to 3rd party vendor interface and communication Software

of your choice
Shared Infrastructure 1 or 2 Remote Kit
SWIFT Messaging software (SAE) with Manual entry of messages
Essentials Kit
Whether a SWIFT user chooses to connect directly or indirectly is an internal business

decision specific to each organisation. It is SWIFT’s goal to ensure that all of its users
have choice in this respect.
Some of the points to consider when deciding whether to connect to SWIFT directly or
indirectly are as follows:
Are you a global, regional or domestic institution?
Are you planning on expanding your physical presence in the future?
Do you have multiple business lines, or are you focused in one area?
Are you planning on expanding your business lines in the future?
Are your volumes high, or do you anticipate your volumes increasing in the future?
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8.6.1 Direct Connectivity

To be able to use SWIFTNet services, you require a network connection to SWIFT’s
secure IP network (SIPN), SWIFTNet Link and an interface.
Secure IP network is SWIFT’s highly secure and extremely reliable network. Full
redundancy, advanced recovery mechanisms and first class operations and customer
support services ensure continuous network availability for SWIFT services.
SWIFTNet Link guarantees interoperability between our customers. SWIFTNet Link is our
unique underlying software module that encapsulates transport, service management and
security technologies.
Interface — The Alliance product family includes interface products for both SWIFTNet
and FIN. Alliance WebStation and Alliance Gateway are our SWIFTNet interface
products. Alliance Access and Entry are our FIN-specific interfaces. In addition to
SWIFT’s own interface products, third party interfaces are also available from SWIFT’s
service partners.
Alliance Lite — is the latest addition to our connectivity products suite. It complements
our well known products in the Alliance family, but is fundamentally different. It is a SWIFT
Internet-based service that provides a direct, secure and low cost access to SWIFT
messaging services. New customers do not have to install SWIFT specific connectivity
products at their premises, but can access the Alliance Lite web-service using their
standard Internet connection with a SWIFT-issued hardware security token.
Alliance Lite will support both manual operations through a standard Internet browser
with message data entry and business features — and integration with the back-office
through a lightweight auto-client. It is positioned for new low volume customers, initially
corporates and small financial institutions.
Alliance Lite complements our well known connectivity products in the Alliance family, but
is fundamentally different. It is an Internet-based service that provides a direct, secure and
low cost access to SWIFT. You do not have to install SWIFT-specific connectivity
products at your premises. Instead, you can access Alliance Lite using a standard
Internet connection with a SWIFT-issued hardware security token.
Alliance Lite is designed for new low volume customers typically exchanging less than
200 files and messages a day.
The first release will cater to the requirements of low volume corporates and financial
institutions. It will support FileAct and a limited number of MT over FIN focusing on
multibank payments initiation, cash reporting and foreign exchange transactions.
Alliance Lite will support both manual operations — through a browser with message
data entry and business features — as well as integration with the back-office through a
lightweight AutoClient.
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8.6.2 Indirect Connectivity

For users that prefer to outsource their connectivity to a third-party, SWIFT operates an
indirect connectivity programme to register and maintain high standards of resiliency and
security.Two indirect connectivity options are available:
Outsourcing day-to-day operations to a third-party called a service bureau
Or connecting via a member concentrator which in addition to technical outsourcing
provides additional business services like taking care of the SWIFT administration and
invoicing.
Only member-concentrators and service bureaus registered under the indirect
connectivity programme are able to connect SWIFT users. The programme sets out the
operational requirements covering resiliency and security that all indirect connectivity
providers are required to meet.
To help users identify the best providers of indirect connectivity, SWIFT is launching a
labelling programme for indirect connectivity providers that meet even higher operational
standards. Two labels are available and will be awarded from 2009:
The operational assurance label
SWIFTReady Connectivity - Best Practice label.
SWIFT can provide a variety of connectivity options depending on each individual customer’s
needs and requirements, ranging from fully resilient and redundant permanent connections down to
dial-up connections, either directly or indirectly. For detailed information on how you can connect
to SWIFT, please contact your regional account manager.
8.6.3 Interfaces
Connectivity for new customers
A choice of connectivity products in line with your K its

requirements Pre-packaged, one-stop shop products that
contain everything you need to get started with
In connectivity for new customers Low-volume SWIFT and exchange up to 1,000 messages/files
customers (up to 1000 messages per day) per day Alliance Lite
Designed for firms with volume requirements Lite
below 1,000 messages/files a day, our New customers who plan to exchange less than
connectivity portfolio is tailored to best fit your 200 messages/files per day can benefit from a
unique needs. light connectivity model based on a standard
browser and internet connection.
Medium and high-volume customers (more than

1000 messages per day)
There’s no such thing as a generic connectivity

solution for customers with average traffic volume
exceeding 1,000 messages/files
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SWIFT’s Services for Investment Managers
Connectivity for high-volume customers
Highly resilient and scalable connectivity products The Alliance Access messaging interface has
for customers with traffic volumes above 40,000 been scaled up and can process up to 1,000,000
messages or files per day messages per day. A range of adaptors and
integration facilities are available to integrate your
In connectivity for high-volume customers middleware and back-office applications.
Network connectivity Messenger and WebStation are available if you
The high-end connectivity options offer full choose to enable your operators to directly
resilience and scalability to ensure your business manage SWIFT business from the messaging
is connected 24 x 7. Read more about the interface.
products available to connect to SWIFTNet and The Alliance Gateway communications interface
hook up directly to SWIFT’s secure IP network. allows you to connect multiple messaging
See also the direct connectivity page. interfaces and helps you with traffic routing. The
SWIFTNet Link is required as a lower level
protocol stack.
Connectivity for medium-volume customers
Connectivity products for customers who typically The Alliance Access messaging interface is the
exchange between 1,000 and 40,000 messages key product in this space and allows you to
or files per day connect your in-house applications. It is
complemented by Messenger to manually
In connectivity for medium-volume customers manage your messages and WebStation to
Network connectivity access FileAct and Browse based services.
We offer a range of connectivity options that
combine throughput and resilience. Read more
about the products available to connect to The Alliance Gateway communications interface
SWIFTNet and hook up directly to SWIFT’s secure allows you to connect multiple messaging
IP network. See also the direct connectivity page. interfaces and helps you with traffic routing. The
SWIFTNet Link is required as a lower level
protocol stack.
Connectivity for low-volume customers
Connectivity products for customers who typically Functionality and ease of use, find out more about
exchange less than 1,000 messages or files per our product line:
day
Alliance Access/Entry
In connectivity for low-volume customers Network
connectivity Alliance Starter Set
Light network connectivity options to ease the

access and reduce the cost.
Discover our range of connectivity options:
Direct connectivity
Indirect connectivity
Section 9 – Service
“Our transaction volumes can vary significantly from one day

to the next. However, the effort involved in generating our
SWIFT based settlement instructions that are sent to
custodians is very limited given the high levels of automation
that we have achieved in this area – we therefore barely notice
the volume of settlement instructions sent from day-to-day.”
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9 Service
9.1 Business Assessment Programme
The Business Assessment Programme provides dedicated teams of experienced
consultants to analyse your business flows or your infrastructure, or both. Their
recommendations help you reduce your total cost of ownership, lower your operational
and reputational risk and identify opportunities for business growth.
How can we help you?
Over the past ten years, SWIFT has reviewed the business processes and infrastructure
of over a hundred financial institutions.
Based on our findings, we see that a series of key challenges reoccur time and time
again:
— a lack of processing scalability due to excessive manual processing
— no end-to-end view on the operational processing environment
— non-optimal use of the existing infrastructure
The Business Assessment Programme can help you to:
— support your key business drivers by
- extending your messaging capabilities
- leveraging your existing SWIFTNet investment
- setting up a scalable infrastructure across all entities of your organisation.
— evaluate how to reduce your operational costs by
- optimising your operational efficiency (straight-through processing)
- reducing operational and reputational risk
- rationalising internal proprietary systems, infrastructure and communication
channels
Benefits:
Optimise operational efficiency
Lower operational and reputational risk
Extend and enhance services to your customers
Improve the scalability of your infrastructure
Reduce infrastructure spend
9.2 SWIFT Partner Programme

As a SWIFT customer, how can you be sure that you are buying a solution from a third-
party supplier that is compliant with SWIFT? How do you choose a company to help you
with your SWIFT-related integration, implementation and training and be certain that they
have the expertise to perform the job? SWIFT’s certification programmes and
partnerships help you to answer these questions.
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SWIFT implemented a new partnership model in 2008, as described below.

The Partner Programme team’s objectives are to:
Facilitate SWIFTNet implementation for members
Increase STP and reduce total cost of ownership to members
9.2.1 Value Based Partner Segmentation

All companies registered with SWIFT Partner Management are classified into one of three
categories:
SWIFT registered vendors - given access to information and invited to selected events
SWIFT solution providers - recognised for their solution capabilities and receive
labels / certificates
SWIFT partners - selected based on mutual need and fit, strategic importance of jointly
delivered value, close commercial working relationship with joint target initiatives.
In addition to the three relationship types, SWIFT also establishes alliances with thought
leaders, relationships with analysts, and co-operation with some consultants amongst
others.
9.2.1.1 SWIFT Registered Vendors
This relationship type is the entry-level into SWIFT’s overall partner framework. Its main
purpose is to address the needs of companies who want to obtain information,
documents, test tools and development products from SWIFT.
9.2.1.2 SWIFT Solution Providers
The relationship model
A vendor enters the SWIFT solution provider relationship model at the moment they have
successfully passed SWIFTReady certification for one or more of their solution
components.
Whereby they become a provider of a SWIFTReady solution component (application,
service, connectivity). When SWIFT customers are interested in these solutions, SWIFT
co-operates with the solution provider as needed.
Customer solution components
Today SWIFT runs certification programmes for three customer solution components:
SWIFTReady applications — financial applications and middleware
SWIFTReady services — training, implementation, integration, migration, system care,
support
SWIFTReady connectivity — SWIFTReady service bureau
All SWIFTReady certifications (and the associated labels) are granted on a yearly basis
and are subject to annual renewal by meeting the pre-defined criteria.
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9.2.1.3 SWIFT Partners

The relationship model
This relationship model is used when SWIFT and the partner agree on a joint customer
value proposition and a close commercial and marketing relationship.
9.2.2 SWIFTReady Certification of Solution Components

SWIFTReady certification programmes validate and recognise the
various solution provider and partner capabilities (solutions) available 2008
2008
to customers. These industry-recognised labels are the most

important reference tool for customers. Many customers use it as a
key requirement in their RFI and RFP processes.
SWIFTReady certification programmes are classified into three categories:
SWIFTReady certification of financial applications and EAI solutions
SWIFTReady certification of services (and expertise to deliver such services)
SWIFTReady certification of SWIFT connectivity solutions
9.2.2.1 SWIFTReady Applications

SWIFTReady certification of applications is based on the existing scheme that is well-
established and well known. SWIFTReady applications are financial applications,
supporting FIN or XML-based solutions such as securities settlement, cash reporting, E&I
and TSU.
SWIFTReady certification involves two stages of validation:
Functionality — compliance with a published list of functional criteria and/or expertise
(depending on the certification programme). Successful validation results in a SWIFT
Conformance Statement
Quality — positive references from live users of the solution (measured through customer
questionnaire and interview feedback). Successful feedback results in issuance of the
SWIFT certified solution label
9.2.2.2 SWIFTReady Services and Expertise
The new SWIFTReady certification of services is structured into two areas of
competency/expertise:
SWIFTNet infrastructure (functional)
SWIFTAlliance Access, Gateway, Integrator
SWIFT Solutions (business)
Cash Reporting, E&I, TSU, Corporate Access, Bulk Payments for SEPA, Funds
The types of services that can be offered to customers include:
implementation services
integration services
training services
migration and upgrade services
system care services
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9.2.2.3 SWIFTReady Connectivity

To date, two connectivity solutions fall into this category: service bureaux and SWIFT
interface products. Currently SWIFT validates these solutions through different validation
processes before they can be made commercially available to customers. It is SWIFT’s
intention to further harmonise and extend the certification related to these solutions, so
they can be an integral component of the official SWIFT Partner Management certification
programme.
A more stringent and formal, but still optional, certification of service bureaux will provide
a benefit to customers when evaluating their connectivity options to SWIFT. The SWIFT
certification aims to offer additional guarantees to customers with respect to functionality
and service levels.
9.2.3 Promotion of SWIFT Solution Providers and SWIFT Partners

9.2.3.1 Listing
A list of all certified providers, identifying the SWIFTReady certifications granted, will be
available on swift.com. This will provide a holistic view of each SWIFT partner / SWIFT
solution provider, where the customer is able to see the view of the SWIFT certified
components of the solutions or the joint value propositions offered by these companies.
Customers will also be able to search a supplier by the specific certification type. For
example, they can look up a supplier who has a SWIFTReady application for E&I, as well
as solution experts for E&I, and technical experts for solutions integration and SAG.
The securities business applications are obviously highly relevant for the investment
management community.
The types of business applications identified as key for this industry are:
In the pre-trade/trade space: FIX engines and order management systems
In the post-trade/pre-settlement space: FIX engines, order management systems,
ETC providers and reconciliation applications
In the clearing and settlement space: back office platforms and reconciliation
applications
In the custody space: corporate actions processing
The investment funds distribution vendor landscape is slightly different as niche players
have been developing very focused business applications catering for the specific needs
of distribution, fund accounting and transfer agency.
Partner Solutions has identified the following application types as highly relevant for the
mutual funds industry (in addition to the ones relevant for the investment management
industry generically):
Distribution platforms
Transfer agency applications
Fund accounting systems
Portfolio management applications
The middleware or EAI stack is the main component involved in the gathering of the
business flows and the construction of the messages. This application category is
spanning multiple spaces (also for funds distribution) and serves as the concentrator and
transformer of business flows beyond the interface.
105
The market infrastructure service providers are traditionally seen as technical infra-
structure providers. Nevertheless, these are highly relevant for the investment
management community, and Partner Solutions carefully monitors the evolution within
this partner segment.
The consultancy and integration services stack would intervene at all stages in an
implementation process (architecture, business analysis, testing).
For details on SWIFT’s current range of Partners, please contact your SWIFT Sales
Representative, or go to www.swift.com.
9.3 SWIFT Training

Almost 30 years ago, the SWIFT Training department was created to support the SWIFT
members and help them to get the most out of their SWIFT connection. Our mission is to
help you increase your knowledge on the SWIFT infrastructure and the different message
types in order to improve your automation and service levels and decrease your
operational costs. SWIFT certified training experts will teach you everything you need to
know about the new training solutions available to manage the different SWIFT Alliance
interfaces and expand your knowledge on SWIFT’s solutions available in the banking and
securities markets. Read along to discover the benefits and find out what our customers
think about SWIFT Training.
Increase your operational performance and reduce your costs
Help to increase your operational performance, drive your costs down, and reduce the
risk of errors by learning how to use SWIFT’s products and services accurately and
effectively.
A worldwide SWIFT Training network
With a worldwide network of experienced instructors, we can save you time and money
by providing courses in your area.
A wide range of training solutions to suit all your requirements
From classroom courses to our e-learning tools, you can be sure that we have a high-
value training solution that’s right for your particular business need.
Tailored training
As part of our On-site service, we also provide training solutions tailored to your specific
needs that are delivered on your premises.
Training that’s up-to-date
Feel confident that your SWIFT instructor provides you with the correct and latest
information.
Multiple languages
With up to 15 languages covered, feel comfortable in following the training programmes
in your own language.
Quality that you can trust
We design, develop and deliver our training programmes ourselves so that you can be
assured that we provide the level of quality that you have come to expect from SWIFT.
Section 10 – About SWIFT
“If we were to report everything over fax, we would probably

need twice as many people to do this. We have increased our
traffic by tenfold without really increasing the headcount.”
107
10 About SWIFT
10.1 Community Inspired
SWIFT is a community-inspired co-operative, founded by and for the financial services
industry. We work globally in 209 countries with more than 8,700 organisations including
banks, market infrastructures, securities institutions, corporations, network providers,
business partners and technology companies to ensure the financial world can carry out
its business operations with certainty.
Of the top 100 investment managers by assets under management, 72 are connected to
SWIFT.
Our role is two-fold. We provide the platform, products and services that allow our
customers to connect and exchange financial information securely and reliably. We also
act as the catalyst that brings the financial community together to work collaboratively to
shape market practice, define standards and consider solutions to issues of mutual
concern and interest.
10.2 History and Evolution

In 1973, banks communicated via telex - not very secure, minimum standards and little if
any automation. So 239 banks from 15 countries formed a co-operative to automate the
telex. They called it SWIFT. Their vision was to possibly harness emerging computer
technology and manoeuvre around the telecommunications monopolies to send
standardised financial messages between themselves, securely and reliably. They hoped
one day that the daily messages would grow to 300,000 each day.
Today we demonstrate the success of their vision and courage. SWIFT has more than
8,700 members and participants in 209 countries, and daily message volumes regularly
exceed 15 million.
The table below provides some of the highlights of SWIFT’s history over the past 35
years.
Year Users Countries Messages Highlights
1973 239 15 0 SWIFT is established
1977 518 22 3.4 million First live message
1978 586 25 21.6 million The first Sibos is held in Brussels
1982 1,017 44 79.9 million Introduction of message text standards

for certain interbank securities
transactions
1987 2,360 64 222 million Broker/dealers, exchanges, central

depositories and clearing institutions
allowed to join SWIFT
1990 3,049 83 332 million Securities traffic (the new Category 5

messages) represents 2% of total
message traffic
108
1992 3,582 94 405 million IMs become eligible to join SWIFT
1994 4,625 126 518 million Bank of England selects SWIFT as one of
two network providers for CREST (UK
central securities depository)
1996 5,632 151 688 million Electronic Trade Confirmation providers

become eligible to join SWIFT
1997 6,176 164 812 million SWIFT announces the Next Generation
programme, based on a new, highly
secure, extremely reliable IP network
1998 6,557 178 937 million The SWIFT Board transforms the
Securities Board Task Force into the
Securities Steering Council (IMs are
invited to join the Council)
ISO approves the new draft securities

message standard – ISO 15022
Proxy Voting agencies become eligible to

join SWIFT
1999 6,797 189 1.06 billion Securities traffic represents 21% of total
message traffic
2001 7,457 196 1.53 billion Insurance companies and government

institutions carrying out an IM role
become eligible to join SWIFT
2002 7,601 198 1.82 billion Fund Administrators are eligible to join
SWIFT
2003 7,725 200 2 billion Migration from ISO 7775 securities

message standard to the new ISO 15022
standard is completed
SWIFT develops a new XML message

based solution for investment funds
SWIFT launches the FIX service
2004 7,667 202 2.3 billion Community migrates to SWIFTNet IP

platform
2005 7,863 204 2.5 billion FIN securities traffic peak of 4 million
messages
on 1 December
Dismantling our X.25 network
2006 8,105 207 2.9 billion Corporates become eligible to join SWIFT
FpML on SWIFTNet
Banks start SEPA testing
SWIFTNet Phase 2 kicks off
Giovannini Barrier 1
109
2007 8,332 208 3.5 billion Regulators become eligible to join SWIFT
Q3 2008 8,721 209 >3.2 billion
10.3 Sibos
ISibos is the world’s premier financial services forum, attracting the industry’s leading
figures and firms. Sibos draws over 8,000 participants from the financial industry, and
some 200 application and middleware vendors, system integrators and consultants. It
takes place annually, typically a week in September or October, at a different venue
around the world.
Sibos brings to the fore issues that are challenging the financial services industry, now
and in the future – new technologies, new processes, new client expectations, new and
unexpected alliances and ever-growing pressures for greater efficiency and security.
One of the key advantages of Sibos is the ample opportunity attendees have to network.
Sibos delegates cover the range of financial markets and IT, making them the ideal
audience for focused marketing activities. IMs, broker-dealers, custodians, treasury
specialists, banks, and operations professionals, all see Sibos as an excellent investment
in time.
The securities industry has taken an increasingly high profile role at Sibos. In recent years
we have seen a rising number of IMs represented at Sibos, not only in terms of
attendance, but also in terms of participation on various panel discussions and as
keynote speakers.
Appendix
111
A. Details of standardised messaging

A.1. FIN Standards
Category 1 Customer Payments & Cheques
Customer payments are made using the Category 1 messages. These deal with
payments, or information about payments, in which the ordering party or the beneficiary,
or both, are not financial institutions.
MT MT Name Purpose
101 Request for Transfer Requests to debit a customer’s account

held at another institution
101 / 102+ Multiple Customer Credit Transfer Conveys multiple payment instructions between
financial institutions
103 / 103+ Single Customer Credit Transfer Instructs a funds transfer

103 REMIT
104 Direct Debit and Request for Conveys direct debit instructions and
Debit Transfer Message requests for direct debits between financial
institutions
105 EDIFACT Envelope An envelope which conveys a 2k

EDIFACT message
107 General Direct Message To order the debit of a debtor’s account and
to collect payment from this account
110 Advice of Cheque(s) Advises or confirms the issuance of a

cheque to the drawee bank
111 Request for Stop Payment of Requests the drawee bank to stop
a Cheque payment of a cheque
112 Status of a Request for Stop Indicates action(s) taken in attempting

Payment of a Cheque to stop payment of a cheque
Messages most used by investment managers:
Request for transfer - MT 101
Single customer credit transfer - MT 103

Manager Institution
112
MT 101 Request for Transfer — This message is sent by a financial institution on behalf
of a non-financial institution account owner, i.e. the ordering customer / instructing party,
and is subsequently received by the receiving financial institution and processed by the
receiving financial institution or the account servicing financial institution.
It is used to move funds from the ordering customer’s account(s) serviced at the receiving
financial institution or at the account servicing institution, or from an account(s) owned by
the ordering customer whom the instructing customer has explicit authority to debit, e.g.
a subsidiary account.
The MT 101 can be used to order the movement of funds:
between ordering customer accounts, or
in favour of a third party, either domestically or internationally.
MT 103 Single Customer Credit Transfer — This message type is sent by or on behalf
of the financial institution of the ordering customer, directly or through (a)
correspondent(s), to the financial institution of the beneficiary customer.
It is used to convey a funds transfer instruction in which either the ordering customer, the
beneficiary customer, or both, are non-financial institutions from the perspective of the
Sender.
Category 2 Financial Institution Transfers

Financial institution transfers are made using the Category 2 messages. These deal with
payments, or information about payments, in which all parties in the transaction are
financial institutions. The flows shown in this section represent the main use of each
message.
MT MT Name Purpose
200 Financial Institution Transfer for Requests the movement of the Sender’s
its Own Account funds to its account at another
financial institution
201 Multiple Financial Institution Multiple of the MT 200

Transfer for its Own Account
202 General Financial Institution Requests the moment of funds between

Transfer financial institutions
203 Multiple General Financial Multiple of the MT 202

Institution Transfer
204 Financial Markets Direct Claims funds from SWIFT member banks
Debit Message
205 Financial Institution Transfer Futher transmits a transfer request domestically

Execution
113
MT MT Name Purpose
207 Request for Financial Requests to debit an ordering financial

Institution Transfer institution’s account held at the
receiving financial institution or the
account servicing financial institution
210 Notice to Receive Notifies the Receiver that it will receive

funds for the Sender’s account
256 Advice of Non-Payment of Cheques Informs the Sender of one or more non-
payments of one or more truncated
cheques. It may also be used to
specify dishonoured items that result
in reversing a previous payment settlement
Messages most used by investment managers:
Financial Institution Transfer for its Own Account - MT 200
Multiple Financial Institution Transfer for its Own Account - MT 201
General Financial Institution Transfer - MT 202
Multiple General Financial Institution Transfer - MT 203

Manager Financial Institution Transfer Execution - MT 205 Institution
Request for Financial Institution Transfer - MT 207
Notice to Receive - MT 210
MT 200 Financial Institution Transfer for its Own Account — This message type is
sent by an account owner to one of its account servicing institutions. It is used to
request the movement of funds from an account that the Receiver services for the Sender
to an account that the Sender has, in the same currency, with another financial institution.
MT 201 Multiple Financial Institution Transfer for its Own Account — This multiple
message type is sent by an account owner to one of its account servicing institutions. It
is used to request the movement of funds from an account that the Receiver services for
the Sender to several accounts that the Sender has, in the same currency, with other
financial institutions.
114
MT 202 General Financial Institution Transfer — This message is sent by or on behalf

of the ordering institution directly, or through correspondent(s), to the financial institution
of the beneficiary institution. It is used to order the movement of funds to the beneficiary
institution. This message may also be sent to a financial institution servicing multiple
accounts for the Sender to transfer funds between these accounts. In addition it can be
sent to a financial institution to debit an account of the Sender, serviced by the Receiver,
and to credit an account, owned by the Sender at a specified institution.
MT 203 Multiple General Financial Institution Transfer — This multiple message is
sent by or on behalf of the ordering institution directly, or through correspondent(s), to the
financial institution(s) of several beneficiary institution(s). The message contains several
transactions. It is used to order the movement of funds to each beneficiary institution.
This message may also contain order(s) for the movement of the Sender’s own funds in
favour of itself. This is the case when the Receiver services multiple accounts for the
Sender and the funds are to be transferred between these accounts. In addition, it can
also be sent to a financial institution to debit an account of the Sender serviced by the
Receiver and to credit an account owned by the Sender at a specified institution.
MT 205 Financial Institution Transfer Execution — This message is sent by the
Receiver of a category 2 transfer message, i.e. MT 200, 201, 202, 203 or 205, directly or
through correspondent(s), to another financial institution located in the same country as
the Sender. It is used to further transmit a funds transfer instruction domestically.
MT 207 Financial Institution Transfer — This message is used to move funds from the
ordering financial institution’s account, serviced at the receiving financial institution or at
the account servicing institution, or from an account(s) owned by the ordering institution
for which the initiating institution has explicit authority to debit, eg, a subsidiary account.
MT 210 Notice to Receive — This message type is sent by an account owner to one of
its account servicing institutions. It is an advance notice to the account servicing
institution that it will receive funds to be credited to the Sender’s account.
115
Category 3 Treasury Markets - Foreign Exchange, Money Markets

and Derivatives
MT MT Name Purpose
300 Foreign Exchange Confirmation Confirms information agreed to in the

buying/selling of two currencies
303 Forex/Currency Option Allocation Instructs the allocation of a block

Instruction trade (forex or currency option)
304 Advice/Instruction of a Third Party Advises of or instructs settlement of a

Deal third party foreign exchange deal
305 Foreign Currency Option Confirms information agreed to in the

Confirmation buying and selling of vanilla options
on currencies
306 Foreign Currency Option Confirms information agreed to in the

Confirmation buying and selling of exotic options
on currencies
307 Advice/Instruction of a Third Advises of or instructs settlement of a

Party FX Deal third party foreign exchange deal
320 Fixed Loan/Deposit Confirmation Confirms the terms of a contract relative

to a fixed loan/deposit transaction
321 Instruction to Settle a Third Party Advises the trade details and instructs the
Loan/Deposit the settlement of a fixed term loan/
deposit done with a third party
330 Call/Notice Confirms the terms of a contract relative to

Loan/Deposit Confirmation to a call/notice loan/deposit transaction
340 Forward Rate Agreement Confirms the details of a forward rate agreement
Confirmation
341 Forward Rate Agreement Confirms the settlement details of a forward

Settlement Confirmation rate agreement
350 Advice of Loan/Deposit Advises of a loan/deposit interest payment

Interest Payment
360 Single Currency Interest Rate Confirms the details of a single currency
Derivative Confirmation interest rate derivative swap, cap, collar
or floor
361 Cross Currency Interest Rate Confirms the details of a cross currency
Swap Confirmation interest rate swap transaction
362 Interest Rate Reset/Advice Confirms or advises the reset rates of the floating
of Payment interest rate(s) in a single or cross-currency
interest rate derivative transaction and/or
the payment of interest at the end of an
interest period
116
MT MT Name Purpose
364 Single Currency Interest Rate Confirms the details of the partial or
Derivative Termination/ full termination or recouponing of
Recouponing Confirmation a single currency interest rate
swap, cap, collar or floor
365 Cross Currency Interest Rate Confirms the details of the partial or
Swap Termination/ full termination or recouponing of
Recouponing Confirmation a cross currency interest rate swap
380 Foreign Exchange Order Orders to purchase or sell a specific

amount of a certain currency
381 Foreign Exchange Order Confirms the execution of an FX Order

Confirmation previously sent
Category 3 - Post-trade/Pre-settlement: Foreign Exchange

MT 300 Foreign Exchange Confirmation - This message is exchanged by or on behalf
of the institutions who have agreed to a foreign exchange contract. This message may
also be sent by a money broker to the two parties for which the broker arranged the deal.
The message is also used when confirming deals settling through CLS.
Confirm details of a new contract
Confirm an exercised foreign currency option
Confirm an amendment to a previously sent confirmation

Investment Broker /
Manager or Cancel a previously sent confirmation Dealer
CLS or CLS
MT 303 Forex / Currency Option Allocation Instruction - This message is sent by an

instructing party (e.g. IM) 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 300 Foreign Exchange
Confirmations confirming each individual allocation.
Instruct the allocation of a deal
Cancel / amend block trade and set of allocations
Investment Amend a number of individual allocations Broker /

Manager Dealer
117
MT 304 Advice / Instruction of a Third Party Deal - This message is sent by an IM to a

custodian bank as an advice of / instruction to settle a third party foreign exchange deal.
It is also used for deals settling through CLS.
Advice / instruction to settle third party FX deal
Amend a previously sent advice / instruction
Investment Cancel a previously sent advice / instruction Custodian or

Manager CLS
MT 307 Advice / Instruction of a Third Party FX Deal - This message is sent by an IM

to a custodian bank as an advice of / instruction to settle a third party foreign exchange
deal. It is a newer, ISO 15022 version of the MT 304 message.
Advice of details of a new deal
Instruction to settle a deal
Investment Cancel a previously sent advice / instruction Custodian

Manager
MT 380 Foreign Exchange Order - This message type is sent by an IM to a custodian

bank as an order to purchase or sell a specific amount of a certain currency.
Order to buy / sell specific amount of foreign currency
Copy an order sent by other means ( e.g. fax )

Manager
118
MT 381 Foreign Exchange Order Confirmation - This message type is sent by a

custodian bank to an IM to confirm the execution of a FX Order previously sent by the
fund manager.
Confirm execution of foreign exchange order
Cancel a previously sent confirmation
Investment Copy an order sent by other means ( e.g. fax ) Custodian

Manager
Category 3 - Post-trade/Pre-settlement: Money markets

MT 320 Fixed Loan / Deposit Confirmation - This message is exchanged to confirm a
fixed term loan / deposit contract. This message is exchanged by or on behalf of the
institutions who have agreed to a fixed term loan / deposit contract. A money broker may
also send this message to the two parties for which he arranged the deal. It is typically
followed by the MT 321 message (see below).
Confirm / notify details of a contract
Amend a previously agreed contract
Cancel a previously sent confirmation
Investment Confirm / notify a rolled over / renewed contract Broker /

Manager Dealer
Confirm / notify the maturity of a contract
MT 321 Instruction to Settle a Third Party Loan / Deposit - This message is sent by
an IM to the fund’s custodian to advise the trade details and instruct the settlement of a
fixed term loan / deposit done with a third party financial institution. It typically follows the
MT 320 message (see above).
Notify / instruct to settle a new contract
Notify of a rollover / renovation of a contract
Notify the maturity of a contract

Manager Cancel a previously sent instruction
119
MT 330 Call / Notice Loan / Deposit Confirmation - This message is exchanged to

confirm a call / notice loan / deposit contract. It is sent by or on behalf of the institutions
that have agreed to a call / notice loan / deposit contract.
Amend / cancel a previously agreed contract
Increase / decrease in account balnace of a contract
Investment Notify changes in interest rate / period of notice Broker /

Manager Dealer
Notify the closing of a contract (final redemption)
MT 350 Advice of Loan / Deposit Interest Payment - 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. It is sent by or on behalf of the institution who has borrowed
cash from another institution.
Notification of interest payment
Amend a previously sent advice
Cancel a previously sent advice

Investment Broker /
Manager Dealer
Category 3 - Post-trade/Pre-settlement: OTC Derivatives

MT 303 Forex / Currency Option Allocation Instruction - This message is sent by an
instructing party (e.g. IM) 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 300 Foreign Exchange
Confirmations confirming each individual allocation.
Instruct the allocation of a deal
Cancel / amend block trade and set of allocations
Investment Amend a number of individual allocations Broker /

Manager Dealer
120
MT 305 Foreign Currency Option Confirmation - This message type is exchanged

between the financial institutions that have agreed to a foreign currency option contract.
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 confirmation
the surrender of an option by the buyer (holder) to the seller (grantor) for
compensation.
Confirm details of a new contract
Surrender of an option for compensation
Confirm an amendment to a previously sent confirmation

Investment Broker /
Manager Cancel a previously sent confirmation Dealer
MT 306 Foreign Currency Option Confirmation - This message is exchanged to

confirm 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 Française 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.
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 trigger event: knock-in / knock-out of an option, hitting of a trigger level,
the close out of an option.
This message is exchanged by or on behalf of the institutions who have agreed to a
foreign currency option contract. A money broker may also send this message to the two
parties for which he arranged the deal.
Investment Cancel a previously sent confirmation Broker /

Manager Dealer
Trigger event: knock-in, knock-out, hitting trigger level
Close out an option

121
MT 340 Forward Rate Agreement Confirmation - This message is exchanged by or on

behalf of the institutions or corporates, who have agreed to a forward rate agreement
(FRA).
The confirmed transaction is covered by an ISDA, Deutscher Rahmenvertrag für
Finanztermingeschäfte, FRABBA (British Bankers’ Association) or AFB Master
Agreement. These agreements are either signed or under negotiation. A money broker
may also send this message to the two parties for which he arranged the deal.
The message is used to confirm / notify the details of:
the cancellation of a confirmation.
Confirm / notify details of a new contract

Manager Dealer
MT 341 Forward Rate Agreement Settlement Confirmation - This message is

exchanged by or on behalf of the institutions that 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.
Confirm settlement details of a new contract
Amend a previously agreed settlement message
Investment Cancel a previously sent settlement message Broker /

Manager Dealer
MT 360 Single Currency Interest Rate Derivative Confirmation - This message is

exchanged by or on behalf of the institutions, 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, Deutscher
Rahmenvertrag für Finanztermingeschäfte or AFB Master Agreement.
The message also covers deals which are not part of the above agreements, in which
case, the two parties must have another bilateral agreement in place. It may also be sent
by a money broker to the two parties for which the broker arranged the deal.
The MT 360 is used to confirm the details of a new transaction between the parties.
122
Confirm details of a new transaction
Amend a previously sent confirmation

Manager Dealer
MT 361 Cross Currency Interest Rate Swap Confirmation - This message is

exchanged by or on behalf of the institutions who have agreed to a cross currency
interest rate swap covered by a BBAIRS, Deutscher Rahmenvertrag für
Finanztermingeschäfte or an ISDA Master Agreement.
The message also covers deals which are not part of the above agreements, in which
case, the two parties must have another bilateral agreement in place, except under AFB
Master (until the AFB does define the interbank confirmation for cross currency swaps,
the MT 361 cannot be used to confirm such transactions).
This message may also be sent by a money broker to the two parties for which the
broker arranged the deal. The message is used to confirm the details of a new
transaction between the parties.
Confirm details of a new transaction
Amend a previously sent confirmation

Manager Dealer
MT 362 Interest Rate Reset / Advice of Payment - This message is exchanged by or

on behalf of the financial institutions, who have agreed to a single or cross currency
interest rate derivative transaction, including caps, collars and floors.
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
Advise details of the determination of floating rate interest
Advise details of payment of interest at end of interest period
Investment Cancel / amend a previously sent reset / advice Broker /

Manager Dealer
123
MT 364 Single Currency Interest Rate Derivative Termination / Recouponing

Confirmation - This message is exchanged by or on behalf of the institutions who have
agreed to the termination, 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
confirm the details of the recouponing of an existing transaction
Confirm details of partial / full termination of transaction
Confirm details of recouponing of transaction
Investment Cancel / amend a previously sent termination / recouponing Broker /

Manager Dealer
MT 365 Cross Currency Interest Rate Swap Termination / Recouponing

Confirmation - This message is exchanged by or on behalf of the institutions who have
agreed to the termination, 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. The message may be used to:
confirm the details of the partial or full termination of an existing transaction
confirm the details of the recouponing of an existing transaction
Confirm details of partial / full termination of transaction
Confirm details of recouponing of transaction
Investment Cancel / amend a previously sent termination / recouponing Broker /

Manager Dealer
124
Category 5 Securities Markets

MT MT Name Purpose
500 Instruction to Register Instructs the registration, deregistration or

reregistration of a financial instrument
at the registration provider
501 Confirmation of Registration or Confirms the registration, deregistration or

Modification reregistration of a beneficial owner or
shareholder with the registration provider
502 Order to Buy or Sell Instructs the purchase or sale of a given

quantity of a specified financial
instrument under specified conditions
503 Collateral Claim Requests new or additional collateral, or

the return or recall of collateral
504 Collateral Proposal Proposes new or additional collateral
505 Collateral Substitution Proposes or requests the substitution of

collateral held
506 Collateral and Exposure Statement Provides the details of the valuation of both
the collateral and the exposure
507 Collateral Status and Processing Advises the status of a collateral claim, a
Advice collateral proposal, or a proposal/request
for collateral substitution
508 Intra-Position Advice Reports on the movement of securities

within the holding
509 Trade Status Message Provides information on the status of a

previously executed trade
510 Registration Status and Advises the status of a registration

Processing Advice instruction or modification
513 Client Advice of Execution Provides brief and early information about
a securities deal, e.g. a block trade that
is to be allocated before final confirmation
514 Trade Allocation Instruction Instructs the allocation of a block trade
515 Client Confirmation of Purchase Provides a detailed accounting of financial

or sale instruments purchased or sold by the
Sender on behalf of the Receiver or its
client. It may also convey the payment
details of the purchase or sale. It may also
be sent by, or via, an ETC service provider
516 Securities Loan Confirmation Confirms the details of a securities loan,

including collateral arrangements. It may
also confirm the details of a partial recall
or return of securities previously out on loan
517 Trade Confirmation Affirmation Positively affirms the details of a previously

received confirmation/contract note
518 Market-Side Securities Trade Confirms the details of a trade and where
Confirmation necessary, its settlement to a trading counterparty
125
MT MT Name Purpose
519 Modification of Client Details instructs the modification of client details

at the registration provider
524 Intra-Position Instruction Instructs the movement of securities within

the holding
526 General Securities Lending/ Requests the borrowing of securities or notifies

Borrowing Message the return or recall of securities previously out
on loan. It may also be used to list securities
available for lending
527 Triparty Collateral Instruction Performs a specific action on a collateral

management transaction
530 Transaction Processing Command Requests the modification of a processing

indicator or other non-matching information
535 Statement of Holdings Reports at a specified time, the quantity and

identification of securities and other holdings
which the account servicer holds for the
account owner
536 Statement of Transactions Provides details of increases and decreases

of holdings which occurred during a specified period
537 Statement of Pending Transaction Provides details of pending increases and decreases
in securities within the holding during a specified
period
538 Statement of Intra-Position Advices Provides details of increases and decreases

in securities within the holding during a specified
period
540 Receive Free Instructs a receipt of financial instruments free of

payment. It may also be used to request a
cancellation or pre-advise an instruction
541 Receive Against Payment Instructs a receipt of financial instruments against

cancellationor pre-advise an instruction
542 Deliver Free Instructs a delivery of financial instruments free of

543 Deliver Against Payment Instructs a delivery of financial instruments against

544 Receive Free Confirmation Confirms a receipt of financial instruments free

of payment. It may also be used to cancel or
reverse a confirmation
545 Receive Against Payment Confirms a receipt of financial instruments against

Confirmation payment. It may also be used to cancel or reverse
a confirmation
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MT MT Name Purpose
546 Deliver Free Confirmation Confirms a delivery of financial instruments free

of payment. It may also be used to cancel or reverse
a confirmation
547 Deliver Against Payment Confirms a delivery of financial instruments against

Confirmation payment. It may also be used to cancel or reverse
a confirmation
548 Settlement Status and Advises the status of a settlement instruction

Processing Advice or replies to a cancellation request
549 Request for Settlement/ Requests a statement or a status message

Status Advice
558 Triparty Collateral Status and Provides validation results and status advice
and Processing Advice re collateral instructions and proposed
collateral movements
559 Paying Agent’s Claim Claims reimbursement of income or redemption

proceeds, or a combination of both
564 Corporate Action Notification Provides an account owner with details of a

corporate action event and the choices
available to the account owner. It also provides
the account owner with details on the impact
a corporate action event will have on a
safekeeping or cash account, e.g.
entitlement calculation
565 Corporate Action Instruction Instructs the custodian on the investment

decision made by an account owner
relative to a corporate action event
566 Corporate Action Confirmation Confirms to the account owner that securities
and/or cash have been credited/debited to an
account as a result of a corporate action event
567 Corporate Action Status and Indicates the status, or change in status, of a
Processing Advice corporate action-related transaction previously
instructed by, or executed on behalf of, the
account owner
568 Corporate Action Narrative Provides complex instructions or narrative details

relating to a corporate action event
569 Triparty Collateral and Exposure Provides the details of the valuation of both the
Statement collateral and the exposure
574 IRS 1441 NRA-IRS Provides owner or pooled income information

Beneficial Owners’ List for a period of time arranged between the
intermediary and the withholding agent
574 IRS 1441 NRA-Form W8-BEN Certifies the foreign status of a beneficial
owner for United States tax withholding
575 Report of Combined Activity Reports on all securities and cash activity
for a given combination of safekeeping and
cash accounts
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MT MT Name Purpose
576 Statement of Open Orders Provides details of orders to buy or to sell

financial instruments, as at a specified
date, which have been accepted by the Sender,
but which have not yet been executed
577 Statement of Numbers Provides certificates numbers of securities
578 Statement Allegement Advises the account owner that a counterparty

has alleged a settlement instruction on the ?
account owner’s account
579 Certificate Numbers Replaces or supplements the ‘certificate numbers’

field in a primary message, e.g. MT 577
581 Collateral Adjustment Message Claims or notifies a change in the amount of

collateral held against securities out on loan
or for other reasons
586 Statement of Settlement Provides details of pending settlement allegements

Allegements
Category 5 - Pre-trade / Trade: FIN

(e.g. Broker / Dealer) to instruct a buy or sale of a security, to provide the status of the
trade, and to confirm the trade between the two parties.
MT 502 Order to Buy or Sell - To instruct the purchase or sale of a given quantity of a
particular financial instrument.
Order to buy or sell
Request cancellation of previous order
Replace previously sent order

Investment Broker /
Manager Duplicate an order Dealer
MT 509 Trade Status - To indicate the status of a particular trade.
Advise status of Trade
Cancel previously sent advise of status
Investment Reject previously received message Broker /

Manager Dealer
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MT 513 Client Advice of Execution - To provide brief and early information to the
Instructing Party about a deal executed at its instruction. This advice of execution applies
to a deal that cannot yet be fully confirmed (e.g. a block trade which is to be allocated).
Advice of execution
Resend and advice previously sent
Investment Cancel previously sent advice of execution Broker /

Manager Dealer
Category 5 - Post-trade / Pre-settlement

MT 514 Trade Order Allocation - To instruct the allocation of a block trade. Each
message can only contain one allocation. Settlement details are optional and can be
provided where standing instructions do not apply, or are not available.
Instruct allocation of block trade
Request cancellation of previous allocation instruction
Provide pre-allocation details linked to an order

Investment Broker /
Manager Duplicate an allocation previouslt sent Dealer
MT 515 Client Confirmation of Purchase or Sale - To confirm the details of a purchase

or sale. It is also used to provide details on the payment side of the transaction. Where
legally accepted, this message serves as a binding electronic contract note.
Confirm details of purchase or sale
Request cancellation of previous client confirmation
Investment Duplicate a confirmation previously sent Executing

Manager Party
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MT 517 Trade Confirmation Affirmation - To positively affirm the details of a previously

received confirmation or contract note. The trade confirmation details that are affirmed
bind the Sender and Receiver.
Positive affirmation of previously received confirmation
Investment Executing
Manager Party
Confirmation
This is sent by the executing party to the IM to confirm the booking of a trade at the
individual account level.
Confirm booking of trade at account level
Cancel previously sent confirm
Investment Replace previously sent confirm Executing

Manager Party
Confirmation Ack
This is sent by the IM to the executing party to affirm or reject the confirmation message.
Affirm confirmation of allocation
Reject previously sent affirm

Investment Broker /
Manager Dealer
Allocation Instruction
This is sent by the IM to the executing party, and follows up New Order before or after the
trade is filled. It is used to indicate how a trade is allocated into specific accounts.
Acknowledge receipt of allocation instruction
Report errors in allocation instruction

Investment Broker /
Manager Dealer
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Category 5 - Clearing and Settlement

(e.g. Custodian) or service provider (e.g. electronic trade confirmation provider) to provide
settlement instructions, and confirmations of settlement.
MT 508 Intra-Position Advice - To confirm the increase or decrease in the number of
securities of a certain status within a holding (e.g. movements from one sub-balance to
another sub-balance within the same account).
Intra-position advice
Intra-position confirmation
Request cancellation of previously sent advice

Investment
Custodian
Manager Duplicate an advice previously sent
MT 524 Intra-Position Instruction - To instruct the movement of securities within the

holding (e.g. re-registration of securities from one sub-balance to another sub-balance).
Instruct intra-position movement of securities
Request cancellation of previously sent instruction
Investment Duplicate an instruction previously sent

Custodian
Manager
MT 540 Receive Free Instruction - To instruct the receipt of financial instruments, free of
payment, from a specified party.
Instruct receipt of securities “free of payments”
Pre-advise of a forthcoming instruction

Investment
Custodian
Manager Duplicate an instruction previously sent
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MT 541 Receive Against Payment Instruction - To instruct the receipt of financial

instruments, against payment, from a specified party.
Instruct receipt of securities “against payments”

Investment
Custodian
MT 542 Deliver Free Instruction - To instruct a delivery of financial instruments, free of

payment, to a specified party.
Instruct receipt of securities “free of payments”

Investment
Custodian
MT 543 Delivery Against Payment Instruction - To instruct a delivery of financial

instruments, against payment, to a specified party.
Instruct receipt of securities «against payments»

MT 544 Receive Free Confirmation - To confirm a receipt of financial instruments, free

of payment, from a specified party.
Instruct receipt of securities «against payments»

132
MT 545 Receive Against Payment Confirmation - To confirm the receipt of financial

instruments against payment from a specified party.
Confirm a receipt of securities «against payments»
Pre-confirm a receipt of securities «against payments»
Confirm partial settlement
Request cancellation of previously sent confirmation Custodian

Investment
Manager
Duplicate a confirmation previously sent
MT 546 Deliver Free Confirmation - To confirm a delivery of financial instruments, free

of payment, from a specified party.
Confirm a delivery of securities «free of payments»
Pre-confirm a delivery of securities «free of payments»

Investment
Manager
MT 547 Deliver Against Payment Confirmation - To confirm a delivery of financial

instruments against payment to a specified party.
Confirm a delivery of securities «against payments»
Pre-confirm a delivery of securities «against payments»

Investment
Manager
133
MT 548 Settlement Status and Processing Advice - To advise the status of a

settlement instruction, or as a reply to a cancellation request previously sent by the
Account Owner.
Advice status of a previously received instruction
Report on future settlement or forward transaction
Request cancellation of previously sent advice

Duplicate a statement previously sent
Manager
MT 578 Settlement Allegement - To advise the Account Owner that a Counterparty has
alleged a settlement instruction against the Account Owner’s account with the Account
Servicer, and that the Account Servicer could not find the corresponding instruction from
the Account Owner.
Settlement allegement
Request cancellation of a previously sent allegement
Investment Duplicate a settlement allegement previously sent Custodian

Manager
Category 5 - Securities Reporting

(e.g. Custodian) to provide details of activity and holdings in an account.
MT 535 Statement of Holdings - To report on the quantity and identification of securities
and other holdings which the Account Servicer holds for the Account Owner at a
specified moment in time.
Statement of holdings
Request cancellation of a previously sent statement
Investment Duplicate a statement previously sent Custodian

Manager
MT 536 Statement of Transactions - To provide the details of any increases and / or

decreases of holdings, which may have occurred over a specified period of time, for all,
or a selected quantity of securities in the requested safekeeping account which the
Account Servicer holds for the Account Owner.
134
Statement of transactions
Duplicate a statement previously sent Custodian

Investment
Manager
MT 537 Statement of Pending Transactions - To provide the Account Owner with the
details of pending increases and / or decreases in the quantity of holdings, at a specified
moment in time. The message may contain details for all, or a selected quantity of
securities for a specified safekeeping account. It may also give all, or a selected number
of reasons why the transaction is pending.
Statement of pending transactions

Investment
Manager
MT 538 Statement of Intra-Position Advices - To provide the Account Owner with the
details of any intra-position transfers (movement of securities within a holding) for a
specified period of time, for all, or selected securities in a specified safekeeping account.
Statement of intra-position advices

Investment
Manager
135
MT 549 Request for Statement / Status Advice - To request a statement or status

messages (e.g. MT 509, 535, 536, 537, 538, 575, 576, 584, 586, 589). The request for
a statement / status advice can be used as a query message to gather information for
one account, at a given date or period of time.
Request for statement / status advice
Manager
MT 575 Report of Combined Activity - To report on all securities and cash activity for a
given combination of safekeeping and cash accounts. This message is intended to
provide a summary of all cash and securities activity for a given safekeeping account
linked to one (or multiple) cash accounts, or for a given cash account linked to multiple
safekeeping accounts.
Statement of combined activity

Investment
Manager
MT 576 Statement of Open Orders - To identify orders which have not yet been fully
executed.
Send a statement
Duplicate a statement previously sent Broker /

Investment
Manager Dealer
136
MT 586 Statement of Settlement Allegements - To provide the details of pending

settlement allegements, for all or selected securities in a specified safekeeping account,
for a given point in time.
Statement of pending settlement allegements

Investment
Manager
Category 5 - Corporate Actions / Entitlements

(e.g. Custodian) to provide details of corporate actions affecting a particular account, and
instructions on voluntary events.
Corporate Action Notification - MT 564
Corporate Action Instruction - MT 565
Corporate Confirmation - MT 566

Manager Corporate Action Status & Processing Advice - MT 567
Corporate Action Narrative - MT 568
MT 564 Corporate Action Notification - To provide an Account Owner with the details
of a corporate action event. It may also include possible elections or choices available to
the Account Owner. The MT 564 can initially be sent as a preliminary advice, and
subsequently replaced by another MT 564 with complete or confirmed information. The
message will also be used to provide the Account Owner with a calculation of the impact
a corporate action event will have on a safekeeping, or cash, account.
Preliminary notification
Replace a previously sent notification
Request cancellation of previous notification

Manager Withdrawal of offer or event
Replace a previously sent notification with entitlement
Reminder of deadline
Duplicate of notification previously sent

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MT 565 Corporate Action Instruction - To provide the Account Servicer with

instructions on how the Account Owner wishes to proceed with a corporate action event.
Instructions include investment decisions regarding the exercise of rights issues, the
election of stock, or cash, when the option is available, and decisions on the conversion
or tendering of securities.
Corporate Action Instruction
Request cancellation of previous instruction
Replace a previously sent instruction

Manager Duplicate of instruction previously sent
MT 566 Corporate Confirmation - To confirm to the Account Owner that securities and
/ or cash have been credited / debited to an account, as the result of a corporate action
event.
Corporate Action confirmation
Reverse a previously sent confirmation
Investment Duplicate a confirmation previously sent Custodian

Manager
MT 567 Corporate Action Status & Processing Advice - To advise the status, or a
change in status, of a corporate-action-related transaction previously instructed by, or
executed on behalf of, the Account Owner.
Advise status of corporate action
Duplicate an advice previously sent

Manager
MT 568 Corporate Action Narrative - To provide complex instructions or narrative

details relating to a corporate action event.
Corporate action narrative
Cancel a previously Corporate action narrative
Investment Duplicate a previously Corporate action narrative Custodian

Manager
138
Category 5 - Collateral Management - Bi-lateral
Margin Calls
Collateral Claim return - MT 503
Claim new/additional - MT 503
Response
Collateral proposal - MT 504
Collateral Status and Processing Advice (Response) - MT 507
Taker Giver
Collateral adminstration
Collateral Substitution - MT 505
Collateral and Exposure Statement - MT 506
MT 503 Collateral Claim - This message is sent either by the collateral taker to the
collateral giver, or vice versa by the collateral giver to the collateral taker.
When sent by the taker, it is used to request new collateral at the initiation of an exposure,
and / or request additional collateral. When sent by the giver, it is used to request the
return of collateral, and / or recall the collateral upon the termination of an underlying
exposure.
MT 504 Collateral Proposal - This message is sent by the collateral giver to the
collateral taker to propose new collateral at the initiation of an exposure, and / or propose
additional collateral at variation of exposure.
MT 505 Collateral Substitution - This message is sent by the collateral giver to the
collateral taker to propose the substitution of collateral held. This message is also sent by
the collateral taker to the collateral giver to request the substitution of collateral held.
MT 506 Collateral And Exposure Statement - This message is sent either by the
collateral giver to the collateral taker, or by the collateral taker to the collateral giver. It is
used to provide the details of the valuation of both the collateral and the exposure.
MT 507 Collateral Status and Processing Advice - This message is sent by the
Receiver of a collateral claim, a collateral proposal or a proposal / request for collateral
substitution. It is used to advise the status of the received message.
It may also be used to:
139
reject or accept a claim, proposal, or the proposal / request of a collateral substitution

advise the settlement details of proposed collateral
Category 5 - Collateral Management - Triparty
Triparty Collateral Instruction - MT 527
Triparty Collateral Status and Processing - MT 558

Collateral Try party
Triparty Collateral and Exposure Statement - MT 569
Taker/ Agent
Giver
MT 527 Tri-party Collateral Instruction - This message is sent by a trading party to its
tri-party agent as instruction to perform a specific action on a collateral management
transaction.
MT 558 Tri-party Collateral Status And Processing Advice - This message is sent by
a tri-party agent after the receipt of a collateral instruction from its client. In this message,
the Sender is the tri-party agent and the Receiver is either the collateral taker or the
collateral giver. This message provides valuation results as well as the status of the
collateral instruction and the status of the proposed collateral movements (cash and
securities).
MT 569 Tri-party Collateral and Exposure Statement - This message is sent by a tri-
party agent to both the collateral giver and the collateral taker to provide the details of the
valuation of both the collateral and the exposure:
after all collateral movements have been affected to show the end (fixed) positions or,
after settlement but taking into account future collateral management instructions
(forecasting the M-to-M).
Category 5 - Securities Lending and Borrowing

Contrary to the previously described messages, the MT 516, MT 526 and MT 581 are
based on the ISO 7775 standard.
(e.g. Custodian) to provide lists of securities available for lending, request the borrowing of
a particular security, and confirm the details of a new securities loan.
MT 516 Securities Loan Confirmation - This message is sent from one financial
institution to another, both of which are involved in the lending of securities. It is used to
confirm the details of a new securities loan, a partial recall of securities previously out on
loan, a partial return of securities previously out on loan and the closeout of a securities
loan.
140
Confirm details of new loan
Partial recall of securities on loan
Partial return of securities on loan

Lender Borrower
Close-out a securities loan
MT 526 General Securities Lending / Borrowing Message - This message type is sent
from one financial institution to another, both of which are involved in the lending of
securities. It is used to:
list specified securities available for lending by the lender or its agent
list specified securities no longer available for lending by the lender or its agent
request the borrowing of a specified security from the lender or its agent
notify the borrower or its agent of a partial or total return of the securities out on loan
notify the lender or its agent of a partial or total return of the securities borrowed
request the potential lender to hold the specified securities until further notice
confirm that specified securities are being held
request the potential borrower to confirm a securities loan or cancel a request to hold
securities until further notice
List securities available / not available for loan
Request the borrowing of a security
Notification of partial / total return of securities
Request / confirm a hold on securities to be lent

Lender Borrower
Request a confirm of a loan
Cancel a request to hold securities

141
MT 581 Collateral Adjustment Message - This message is sent from one financial
institution to another, both of which are involved in a securities transaction for which
collateral has been provided (e.g. a securities loan). It is used to claim or notify an
increase or decrease to the collateral amount resulting from a change in the value of the
existing collateral amount relative to the securities on loan.
Claim / notify change to collateral amount
Lender Borrower
142
Category 6 Treasury Markets - Precious Metals
MT MT Name Purpose
600 Precious Metal Trade Confirms the details of a precious metal trade
Confirmation and its settlement
601 Precious Metal Option Confirms the details of a precious metal option
Confirmation contract
604 Precious Metal Transfer/ Instructs the Receiver to transfer by book-entry,

Delivery Order or physically deliver, a specified type and quantity
of precious metal to a specified party
605 Precious Metal Notice Notifies the Receiver of an impending book-entry

to Receive transfer or physical delivery of a specified type
and quantity of precious metal
606 Precious Metal Debit Advice Advises the Receiver of a debit entry to a specified
metal account
607 Precious Metal Credit Advice Advises the Receiver of a credit entry to a specified
metal account
608 Statement of a Metal Account Provides the details of all bookings to a metal account
609 Statement of Metal Contracts Identifies all outstanding metal contracts, as at a

specified date for which confirmations have been
exchanged
Precious Metal Trade Confirmation – MT 600
Precious Metal Option Confirmation – MT 601
Metal Fixed Loan/Deposit Confirmation – MT 620

Broker /
Statement of Metal Contract – MT609 Dealer
Investment Metal Transfer/Delivery Order – MT 604 (When IM is Metal Seller)

Manager
Metal Notice to Receive – MT 605 (When IM is Metal Buyer)
Metal Debit Advice – MT 606 (When IM is Metal Seller)
Metal Credit Advice – MT 607 (When IM is Metal Buyer) Custodian
Statement of Metal Account – MT 608 (When IM is Metal Buyer or Metal Seller)

143
MT 600 Precious Metal Trade confirmation - This message type is exchanged

between the financial institutions which have agreed to a precious metal trade.
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
MT 601 Precious Metal Option Confirmation - This message type is exchanged
between the financial institutions which have agreed to a precious metal option contract.
the cancellation of a contract
the surrender of an option by the buyer (holder) to the seller (grantor) for
compensation.
MT 620 Metal Fixed Loan/Deposit Confirmation - This message is exchanged to
confirm a metal fixed term loan/deposit contract.
the cancellation of a confirmation
a rolled over/renewed contract between the parties
the maturity of a contract
MT 609 Statement of Metal Contracts - 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.
MT 604 Precious Metal Transfer/Delivery Order - 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.
MT 605 Precious Metal Notice to Receive - 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.
MT 606 Precious Metal Debit Advice -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.
MT 607 Precious Metal Credit Advice - This message is sent by the metal account
servicing institution to the account owner or its authorised agent. It is used to advise the
144
Receiver of an entry which has been credited to its account or an account for which the
Receiver is an authorised agent.
MT 608 Statement of a Metal Account - This message is sent by a metal account
servicing institution to the metal account owner or its authorised agent. 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
SWIFT or by some other means.
Category 6 - Treasury Markets - Syndications
MT MT Name Purpose
643 Notice of Drawdown/Renewal Provides notice of the Borrower(s) request for

drawdown(s)/renewal(s) on a given date
644 Advice of Rate and Amount Specifies the interest rate and, if applicable, the
Fixing the exchange rate, for the next interest period
646 Payment of Principal and/or Advises of payments and/or prepayments of

of Interest principal and/or of interest with the same value
date, but not related to any subsequent drawing
or renewal
649 General Syndicated Facility Provides for communications related to syndicated

Message facilities for which no specific message has been
defined
Category 9 Cash Management and Customer Status
MT MT Name Purpose
900 Confirmation of Debit Advises an account owner of a debit to its account
910 Confirmation of Credit Advises an account owner of a credit to its account
920 Request Message Requests the account servicing institution to send an

MT 940, 941, 942 or 950
935 Rate Change Advice Advises the Receiver of general rate change(s) and/or
rate change(s) which applies to a specific account
other than a call/notice loan/deposit account
940 Customer Statement Message Provides balance and transaction details of an

account to a financial institution on behalf of the
account owner
941 Balance Report Provides balance information of an account to a

financial institution on behalf of the account owner
942 Interim Transaction Report Provides balance and transaction details of an

account, for a specified period of time, to a
financial institution on behalf of the account
owner
950 Statement Message Provides balance and transaction details of an

account to the account owner
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MT MT Name Purpose
960 Request for Service Initiation Initiates a Bilateral Key Exchange (BKE)process
Message
961 Initiation Response Message Acknowledges receipt of an MT 960
962 Key Service Message Contains a bilateral authenticator key for another
963 Key Acknowledgement Message Acknowledges receipt of the bilateral key sent in a
previous MT 962
964 Error Message Responds to an MT 960, 961, 963, 966 or 967 if an

error has been detected to report that error
965 Error in Key Service Message Responds to an MT 962 if an error has been
detected and reports that error
966 Discontinue Service Message Discontinues one or several bilateral authenticator

keys already in existence between the Sender and
Receiver
967 Discontinuation Acknowledgement Acknowledges receipt of a previous MT 966 and

Message confirms discontinuation of the authenticator key(s)
specified in the MT 966
970 Netting Statement Provides balance and transaction details of a

netting position as recorded by a netting system
971 Netting Balance Report Provides balance information for specified netting
position(s)
972 Netting Interim Statement Advises interim balance and transaction details of a
netting position as recorded by a netting system
973 Netting Request Message Requests and MT 971 or 972 containing the latest
available information
985 Status Enquiry Requests an MT 986
986 Status Report Provides business related information about a

customer or institution
Messages most used by investment managers for intraday:
Notification of debit to account - MT 900
Notification of credit to account - MT 910
Balance Report - MT 941

Account Account
Owner Interim Transaction Report - MT 942 Servicer
146
MT 900 Confirmation of Debit - This message is sent by an account servicing institution

to an account owner. It is used to notify the account owner of an entry which has been
debited from its account. The entry will be further confirmed by statement.
MT 910 Confirmation of Credit - This message is sent by an account servicing
institution to an account owner. It is used to notify the account owner of an entry which
has been credited to its account. The entry will be further confirmed by statement.
MT 941 Balance Report - This message is sent by an account servicing institution to a
financial institution which has been authorised by the account owner to receive it. It is
used to transmit balance information, reflecting the situation as at an identified time.
MT 942 Interim Transaction Report - This message is sent by an account servicing
institution to a financial institution which has been authorised by the account owner to
receive it. It is used to transmit detailed and / or summary information about entries
debited or credited to the account since:
the last statement or balance report, or
the last interim transaction report.
MT 920 Request Message - This multiple message is sent by an account owner, or

financial institution (concentrating institution) acting on behalf of an account owner, to an
account servicing institution. It is used to request the account servicing institution to
transmit one or more MT 940 Customer Statement(s), MT 941 Balance Report(s), MT
942 Interim Transaction Report(s), or MT 950 Statement Message(s) containing the latest
information available for the account(s) identified in the message.
MT 935 Rate Change Advice - This multiple message is used by the Sender to advise
interest rate change(s) to the Receiver. It is used to advise the details of:
General interest rate change(s)
Interest rate change(s) which apply to specific account(s), other than call/notice
loan/deposit account(s), serviced by the Sender of the message for the Receiver.
Interest rate change(s) that can be advised by this message type include: NOTICE, CALL,
PRIME, COMMERCIAL, BASE, CURRENT and DEPOSIT.
Messages most used by investment managers for end of day:
Customer Statement Message - MT 940
Statement of detailed entries booked to account - MT950

Account Account
Owner Servicer
147
MT 940 Customer Statement Message - This message is sent by an account servicing

institution to a financial institution which has been authorised by the account owner to
receive it. It is used to transmit detailed information about all entries booked to the
account.
MT 950 Statement Message - This message is sent by an account servicing institution
to an account owner. It is used to transmit detailed information about all entries booked
to an account.
Category n Common Group Messages
MT MT Name Purpose
n90 Advice of Charges, Interest Advises an account owner of charges,

interest and Other Adjustments
or other adjustments to its account
n91 Request for Payment of Charges, Requests payment of charges, interest or

other Interest and Other Expenses
expenses
n92 Request for Cancellation Requests the Receiver to consider

cancellation of the message identified in the
request
n95 Queries Requests information relating to a previous

message or amendment to a previous
message
n96 Answers Responds to an MT n95 Queries or MT n92

Request for Cancellation or other messages
where no specific message type has been
provided for the response
n98 Proprietary Message Contains formats defined and agreed to

between users and for those messages not
yet live
n99 Free Format Message Contains information for which no other

message type has been defined
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A.2 MX Standards
The SWIFT Standards MX messages are listed according to the business area in which
they have been defined.
Cash Management
MX Identifier MX Name Purpose

camt.003.001.03 GetAccount Sent by a member to the transaction administrator. It requests
information on the details of one or more accounts held at the
transaction administrator, including information on the balances.
camt.004.001.03 ReturnAccount Sent by a member to the transaction administrator. It provides

information on the details of one or more accounts held at the
transaction administrator, including information on the balances.
The ReturnAccount message can be sent as a response to a
related GetAccount message (pull mode) or initiated by the
transaction administrator (push mode). The push of information
can take place either at prearranged times or as a warning or
alarm when a problem has occurred.
camt.005.001.03 GetTransaction Sent by a member to the transaction administrator. It requests

information about payment instructions held at the transaction
administrator. Payment instructions are either sent by the member,
debiting or crediting its account at the transaction administrator or
received by the transaction administrator, crediting or debiting the
member’s account.
camt.006.001.02 ReturnTransaction Sent by the transaction administrator to a member of the

system. It provides information on transactions and booked
entries held at the transaction administrator. The
ReturnTransaction message can be sent as a response to a
related GetTransaction message (pull mode) or initiated by the
transaction administrator (push mode). The push of information
can take place either at prearranged times or as a warning or
alarm when a problem has occurred.
camt.007.001.02 ModifyTransaction Sent by a member to the transaction administrator. It requests one

modification in one payment instruction held at the transaction
administrator and sent by the member, debiting or crediting its
account at the transaction administrator.
camt.008.001.03 CancelTransaction Sent by a member to the transaction administrator. It requests the

cancellation of one payment instruction held at the transaction
administrator and sent by the member.
camt.009.001.03 GetLimit Sent by a member to the transaction administrator. It requests

information on the details of one or more limits set by the member
(or on behalf of the member) and managed by the transaction
administrator.
camt.010.001.03 ReturnLimit Sent by the transaction administrator to a member of the system.

It provides information on the details of one or more limits set by
the member (or on behalf of the member) and managed by the
transaction administrator. The ReturnLimit message can be sent
as a response to a related GetLimit message (pull mode) or
initiated by the transaction administrator (push mode). The push of
information can take place either at prearranged times or as a
warning or alarm when a problem has occurred.
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camt.011.001.03 ModifyLimit Sent by a member to the transaction administrator. It requests
modifications in the details of one particular limit set by the member
and managed by the transaction administrator. Each ModifyLimit
message can alter only one type of limit (current or default).
camt.012.001.03 DeleteLimit Sent by a member to the transaction administrator. It requests the

deletion of one particular limit set by the member and managed by
the transaction administrator. Each DeleteLimit message can only
delete one type of current limit (risk or liquidity management limit).
camt.013.001.01 GetMember Sent by a member to the transaction administrator. It requests

information on static data maintained by the transaction
administrator and related to the participants in the system and their
membership status vis-à-vis this system.
camt.014.001.01 ReturnMember Sent by the transaction administrator to a member of the system.

ExchangeRate It provides information on static data maintained by the transaction
administrator and related to the participants in the system and their
membership status vis-à-vis this system. The ReturnMember
message can be sent as a response to a related GetMember
message (pull mode) or initiated by the transaction administrator
(push mode). The push of information can take place either at
prearranged times or as a warning or alarm when a problem has
occurred.
camt.015.001.01 ModifyMember Sent by a member to the transaction administrator. It requests

modifications to the static data related to the profile of a member
that the transaction administrator maintains.
camt.016.001.01 GetCurrency Sent by a member to the transaction administrator. It requests

ExchangeRate information on static data maintained by the transaction
administrator and related to currency exchange details as
maintained for the system operations by the transaction
administrator.
camt.017.001.01 ReturnCurrency Sent by the transaction administrator to a member of the system.

ExchangeRate It provides information on static data and related to currency
exchange details as maintained for system operations by the
transaction administrator. The ReturnCurrencyExchangeRate
message can be sent as a response to a related
GetCurrencyExchangeRate message (pull mode) or initiated by the
account servicer (push mode). The push of information can take
place either at prearranged times or as a warning or alarm when a
problem has occurred.
camt.018.001.01 GetBusiness Sent by a member to the transaction administrator.
DayInformation It requests information on different types of administrative data

linked to the system.
camt.019.001.02 ReturnBusiness Sent by the transaction administrator to a member of the system.

DayInformation It provides information on different types of administrative data
linked to the system. The ReturnBusinessDayInformation message
can be sent as a response to a related GetBusinessDayInformation
message (pull mode), or initiated by the transaction administrator
(push mode). The push of information can take place either at
prearranged times or as a warning or alarm when a problem has
occurred.
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camt.020.001.01 GetGeneral Sent by a member to the transaction administrator.
BusinessInformation It requests information on a broadcast-type message
previously sent by the transaction administrator to all or some
of the members, giving information related to the processing
business.
camt.021.001.01 ReturnGeneral Sent by the transaction administrator to a member of the system.

BusinessInformation It provides some or all of the members with information related
to the processing of the system. The
ReturnGeneralBusinessInformation message can be sent as a
response to a related GetGeneralBusinessInformation message
(pull mode) or initiated by the transaction administrator (push
mode). The push of information can take place either at
prearranged times or as a warning or alarm when a problem
has occurred.
camt.023.001.02 BackupPayment Sent by a member to the transaction administrator. It requests

a liquidity transfer from the member to another participant in
the system when the user is in recovery mode.
camt.024.001.02 ModifyStandingOrder Sent by a member to the transaction administrator. It requests

a change in the features of a permanent order for the transfer
of funds between two accounts belonging to the same
member and being held at the transaction administrator.
camt.025.001.01 Receipt Sent by the transaction administrator to a member of the

system. It acknowledges the receipt of a message previously
sent. The Receipt message is an application receipt
acknowledgement and conveys information about the
processing of the original message.
camt.034.001.02 DuplicateInstruction Used by financial institutions, with their own offices, and/or with
other financial institutions with which they have established
bilateral agreements. It allows the exchange of duplicate
payment instructions.
camt.046.001.01 GetReservation Sent by a member to the transaction administrator. It requests

information on the details of one or more reservation facilities
set by the member and managed by the transaction
administrator.
camt.047.001.01 ReturnReservation Sent by a member to the transaction administrator. It provides

information on the details of one or more reservation facilities
set by the member and managed by the transaction
administrator. The ReturnReservation message can be sent as
a response to a related GetReservation message (pull mode) or
initiated by the transaction administrator (push mode). The
push of information can take place either at prearranged times
or as a warning or alarm when a problem has occurred.
camt.048.001.01 ModifyReservation Sent by a member to the transaction administrator. It requests

a modification of details of one or more reservation facilities set
by the member and managed by the transaction administrator.
camt.049.001.01 DeleteReservation Sent by a member to the transaction administrator. It requests

a deletion of one or more reservation facilities set by the
member and managed by the transaction administrator.
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camt.050.001.01 LiquidityCreditTransfer Sent by a member to the transaction administrator. It
requests a transfer of funds between two accounts
belonging to the same member or the same group of
accounts, and being held at the transaction administrator.
camt.051.001.01 LiquidityDebitTransfer Sent by a member to the transaction administrator. It

requests a transfer of funds between two accounts
belonging to the same member or the same group of
accounts, and being held at the transaction administrator.
camt.052.001.01 BankToCustomer Sent by the account servicer to an account owner or to a

AccountReport party authorised by the account owner to receive the
message. It can be used to inform the account owner, or
authorised party, of the entries reported to the account,
and/or to provide the owner with balance information on
the account at a given point in time.

Statement party authorised by the account owner to receive the
message. It is used to inform the account owner, or
authorised party, of the entries booked to the account,
and to provide the owner with balance information on the
account at a given point in time.

DebitCreditNotification party authorised by the account owner to receive the
message. It can be used to inform the account owner, or
authorised party, of single or multiple debit and/or credit
entries reported to the account.
Derivatives (see http://www.fpml.org/)
MX IdentifierMX Name Purpose
defp.001.001.01 ContractCreated The ContractCreated notification message indicates that a

contract has been created at the allocation level
defp.002.001.01 ContractNovated Provides the recipient with the latest terms for a full or
partial novation of the indicated contract.
defp.003.001.01 ContractIncreased Provides the recipient with the terms for an economic
enlargement of the indicated contract
defp.004.001.01 ContractPartialTermination Indicates that a contract has been terminated partially.
defp.005.001.01 ContractFullTermination Provides the recipient with the latest terms for a full
termination of the indicated contract.
defp.006.001.01 ContractCancelled The ContractCancelled notification allows a contract

created by mistake to be cancelled entirely.
defp.007.001.01 RequestTradeConfirmation The RequestTradeConfirmation allows a trading party to

confirm a trade to its counterparty
defp.008.001.01 ModifyTradeConfirmation Allows a trading party to modify a trade previously

confirmed to its counterparty.
152

defp.009.001.01 CancelTradeConfirmation Allows a trading party to cancel a trade previously
confirmed to its counterparty.
defp.010.001.01 ContractNovatedCancelled Notifies the recipient that a ContractNovated is

cancelled.
defp.011.001.01 ContractIncreased The ContractIncreasedCancelled message notifies the

Cancelled recipient that a ContractIncreased is cancelled
defp.012.001.01 ContractPartialTermination The ContractPartialTerminationCancelled notifies that a

Cancelled ContractPartialTermination is cancelled
defp.013.001.01 ContractFullTermination The ContractFullTerminationCancelled message notifies

Cancelled that a ContractFullTermination is cancelled
Payments Clearing and Settlement
pacs.002.001.02 PaymentStatusReport The PaymentStatusReport message is sent by an

instructed agent to the previous party in the payment
chain. It informs this party about the positive or negative
status of an instruction (either single or file). It can also
report on a pending instruction.
pacs.003.001.01 FlToFICustomerDirectDebit Sent by the creditor agent to the debtor agent, directly
or through other agents and/or a payment clearing and
settlement system. It collects funds from a debtor
account for a creditor.
pacs.004.001.01 PaymentReturn The PaymentReturn message is sent by an agent to the

previous agent in the payment chain to undo a payment
previously settled.
pacs.006.001.01 PaymentCancellation The PaymentCancellationRequest message is sent by

Request the initiating party or any agent, to the next party in the
payment chain. It requests the cancellation of an
instruction previously sent.
pacs.007.001.01 FIToFIPaymentReversal The FIToFIPaymentReversal message is sent by an

agent to the next party in the payment chain. It reverses
a payment previously executed.
pacs.008.001.01 FIToFICustomer The FIToFICustomerCreditTransfer message is sent by

CreditTransfer the debtor agent to the creditor agent, directly or
through other agents and/or a payment clearing and
settlement system. It moves funds from a debtor
account to a creditor.
pacs.009.001.01 FinancialInstitution The FinancialInstitutionCreditTransfer message is sent by

CreditTransfer a debtor financial institution to a creditor financial
institution, directly or through other agents and/or a
payment clearing and settlement system. It moves funds
from a debtor account to a creditor, where both debtor
and creditor are financial institutions.
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Payments Initiation

pain.001.001.02 CustomerCredit Sent by the initiating party to the forwarding agent or
TransferInitiation debtor agent. It requests movement of funds from the
debtor’s account to a creditor.
pain.002.001.02 PaymentStatusReport Sent by an instructed agent to the previous party in the

payment chain. It informs this party about the positive or
negative status of an instruction (either single or file). It can
also report on a pending instruction.
pain.007.001.01 CustomerPaymentl Sent by the initiating party to the next party in the payment
Reversa chain. It reverses a payment previously executed.
pain.008.001.01 CustomerDirect Sent by the initiating party to the forwarding agent or creditor
DebitInitiation agent. It requests single or bulk collection(s) of funds from
one or various debtor’s account(s) for a creditor.
Securities Events

seev.001.001.01 MeetingNotification Sent by a notifying party, eg, an issuer, its agent or an
intermediary to a party holding y, the right to vote, to
announce a shareholders meeting. It provides information on
the participation details and requirements for the meeting,
the vote parameters and the resolutions.
seev.002.001.01 MeetingCancellation Sent by the party that sent the MeetingNotification message
to the original receiver. It is sent to cancel the previous
MeetingNotification message previously sent or to advise the
cancellation of a meeting.
seev.003.001.01 MeetingEntitlement Sent by an account servicer t to an issuer, its agent, an

Notification intermediary or an account owner to advise the entitlement
in relation to a shareholders meeting.
seev.004.001.01 MeetingInstruction Sent by a party holding the right to vote to an intermediary,

the issuer or its agent to request the receiving party to act
upon one or several instructions. The MeetingInstruction
message is used to register for a shareholders meeting,
request blocking or registration of securities. It is used to
assign a proxy, to specify the names of meeting attendees
and to relay vote instructions per resolution electronically.
seev.005.001.01 MeetingInstruction Sent by the same party that sent the MeetingInstruction
CancellationRequest message. It is sent to request the cancellation of all
instructions included in the original the MeetingInstruction
message.
154

seev.006.001.01 MeetingInstructionStatus Sent by the Receiver of the MeetingInstruction or
MeetingInstructionCancellationRequest to the Sender of
these messages. The message gives the status of a
complete message or of one or more specific instructions
within the message. It can also be used used as a
reminder to request voting instructions.
seev.007.001.01 MeetingVoteExecution Sent by an issuer, its agent or an intermediary to confirm

Confirmation to the Sender of the MeetingInstruction message, the
execution of their voting instruction. This message is sent
after the meeting has taken place.
seev.008.001.01 MeetingResult The MeetingResultDissemination message is sent by

Dissemination an issuer, its agent or an intermediary to another
intermediary, to a party holding the right to vote, to a
registered security holder or to a beneficial holder to
provide information on the voting results of a
shareholders meeting. It may also provide information on
the level of participation. This message is also used to
notify an update.
Securities Management

semt.001.001.02 SecuritiesMessage Rejects a previously received message on which action
Rejection cannot be taken
semt.002.001.02 CustodyStatement Provides detailed quantity and availability information for

OfHoldings financial instrument holdings of a portfolio.
semt.008.001.01 RegulatoryTransaction Reports the transaction details of securities trades that

Report have been executed on or off-exchange.
semt.009.001.01 RegulatoryTransaction Used to request the cancellation of one or more or all

ReportCancellationRequest previously sent individual transactions reports.
semt.010.001.01 RegulatoryTransaction Used to provide the status of one or more or all

ReportStatus previously received individual transactions reports.
semt.011.001.01 RegulatoryTransaction Used to provide the status of one or more or all

ReportCancellationStatus previously received individual transactions reports
cancellations requests.
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Treasury

trea.001.001.02 CreateNonDeliverable Sent by a participant to a central system or to a
ForwardOpening counterparty to notify the opening of a non deliverable
trade.
trea.002.001.02 AmendNonDeliverable Sent by a participant to a central system or to a

ForwardOpening counterparty to notify the amendment of the opening of a
non deliverable trade previously confirmed by the sender.
trea.003.001.02 CancelNonDeliverable Sent by a participant to a central system or to a

ForwardOpening counterparty to notify the cancellation of the opening of a
trea.004.001.02 CreateNonDeliverable Sent by a participant to a central system or to a

ForwardValuation counterparty to notify the valuation of a non deliverable
trade.
trea.005.001.02 AmendNonDeliverable Sent by a participant to a central system or to a

ForwardValuation counterparty to notify the amendment of the valuation of a
trea.006.001.02 CancelNonDeliverable Sent by a participant to a central system or to a

ForwardValuation counterparty to notify the cancellation of the valuation of a
trea.007.001.02 NonDeliverable Sent by a central system to a participant to provide details

ForwardNotification of a non deliverable forward trade.
trea.008.001.02 StatusNotification Sent by a central system to a participant to notify the

current status of a foreign exchange option trade in the
system.
trea.009.001.02 CreateForeign Sent by a participant to a central system or to a `

ExchangeOption counterparty to confirm a foreign currency option contract.
This message is only suitable for Simple (i.e. not Barrier)
Vanilla (i.e. not Binary, Digital, Notouch) Foreign Exchange
Options.
trea.010.001.02 AmendForeign Sent by a participant to a central system or to a

ExchangeOption counterparty to notify the amendment of a foreign currency
option contract. This message is only suitable for Simple
(i.e. not Barrier) Vanilla (i.e. not Binary, Digital, Notouch)
Foreign Exchange Options.
trea.011.001.02 CancelForeign Sent by a participant to a central system or to a

counterparty to notify the cancellation of a foreign currency
option contract. This message is only suitable for Simple
(i.e. not Barrier) Vanilla (i.e. not Binary, Digital, Notouch)
Foreign Exchange Options.
trea.012.001.02 ForeignExchange Sent by a central system to a participant to notify the

OptionNotification current status of a trade in the system.
trea.013.001.01 WithdrawalNotification Sent by a central system to notify the withdrawal of a trade

which was previously notified to the receiver
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Payments exception and Investigation - Case assignment

There is one specific ‘case assignment’ message for each of the four business activities:
camt.008.002.02 RequestTo Sent by a case creator/case assigner to a case assignee.
CancelPayment It requests the cancellation of an original payment instruction.
camt.007.002.02 RequestTo Sent by a case creator/case assigner to a case assignee.

ModifyPayment It requests the modification of characteristics of an original
payment instruction.
camt.026.001.02 UnableToApply Sent by a case creator/case assigner to a case assignee. It

initiates an investigation of a payment instruction that cannot
be executed or reconciled.
camt.027.001.02 ClaimNonReceipt Sent by a case creator/case assigner to a case assignee. It

initiates an investigation for missing funds at the creditor
(missing credit entry to its account) or at an agent along the
processing chain (missing cover for a received payment
instruction).
These messages are exchanged between case assigners and case assignees. They
support the following payment-related investigation activities.
Payments exception and Investigation - Case management

camt.028.001.02 Additional Sent by an account servicing institution to an account owner.
PaymentInformation It provides additional or corrected information on a payment
instruction or statement entry, in order to allow reconciliation.
camt.029.001.02 ResolutionOf Sent by a case assignee to a case creator/case assigner.

Investigation It informs of the resolution of a case, and optionally provides
details about the corrective action undertaken by the case
assignee.
camt.030.001.02 NotificationOf Sent by a case assignee to a case creator/case assigner.

CaseAssignment It informs the case assigner of further action that is
undertaken by the case assignee to process the case, eg, the
assignment of the case to a next case assignee.
camt.033.001.02 RequestFor Sent by the case assignee to the case creator/case assigner.
DuplicateInstruction It requests a copy of the original payment instruction
considered in the case.
camt.034.001.02 DuplicateInstruction Used by financial institutions, with their own offices, and/or
with other financial institutions with which they have
established bilateral agreements. It allows the exchange of
duplicate payment instructions.
camt.031.001.02 RejectCase Sent by a case assignee to a case creator/case assigner.

Assignment It is used to reject a case.
camt.032.001.01 CancelCase Sent by a case creator/case assigner to a case assignee. It

requests the cancellation of a case.
157

camt.038.001.01 CaseStatusReport Sent by a case creator/case assigner to a case assignee.
Request It requests the status of a case.
camt.039.001.02 CaseStatusReport Sent by a case assignee to a case creator/case assigner. It

reports on the status of a case.
camt.036.001.01 DebitAuthorisation Sent by an account owner to its account servicing

Response institution. It is used to approve or reject a debit authorisation
request.
camt.037.001.02 DebitAuthorisation Sent by an account servicing institution to an account

Request owner. It requests authorisation to debit an account.
camt.035.001.01 ProprietaryFormat Used by financial institutions, with their own offices,

Investigation and/or with other financial institutions with which they have
established bilateral agreements. It is used as an envelope for
a non standard message. It provides means to manage an
exception or investigation which falls outside the scope or
capability of any other formatted message. It also allows
financial institutions to use message types which are awaiting
live implementation in the Exceptions & Investigations solution
The above activities are supported by the case management messages.
Funds - Account Management

camt.028.001.02 AccountOpening Open an account directly or indirectly with the account
Instruction servicer or an intermediary.
acmt.002.001.02 AccountModification Modify the details of an existing account.

Instruction
acmt.003.001.02 AccountDetails Confirm the opening of an account, modification

Confirmation of an account or the provision of information requested in a
previously sent Get Account Details message.
acmt.004.001.02 GetAccountDetails Query all or some of the account details for a given account
held with an account servicer.
acmt.005.001.02 RequestForAccount Request the processing status of a previously sent

ManagementStatus Account Opening Instruction message or Account
Report Modification Instruction message for which a Account Details
Confirmation message has not yet been received
acmt.006.001.02 AccountManagement Provides the processing status of a previously received

StatusReport Account Opening Instruction or of an Account Modification
Instruction message.
Account management messages are used to manage investment account opening and
modifications to registered account information.
158
Account Opening Instruction
Account Modification Instruction
Account Details Confirmation
Get Account Details

Account Account
Owner Servicer
Request for Account Mangaement Status Report
Account Management Status Report
Funds - Order, confirmation and cancellation messages

Order messages are used to instruct the executing party to subscribe, to redeem or to
switch a given amount/quantity of a specified financial instrument.
As the processes are different for many institutions, there is a need to differentiate at
message type level.
These messages can be grouped into three categories:
— Subscription,
— Redemption,
— Switch.
Orders in the funds industry may be given according to different scenarios, eg, some
players group orders before sending them to the next party in the chain.

setr.001.001.03 RedemptionBulkOrder Bulks several individual redemption orders for one financial
instrument into one bulk order for multiple accounts.
setr.002.001.03 RedemptionBulkOrder Requests the cancellation of a previously sent

CancellationRequest RedemptionBulkOrder message. The message may request
the cancellation of one, many or all redemption orders
contained in a previously sent RedemptionBulkOrder
message.
setr.003.001.03 RedemptionBulk Confirms the execution of a previoulsy received

OrderConfirmation RedmptionBulkOrder message. The message may confirm
one, many or all redemption orders contained in a previously
received RedemptionBulkOrder message.
setr.004.001.03 RedemptionOrder Instructs the redemption of one or more financial instruments

for one investment fund account.
setr.005.001.03 RedemptionOrder Requests the cancellation of a previously sent

CancellationRequest RedemptionOrder message. The message may request the
cancellation of one, many or all redemption orders contained
in a previously sent RedemptionOrder message.
159

setr.006.001.03 RedemptionOrder Confirms the execution of a previously received
Confirmation RedemptionOrder message. The message may confirm the
execution of one, many or all redemption orders contained in
a previously received RedemptionOrder message.
setr.007.001.03 SubscriptionBulkOrder Bulks several individual subscription orders for one financial
instrument into one bulk order for multiple accounts.
setr.008.001.03 SubscriptionBulkOrder Requests the cancellation of a previously sent

CancellationRequest SubscriptionBulkOrder. The message may request the
cancellation of one, many or all subscription orders
contained in a previously received SubscriptionBulkOrder
message.
setr.009.001.03 SubscriptionBulkOrder Confirms the execution of a previously received

Confirmation SubscriptionBulkOrder message. The message may confirm
the execution of one, many or all subscription orders
contained in a previously received subscriptionBulkOrder
message.
setr.010.001.03 SubscriptionOrder Instructs the subscription of one or more financial

instruments for one investment fund account.
setr.011.001.03 SubscriptionMultiple Requests the cancellation of a previously sent

OrderCancellation SubscriptionOrder message. The message may
Request request the cancellation of one, many or all subscription
orders contained in a previously sent SubscriptionOrder
message.
setr.012.001.03 SubscriptionOrder The SubscriptionOrderConfirmation message confirms

Confirmation the execution of a previously received SubscriptionOrder
message. The message may confirm the execution of one,
many or all subscription orders contained in a previously
received SubscriptionOrder message.
setr.013.001.03 SwitchOrder Instructs a switch transaction from a financial instrument or

multiple financial instruments to a different specified financial
instrument or instruments for a specified amount/quantity.
setr.014.001.03 SwitchOrder Requests the cancellation of a previously sent SwitchOrder

Cancellation Request message. The message may request the cancellation of one,
many or all switch orders contained in a previously sent
SwitchOrder message.
setr.015.001.03 SwitchOrder Confirms the execution of a previously received

Confirmation SwitchOrder message. The message may confirm the
execution of one, many or all switch orders contained in a
previously received SwitchOrder message.
160
In order to cater for this, two sub-categories have been created for the subscription and
the redemption types of messages.
— Bulk order: A bulk message is typically a message containing a series of individual
order transactions from different accounts, but for the same financial instrument with
the same intermediary details. The order will result in a single cash settlement (not
settlement per individual order) executed using one single method. This order is sent
by a concentrator or a party collecting orders and bulking them to relay the
transactions to the transfer agent or another intermediary.
— Order: An order message is typically a message containing a single order or multiple
orders (list of orders related to several financial instruments) for the same account. It is
a ‘shopping list’ for one account. This type of order is typically sent by financial
advisers or banks that are managing a portfolio for a particular account.
In short, a bulk is "1 financial instrument-n accounts"; and an order is "1 account-1
financial instrument" if it is a single order and "1 account-n financial instruments" if it is a
multiple order.
No specific order category has been created for cross or ‘bed and breakfast’ orders. In
some countries, for legal reasons, these must appear as separate orders, while in others,
the two orders may be given together. Therefore, no specific order has been created for a
bed and breakfast order, as this transaction is the combination of a redemption and a
subscription linked together. Limit and forward orders are not covered, as these are not
common in the Funds industry.
For each category, below main flows are covered:
— the order,
— the order confirmation,
— the order cancellation instruction.
There is no order amendment message, as the agreed philosophy is ‘cancel and replace’.
In addition, messages for 2 new flows are now available. They are:
— the order confirmation amendment,
— the order confirmation cancellation.
These messages cover the cases where one or several details in the order confirmation
message need to be amended or when the entire order confirmation message needs to
be cancelled.
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Funds - Order status reporting messages

setr.016.001.03 OrderInstruction Reports the status of a subscription, redemption or switch
StatusReport order prior to execution.
setr.017.001.03 OrderCancellation Reports the status of an order cancellation request

StatusReport that was previously received.
setr.018.001.03 RequestForOrder Requests the status of one or more order instruction

StatusReport or order cancellation request messages.
setr.047.001.01 SubscriptionOrder Cancels one or more previously sent subscription

ConfirmationCancellation order confirmations.
Instruction
setr.048.001.01 SubscriptionOrder Amends a previously sent subscriptionOrderConfirmation

ConfirmationAmendment message.
setr.049.001.01 SubscriptionBulkOrder Cancels one or more previously sent subscription order

ConfirmationCancellation confirmations.
Instruction
setr.050.001.01 SubscriptionBulkOrder Amends a previously sent

ConfirmationAmendment SubscriptionBulkOrderConfirmation message.
setr.051.001.01 RedemptionOrder Cancels one or more previously sent redemption order

ConfirmationCancellation confirmations.
Instruction
setr.052.001.01 RedemptionOrder Amends a previously sent RedemptionOrderConfirmation

setr.053.001.01 RedemptionBulkOrder Cancels a previously sent

ConfirmationCancellation RedemptionBulkOrderConfirmation. The message may be
Instruction used to cancel one, many or all redemption order
confirmations contained in a previously sent
RedemptionBulkOrderConfirmation message.
setr.054.001.01 RedemptionBulkOrder Amends a previously sent

ConfirmationAmendment RedemptionBulkOrderConfirmation message.
setr.055.001.01 SwitchOrderConfirmation Cancels one or more previously sent switch order

CancellationInstruction confirmations.
setr.056.001.01 SwitchOrder Amends a previously sent switchOrderConfirmation

setr.057.001.01 OrderConfirmation Reports the status of an order confirmation or an order

StatusReport confirmation amendment.
setr.058.001.01 RequestForOrder Requests the status of one or several order confirmations.

ConfirmationStatusReport
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The Request For Order Status Report message covers the message flow between an
instructing party and an executing party.
This message requests the status of an order message or an order cancellation
instruction message.
The Order Instruction Status Report message covers the message flow between an
executing party and an instructing party. This message informs the instructing party of the
status of its order message, ie, SubscriptionOrder,
SubscriptionBulkOrder, RedemptionOrder, RedemptionBulkOrder or SwitchOrder.
The OrderCancellationStatusReport message covers the message flow between an
executing party and an instructing party. This message informs the instructing party of the
status of its order cancellation request message, ie,
SubscriptionOrderCancellationRequest, SubscriptionBulkOrderCancellationRequest,
RedemptionOrderCancellationRequest, RedemptionBulkOrderCancellationRequest or
SwitchOrderCancellationRequest.
Two new messages are now available: the RequestForOrderConfirmationStatusReport
and the OrderConfirmationStatusReport. They cover cases where the status of a
confirmation needs to be communicated by the instructing party to the executing party
(ie, the requesting party).
Funds - Order status reporting messages

camt.040.001.03 FundEstimatedCash Reports the estimated cash incomings and outgoings of
ForecastReport one or more investment funds on one or more trade dates.
camt.041.001.03 FundConfirmedCash Confirms the cash incomings and outgoings of one or more
ForecastReport investment funds on one or more trade dates.
camt.042.001.03 FundDetailedEstimated Reports the estimated cash incomings and outgoings,

CashForecastReport sorted by criteria defined by the user of one or more
investment funds on one or more trade dates.
camt.043.001.03 FundDetailedConfirmed Reports the cash incomings and outgoings, sorted by

CashForecastReport criteria defined by the user of one or more investment funds
on one or more trade dates.
camt.044.001.02 FundConfirmedCash The FundConfirmedCashForecastReportCancellation

ForecastReport message cancels a previously sent
Cancellation FundConfirmedCashForecastReport message.
camt.045.001.02 FundDetailedConfirmed Cancels a previously sent

CashForecastReport FundDetailedConfirmedCashForecastReport message.
Cancellation
The fund cash forecast reporting messages are used to provide a report of the cash
incomings and outgoings per investment fund. The cash incomings and outgoings result
from redemption, subscription and switch transactions.
163
Funds – Statements

semt.003.001.02 AccountingStatement Provides valuation detail
OfHoldings
semt.004.001.02 CustodyStatementOf Cancels a previously sen CustodyStatementOfHoldings

HoldingsCancellation message.
semt.005.001.02 AccountingStatementOf Cancels a previously sent AccountingStatementOfHoldings

HoldingsCancellation message.
semt.006.001.02 StatementOfInvestment Reports detailed transactions (increases and decreases) of

FundTransactions holdings which occurred during a specified period of time.
semt.007.001.02 StatementOfInvestment Cancels a previously sent

FundTransactions StatementOfInvestmentFundstransactions message.
Cancellation
Statement messages are used to report the holdings of or transactions on a specific

account or sub-account on a specified date or period.
These messages can be grouped into three categories:
— Accounting holdings statement,
— Custody holdings statement,
— Transactions statement.
For each category, two main flows are covered:

— the statement
— the statement cancellation
Additional messages, eg, request for statement message or statement of pending
transactions will be available in the next phases of the standards initiative.
These messages are grouped into two categories.
— Estimated report: contains estimated cash forecasts, ie, cash flows calculated with an
estimated price, usually the price of the previous trade date.
— Confirmed report: contains confirmed cash forecasts, ie, cash flows calculated with
the definitive price on a specific trade date.
Each category is divided into two sub-categories:
— Short report: contains incoming and outgoing cash flows.
— Detailed report: contains incoming and outgoing cash flows. These may be sorted
according to predefined or user defined criteria and breakdown information may be given.
Estimated cash forecast messages do not need to be cancelled and replaced, as an
estimated message overwrites the previous estimated message. Confirmed cash forecast
reports may be cancelled and for this reason, two cancellation messages exist.
164
Funds - Price Reporting messages (NAV: Net Asset Value)

reda.001.001.03 PriceReport Reports the net asset value and price information for one or
more financial instruments on specific trade dates and,
optionally, to quote price variation information.
reda.002.001.03 PriceReportCancellation Cancels a previouslysent PriceReport message.
reda.003.001.03 PriceReportCorrection Corrects specific price information included in a previously

sent PriceReport message.
The price reporting messages cover the message flows between a report provider and a
report user.
The price messages are used to:
— communicate the price of an investment fund,
— correct a price that was previously sent,
— cancel a previously sent PriceReport.
A report provider, eg, a transfer agent, fund accountant or market data provider, sends
the PriceReport message to the report recipient, eg, a fund management company,
transfer agent, market data provider, regulator or other interested party to provide the net
165
Funds - Transfer, confirmation and cancellation messages
sese.001.001.02 TransferOutInstruction The TransferOutInstruction message instructs the delivery

of a financial instrument, free of payment, to another of the
instructing parties own accounts or to a third party.
sese.002.001.02 TransferOutCancellation The TransferOutCancellationRequest message requests the

Request cancellation of a previously sent TransferOutInstruction
message.
sese.003.001.02 TransferOutConfirmation The TransferOutConfirmation message confirms the

execution of a previously received TransferOutInstruction
message.
sese.004.001.02 ReversalOfTransferOut The ReversalOfTransferOutConfirmation message reverses

Confirmation (cancels) a previously sent TransferOutConfirmation
message.
sese.005.001.02 TransferInInstruction The TransferInInstruction message instructs the receipt of a

financial instrument, free of payment, from another
account, either owned by the instructing party or by a third
party.
sese.006.001.02 TransferInCancellation The TransferInCancellationRequest message requests the

Request cancellation of a previously sent TransferInInstruction
message.
sese.007.001.02 TransferInConfirmation The TransferInConfirmation message confirms the

execution of a previously received TransferInInstruction
message.
sese.008.001.02 ReversalOfTransferIn The ReversalOfTransferInConfirmation message reverses

Confirmation (cancels) a previously sent TransferInConfirmation
message.
The functions involving changes in the fund register due to a change of record keeper
(with or without changing the beneficial owner).
An instructing party, eg, an investment manager or its authorised representative, sends
the Transfer message to the executing party, eg, a transfer agent, to instruct the receipt
or delivery of a financial instrument, free of payment, on a given date from a specified
party. This message may also be used to instruct the receipt of a financial instrument, free
of payment, from another of the instructing parties own accounts or from a third party.
Transfer messages are used to instruct the transfer of a given amount/quantity of a
specified financial instrument from one account to another own account or to a third party
account.
These messages can be grouped into two categories:
— Transfer out,
— Transfer in.
166
Specific messages have been created for transfer out and transfer in. As processing of
transfers is different for many institutions, there is a need to differentiate at message type
level. For each category, four main flows are covered:
— the transfer instruction,
— the transfer cancellation request,
— the transfer confirmation,
— the reversal of the transfer confirmation.
Funds - Transfer status messages and request for transfer status message
sese.009.001.02 RequestForTransferStatus The RequestForTransferStatusReport message requests

Report the status of a previously instructed transfer or the status of
a previously sent cancellation of transfer request.
sese.010.001.02 TransferCancellationStatus The TransferCancellationStatusReport message reports the

Report status of a transfer in or transfer out cancellation request.
sese.011.001.02 TransferInstructionStatus The TransferInstructionStatusReport message reports the

Report status of a previously received TransferInInstruction or
TransferOutInstruction message.
These transfer status report messages allow to report on the status of transfer messages
and transfer cancellation instruction messages, and to request a status report.
The TransferInstructionStatusReport message covers the message flow between an
instructing party and an executing party. It informs the instructing party on the status of its
transfer message, ie, TransferOutInstruction or TransferInInstruction.
The TransferCancellationStatusReport message covers the message flow between an
instructing party and an executing party. It informs the instructing party on the status of its
transfer cancellation instruction message, ie, TransferOutCancellationRequest or
TransferInCancellationRequest.
The RequestForTransferStatusReport message covers the message flow between an
instructing party and an executing party. It requests the status of a transfer message or a
transfer cancellation instruction message.
167
Funds - PEP or ISA or Portfolio transfer messages
sese.012.001.02 PEPOrISAOrPortfolio The PEPOrISAOrPortfolioTransferInstruction message

TransferInstruction instructs the transfer of financial instruments from the
clients account at the old plan manager to the clients
account at the new plan manager through a nominee
account.
sese.013.001.02 PEPOrISAOrPortfolio The PEPOrISAOrPortfolioTransferConfirmation message

TransferConfirmation confirms the execution of a previously received
PEPOrISAOrPortfolioTransferInstruction message. The
message may be used to confirm the execution of one,
many or all transfers contained in a previously received
PEPOrISAOrPortfolioTransfer message.
sese.014.001.02 PEPOrISAOrPortfolio The PEPOrISAOrPortfolioTransferCancellationRequest

TransferCancellation message requests the cancellation of a previously sent
Request PEPOrISAOrPortfolioTransferInstruction message. The
message requests the cancellation of all transfer
instructions contained within a previously sent
PEPOrISAOrPortfolioTransferInstruction message.
sese.018.001.01 PEPOrISAOrPortfolio The PEPOrISAOrPortfolioInformation message provides

Information information about one or more PEP or ISA or portfolio
products held in a client’s account.
sese.019.001.01 RequestForPEPOrISAOr The RequestForPEPOrISAOrPortfolioInformation message

PortfolioInformation requests information about one or more PEP or ISA or
portfolio products held in a client’s account for which a
transfer will be instructed at a later time.
PEP/ISA transfer messages are used to instruct the transfer of one or more assets from
an investor’s account at an old plan manager to an account with the new plan manager.
In addition, 2 new messages are now available to request information and provide
information about a particular PEP or ISA or Portfolio. These messages are the request
for PEP or ISA or portfolio information and the PEP or ISA or portfolio information.
Funds - Rejection Message
admi.002.001.01 MessageReject Sent by a central system to notify the rejection of a

previously received message. It provides specific
information about the rejection reason.
168
Funds – FPP (Funds Processing Passport)
reda.004.001.01 FundProcessingPassport Used to convey the key reference data for financial
Report instruments needed to facilitate trading.
reda.005.001.01 RequestForInvestment Used to request a funds processing passport report. It may

FundReport also be used to request other investment funds reports,
such as a fund cash forecast report. The request message
may also be used to request statements, such as the
statement of investment fund transactions.
FundProcessingPassportReport - A report provider, eg, a fund promoter, fund

management company, transfer agent, or market data provider, sends the
FundProcessingPassportReport message to the report recipient, eg, a professional
investor, investment fund distributor, market data provider, regulator or other interested
party to provide the key reference data for financial instruments to facilitate trading.
RequestForInvestmentFundReport - A report user, eg, a professional investor, investment
fund distributor, market data provider, regulator or other interested party sends the
RequestForInvestmentFundReport message to the report provider, eg, a fund promoter,
fund management company, transfer agent, or market data provider to request a report.
The RequestForInvestmentFundReport message can be used to request the following
reports and statements:
— Fund cash forecast report, eg, a FundDetailedConfirmedCashForecastReport
— FundProcessingPassportReport
— PriceReport
— Statement, eg, AccountingStatementOfHoldings
— User defined report
Administration
admi.001.001.01 Report Used for general application level data reporting. A

message may contain either a full report or one single
tranche (part) of a report split in multi-tranches (multi-
parts). The message contains a mechanism to support
the correct reassembling of the reporting data by an
application.
admi.002.001.01 MessageReject Sent by a central system to notify the rejection of a

previously received message. It provides specific
information about the rejection reason.
admi.004.001.01 SystemEventNotification Sent by a central system to notify the occurrence of an

event in a central system.
169
The SecuritiesMessageRejection message is used to reject any securities message. An

account servicer, eg, a registrar, transfer agent or custodian bank, sends the
SecuritiesMessageRejection message to an account owner, eg, an investor or its
authorised agent, to reject a previously received message on which action cannot be
taken.
The message may also be sent by the executing party, eg, transfer agent to the
instructing party, eg, investment manager or its authorised representative to reject a
previously received message on which action cannot be taken.
A.3. FpML Standards

The FpML messages are listed according to the business area in which they have been
defined.
Syndicated Loans
MX Name Purpose
DrawdownNotice After the agent bank received a written drawdown request,
(also used for a it calculates the amount of principal due from each lender based on their share of
RateSetNotice) the underlying unutilised commitment. The agent bank creates a
DrawdownNotice for each of the lenders. The interest rate to be applied to the
contract is not always known at the time that the drawdown notice is sent out.
The agent bank therefore sends out the notice without interest rate information.
This information is then provided in a separate RateSetNotice.
InterestPaymentNotice After the agent bank requested the borrower to make an interest payment, the
agent bank calculates each lender’s interest amount. An InterestPaymentNotice
is then sent to each lender to communicate this information.
RepaymentNotice The agent bank requests the borrower to make a principal repayment. The
borrower makes a payment to the agent bank. The agent bank then calculates
each lender’s principal amount. A RepaymentNotice is sent to each lender. This
is the position when a scheduled principal repayment is made. Due to the nature
of credit agreements, the borrower can make two additional categories of
repayments against any outstanding contracts:
• unscheduled Mandatory Principal Repayments
• unscheduled Voluntary Principal Repayments.
OnGoingFeeNotice The agent bank requests the borrower to make a fee payment according to the
credit agreement, upon which the fee is paid. The agent bank then calculates
each lender’s fee amount and sends an OnGoingFeeNotices to each lender. The
fee types included in this specification are as follows:
• Commitment Fee: Calculated as a percentage of the unutilised portion of the
facility.
• Utilisation Fee: Calculated as a percentage of the utilised portion of the facility.
This fee type is subject to banding rule, that is different portions of the utilisation
amount may be subject to different percentages.
• Facility Fee: Calculated as a percentage of the global commitment amount of a
facility.
• Letter of Credit Fee: Calculated as a percentage of the outstanding Letter of
Credit exposure within a facility.
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MX Name Purpose
OneOffFeeNotice The agent bank requests the borrower to make a fee payment according to the
credit agreement, upon which the fee is paid. The agent bank then calculates
each lender’s fee amount and sends OneOffFeeNotices to each lender. The
following fee types are included in this specification:
• Amendment Fee: A fee charged to the borrower for an amendment being made
to the originally agreed credit agreement. The fee is based on a rate (as stated in
the agreement) applied to the current commitment level.
• Waiver Fee: This fee represents any fee paid by the borrower to the syndicate
lenders or agent bank for accepting or processing a waiver request. The
borrower sends a waiver request to obtain approval from the syndicate lenders
for any requirement outside of the terms of the agreement.
• Upfront Fee: Also known as participation fee or arrangement fee. It represents
compensation to the members of the lending syndicate in return for their
commitment of capital.
• Facility Extension Fee: Represents any fee paid by the borrower to the
syndicate lenders for extending an existing facility.
• Funding Fee: Fee associated with the funding requirements of a given facility.
Drawdown Notice
Interest Payment Notice
Principal Repayment Notice Market

Investment Infrastructure
Manager On-Going Fee Payment Notice (DTCC/EOC)
or
One-Off Fee payment Notice Loan Agent
The release 2.0 (FpML 4.5) will be delivered at later date.
OTC Derivatives
Business Process Definition
Notification of a new Contract After a contract is agreed and allocated between the asset manager
and the dealer, the asset manager informs its custodians about the
details of the contract. The notification can be done either before or
after the contract is confirmed between the dealing counterparties.
Notification of an Increase The asset manager notifies the custodian of an increase of the
contract notional.
Notification of a Novation The asset manager notifies the custodian of a full or partial novation of
an existing contract.
Notification of a Partial The asset manager notifies the custodian of a partial termination of an
Termination existing contract.
Notification of a Full Termination The asset manager notifies the custodian of a full termination of an
existing contract.
171
Notification of a Cancellation The asset manager notifies the custodian of the cancellation of the
notification of a new contract.
Notification of the cancellation The asset manager notifies the custodian that an increase of the
of an Increase contract notional is cancelled.
Notification of the cancellation The asset manager notifies the custodian that a full or partial novation
a Novation is cancelled.
Notification of the cancellation The asset manager notifies the custodian that a partial termination is
a Partial Termination cancelled.
Notification of the cancellation The asset manager notifies the custodian that a full termination.
a Full Termination is cancelled.
Confirm a new trade After a trade has been agreed between buy-side and sell side, both
parties confirm the elements of the trades from their respective point of
view.
Modify an already confirmed One or both parties send a modification to update or correct elements of
trade the trade.
Cancel an already confirmed One or both parties cancel an already sent confirmation.
trade
Initiate a Credit Transfer on The asset manager sends the CustomerCreditTransferInitiation message
behalf of a fund to the custodian. This message requests movement of funds from the
debtor’s account to a creditor.
Provide the status of a The custodian sends the PaymentStatusReport message to the asset
payment instruction manager. This message informs this party about the positive or negative
status of an instruction. It can also report on a pending instruction.
Cancel a payment instruction The asset manager sends the PaymentCancellationRequest message to
the custodian. This message requests the cancellation of an instruction
previously sent.
Reverse a payment instruction The asset manager sends the CustomerPaymentReversal message to
the custodian. This message reverses a payment previously executed.
Request the collection of funds The asset manager sends the CustomerDirectDebitInitiation message to
the custodian. This message requests single or bulk collection(s) of
funds from one or various debtor’s account(s) for a creditor.
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A.4 FIX Standards

FIX – Pre-trade Trade
Name Purpose
Indication of Interest Unsolicited list of offerings from the sell-side, sent from the executing
party (e.g. Broker / Dealer) to the IM.
Quote Request Unsolicited inquiry for bids wanted from the buy-side.Unsolicited; can
also be used to identify an instrument based on attributes, learn a
security identifier or to calculate size pre-trade. It is sent by the IM to the
executing party.
Quote This is sent by the executing party back to the IM in response to a Quote
Request.
New Order Single or Multi-Leg This can be sent unsolicited by the IM to the executing party, or in
response to a Quote or firm Offering.
Execution Report This is sent by the executing party to the IM immediately in response to
New Order and each time the state of the order changes.
FIX – Post trade/Pre-settlement
Name Purpose
Allocation Instruction This is sent by the IM to the executing party, and follows up New Order
before or after the trade is filled. It is used to indicate how a trade is
allocated into specific accounts.
Allocation Instruction Ack This is sent by the executing party to the IM to acknowledge receipt of
the allocation instruction, but not yet accepted, or can report errors in
the allocation instruction message.
Allocation report This is sent by the executing party to the IM to accept and confirm the
allocation instruction, and conveys data for each sub-account (i.e. net
money, accrued interest, etc.).
Allocation report Ack This is sent by the IM to the executing party to confirm the allocation
report and its calculations or to reject the allocation report.
B. What is in it for you? - Calculating your business case for SWIFT

As an IM, ask yourself the following questions:
Are your business volumes fluctuating?
Fluctuating volumes make it very hard for institutions to adequately staff up for peak
volumes. With SWIFT messaging, you can reduce the manual effort and thus reduce
the dependency on volumes.
Quote from an IM already using SWIFT: Our transaction volumes vary significantly
from one day to the next. However, the effort involved in generating our SWIFT based
settlement instructions that are sent to custodians is limited given the high level of
automation we have achieved in this area – we therefore barely notice the volume of
settlement instructions sent from day-to-day.
173
Are you using several proprietary terminals?

Proprietary terminals often look like the most cost-effective way of communicating
with counterparties. There is however an important hidden cost in terms of training
and re-keying data. SWIFT estimates (based on feedback from a number of IMs) that
the cost of a proprietary terminal averages EUR 25,000 per year.
Quote from an IM already using SWIFT: Before we had SWIFT, we had proprietary
terminals all over the office. Staff needed to be trained on all these different systems,
and data was re-keyed all day long. Now, we simply have one system.
Are you still sending and receiving a lot of faxes?

Faxes are labour intensive. Even if you are using an autofax facility, the counterparty
will still be faced with manual input. This manual input increases the cost and the risk
of faxes. Now that more and more industry players are starting to surcharge for faxes
received, there is an increased need to look at alternative communication channels.
Quote from an IM already using SWIFT: If we were to report everything over fax, we
would probably need twice as many people to do this. We have increased our traffic
by tenfold without really increasing the headcount.
Do you need to talk to several different brokers, custodians, banks…and a multitude

of other counterparties?
Setting up and maintaining communication channels with a multitude of
counterparties is labour intensive and costly. If they all have their own particular way
of communicating, this further increases costs and reduces efficiency. With SWIFT,
you are sure you always communicate using the same language, while adding
another counterparty is done without additional effort or investment.
Quote from an IM already using SWIFT: The cost of SWIFT is insignificant compared
to the cost of other more manual messaging means.
Is reputation one of the most important assets of your institution?

For most IMs, reputation is the single most important asset. Risk reduction is
therefore key to the success of the institution. Guaranteed and timely delivery of your
instructions and other messages will make sure that your good reputation is not
negatively impacted by failing settlements, late reporting, etc.
Quote from an IM already using SWIFT: Without SWIFT we would certainly need to
double the number of operations staff and maybe even more. Fluctuations in
business cycles cause problems because you have to hire temporary staff to handle
additional volumes. This increases risk and further reduces efficiency.
174
Are you using e-mail or the internet for confidential or time critical communication?
E-mail and internet are certainly the most frequently used communication channels of
this day and age. The need for follow up, lack of standardisation and increased risk,
however puts an additional burden on your operations staff. Make sure they can
focus on customer oriented tasks instead of being bogged down with operational
issues.
Quote from an IM already using SWIFT: SWIFT brings intangible benefits as well. By
automating the operations processes, operations staff can focus on more challenging
tasks. Job satisfaction increases and staff turnover drops.
Do you anticipate your trading volumes to grow significantly in the future?

If you are looking at increasing your volumes, SWIFT will enable you to automate, so
that doubling your volumes does not necessarily mean doubling your staff.
Automation is the key to success for increased volumes. SWIFT will help you drive
automation in your organisation.
Quote from an IM already using SWIFT: The scalability we get through SWIFT
automation is huge. We would not have been able to support our growth and stay in
this business without it.
If you answered yes to any of the above questions, SWIFT can help you.
To find out what your costs and potential savings from joining SWIFT will be, contact
the SWIFT Sales Representative in your region. They can work with you to calculate
and compare the costs of your existing environment to what it would be if you joined
SWIFT.
If you are already an existing SWIFT user, SWIFT can work with you to find out what
additional costs (if any) you will incur, and increased potential savings you can attain,
through greater use of SWIFT.
Note: please refer to official source documentation provided by SWIFT for updates.
175
C. Roadmap by Asset class and business function
Order w/ Execution Trade confirmation Allocation Matching Settlement

Custodian with Brokers with Brokers with Broker with Broker with Custodian
Currency exchange
FX MT 380/381 N/A MT 300 MT 303 Accord MT 304
FX Swaps N/A N/A MT 300 N/A Accord MT 304
NDF N/A N/A MT 300 N/A Accord MT 304
Vanilla option N/A N/A MT 305 MT 303 Accord N
Exotic Option N/A N/A MT 306 N/A Accord N
Loan deposit
Fixed loan or N/A N/A MT 320 N/A Accord MT 321

deposit
Call Notice N/A N/A MT 330 N/A Accord N/A
OTC Derivatives
FRA N/A N/A MT 340/ MT 341 N/A Accord N/A
IRS N/A N/A MT 36x/ FpML N/A Accord planned FpML

for FpML
Single Currency N/A N/A FpML N/A Accord planned FpML

Swaptions – SPT
Cap Floors and N/A N/A MT 360/ FpML N/A Accord planned FpML
Collars – CPC for FpML
Interest Rate Swaps N/A N/A MT 36x/ FpML N/A Accord planned FpML
(including OIS) for FpML
CD N/A N/A FpML N/A Accord planned FpML
Single Credit
Default Swaps – N/A N/A FpML N/A Accord planned FpML
CDS
Index Credit
CDX
Index Tranche
Credit Default N/A N/A FpML N/A Accord planned FpML
Swaps – CXT.
Basket Credit
CDB
Basket Tranche
Credit Default N/A N/A FpML N/A Accord planned FpML
Swaps – CBT
176
Order w/ Execution Trade confirmation Allocation Matching Settlement

Custodian with Brokers with Brokers with Broker with Broker with Custodian
Equities and FI, Listed derivatives
Equities MT 502/ MT
515 / FIX
Fixed MT 502/ MT
Income 515 / FIX
Commodities
Precious metals MT 6xx
Physical and FpML

non physical
Interest Rate swaps

Cap Floors and Collars – CPC (360) + FpML
Interest Rate Swaps (including OIS) (36x) +FpML
Credit Default Rate swaps

Single Credit Default Swaps – CDS
Index Credit Default Swaps – CDX
Index Tranche Credit Default Swaps – CXT.
Basket Credit Default Swaps – CDB
Basket Tranche Credit Default Swaps – CBT
“None of us is as smart as all of us”

With a big thank you to all the people from the industry and SWIFT who have helped to put this book together
177
D. Glossary
Acronym Definition
Accord SWIFT’s matching and netting service. It provides financial institutions with a
complete foreign exchange, money market and derivatives solution.
BIC Bank Identifier Code: An International Standardisation Organisation, technical

code that uniquely identifies a financial institution. SWIFT is the Registration
Authority for BICs. The BIC consists of eight or eleven characters, comprising a
financial institution code (four characters), a country code (two characters), a
location code (two characters), and for FIN and IFT, an optional branch code
(three characters).
CUG Closed User Group: A subset of Customers grouped for the purposes of their
use of the relevant SWIFT Services and Products when accessing a Service.
FIX Financial Information eXchange: A message standard developed to facilitate the

electronic exchange of information related to securities transactions.
FIX Connector A software module positioned between a FIX Engine and the SWIFTNet Link that
enables a Financial Information eXchange session to take place over SWIFTNet.
ISO International Organisation for Standardisation: Based in Geneva, the ISO is

responsible for the development of international standards.
MA-CUG Member Administered Closed User Group: A CUG administered by a SWIFT

Member (e.g. allowing for communication via SWIFTNet between a Member and
the Member’s own customers who are not SWIFT users).
SIPN Secure IP Network: SWIFT’s worldwide, highly secure and extremely reliable
virtual private network. The SIPN is based on the Internet Protocol (IP) and
related technologies and provides transport services required by SWIFTNet
services.
SNL SWIFTNet Link (SNL) application-to-application access mode ensures technical

inter operability between users by providing the minimal functionality required to
communicate over the SWIFTNet services.
XML Extensible Mark-up Language: A standard for data representation and

manipulation. XML is a meta-language subset of SGML (Standard Generalised
Mark-up Language) that has been specifically designed for describing and
exchanging structured data on the World Wide Web. With XML a document is
divided into three parts: structure, content and style.
XML naming conventions for Message Identifiers as follows:

The Message is given a Message Identifier, defined by the ISO 20022
Registration Authority. The Message Identifier uniquely identifies the message
and has the following structure: “xxxx.nnn.aaa.bb”, whereby
— xxxx is an alphabetic code in four positions (fixed length) identifying the
Business Process,
— nnn is an alphanumeric code in three positions (fixed length) identifying the
Message Functionality,
— aaa is a numeric code in three positions (fixed length) identifying a particular
flavour (variant) of Message Functionality,
— bb is a numeric code in two positions (fixed length) identifying the version, and
— ‘.’ is the delimiter character between elements.
Index
179
Index
Section 1 Introduction
1 Executive summary 2
1.1 Investment Manager (IM) 2
1.2 SWIFT 2
1.3 SWIFT in the investment management markets 2
1.4 Investment Managers’ needs and how SWIFT can help 5
1.5 The value of SWIFT to investment managers 8
Section 2 SWIFT’s value proposition for investment managers

SWIFT’s value proposition for investment managers 11
Section 3 Business areas of an investment manager and SWIFT’s solutions

3 Business areas of an investment manager and SWIFT’s solutions 21
3.1 Overview 21
3.2 SWIFT solutions per business activities 22
3.3 Asset Management 25
3.3.1 Pre-Trade/Trade: Equities, Fixed Income, Listed derivatives 27
3.3.2 Post/Trade, Pre-settlement: Trade confirmation: Equities, Fixed Income,
Listed derivatives 29
3.3.3 Post/Trade, Pre-settlement: Trade confirmation: FX, MM and FX options 31
3.3.4 Post Trade/Pre-settlement: Syndicated Loans 33
3.3.5 Post/Trade, Pre-settlement: Trade confirmation: Commodities 36
3.3.6 Post/Trade, Pre-settlement: OTC Derivatives 37
3.3.7 Clearing and settlement: Securities 39
3.3.8 Clearing and settlement: Forex through SWIFT CLS Third Party Service 40
3.3.9 Securities reporting 42
3.3.10 Asset servicing and administration: Data distribution 44
3.3.11 Asset servicing and administration: Corporate Actions 45
3.3.12 Asset servicing and administration: Proxy Voting 47
3.3.13 Portfolio Administration 49
3.3.14.1 Payments and cash management: Payments initiation 50
3.3.14.2 Payments and Cash management: Cash Reporting 52
3.3.14.3 Payments and Cash management: Exceptions and investigations 55
3.3.14 Collateral Management 57
3.3.15 Regulatory reporting 59
3.4 Funds 61
3.4.1 Funds flows 62
180
Section 4 Initiatives and solutions

4 Initiatives and initiatives 65
4.1 Light connectivity 65
4.2 Trade capture 66
4.3 Automating FX Allocations 66
4.4 FX and securities post trade/pre-settlement 66
4.5 Securities Pre-settlement matching: Accord 67
4.6 SSI 67
4.7 Total Portfolio Valuation 68
4.8 Collateral management and portfolio reconciliation 68
4.9 Securities Financing 69
4.10 Commodities 70
4.11 Funds distribution 70
Section 5 Applications
5 Applications 71
5.1 SWIFT’s Accord matching application 71
5.2 SWIFT’s Affirmations application 73
5.3 Securities Market Infrastructures 75
5.4 Banking Market Infrastructures 76
Section 6 Standards
6 Standards 77
6.1 Introduction 77
6.2 SWIFT Standards 77
6.2.1 ISO (International Organisation for Standardisation) 77
6.2.2 The Giovannini Group 77
6.2.3 Financial Products Markup Language (FpML) 78
6.2.4 The Financial Information eXchange Protocol (FIX) 78
6.3 Market Practices 78
6.3.1 Global Market Practice Groups 78
6.3.2 Securities Market Practice Groups (SMPG) 78
6.3.3 Payments Market Practice Groups (PMPG) 79
6.3.4 National Market Practice Group (NMPGs) 79
Section 7 Messaging
7 Messaging 81
7.1 Transaction exchange 81
181
7.1.1 FIN 81
7.1.2 FINInform 81
7.1.3 FINCopy 82
7.2 Bulk data exchange 82
7.2.1 Fileact 82
7.3 Interactive services 82
7.3.1 Interact 82
7.3.2 Browse 83
7.4 Directories 83
7.5 Business intelligence 85
7.6 Simulation Testing and Qualification Services (STaQS) 85
Section 8 Connectivity
8 Connectivity 87
8.1 Who can connect to SWIFT? 87
8.2 Is my institution eligible to join? 88
8.3 Categories of SWIFT User (until September 2009) 88
8.3.1 SWIFT’s Legal Definition of a Fund Administrator 91
8.3.2 SWIFT Categories and IMs 92
8.4 Categories of SWIFT User (from September 2009) 92
8.5 SWIFT Pricing and Fees 93
8.5.1 Joining and connecting to SWIFT 94
8.5.2 Using SWIFT Services and Business Solutions 95
8.5.3 Other SWIFT Services 96
8.6 SWIFT Connectivity Solutions 96
8.6.1 Direct Connectivity 98
8.6.2 Indirect Connectivity 99
8.6.3 Interfaces 99
Section 9 Service
9 Service 101
9.1 Business Assessment Programme 101
9.2 SWIFT Partner Programme 101
9.2.1 Value Based Partner Segmentation 102
9.2.1.1 SWIFT Registered Vendors 102
9.2.1.2 SWIFT Solution Providers 102
9.2.1.3 SWIFT Partners 103
182
9.2.2 SWIFTReady Certification of Solution Components 103

9.2.2.1 SWIFTReady Applications 103
9.2.2.2 SWIFTReady Services and Expertise 103
9.2.2.3 SWIFTReady Connectivity 104
9.2.3 Promotion of SWIFT Solution Providers and SWIFT Partners 104
9.2.3.1 Listing 104
9.3 SWIFT Training 105
Section 10 About SWIFT

10 About SWIFT 107
10.1 Community inspired 107
10.2 History and Evolution 107
10.3 Sibos 109
Appendix
A. Details of standardised messaging 111
A.1. FIN Standards 111
A.2. MX Standards 148
A.3. FpML Standards 169
A.4. FIX Standards 172
B. What is in it for you? Calculating your business case for SWIFT 172
C. Roadmap by Asset class and business function 175
D. Glossary 177
183
Further Information
Further Information
To obtain further information about SWIFT or on any of the SWIFT services and products
please contact your regional account manager.
Alternatively visit SWIFT’s web site at www.swift.com where you can find detailed overviews of
SWIFT’s business solutions under the Products & Services tab.
North & Latin Americas
Brazil United States - New York

Avenida Paulista, 1048 7 Times Square
3 andar 45th floor
01310-100 Sao Paulo SP New York, NY 10036
Tel: +55 11 3514 9000 Tel: +1 212 455 18 00
Fax: +55 11 3514 9001 Fax: +1 212 455 18 17
SWIFT BIC: SWHQ BR RJ SWIFT BIC: SWHQ US 3N
United States - San Francisco

50 California Street
Suite 1601
San Francisco, CA 94111
United States
Tel.: +1 415 277 5401
Fax: +1 415 277 5403
Asia Pacific
Australia Hong Kong

Suite 3202 31/F One International
AMP Centre Finance Centre
50 Bridge Street, 1 Harbour View Street
Sydney NSW 2000 Central
Tel: +61 2 92 25 8100 Tel: +852 2107 8700
Fax: +612 92 25 8111 Fax: +852 2107 8733
SWIFT BIC: SWHQ HK HH
India Japan
Unit No.303, Ceejay House 2nd floor - AIG Building
Plot No. F, Shivsagar Estate 1-3 Marunouchi 1-chome
Dr. A.B Road, Worli Chiyoda-ku, Tokyo 100
Mumbai 400018 Tel: +81 3 5223 7400
Tel: +91-22-66156971 Fax: +81 3 5223 7439
Fax: +91-22-66156974 http://www.swift.com/jp
SWIFT BIC: SWHQ JP JT
184
People’s Republic of China Shanghai

Units 819 - 821 Unit 4005-4007, One Lujiazui
8th Floor No.68 Central Yincheng Rd
No. 7 Financial Street Shanghai 200120
Winland International Finance Centre Tel: +8621 6182 8300
Xicheng District Fax:+8621 6182 8308
Beijing 100034
Tel: +86 10 6658 2900
Singapore
Unit 16-02, 80 Robinson Road
Singapore 068898
Tel: +65 6347 8000
Fax: +65 6347 8099
EMEA
Austria HQ & Belgium

SWIFT Austria GmbH Headquarters
Fischhof 3/6 Avenue Adèle 1
Reception: 1st floor B-1310 La Hulpe
A-1010 Vienna Tel: +32 2 655 31 11
Tel: +43 1 74040 2372 Fax: +32 2 655 32 26
Fax: +43 1 74040 2379 SWIFT BIC: SWHQ BE BB
France Germany
Opera Trade Center 20th Floor, City-Haus I
4 rue Auber Friedrich-Ebert-Anlage 2-14
75009 Paris 60325 Frankfurt am Main
Tel: +33 1 53 43 23 00 Tel: +49 69 7541 2200
Fax: +33 1 53 43 23 90 Fax: +49 69 7541 2290
Italy South Africa

Corso G. Matteotti, 10 Unit 18, 2nd Floor
20121 Milano 1 Melrose Boulevard
Tel: +39 02 7742 5000 Gauteng 2076
Fax: +39 02 7742 5090 Tel: +27 11 250 5346
Fax: + 27 86 644 4670
185
Spain Sweden
Edificio Cuzco IV Oxtorgsgatan 4, 7th floor
Paseo de la Castellana 141, 22A Stockholm
28046 Madrid Tel: +46 8 508 95 300
Tel: +34 91 425 1300 Fax: +46 8 508 95 301
Fax: +34 91 425 1310
Switzerland United Arab Emirates

Freischützgasse 10 Office 42
8004 Zurich Level 15
Tel: +41 43 336 54 00 The Gate Building
Fax: +41 43 336 54 10 P.O. Box 506575
Dubai
Tel: +971 4 425 0900
Fax: +971 4 425 0160
United Kingdom
7th floor, The Corn Exchange
55 Mark Lane
London EC3R 7NE
Tel: +44 20 7762 2000
Fax: +44 20 7762 2222
SWIFT BIC: SWHQ GB 2L
Interested in joining us? SWIFT
Visit our website www.swift.com/careers to apply online Avenue Adèle, 1
55738 - JAN 2009

and discover all our other career opportunities. B-1310 La Hulpe
Belgium
Wish to know more about SWIFT?
+32 2 655 31 11
Browse our website www.swift.com

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SWIFT for Investment Managers

– End-to-end solutions for asset management and

Trading Trade Capture Trading

Allocation processing as well as confirmation matching, SSI - New!

Cash Settlement Cash Settlement

Data distribution Data distribution

Total Portfolio Valuation (TPV) - New!

Collateral Management - New!

Portfolio reconciliation - New!

SWIFT for Investment Managers

Dear investment manager,

Automation with SWIFT enables you to achieve three key benefits:

If you also manage hedge funds,

“The scalability we get through SWIFT automation is huge.

SWIFT for Investment Managers

1.1 Investment Manager (IM)

1.3 SWIFT in the investment management market

SWIFT for Investment Managers

Payments, Cash Management,

SWIFT messages, based on ISO standards, provide enhanced straight-through

SWIFT for Investment Managers

1.4 Investment managers’ needs and how SWIFT can help

SWIFT for Investment Managers

“By automating the operations processes, operations staff can

Risk management and compliance

New instruments and more counterparts

SWIFT for Investment Managers

Data management and reporting requirements

SWIFT for Investment Managers

1.5 The Value of SWIFT to Investment Managers

SWIFT’s portfolio allows

Provide solutions: Whether your business is payments, treasury, trade or securities;

SWIFT for Investment Managers

SWIFT for Investment Managers

2 SWIFT’s value proposition for

Improve risk control

Improve your bottom line

Gain competitive advantage

+ Improve op erational control Automation enables you to focus on exception processing.

A benefit of automation is facilitated management of internal

= Increased operational efficiency

SWIFT for Investment Managers

Gain competitive advantage

“Before we had SWIFT, we had proprietary terminals all over

Improve scalability By automating your business processing environment, through

With SWIFT you can communicate with all your counterparties

= Reduced cost and time to market

SWIFT for Investment Managers

Gain competitive advantage

“If we were to report everything over fax, we would probably

Increase service monitoring An increase in the automation of your processing environment

+ Reduce errors and An automated environment reduces the risk of manual

You will be in a better position to provide problem resolution to

= Improved customer service

SWIFT for Investment Managers

Improve risk control

“Without SWIFT, we would certainly need to double the

+ Assured communication By using SWIFT as a communication channel, you are assured